Tag Archives for frequent flyer.
Make the currency worth less, consumers chase it less at some margin. Reduced consumer interest is bad for the long run proposition of the currency, which is bad for the price of financial instruments derived from that currency. Now that airlines have issued upwards of $30 billion in debt backed by their loyalty programs, this is a new issue for them to manage.
We are losing the men (and back then, they were all men) who gave us the modern frequent flyer program. Last year Rolfe Schellenberger passed away. Now his boss Tom Plaskett has passed away as well. Plaskett was just 77.
My award booking partner Steve Belkin has a new book out, Mileage Maniac, which any frequent flyer or mileage junkie will get real enjoyment from.
A frequent flyer program database has been breached, giving hackers access to the name, account number, and elite level of all members in all Star Alliance frequent flyer programs, according to notices provided by Singapore Airlines, Lufthansa and Air New Zealand. oneworld account data has also been breached, according to notices provided by Cathay Pacific and Finnair.
Spirit outlined their new program in the fall but now there’s greater detail since the program has launched, specifically around the co-brand credit card and the value of points. And the program is enough of an improvement that it’s prompted me to join.
Lenders are putting up $5 billion against United’s MileagePlus. They have a huge interest in making sure the currency remains as attractive – or becomes even more attractive – to program members, to assure the revenue stream needed to pay back the loans.
Yet credit card companies have had ‘anti-devaluation’ clauses in their co-brand agreements for years and it hasn’t done any good. Here’s why.
Yesterday British Airways announced a change to its frequent flyer program purporting to preclude members from taking it to court or participating in any class action lawsuit.
However that would seem to run directly contrary to the express provisions of 14 CFR § 253.10. In other words, it appears that British Airways may be breaking the law.
Velocity Frequent Flyer built cash in a trust and if the program failed it would, in theory, pay out money to members for their accumulated miles. That’s great in theory except… that trust lent AU$200 million [US$129 million] to the airline. Whoops.
Virgin Australia’s Velocity Frequent Flyer program has suspended redemptions even though it is a separate company and not included in the administrative restructuring. The frequent flyer program had been spun off in 2014, but reacquired.
The program’s 10 million members apparently had been redeeming points for “gift cards, electronic goods, and wine,” according to the airline, while members weren’t redeeming for travel. There was a ‘run on the bank’ as members questioned the viability of the program with the airline in trouble.
There’s a great idea to dive into the frequent flyer hobby – from the craziest of schemes, to the oddball personalities, to the ethics – either as a movie or television short season. Many folks have tried it. I’ve sat down with several of them, given thoughts and interviews. It’s never quite come to fruition.
One has made it to the stage of a trailer for their documentary. Lots of familiar faces here.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
