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Thread: Frequent Flyer Programs

  1. #1
    Uber Star Soi wanderer Thai Dreamer ผู้เพ้อฝัน Stillearly's Avatar
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    Frequent Flyer Programs

    LAST week, United Airlines announced a modification to its frequent-flyer programme, MileagePlus, that could change business travel as we know it. The shift is easy to understand: in the future, United will use the price of a ticket, rather than the distance flown, to calculate reward miles. That's not all: the more you spend, the more miles you'll get per dollar spent. This simple change has potentially huge consequences.

    United isn't the first to make this change. Delta Air Lines announced something similar earlier this year. But it seems that competitors are following Delta's lead, rather than striking back. The end of mileage-based frequent flyer programmes may be in sight.

    At issue is the fact that although most companies pay for business travel, employees generally get to keep the miles they earn. Longer flights are usually more expensive, of course, but few business travellers like to sit on a plane for any longer than necessary just to earn a few extra miles, so there isn't a big incentive to overpay. United's new policy changes that. Under this system, flyers will be tempted to pay as much as possible (after all, the company is footing the bill) in order to earn as many miles as they can. That's good for United. But in big companies, corporate travel managersóthe folks charged with keeping travel expenses lowówill be livid. United's new rules only make their jobs harder, and mean they have to keep a closer eye on trips booked with the carrier to make sure there's no funny business.

    It is a big change. The backlash hasn't quite crystalised yet, but if other airlines follow, an already-unpopular industry will have to hope that sentiment doesn't harden towards it even further.

    ( from the Economist )

  2. #2
    Organic AI Quarky's Avatar
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    Could this force plane ticket prices in general upwards?
    My only experience was in a pie making factory managing the gravy team


  3. #3
    Cadet
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    I use two frequent flier program been with ROP for at least 15 years used to ok to get us free flights to Hat Yai on a regular basis,other then that useless.
    Jet Airways frequent flier program is excellent,used miles to upgrade to business class BOM/BKK return many times no extra cost.They have also upgraded me business class LHR/BOM on 3 occasions no extra cost think that is because if you fly that sector a certain amount of times they reward you with an upgrade.
    I used to get a boiled sweet just before takeoff with Thai,no charge for the sweet and a free hot towel twice on the flight LHR/BKK other than that Thai whats the point of being a loyal customer with you.
    Just about to book our 12th flight in three years all have been with Thai,only accrue a few thousand miles because we are in economy with Jet get the full amount. Normally fly Jet Airways when traveling alone,the patriotic wife likes to fly Thai.
    Last edited by Nit Noi; 21st June 2014 at 18:19.

  4. #4
    Uber Star Soi wanderer Thai Dreamer ผู้เพ้อฝัน OZZYGUY's Avatar
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    I have the Qantas frequent flyer system. When I had my businesses we would purchase everything on credit card and get Qantas points. When I sold my business I had 3 million points. Perth to BKK is 130,000 points so I will be flying for free. The down side is I fly Qantas.

  5. #5
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    I actually e-mailed United about this, as it negatively impacts me and I have Gold Status (50,000 miles per year). For people that fly 100,000 miles on United, it might be positive, as the ratio works for 1k flyers and if you are flying 100,000 miles, I am going to make the assumption that most of the miles are business miles, so cost is less of an issue. This policy definitely skews against customers that do not fly often, or customers that book early to save money. Business travelers will still be impacted, but the occasional traveler is getting totally screwed.
    Quarky likes this.

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