Friday, August 13, 2010

I Don't Get It (Frequent Flyer Programs)

At this point in the game, I'm having a hard time understanding many US airline's frequent flyer programs. I mean, it used to be that you earned "miles" that were redeemable for free upgrades and free flights. Some airlines allowed you to spend points on retail items (hell, I once bought Donna an iPod and Bose docking station with UAL miles). Many airlines off credit cards and other partner programs to allow you to earn "mile"s. Unfortunately, particularly in recent years, the airlines have been doing things to make such miles absolutely useless.

Previously, they'd just periodically "adjusted the value" of your miles to make it so you had to redeem more miles to get upgrades or free travel. Not sure how this made sense to anything other than bean counters trying to punch up the bottom line and reduce outstanding liabilities. Over the years, airlines have been (mostly) lowering the pricing of tickets. This lowering of prices has happened in both in absolute terms (e.g., a given flight in 1990 might have been $1000 but the same flight in 2010 costs $400 [before fees]) and in relative terms ($1 had relatively greater buying power in 1990 than it does in 2010). Yet, it costs me more miles to get today's $400 (plus fees) flight than it did to get that $1000 flight in 1990.

While long, long ago, they started partner programs for point earnings, they've changed those, as well. It used to be a frequent flyer mile was a frequent flyer mile - whether earned through seat time or by renting a car or using a linked credit card (etc.). But, these programs were, apparently, too successful. So much so, that the airlines devalued the points earned through partner programs. Yeah, I might still be able to cash them in at the same rates as "real" miles to get free upgrades and flights, but they no longer count towards flight status.

Of late, the airlines have started charging you to use your miles. Want to use those hard-earned miles to take a trip? That will be $150, please. Want to transfer some miles to a friend who wants to take a trip, somewhere? That will be $300, please (dunno whether said friend then has to pay $150 to use those transfered miles, but, somehow, I suspect so).

One wonders why any business partners with airlines, any more. They assume the cost of a partnership program, but it seems like such partnership programs have no reasonable basis for bringing in new customers or retaining prior customers. I mean, why would I use a US Air (etc.) credit card to rent a car from a US Air-affiliated rental agency (etc.). That credit card isn't free, any more and doesn't have an attractive rate. The rental car company slides in a fee for earning points (they ain't giving you "outside" points for free and renting to earn airline points means you aren't earning rental status). So, in order to use that airline credit card with that affiliated rental company, I have to pay more in fees, interest, etc. than were I to use my non-affiliated card and not seek airline points and I have to sacrifice earning status with the rental company. Factor in the devaulation of the points, and the prospect of participating with airline partners creates a, "wow: what a bargain, (not)" situation.

The funny thing is, hotel programs, rental company programs, even stand-alone credit card programs have remained relatively stable. Points aren't broken into tiers based on how you earned them. Points values have stayed relatively the same over time.

Really, airline points programs are yet one more reason to send a big, hearty "FUCK YOU" to the airlines. Personally, I'd love to see every last one of the airlines go bankrupt. Every time I deal with an airline, it's like I'm being paid to be lied to. The points programs. The partner programs. And, oh my god, the ticketing (seriously: don't try to tell me that you're a low priced airline and advertise a $300 flight that, when I hit the purchase button, has become a $500 flight because of all the bullshit fees. Just tell me it's a $500 fucking flight and be done with it).

People used to ask me, when I was doing the travel-based job thing, "how can you stand to travel so much." What they usually meant was the "stuck in a metal tube" part. In truth, it was always a matter of liking being different places and challenges enough to outweigh the unpleasantness that is flying. It used to be enough to outweigh how much I detested dealing with airlines. Yeah, being stuck in a metal tube for hours at a time is inherently unpleasant. Yeah, dealing with the boobs that "make flying 'safe'" is an exercise in incredulity. But, by themselves, they aren't nearly as horrible as just dealing with the airlines.

At this point in the game, if there's any reasonable way to avoid flying, I do. I'd love nothing more than to see all the airlines go bankrupt and cease to operate. I'd love to see every last airline decision make broken and on the streets, asking for hand-outs. "Sure, buddy: have some miles".

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