Starting a blog in 2002 focused on travel tips quickly attracted an audience, leading to significant traffic growth. Each loyalty program has different values for points and miles. Valuable insights include valuing a Marriott point at 65 basis points and a Delta mile at one penny. The value of miles can be viewed as a private currency influenced by price levels and supply. Airlines manage their flights carefully to maintain capacity, ensuring miles are printed more than redeemed.
It's hard to know what, say, 100,000 miles is really worth when it comes to any given loyalty program. I have a close idea of the value of each currency.
You want to think about the value of miles as a private currency. There's no central bank, and it's going to be subject to a given price level.
The amount of money in the economy times velocity, or the speed at which it's spent, is going to be equivalent to the amount of goods in the economy and the price level.
Airlines have gotten quite good at what they call capacity discipline and not flying flights that aren't selling.
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