Airline loyalty programs have shifted focus from rewarding frequent flyers to incentivizing high spenders, leading to more complex systems. As elite status and miles become connected to spending rather than flying, these programs have turned into vital revenue streams for airlines. With airline loyalty programs generating $32.2 billion in 2023, airlines are likened to banks, issuing a form of currency through points while maintaining control over their value. Strategic flyers can still navigate these programs effectively despite their pitfalls.
The free flights and elite status perks offered by airline loyalty programs are ultimately designed to do one thing: Get you to spend more money with the airline.
Thatâs because loyalty programs have become an important source of revenue for airlines, with top loyalty programs generating $32.2 billion in 2023.
Members of airline loyalty programs earn miles or points, which are then spent on award flights or other benefits; in many ways, they serve as a form of currency.
Airlines are kind of like banks or quasi-banks, issuing currency in the form of points and controlling how they can be spent.
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