Comments on: Understanding Frequent Flyer Miles as a Proprietary Currency With No Central Bank, or What Unannounced Changes to Expect From Your Favorite Frequent Flyer Program? http://boardingarea.com/blogs/viewfromthewing/2008/06/10/understanding-frequent-flyer-miles-as-a-proprietary-currency-with-no-central-bank-or-what-unannounced-changes-to-expect-from-your-favorite-frequent-flyer-program/ Putting a little thought into a lot of travel Sat, 11 Feb 2012 02:52:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Brad Ball http://boardingarea.com/blogs/viewfromthewing/2008/06/10/understanding-frequent-flyer-miles-as-a-proprietary-currency-with-no-central-bank-or-what-unannounced-changes-to-expect-from-your-favorite-frequent-flyer-program/comment-page-1/#comment-9340 Brad Ball Wed, 11 Jun 2008 13:44:23 +0000 http://boardingarea.com/blogs/viewfromthewing/2008/06/10/understanding-frequent-flyer-miles-as-a-proprietary-currency-with-no-central-bank-or-what-unannounced-changes-to-expect-from-your-favorite-frequent-flyer-program/#comment-9340 I concur with the challenges presented by frequent flyer currencies and the inability to translate the currency into a seat or other desired item. At LoyaltyMatch(yes I am the cofounder), we take this challenge seriously and are working to provide relief to frustrated FF members. Check us out at www.loyaltymatch.com and let us know if our solution is as Tim W at Smartertravel.com stated "the next big thing" to assist frequent flyer currency challenges? I concur with the challenges presented by frequent flyer currencies and the inability to translate the currency into a seat or other desired item.

At LoyaltyMatch(yes I am the cofounder), we take this challenge seriously and are working to provide relief to frustrated FF members.

Check us out at http://www.loyaltymatch.com and let us know if our solution is as Tim W at Smartertravel.com stated “the next big thing” to assist frequent flyer currency challenges?

]]> By: Ralf http://boardingarea.com/blogs/viewfromthewing/2008/06/10/understanding-frequent-flyer-miles-as-a-proprietary-currency-with-no-central-bank-or-what-unannounced-changes-to-expect-from-your-favorite-frequent-flyer-program/comment-page-1/#comment-9272 Ralf Tue, 10 Jun 2008 19:16:30 +0000 http://boardingarea.com/blogs/viewfromthewing/2008/06/10/understanding-frequent-flyer-miles-as-a-proprietary-currency-with-no-central-bank-or-what-unannounced-changes-to-expect-from-your-favorite-frequent-flyer-program/#comment-9272 British Airways actually severely decreased the number of miles earned on cheap economy tickets a couple of years ago. I would be interested in a few words about the hotel chain point/miles situation British Airways actually severely decreased the number of miles earned on cheap economy tickets a couple of years ago.

I would be interested in a few words about the hotel chain point/miles situation

]]> By: nsx http://boardingarea.com/blogs/viewfromthewing/2008/06/10/understanding-frequent-flyer-miles-as-a-proprietary-currency-with-no-central-bank-or-what-unannounced-changes-to-expect-from-your-favorite-frequent-flyer-program/comment-page-1/#comment-9258 nsx Tue, 10 Jun 2008 17:08:00 +0000 http://boardingarea.com/blogs/viewfromthewing/2008/06/10/understanding-frequent-flyer-miles-as-a-proprietary-currency-with-no-central-bank-or-what-unannounced-changes-to-expect-from-your-favorite-frequent-flyer-program/#comment-9258 >As long as the airlines are shrinking capacity, and unless the number of miles being awarded correspondingly contracts (hardly likely), we have to see an increase in the scarcity or price of awards. I think it's quite likely that the number of miles being earned will decrease. As miles become worth less, people won't "purchase" as many through credit card use. Actual flight miles will decrease with capacity cutbacks. But award prices could still increase or availability could decrease even as the total amount of miles earned decreases slightly. People are definitely looking to unload their miles these days, if for no other reason that to avoid paying $600 for a domestic round trip. Southwest Airlines allows you to restore an expired round trip award for a $50 fee. It seems to me that intentionally allowing an award to expire with the intent of paying $50 to use it in a future year would be an excellent way to insure yourself against fare increases. Except that the $50 fee could increase or the option could be eliminated. >As long as the airlines are shrinking capacity, and unless the number of miles being awarded correspondingly contracts (hardly likely), we have to see an increase in the scarcity or price of awards.

I think it’s quite likely that the number of miles being earned will decrease. As miles become worth less, people won’t “purchase” as many through credit card use. Actual flight miles will decrease with capacity cutbacks.

But award prices could still increase or availability could decrease even as the total amount of miles earned decreases slightly. People are definitely looking to unload their miles these days, if for no other reason that to avoid paying $600 for a domestic round trip.

Southwest Airlines allows you to restore an expired round trip award for a $50 fee. It seems to me that intentionally allowing an award to expire with the intent of paying $50 to use it in a future year would be an excellent way to insure yourself against fare increases. Except that the $50 fee could increase or the option could be eliminated.

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