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Why Won’t Airlines Increase the Value of Points to Win More Business? – Viral Trends

Why Won’t Airlines Increase the Value of Points to Win More Business?




In this morning’s American Airlines earnings call one airline analyst asked, “Why not offer consumers a fair rate [for sale of miles]?” He was seeing some of the high prices charged for miles, and couldn’t imagine anyone taking advantage of those offers. In fact American does sell miles for a lot less than they used to, very regularly. This wasn’t mentioned in response.

Instead the airline talked about the loyalty program’s contribution to the business. But the underlying question really was, why not sacrifice margin for revenue growth?

Continue reading Why Won’t Airlines Increase the Value of Points to Win More Business?…



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