The Economics of Airlines’ Mileage Addiction
July 27th, 2009 admin
This short Business Week piece discusses the importance of frequent flyer miles to airlines — selling billions of dollars in miles, using miles to good moribund bookings and launch new routes — and includes a couple of interesting statistics. I’m sure I’ve mentioned in the past, though flying accounts for a plurality of mileage earning (base miles at least, not counting bonuses) it no longer accounts for a majority of mileage earning. Credit card spend represents about 20% of earned mileage.
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I posted my 2009 travel year in review in December, and mentioned that this was the “richest” year for me yet as far as miles and points go. The “game” really changed for me in the second half of the year, as I extended my hobby beyond just earning miles through flying, but also through basically any promotions I can take...
Last month I posted about a new offer of 30,000 bonus miles for signing up for a British Airways co-branded visa from Chase. The card has a $75 annual fee. Effective November 4, the card will earn 25% more miles : 1.25 miles per dollar on regular spend, and 2.5 miles per dollar on spending with British Airways. Now, to me the card is really just...
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Earning points towards elite status via credit card spend is mostly a US phenomenon. But the practice is spreading. The Global Traveller reports that you can get halfway towards your Air New Zealand status with their Global Plus co-branded credit card.
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I’m finishing up my travels pretty early this year. Unless something comes up last minute, I doubt I’ll be flying anywhere till January. Nonetheless it has been one heck of a year. In terms of travel it has been my busiest yet. If my math is right I flew around 256,000 “butt in seat” miles and about 220 segments this year....
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