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I've never understood why airline miles follow each individual person rather than the company that's paying for the weekly business class seats. Seems like the
by pkamb 11y ago
I've never understood why airline miles follow each individual person rather than the company that's paying for the weekly business class seats.
Seems like the Senior Manager who just joined the firm should be bumped up to first class in front of the Junior Consultant that's been flying out weekly for a year.
- _delirium 11y agoThey're designed as incentives for individuals, because at most companies individuals have a significant degree of leeway in booking flights. You might have to book through the corporate travel agent, but typically you can still choose that you want flight X instead of Y. So United (or whoever) giving the specific individual status/perks is designed to encourage them to keep choosing United tickets, even when sometimes a competitor might have a better or cheaper route. It'd be possible to design a loyalty program aimed at entire companies, and there's a little bit of movement in that direction, especially targeting small and medium-sized businesses (e.g. United PerksPlus). The goal of those would be to encourage the whole company to standardize on one airline. Big companies tend not to want to do that, because their travel needs are too varied for it to make sense to require all their employees to use one airline. So the main target of the programs is the corporate traveler who is being reimbursed for travel: they have a choice in their travel arrangements (within reason), and since they're spending someone else's money, they're also relatively price-insensitive, which makes them especially lucrative. Hotel loyalty programs work similarly.