5 ms·

I have never spent a loyalty point in my life. Am I a sucker, or am I a smart consumer who has thrown off the shackles that the marketing department has tried t

I have never spent a loyalty point in my life. Am I a sucker, or am I a smart consumer who has thrown off the shackles that the marketing department has tried to put on me?

gruez 6y ago
If you're not a frequent flyer you're probably not missing out on much, insofar as points collected via flying. However, if you're not taking advantage of credit card sign up offers that give you travel rewards (aka. churning), you are missing out on hundreds of dollars of free travel per year.
- joncrane 6y ago
  I think it depends on how each person values their time, and how much they like/hate keeping up with that kind of stuff. I can confidently say that I'd come out ahead by working (billing to a client) the time I would otherwise spend wrangling all my rewards programs, but not everybody has the option to just work another hour whenever they want. Also I'm much better at my job than I am at wrangling rewards points so I generally get more satisfaction from it.
- fredophile 6y ago
  I wouldn't be so quick to suggest people should be churning credit cards. There are some great values there if you are detail oriented and keep on top of things. However, it is hard to come up with an objective value for points and a simple mistake or two can wipe out any gains you would have made. There is a reason banks continue to offer high sign up bonuses.
jacquesm 6y ago
Same here. Never collected one either. Complete nonsense these programs, I like the ability to vote with my wallet and a loyalty program would be friction on the way to do doing that.
- thotsBgone 6y ago
  You are strategizing around your own irrationality.
- ulfw 6y ago
  Your life isn’t everyone else’s life. Just because you don’t see value doesn’t mean others don’t. I’ve saved thousands using credit card miles, flight and hotel miles and other earned miles for business class flights.
  - jacquesm 6y ago
    I'd rather spend the time I would have spent on loyalty programs on something more fun and/or lucrative.
    - deleted 6y ago
      [deleted]
- lotsofpulp 6y ago
  How is it a friction? You don’t need to do anything extra to accrue the points. Then, when you search for a flight or hotel, you select the option to see if you can get it for free with points. If not, you proceed to the cheapest option that works for you. They already have all of your identifying information, so you’re not even giving up any privacy. If anything, by not playing the game, you’re subsidizing those who do (since the time cost of playing the game is so low - clicking a button on a website). Same situation with paying with cash back credit cards in the US, at least for online purchases.
  - jacquesm 6y ago
    It would be friction for me to decide to move to a competitor.
    - lotsofpulp 6y ago
      What is the friction? If competitor is cheaper, you click on competitor’s buttons.
namdnay 6y ago
Well if you've accrued but not spent, we can say that you helped to save the airline industry :)
joshuaheard 6y ago
I have a Delta Amex. I use it to buy everything. I haven't paid for a plane flight in 10 years, and I take my family on vacation every year.
- sgc 6y ago
  It's all about percentages. I used to do the FF mileage cards, but my Costco cash back winds up a (much) better deal for us. If our spending changes I will reevaluate strategy again.
deleted 6y ago
[deleted]
Anechoic 6y ago
If you travel a lot already (say, for work), loyalty programs can provide worthwhile perks. I had a 10-day vacation in Japan a couple of years ago, complete with first-class flights and luxury hotel stays and only paid ~$500 out of pocket (and $300 of that was for a Japan Rail pass). The rest was paid for out of a combination of airlines mies (three different FF programs) and hotel points (2 chains). If you don't travel a lot, it's probably not worth it, but if you're already going through the motions, why wouldn't you?
dylan604 6y ago
If you're hoping to book a flight round-trip with those points, you'll probably never get what you want with all of their restrictions. The best use of miles I have ever spent was upgrades where I pay the base price of the ticket out of pocket, and then use points to upgrade to better seat.
ufmace 6y ago
I see them as price segmentation on free time. If you have enough free time to keep track of the whole loyalty points system and game frequent flyer points, you can save a few bucks. If you'd rather not bother, you'll spend a little bit more. Personally, I'm fine with spending a few more bucks for trips I actually want to make in exchange for ignoring all of these schemes. I also think that these systems, in addition to most retail sales etc, are created to appeal to a segment of the population that only really buys when they feel like they got some kind of special deal.
ulfw 6y ago
You’re a sucker. Credit card fees get paid by you no matter if you earn 5 miles per USD or you decide not to. They add up quickly to a nice business class flight (redemption on Econ isn’t worth it).
- lotsofpulp 6y ago
  Cash back credit cards are far better for 99% of people than airline miles.
  - deleted 6y ago
    [deleted]

I have never spent a loyalty point in my life. Am I a sucker, or am I a smart consumer who has thrown off the shackles that the marketing department has tried to put on me?

gruez 6y ago

If you're not a frequent flyer you're probably not missing out on much, insofar as points collected via flying. However, if you're not taking advantage of credit card sign up offers that give you travel rewards (aka. churning), you are missing out on hundreds of dollars of free travel per year.

joncrane 6y ago
I think it depends on how each person values their time, and how much they like/hate keeping up with that kind of stuff. I can confidently say that I'd come out ahead by working (billing to a client) the time I would otherwise spend wrangling all my rewards programs, but not everybody has the option to just work another hour whenever they want. Also I'm much better at my job than I am at wrangling rewards points so I generally get more satisfaction from it.
fredophile 6y ago
I wouldn't be so quick to suggest people should be churning credit cards. There are some great values there if you are detail oriented and keep on top of things. However, it is hard to come up with an objective value for points and a simple mistake or two can wipe out any gains you would have made. There is a reason banks continue to offer high sign up bonuses.

jacquesm 6y ago

Same here. Never collected one either. Complete nonsense these programs, I like the ability to vote with my wallet and a loyalty program would be friction on the way to do doing that.

thotsBgone 6y ago
You are strategizing around your own irrationality.
ulfw 6y ago
Your life isn’t everyone else’s life. Just because you don’t see value doesn’t mean others don’t. I’ve saved thousands using credit card miles, flight and hotel miles and other earned miles for business class flights.
- jacquesm 6y ago
  I'd rather spend the time I would have spent on loyalty programs on something more fun and/or lucrative.
  - deleted 6y ago
    [deleted]
lotsofpulp 6y ago
How is it a friction? You don’t need to do anything extra to accrue the points. Then, when you search for a flight or hotel, you select the option to see if you can get it for free with points. If not, you proceed to the cheapest option that works for you. They already have all of your identifying information, so you’re not even giving up any privacy. If anything, by not playing the game, you’re subsidizing those who do (since the time cost of playing the game is so low - clicking a button on a website). Same situation with paying with cash back credit cards in the US, at least for online purchases.
- jacquesm 6y ago
  It would be friction for me to decide to move to a competitor.
  - lotsofpulp 6y ago
    What is the friction? If competitor is cheaper, you click on competitor’s buttons.

namdnay 6y ago

Well if you've accrued but not spent, we can say that you helped to save the airline industry :)

joshuaheard 6y ago

I have a Delta Amex. I use it to buy everything. I haven't paid for a plane flight in 10 years, and I take my family on vacation every year.

sgc 6y ago
It's all about percentages. I used to do the FF mileage cards, but my Costco cash back winds up a (much) better deal for us. If our spending changes I will reevaluate strategy again.

deleted 6y ago

[deleted]

Anechoic 6y ago

If you travel a lot already (say, for work), loyalty programs can provide worthwhile perks. I had a 10-day vacation in Japan a couple of years ago, complete with first-class flights and luxury hotel stays and only paid ~$500 out of pocket (and $300 of that was for a Japan Rail pass). The rest was paid for out of a combination of airlines mies (three different FF programs) and hotel points (2 chains). If you don't travel a lot, it's probably not worth it, but if you're already going through the motions, why wouldn't you?

dylan604 6y ago

If you're hoping to book a flight round-trip with those points, you'll probably never get what you want with all of their restrictions. The best use of miles I have ever spent was upgrades where I pay the base price of the ticket out of pocket, and then use points to upgrade to better seat.

ufmace 6y ago

I see them as price segmentation on free time. If you have enough free time to keep track of the whole loyalty points system and game frequent flyer points, you can save a few bucks. If you'd rather not bother, you'll spend a little bit more. Personally, I'm fine with spending a few more bucks for trips I actually want to make in exchange for ignoring all of these schemes. I also think that these systems, in addition to most retail sales etc, are created to appeal to a segment of the population that only really buys when they feel like they got some kind of special deal.

ulfw 6y ago

You’re a sucker. Credit card fees get paid by you no matter if you earn 5 miles per USD or you decide not to. They add up quickly to a nice business class flight (redemption on Econ isn’t worth it).

lotsofpulp 6y ago
Cash back credit cards are far better for 99% of people than airline miles.
- deleted 6y ago
  [deleted]