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We could argue about the monetary value of points, but I don’t think we would get anywhere. Instead I’d rather focus on human nature and induced behaviour. Wh
by amrocha 1y ago
We could argue about the monetary value of points, but I don’t think we would get anywhere.
Instead I’d rather focus on human nature and induced behaviour.
When mcdonald's offers 2 burgers for the price of one, they make money because people who wouldn’t normally eat at mcdonald’s show up.
When airlines offer points, they make money because people who normally wouldn’t book flights end up booking them. Even if the points are a good deal, you end up spending more money than you normally would because you’re enticed by the points.
- ghaff 1y agoThe incentive is right in the term loyalty points. Tending to stick with one airline, if you travel a lot, has all sorts of status and rewards incentives. Which you can augment with things like branded credit cards, etc.
- amrocha 1y agoSure, if you value those things then by all means, but it’s strictly speaking a poor financial decision
- ghaff 1y agoFor people who travel by air a lot, even things that make that travel even marginally more comfortable are worth it.
- amrocha 1y agoNot really. I fly a lot. Lounges are entirely superfluous. Business class is overkill when premium economy exists. Boarding early is silly, the plane takes off at the same time. People just like feeling like they’re special, and they think points are a cheaper way of getting special treatment. In practice they’re not tough.