These "incentive" programmes are really not worth it. They are aimed at business travellers who buy tickets with their employers money. The availability is definitely lower and the introduction of charges and "fees" to utilise the "free" flights, means they are no longer free but simply discounted. The psychological effect is much the same as the supermarket offers of buy 1, get 1 free. The airlines rely on customers who feel they are getting something for nothing at the time of purchase, which incentivises them to buy; but by the time they come to redeem, the barriers are so high that they often can't utilise them. The customer then simply writes it off as something they didn't pay for anyway.
The goal of a frequent flyer programme is to try and distort normal consumer behaviour. The concept in essense is this. If AA and Delta offer flights from NY to LA, the frequent flyer will not necessarily take the lowest fare, but will choose the carrier which offers their incentive. The reason is that the fare difference is paid by the employer, not the traveller. This interferes with normal market forces.
The best way is to simply buy the lowest price ticket consistent with the standard of service you require and forget frequent flyer. Overall, you will spend less even without the "free" tickets.
Last edited by jimworcs; Jan 20, 2010 at 7:30 AM.
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