Miles are good – but can you actually use them?
While many airline travelers eagerly participate in today's seemingly unlimited number of frequent-flier programs, there has been increasing frustration with them in recent years. “Indeed, on this 25th anniversary, we're hearing much hoopla praising frequent-flier programs as boons for the airlines as well. The truth, however, is much darker,†writes ABC News.
The programs have become so popular that customers look to earn miles anywhere they can. And, with miles now available for everything from mortgages to groceries, miles are piling up in frequent-flier accounts at an astonishing pace. U.S. frequent-fliers now have billions of miles stockpiled in the various programs. That not only creates a huge liability for airlines, but also a backlog of "free" reward seats when too many people try to redeem miles during peak periods. One of the top frequent-flier complaints is that it has becoming too difficult to redeem miles for a frequent-flier reward ticket –- if there are any reward travel seats available at all.
Tim Winship of frequentflier.com says "the astonishing thing is that while the earning side has gone through the roof, the award side has moved very little." In fact, he tells Knight Ridder Newspapers, " it has never been more difficult to redeem miles....The pressure on airlines now is to reduce free seats, as they are still operating in the red."
ABC News concludes: “So today we have a confusing dichotomy. The airline industry appears to be congratulating itself on a great idea it says has worked wonderfully. … But behind the false front of sweetness and light lurks a dark repository of billions and billions of unredeemed miles no airline executive really wants to talk about, or allow to be cashed in."
http://blogs.usatoday.com/sky/