Hey who needs it? Some studies say it's destroying value for consumers. Here's one
Now everyone can pile on and tell me why it's not true.
What this article is saying is how does a retailer increase profits by getting repeat customers. Southwest certainly was smart as there is no first class to worry about upgrades and for $12 you can get on to get the overhead( of course you don't pay to check bags) so going to dollars made sense and wouldn't anger many people . Since Delta is going in this direction I would be surprised is United and AA don't follow. The airlines tied themselves up with other vendors by allowing points to be earned for credit cards and other stuff so that total miles became inflated. Its interesting that some retailers like Jockey just give you a dollar off strategy once you have exceeded a certain spending level. Hotels seem to be following where the airlines were a few years ago give points for everything then cheapen the value which of course can anger customers. I suspect over next few years the hotels will refocus their programs to go after high rates to earn points and off times to use them
The key statement within the article: "Notably, this trend appears to vary by sector, with loyalty focus having a positive impact on hotel growth, but negative impact on airlines, car rentals, and food retail, for example."
I find it more interesting that the hotel loyalty program referenced to support the key statement was Starwood, not Marriott. Does that say anything?