Frequent Fliers Cashing In Miles

[BoeingBoy]

Fliers quickly cash in US Airways rewards

By Dan Reed, USA TODAY
Struggling US Airways' frequent fliers last year flooded it with free-trip claims, a signal that its best customers view the No. 7 carrier's future dimly.

Free reward trips jumped 25% from 2003. It's by far the biggest rise among big U.S. airlines with well-established loyalty programs. The free trips accounted for about 8% of total mileage flown by US Airways' passengers.

Jim

 

[whlinder]

I assume that counts in load factor, no?

 

[longing4piedmont]

I assume that counts in load factor, no?

[post="270278"][/post]​

I believe it does. Maybe this is what Mr. Regards means when he says bookings for "x" month in the future is way up.

 

[jcooke]

Hahaha!!! Great pic!

It probably did have a significant effect on LF. Depending on how much people blew their hordes of miles could have an interesting effect on the availability of award seats.

-JC

 

[BoeingBoy]

To show my ignorance, I didn't realize till recently that LF wasn't a simple # of passengers divided by # of seats (averaged, of course, for all flights). Using that simple formula, I'd assume FF redemptions counted.

However, reported LF is revenue passenger miles divided by available seat miles. What I don't know is if FF redemptions count toward revenue passenger miles. Have to do a little digging and see what I can find out, though hopefully someone will know.

Jim

 

[usair_begins_with_u]

It's probably also supressing RASM, which could be good news... maybe the margins are better than we thought?

 

[TomBascom]

A 25% increase in the redemption rate to 8% is less than a 2% impact on LF...

Also keep in mind that, according to the fine people in management, a lot of the increase is attributed to star-alliance redemptions.

And another thing -- it would be very interesting to know how much of an increase they've seen in redeposit fees and how many reward trips have been booked but never flown.

 

[RowUnderDCA]

I don't know how this accounting works, but wouldn't a lower FFmiles liability still be better for U's future yields regardless of how they were 'expended?'

The other question is how many of the ff'ers zeroing out have any intention of flying U again. Then is this better or worse for U.

I for one still do not believe that U benefitted from all the goodies they dolled out to me as a lowly silver pref. I think I came out ahead.

 

[TomBascom]

... I think I came out ahead.

[post="270314"][/post]​

A customer who thinks he beat the airline! IMHO that's all the evidence that you need that it worked 😉

 

[rvolkcpa]

A 25% increase in the redemption rate to 8% is less than a 2% impact on LF...

Also keep in mind that, according to the fine people in management, a lot of the increase is attributed to star-alliance redemptions.

And another thing -- it would be very interesting to know how much of an increase they've seen in redeposit fees and how many reward trips have been booked but never flown.

[post="270297"][/post]​

I booked 2 award seats to attend a funeral in Florida last September. We didn't go because the hurricane worsened from the time I booked until the day of departure. I have debated for 8 months whether it was worth paying the redeposit fee if US Airways might not be around when I want to travel.

I'm more optimistic now with the pending HP merger announcement and will probably pay to redeposit both awards for future use.

I have earned a lot of miles in the past with my BankAmerica VISA card. I shifted most of my purchases to a Delta Skymiles AMEX card lately. I noticed on the America West website that they also offer a BankAmerica VISA. If the merger does take place, combining the credit cards should be extremely easy.

I hope the merger is beneficial to employees and customers of both airlines.

 

[RowUnderDCA]

A customer who thinks he beat the airline! IMHO that's all the evidence that you need that it worked 😉

[post="270318"][/post]​

lol.... exactly... I'm the perfect FF!


But seriously, if it weren't for the post 9/11 promotions, I never would have made sliver in the first place. One cheap ticket to BOS and one to MSY and I had super benefits for about three years.