Travel Rewards Programs Now: Too Many Points, Not Enough Seats
Published On Feb 28, 2025, 5:01 AM
The article discusses the changing dynamics of airline rewards programs, highlighting that it has become more challenging to earn meaningful travel rewards as airlines shift focus toward credit card partnerships. While airlines are increasing their profits through these alliances, they are also raising the number of points required for award flights, leading to a devaluation of miles. This is due to a larger issuance of points without a corresponding increase in available seats for redemption, making it harder for consumers to use their rewards effectively.
Stock Forecasts
DAL
Negative
The recent trends in airline loyalty programs indicate a potential negative impact on stocks related to airlines as devaluation of rewards may deter consumers from engaging with these programs, which can affect passenger loyalty and future profit margins.
AXP
Positive
As credit card partnerships solidify and airlines like Delta Air Lines continue to drive revenue through these collaborations, there may be opportunities for growth in financial institutions involved. The increase in spending on cards can benefit companies like American Express.
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