Frequent Flyer Points and Promotions
Thread Starter
Frequent Flyer Points and Promotions
Over the last few months, many companies(Car rental, hotels, supermarkets etc) have been running promotions where they give you double frequent flyer points etc, or 100 points for buying this much etc etc.
How does this work, do the companies pay the airlines per point, or is it vica versa,
Any beancounter types out there who can explain?? Curiosity more than anything.
How does this work, do the companies pay the airlines per point, or is it vica versa,
Any beancounter types out there who can explain?? Curiosity more than anything.
Join Date: Oct 2000
Location: Oztralia, near MEL
Posts: 171
Likes: 0
Received 0 Likes
on
0 Posts
With the Fly Buys program the retailer joins the program and pays Fly Buys a percentage of each sale made when the purchaser uses their card. In return the retailer gets customer loyality.
Time passes and the customer build up enough points to fly. Fly Buys makes the ticket purchase from it's prefered airline as a part of a bulk buy, and so they get a cheap rate.
Who pays for all of this? Guess!!
The money all comes from the consumers pocket, and none of the businesses involved are going broke.
Time passes and the customer build up enough points to fly. Fly Buys makes the ticket purchase from it's prefered airline as a part of a bulk buy, and so they get a cheap rate.
Who pays for all of this? Guess!!
The money all comes from the consumers pocket, and none of the businesses involved are going broke.
Join Date: Jun 2002
Location: Say G'Day, Australia
Posts: 13
Likes: 0
Received 0 Likes
on
0 Posts
Awarding frequent flyer points can be very expensive. For instance, Qantas charge 3.5c per point.
For example, an Australian hotel will award 5 points per dollar spent on accommodation. You stay 1 night at $200/nt, thus are entitled to 1000 points. This costs the hotel $35.00 per room per night. Would you buy 1000 points for $35.00??!! Probably not.
From inside information, it is more than likely not a mistake that the last hotel you stayed at 'forgot' to process your points.
For example, an Australian hotel will award 5 points per dollar spent on accommodation. You stay 1 night at $200/nt, thus are entitled to 1000 points. This costs the hotel $35.00 per room per night. Would you buy 1000 points for $35.00??!! Probably not.
From inside information, it is more than likely not a mistake that the last hotel you stayed at 'forgot' to process your points.
