Recent content by amcbean

Thanks for the reply. I was trying to understand the programme from a different calculation. How do the airlines and other reward providers afford to give away rewards ? i.e. how can they value a reward item be it 20000 points for a return trip to Armidale or 40000 points for a new kitchen...

I apologise for the simplicity of this question but can someone please explain in detail how a frequent flyer / loyalty programme actually works ? I recognise that the greater acceptance of cards creates more spending and therefore more incentive (profit) to subsidise rewards. But how does it...