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  1. A

    Loyalty Programmes

    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...
  2. A

    Loyalty Programmes

    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...
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