I Wonder If......

[TiredOldFlyer]

I Wonder If......
When travel Internationally becomes freely available will Airlines increase redemption value. I think that many are still accumulating points and will
be desperate for overseas travel. It will then become a supply and demand position. I am synical enough to assume that Airlines, and other travel operators, will take advantage.
Unfair or Modern Business Practice ?

 

[daft009]

i think its business practise and fair.
most barely have a business right now

 

[MEL_Traveller]

I Wonder If......
When travel Internationally becomes freely available will Airlines increase redemption value. I think that many are still accumulating points and will
be desperate for overseas travel. It will then become a supply and demand position. I am synical enough to assume that Airlines, and other travel operators, will take advantage.
Unfair or Modern Business Practice ?

Two opposing arguments here.

Airline may like to increase the number of points as they will argue demand is high, fares are up, and the number of points should reflect that. It also gives them more income as the airline FF program 'pays' for the seat, albeit at a nominal cost of whatever the point is sold for.

Countering that, award seats are seats the airline doesn't believe it can sell anyway. Why would they even make awards available if they could sell them at the higher price? If it is a seat that would otherwise be empty, they might be happy to get the current income from those seats, at current award levels.

 

[Dr Ralph]

Risky strategy by the airlines.

Many people may be getting used to not flying for both business and leisure. You want to be encouraging them to fly, not reinforcing that they don't necessarily have to return to flying again.

 

[Matt_01]

Countering that, award seats are seats the airline doesn't believe it can sell anyway. Why would they even make awards available if they could sell them at the higher price? If it is a seat that would otherwise be empty, they might be happy to get the current income from those seats, at current award levels.

Out of curiosity is releasing seat rewards by class influenced by program membership i.e *A, OW or ST and other partner agreements. Also if using QF points to redeem, say, CX J does QF have to pay CX money or is it some type of reciprocal arrangement that is trued up/down on an agreed basis. I have often wondered why some carriers have better reward availability than others.

 

[MEL_Traveller]

Out of curiosity is releasing seat rewards by class influenced by program membership i.e *A, OW or ST and other partner agreements. Also if using QF points to redeem, say, CX J does QF have to pay CX money or is it some type of reciprocal arrangement that is trued up/down on an agreed basis. I have often wondered why some carriers have better reward availability than others.

Apparently there's a bit of 'netting off' that takes place: How Do Airlines Compensate Each Other For Taking Passengers During Irregular Operations? - View from the Wing

Perhaps part of the reason why award space may not be equal among carriers is if some airlines have a bigger debit rather than credit?

 

[Matt_01]

@MEL_Traveller the link provides some information but it seems to focused on irrops. Reaching out to @trippin_the_rift are you able to provide any insight on how rewards are released and charged between airlines?