Word: frequent
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Dates: during 1980-1989
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...West Palm Beach, Fla.: "We have people who will change in Atlanta and accept a layover when they used to fuss. It's just to build up mileage." Passengers go out of their way to stay on the same carrier whenever possible. That is the main benefit that frequent-flyer clubs offer to the airlines. Says John Pincavage, an airline analyst at the Paine Webber investment firm: "The | frequent-flyer plan is the only marketing program that has ensured brand loyalty...
...drawback is that passengers with free tickets can take seats away from paying customers. Most frequent flyers are business travelers who earn their mileage points going to such relatively unpopular destinations as Boise and Buffalo. When the time comes to redeem their bonuses, they go to Hawaii, Florida or the Caribbean. Some analysts estimate that up to 33% of the seats on some airlines' popular routes are taken by passengers who are flying free...
...keep their choice flights open to more paying passengers, many carriers encourage frequent flyers to use their travel bonuses during off-peak periods. An unrestricted Eastern or Continental round-trip ticket to Hawaii normally costs 50,000 miles. During off-peak seasons in the fall and late spring, the same trip can be had for 30,000 miles. At American, travelers can fly economy class to Europe for 90,000 miles. But off-peak the same trip costs 60,000 miles...
...effort to keep their profits from plunging, more and more airlines are beginning to restrict the terms of their frequent-flyer plans. Several carriers now "black out" certain periods, such as Christmas and Thanksgiving weeks, during which passengers cannot fly free. Last year Pan American blacked out 70 days. Several airlines limit the amount of space on a plane that is available to frequent flyers. Such restrictions are risky, though, since they could destroy the goodwill and brand loyalty that the frequent-flyer plans have inspired...
...United, American, Delta, Continental, Northwest and USAir last week announced fare hikes of between $5 and $20 on most flights. Says an analyst: "This is only the first in a series of fare , increases. The airlines are going to nickel and dime customers until they offset the costs of frequent-flyer programs...