March 28, 2004

Frequent Flyer Programs Now More Enticing

IndyStar.com

Gary Steiger, an avid traveler and admitted cheapskate, has been scanning come-ons for free airline travel for a long time, and he can't believe his eyes.

Free air miles for opening a bank or brokerage account. Earn 10,000 miles to sign up with a long-distance phone company for six months. Gift cards that let homeowners earn miles on their mortgage payments.

"We're seeing more offers out there," said Steiger, a retired high school teacher in Ross, Calif., who tracks the offers for a frequent-fliers Web site. "Airlines are realizing that selling miles to businesses who resell them to their customers is one of the few profit centers airlines have."

Traditional airlines like American and Delta have a new attitude about promotional deals after losing passengers the past few years to low-fare competitors such as Southwest, JetBlue and AirTran. The big carriers now are offering free trips and sweetening the frequent-flier programs that they view as a key advantage over their low-cost rivals.

Posted by Timothy Fredel at March 28, 2004 02:50 PM | TrackBack
Related Categories: Industry - Travel | Quadrant - Economic



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