> This isn’t about “only the rich get value”. It’s about the well informed.
It’s about people who can pay off the card every month not the rich. These cars charge high interest rates which can very quickly offset any benefit unless you have the resources to never use them as debt. Ie the capacity to have a ~months worth of spending in unused credit.
> You could never buy points as cheaply as Amex. For all intents and purposes, credit card users are collectively buying miles in bulk.
Many customers get discounts on ticket prices that don’t apply when using air miles. It’s another form of price discrimination designed to maximize profits not specifically a discount for bulk purchase.
“Awards are subject to capacity controls. Awards may require higher prices depending on routing rules and restrictions. Exceptions to these rules may require additional mileage or taxes and fees. Travel to all destinations within region may not be available at lowest price. …
Amex charge cards encourage you to pay off your balance every month.
But award bookings through partners have their own hoops. But I don’t have to “fly J to Bali” - a popular meme in r/awardtravel. I look for economy flights.
The flight I was talking about to see my parents is to an airport with only three commercial flights a day inbound and two outbound. All to and from Atlanta. So of course it is over priced
I don’t know about the airline you mentioned, but as an example of what I am referring to Delta offers Active Military members a discount on flights that simply isn’t going to show up for you. https://www.delta.com/us/en/special-circumstances/military-t...
That’s price discrimination which has nothing to do with bulk purchases. It’s simply another leaver they can optimize so most seats are used while they also maximize what they charge for those seats.
Saying it the ticket is worth X, when that’s literally the highest price they charge anyone is misleading.
I am referring to booking flights on Delta through KLM. Since the airport I’m referring to is a small regional airport in south GA with only two commercial inbound flights a day both on Delta, of course they are overpriced for a 50 minute flight.
I don’t have a choice if I want to fly to see my parents since that’s the only airline that services their airport.
But a more popular route I take is from Orlando (MCO) my current home to my former home Atlanta - a Delta hub. Those flights range from $100 to $175 one way. Again by booking Delta flights through Virgin (a UK airline) is 7500 points making the Amex points worth 2 cents each. If you want to fly direct to or from Atlanta, you’re going to fly Delta more than likely.
It’s not the same. The booking systems you are referring to are based on paying cash and have all of the airlines inventory available.
Delta offers two types of inventory - regular inventory and “award” inventory. Award inventory is only available to alliance partners, is very limited and you can only pay with points.
You can’t even buy the flight at that price with Delta Skymiles.
For instance, I can’t pay cash even if I wanted to and get a discounted price for the flight in question via KLM. I have to use points. Those prices aren’t available via online booking systems.
> The booking systems you are referring to are based on paying cash and have all of the airlines inventory available.
Every ticket goes through a booking system. Not every ticked goes through an online booking system.
> I can’t pay cash …
Again I agree, you don’t have the option. That doesn’t mean nobody can get discounts. KLM also offers a military discount etc.
Or just look at their fees, a classic case of price discrimination:
Cancel a ticket through the online refund request form USD 30
Change or cancel your ticket via phone reservations free
Change a ticket via an airport ticket office USD 25
It’s about people who can pay off the card every month not the rich. These cars charge high interest rates which can very quickly offset any benefit unless you have the resources to never use them as debt. Ie the capacity to have a ~months worth of spending in unused credit.
> You could never buy points as cheaply as Amex. For all intents and purposes, credit card users are collectively buying miles in bulk.
Many customers get discounts on ticket prices that don’t apply when using air miles. It’s another form of price discrimination designed to maximize profits not specifically a discount for bulk purchase.
“Awards are subject to capacity controls. Awards may require higher prices depending on routing rules and restrictions. Exceptions to these rules may require additional mileage or taxes and fees. Travel to all destinations within region may not be available at lowest price. …
Award seats may be limited and not available on all Delta Connection flights.” etc https://www.delta.com/us/en/skymiles/how-to-use-miles/travel...