I am not understanding the mechanism here, could someone explain it please?
A consumer buys an air ticket. The airline makes a loss on this (or not much profit). That same consumer now has air miles on a frequent flyer card/account that they can use for perks. How does the airline make money subsequently? Does it require that the consumer used a credit card (instead of a debit card) to buy the ticket? Or does it require that the consumer uses the air miles in a specific way?
These are not clear to me. Perhaps from some combination of me (1) living in UK not USA, (2) using a debit card, not a credit card and (3) having only ever ‘used’ frequent flyer cards as a tiebreak where the airline has overbooked and needs to give someone a free upgrade, and as the cardholder I am first in that queue.
Onboard the flight and while ordering the ticket, the airline will try to sell you their branded credit card. If you take the deal and use the credit card, they give you a bunch of miles, and they get a cut of every purchase you make.
I am not understanding the mechanism here, could someone explain it please?
A consumer buys an air ticket. The airline makes a loss on this (or not much profit). That same consumer now has air miles on a frequent flyer card/account that they can use for perks. How does the airline make money subsequently? Does it require that the consumer used a credit card (instead of a debit card) to buy the ticket? Or does it require that the consumer uses the air miles in a specific way?
These are not clear to me. Perhaps from some combination of me (1) living in UK not USA, (2) using a debit card, not a credit card and (3) having only ever ‘used’ frequent flyer cards as a tiebreak where the airline has overbooked and needs to give someone a free upgrade, and as the cardholder I am first in that queue.
Onboard the flight and while ordering the ticket, the airline will try to sell you their branded credit card. If you take the deal and use the credit card, they give you a bunch of miles, and they get a cut of every purchase you make.