"Enabling customers to pay for what they're going to consume" is a really crafty way of saying "forcing customers to pay for things that were once free".
@shobhittodi9540 if that was true, then full-service carriers wouldn't charge more than budget carriers for the same flight, but they do. They include ancillaries in the price of the ticket and then charge you for it on top because you'll pay it. The US is the only country where deregulation is really applicable at all. Just about every other country on the planet had and still has a national carrier that is expected to charge fair rates, and let's be clear that even without deregulation, the price of flights was coming down as fuel efficiency and the size of aircraft increased. You're also not counting all the additional costs. A lot of airlines went bankrupt in the new system, leading to greater market consolidation and higher prices for niche markets. All those stupid miles increased the cost of everything by tacking a 2.5% fee on everything you buy. Airline computer systems haven't been upgraded in decades, leading to countless computer meltdowns, causing delays and cancellations, and additional costs on passengers. That's just three costs off the top of my head. Those boots tasting particularly good today, or is it just a reflex at this point?
I love that your team got these older gentlemen who worked at these airlines as young men to sit for interviews. It adds both credibility and dignity to the production.
100% agree. Currently almost all the airlines have pulled planes out of circulation and parked them in the desert. Fewer flights and lousy schedules and much longer transit/layover times. Consolidation defenitely is bad for the consumer.
The difference was in the quality of service you received. Today, although there is a lot of competition planes are cramped and everything is an added cost. Obviously that links directly to falling profit margins of airlines through deregulation of the flight paths and subsequent competition. Competition, although it leads to a reduction of costs, doesn't translate to an improvement in quality, quite the opposite, cost cutting erodes quality of the product. Before you mention improved safety, I would argue that is an external factor with improvement in development of air travel technology as a whole and intense government regulation and scrutiny.
@@nickjacobs2846 Majority of flyers decided that they value lower prices than better service. There were airliners that provided better service for higher prices but most flyers still chose the cheaper option.
As someone who works in the points and miles world as a full-time creator, loyalty programs have changed the game. There is so much competition that forces programs to be better. For example, while I prefer flying Delta to American and United, American has a better loyalty program by a mile. A dedicated award chart for award redemptions has allowed me to redeem 800,000 miles for more than $50,000 of long-haul, international business travel over the last 7 years.
@@shsd4130 I'm not familiar with the word shill. Had to google it. if you think I am on the bank's side LOL. I take every penny I can get with giving them nothing. I have more than 30 active credit cards, only pay fees on cards that provide me value, and take more have taken more than $100k of free travel from all the major banks
I don’t earn miles with US airlines because it’s primarily based off of how much you spend on your ticket vs how far you fly. I won’t even get the airlines CC because I don’t want another credit card bill. I earn my miles with foreign airlines at this point because I get more value for my money and get better redemptions for award flights 8:10 ok, then get rid of dynamic award pricing if you want people to use their miles. It’s that simple.
@ exactly. I’m trying to get status on Air Canada because they still have an award chart for mileage bookings and also due to the fact that I’d get 100% of the miles flown if I at least get a flex ticket in economy. Comfort and Latitude tickets are more expensive so Flex tickets are kind of similar to a regular United Economy ticket. Plus, once I get Star Alliance Gold status, I’d get United Club access on domestic United flights due to having status with Air Canada
1:15 - Did she retire several years ago? I feel like she flied us to Maui and announced it was her last flight, she was officially retired. I'd swear that was her, but I doubt it would be.
Airlines have indeed become banks. With status based on what one spends on their flights (using their FF CC) one no longer has to even step foot on a plane to gain elite status. The revenue airlines make from their deals with branded credit cards is in the hundreds of millions of dollars each year.
It sure seems to me that miles on an airline are nowhere near as valuable as they once were. Even status on an airline has been severely degraded. Too many people chasing too few premium seats so the bar keeps moving.
Right off the bat, in the first minute, there's just egregiously wrong statements. Yes, coach is not as nice as 60ies airtravel. It's also much cheaper. Also, literally every budget airline on earth thrives without a loyalty program.
tired of the whole "flying was better back then", you can have the same experience nowadays by buying a first class ticket, its the same price as back then adjusted for inflation
No they don’t, that’s not how it works. The rout you take depending on the available routes & slots that an airline has and whether you use your miles or not doesn’t matter. For example I can easily get a flight using my United miles from DC to Chicago nonstop because United has hubs in both cities. However if I’m trying to fly to Phoenix I can guarantee you that I will have a layover in either Chicago or Denver because United doesn’t have a rout for that city pair.
They should just require flights to actually cost the exact amount of fuel you're spending per weight. Everyone weights themselves before the flight and that's your ticket price. Maybe some of the American's will start to lose weight or we can get some trains in this country.
!!!I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $2m+ before retirement
As a newbie investor, it’s essential for you to have a mentor to keep you accountable. Kristine Lynn Weber is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Kristine Lynn Weber, for her expertise and exposure to different areas of the market.
I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work.. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
Without a doubt! Kristine Lynn Weber is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted on thorough research and years of practical experience.
how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
This past October, I paid for a trip for two to go from NYC to London for 10 days with just points. The flights (Virgin Atlantic/Delta) and hotel rooms - all paid for with points
Watch exclusive interviews with the creator of the first airline loyalty program and American Airlines VP of Revenue here: on.wsj.com/48Ktx8V
Didn't Wendover Productions do this video like three years ago?
The topic has been touched on ad naseum as these are publicly traded companies.
@@randomamerican8236yeah. It’s the airline industry equivalent of
“McDonald’s is a real estate company “
“Starbucks is a bank”
Etc
Eh I bought to upgrade to first before I was exe plat and now that I'm not i pay to upgrade 🤷♂️ it is cheaper to buy fyi...
"Enabling customers to pay for what they're going to consume" is a really crafty way of saying "forcing customers to pay for things that were once free".
Nothing is free. It was included in ticket prices. Airline tickets have became so cheap enabling hundreds of millions to fly which was once a luxury
@shobhittodi9540 if that was true, then full-service carriers wouldn't charge more than budget carriers for the same flight, but they do. They include ancillaries in the price of the ticket and then charge you for it on top because you'll pay it.
The US is the only country where deregulation is really applicable at all. Just about every other country on the planet had and still has a national carrier that is expected to charge fair rates, and let's be clear that even without deregulation, the price of flights was coming down as fuel efficiency and the size of aircraft increased.
You're also not counting all the additional costs. A lot of airlines went bankrupt in the new system, leading to greater market consolidation and higher prices for niche markets. All those stupid miles increased the cost of everything by tacking a 2.5% fee on everything you buy. Airline computer systems haven't been upgraded in decades, leading to countless computer meltdowns, causing delays and cancellations, and additional costs on passengers. That's just three costs off the top of my head.
Those boots tasting particularly good today, or is it just a reflex at this point?
I love that your team got these older gentlemen who worked at these airlines as young men to sit for interviews. It adds both credibility and dignity to the production.
✈Another great example of why competition benefits consumers and a consolidated market raises prices.
100% agree. Currently almost all the airlines have pulled planes out of circulation and parked them in the desert. Fewer flights and lousy schedules and much longer transit/layover times. Consolidation defenitely is bad for the consumer.
You couldn't afford to fly in the golden age of flight so stop complaining that it's not as good as it was in the past.
Exactly. Poor airlines now have to compete and make flying affordable for virtually everyone. The good old monopoly days.
EXACTLY. Back in the day, everybody paid for first class so that's what they got.
And if you could now for the same cost you can fly first class or better.
The difference was in the quality of service you received. Today, although there is a lot of competition planes are cramped and everything is an added cost. Obviously that links directly to falling profit margins of airlines through deregulation of the flight paths and subsequent competition. Competition, although it leads to a reduction of costs, doesn't translate to an improvement in quality, quite the opposite, cost cutting erodes quality of the product.
Before you mention improved safety, I would argue that is an external factor with improvement in development of air travel technology as a whole and intense government regulation and scrutiny.
@@nickjacobs2846 Majority of flyers decided that they value lower prices than better service. There were airliners that provided better service for higher prices but most flyers still chose the cheaper option.
As someone who works in the points and miles world as a full-time creator, loyalty programs have changed the game. There is so much competition that forces programs to be better.
For example, while I prefer flying Delta to American and United, American has a better loyalty program by a mile. A dedicated award chart for award redemptions has allowed me to redeem 800,000 miles for more than $50,000 of long-haul, international business travel over the last 7 years.
How much was spent to get those 800k points?
"works in the points and miles world as a full-time creator"
That's a lot of words to say "I shill banks"
@@shsd4130 I'm not familiar with the word shill. Had to google it. if you think I am on the bank's side LOL. I take every penny I can get with giving them nothing. I have more than 30 active credit cards, only pay fees on cards that provide me value, and take more have taken more than $100k of free travel from all the major banks
Fascinating info, really puts flying 🛫 in a new perspective!
I don’t earn miles with US airlines because it’s primarily based off of how much you spend on your ticket vs how far you fly. I won’t even get the airlines CC because I don’t want another credit card bill. I earn my miles with foreign airlines at this point because I get more value for my money and get better redemptions for award flights
8:10 ok, then get rid of dynamic award pricing if you want people to use their miles. It’s that simple.
Yup. Join foreign airlines' loyalty programs and put your domestic flights on them.
@ exactly. I’m trying to get status on Air Canada because they still have an award chart for mileage bookings and also due to the fact that I’d get 100% of the miles flown if I at least get a flex ticket in economy. Comfort and Latitude tickets are more expensive so Flex tickets are kind of similar to a regular United Economy ticket.
Plus, once I get Star Alliance Gold status, I’d get United Club access on domestic United flights due to having status with Air Canada
Wait, are airline miles basically becoming a cryptocurrency?
1:15 - Did she retire several years ago? I feel like she flied us to Maui and announced it was her last flight, she was officially retired. I'd swear that was her, but I doubt it would be.
0:15, How old is that picture???
Airlines have indeed become banks. With status based on what one spends on their flights (using their FF CC) one no longer has to even step foot on a plane to gain elite status. The revenue airlines make from their deals with branded credit cards is in the hundreds of millions of dollars each year.
Even I never traveled by airline 😢
Didn't CNBC do this already?
I use AMEX 🤷♂️
What's the name of the baddie at the end?
But you didn't exactly explain why 'Why Airline Loyalty Programs Are Valued Higher Than Airlines Themselves'
It sure seems to me that miles on an airline are nowhere near as valuable as they once were. Even status on an airline has been severely degraded. Too many people chasing too few premium seats so the bar keeps moving.
Metallica:Nothing Else Matters (Piano cover).Gamazda
Right off the bat, in the first minute, there's just egregiously wrong statements. Yes, coach is not as nice as 60ies airtravel. It's also much cheaper. Also, literally every budget airline on earth thrives without a loyalty program.
tired of the whole "flying was better back then", you can have the same experience nowadays by buying a first class ticket, its the same price as back then adjusted for inflation
Wendover Productions made this exact video 2 years ago, titled “How Airlines Quietly Became Banks” it has over 6 million views. Just saying lol
7:21in other words, we charge you for things that should have been free
A plane ticket with ‘free baggage’ was 300$ back then. Now it’s 100$ ticket + 200$ paid luggage
Lol miles tickets have you bouncing around the country for 8 hrs just to go from SNA - LAS.
No they don’t, that’s not how it works. The rout you take depending on the available routes & slots that an airline has and whether you use your miles or not doesn’t matter. For example I can easily get a flight using my United miles from DC to Chicago nonstop because United has hubs in both cities. However if I’m trying to fly to Phoenix I can guarantee you that I will have a layover in either Chicago or Denver because United doesn’t have a rout for that city pair.
Yeah but the loyalty program is worth 0 if the airline didn’t exist. People want miles. So in essence, this is fake news.
They should just require flights to actually cost the exact amount of fuel you're spending per weight. Everyone weights themselves before the flight and that's your ticket price. Maybe some of the American's will start to lose weight or we can get some trains in this country.
What an interestingly fascinating idea.
!!!I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $2m+ before retirement
As a newbie investor, it’s essential for you to have a mentor to keep you accountable.
Kristine Lynn Weber is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Kristine Lynn Weber, for her expertise and exposure to different areas of the market.
I don't really blame people who panic. Lack of
information can be a big hurdle. I've been
making more than $200k passively by just
investing through an advisor, and I don't have
to do much work.. Inflation or no inflation, my
finances remain secure. So I really don't blame
people who panic.
Without a doubt! Kristine Lynn Weber is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted on thorough research and years of practical experience.
how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?
Summary pls
Watch pls.
This past October, I paid for a trip for two to go from NYC to London for 10 days with just points. The flights (Virgin Atlantic/Delta) and hotel rooms - all paid for with points