US government is looking into airline frequent-flyer programs

The Biden administration is looking into airline frequent-flyer programs and whether they devalue points that consumers have earned The Biden administration is examining the four largest U.S. airline frequent-flyer programs and how they devalue points that consumers have earned and frequently change the number of points or miles needed to book flights. Buttigieg said loyalty programs bring value to consumers, and people count on them to pay for vacations and trips to visit family. “But unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value,” he said in a statement issued by the Transportation Department. “Our goal is to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.” Delta said loyalty of members in its frequent-flyer program “means everything to us, and providing a meaningful rewards experience is the top priority within Delta’s SkyMiles Program.” Southwest highlighted that its points never expire, and said it books more seats with points than other airlines. Airlines for America, a trade group that represents all four carriers targeted by Buttigieg, said millions of people enjoy participating in the loyalty programs. carriers are transparent about these programs, and policymakers should ensure that consumers can continue to be offered these important benefits,” a spokesperson for the group said. The Transportation Department and the Consumer Financial Protection Bureau held a hearing in May on the airline programs, at which they raised many of the issued covered in Buttigieg’s letter to airline CEOs. One of the advocates who testified, Erin Witte of the Consumer Federation of America, said frequent-flyer programs started as a reward for consumers who were loyal to one airline. “It’s ironic that many of them have morphed into programs that are anything but loyal to their customers and instead make people feel like they need an insurance policy to keep the points they have earned,” Witte said Thursday. Buttigieg ordered the airlines to report within 90 days on matters including how point values are determined, any fees that consumers must pay, and details of deals with banks that buy miles from airlines and use them to encourage people to shop with their credit cards. The order asks airlines to list any changes in their programs since July 31, 2018, including how each change affected the dollar value of reward points. – This Summarize was created by Neural News AI (V1). Source: https://abcnews.go.com/Business/wireStory/us-government-airline-frequent-flyer-programs-113426536