Yes I agree, but I am just wondering, how much you have actually spent, to qualify for the free flight of which costs 10,000$?
I'm looking at, how CC encourages a person to spend more, from a subliminal point of view, although I will say, there is really no answer we can agree on, because I believe statistical information needs to be gathered to prove a point, which I am pretty sure, that the credit card companies have done their research, long before giving away 10,000$ Flights.
Although you pay off, the CC every month to avoid the charge, there would be a difference in your spending pattern and the guy next to you, what I mean is, your purchasing decision, is based on the credit card, to get the points, these are concious, purchases.
How many points must you have to qualify for a free flight?
So the points equate to a certain amount of money spent, at prices, which are not the cheapest, but the most alluring
The differences between targeted consumers is based on incomes I believe in the CC world, and the next step, would be, is to figure out how to increase the spending, and I am pretty sure, that if you wasn't spending enough, they probably wouldn't waiver the credit charges, why should they?
I mean I'm no expert in this area, but from a business point of view, you are a good customer if you are collecting points, you are spending in places, where the CC have made arrangements, to give you discounts.
Discounts are quite easy to get in most places, without having a CC, although one does have to request it, everyone is entitled to a discount, but not all request it, and not all give it.
Price is elastic for the right customers, providing profit is taken!
And like you say, 10,000$ is not what you would consider paying, for a flight, although you probably have paid a considerable amount of money to get all the points required for the free flight.
That is not much different from putting coins in a one arm bandit, where you stay the course and hit the jackpot, how long 3 years 5 years or is it relative to an amount of money spent. (but how much have you spent to get the Jackpot) and those that check out early get nothing.
I see things from another angle, if i don't have the credit cards, then I wouldn't be tempted into this or that hotel, just to get points. When maybe another hotel is cheaper and better.
It is much easier for me to have cash in all the countries, that i have earned money, and I very rarely have to use any cash, but debit cards.
I know, that when i go out shopping, that all sales, are gimmicks, to increase spending and consumers don't always get what they expect and don't know any different.
http://news.bbc.co.uk/2/hi/uk_news/5195544.stm
This is not even the tip of the iceburg, mark up on branded watches 1000% is not uncommon, Clothing & textiles the same all though many will say 1st class goods, if you check the stitching and find errors, you have a right for a discount, it's probably second quality goods any way.
I guess it is the way we percieve, the markets, I see everything in a different way to you, although no one is wrong, because we are both satisfied, with the items we purchase, and that is the whole aim of business, to satisfy wants and needs.
I often wonder if i'm making any sense at all
The real figure is not that bad, because there are some butt-in-seat miles in there and quite a few 5x points promos and whatnot, but yeah, it's still a big chunk of change.