What is the likely reason that airlines might restrict the use of frequent flyer miles during holiday periods?
A) The opportunity cost to airlines of filling seats with frequent flyers is lower at these times.
B) Airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.
C) The opportunity cost to airlines of filling seats with frequent flyers is higher at these times.
D) Passengers have more transportation alternatives available to them at these times.

Question

Quizplus · Accepted Answer

During holiday periods, airlines can usually sell seats at a higher price because demand is high. Therefore, the opportunity cost to airlines of filling seats with frequent flyer miles is higher, as they could get more revenue by selling those seats. Restricting the use of frequent flyer miles helps airlines to maximize their revenue during peak travel periods.

What Is the Likely Reason That Airlines Might Restrict the Use