Airlines that restrict members' ability to use frequent flyer miles during holiday periods likely do so because:
A)the opportunity cost to airlines of filling seats with frequent flyers is lower at these times.
B)the opportunity cost to airlines of filling seats with frequent flyers is higher at these times.
C)passengers have more transportation alternatives available to them at these times.
D)airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.

Question

Airlines that restrict members' ability to use frequent flyer miles during holiday periods likely do so because:
A)​the opportunity cost to airlines of filling seats with frequent flyers is lower at these times.
B)​the opportunity cost to airlines of filling seats with frequent flyers is higher at these times.
C)​passengers have more transportation alternatives available to them at these times.
D)​airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.

Quizplus · Accepted Answer

During holiday periods, demand for flights is typically much higher than during other times of the year. This means that airlines can sell seats at higher prices to non-frequent flyer customers. As a result, the opportunity cost to airlines of filling seats with frequent flyers is higher, leading them to restrict the use of miles during these busy periods.

Airlines That Restrict Members' Ability to Use Frequent Flyer Miles