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DOT probes airline loyalty programs
The Department of Transportation is scrutinizing the loyalty programs of the big four US airlines.
It has requested details of their policies and practices relating to how points are earned and spent.
“Our goal with this inquiry is to ensure that customer rewards are protected from any practices that would diminish their value, benefit, or availability,” the DOT letter addressed to airline CEOs said.
American Airlines, Delta Air Lines, Southwest and United Airlines have 90 days to respond.
The DOT is seeking to learn what hidden fees are charged and if rewards are in any way devalued or downgraded.
It also wants to learn how dynamic pricing affects reward bookings.
The goal is to protect members from ‘potential unfair, deceptive, or anticompetitive practices,’ it said.
“Airline rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings,” said Transportation Secretary Pete Buttigieg.
Trade group Airlines for America responded in a statement: “Millions of people enjoy being a part of various loyalty programs.”
“US carriers are transparent about these programs, and policymakers should ensure that consumers can continue to be offered these important benefits.”
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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