Why the DOT is probing airline loyalty programs

At the beginning of September the U.S. Department of Transportation began an investigation into airline loyalty programs of American, Delta, United and Southwest. The goal, it said, was to protect consumers from potential unfair, deceptive or anticompetitive practice. And as DOT secretary Pete Buttigieg said, airline rewards programs have become a “meaningful part of the U.S. economy and a major part of the airline business model.” How big? The trade group Airlines for America has estimated that there are nearly 30 million U.S. airline-industry credit card holders.  In this episode, host Rebecca Tobin, aviation editor Robert Silk and Nick Ewen, senior editorial director at The Points Guy, take a look at the DOT probe and a new bill that targets loyalty points. Plus we talk about the value of the programs to consumers, and how to best to use those points, top perks and more.  This episode was recorded Tuesday Sept. 24 and has been edited for length and clarity. Episode sponsor This episode is sponsored by AmaWaterways https://www.amawaterways.com Related links The DOT probe into loyalty programs: Necessary move or overreach? https://www.travelweekly.com/Travel-News/Airline-News/DOT-airline-rewards-probe-analysis Sen. Dick Durbin takes aim at airline loyalty programs in new bill https://www.travelweekly.com/Travel-News/Airline-News/Durbin-bill-airline-loyalty-programs The Points Guy https://thepointsguy.com/  See omnystudio.com/listener for privacy information.

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