Description: Many consumers carry that little blue Air Miles card in their wallets, racking up points at retail stop, gas stations and service providers. But Air Miles has reduced the redemption value of the points bank for some vacations, causing angst with Air Miles collectors. Allison Peters decided to book a trip to Mexico, only to find out that she had lost about $2,000 worth of travel value on her account. Needless to say, Allison and other collectors are not pleased by the news.
Date: January 27, 2017; updated January 28, 2017
1) Are you an Air Miles collector? If so, did you know about this change? How does it affect you?
2) What would you recommend Air Miles do to handle the public relations impact of this strategy?
3) How will this change in Air Miles strategy be reflected in its financial statements?