What is Aircraft Mileage for Trading?
Aircraft mileage is largely a function of marketing and trading means. And for trading transaction, it is considered as a payment tool to pay for the use of such services, as the mileage of the customer can be redeemed for bonus airline tickets and the like. It is also used as a new micropayment method, such as playing the role of a common currency among affiliated merchants. Then, let think about trading side of aircraft mileage?
The use of mileage is a method of deducting the amount of mileage determined by the usage target from the accumulated mileage, and can be a form in which mileage is exchanged with the object of use. These include bonus flights, use of special counters in hotels, car rentals, airport lounges, check-in procedures, and prioritization of aircraft seats. In principle, the member’s mileage will be deducted when using the mileage.
However, if the amount of mileage required is insufficient, the mileage can be purchased in cash or some mileage can be added or transferred between a certain number of members. Transfer and purchase vary from airline to airline, and the fact is that each airline is trying to constrain the mileage provided to its customers within the restrictions of the airline.
Flyers Can Trade for Their Mileage
The first condition for consumers to use aircraft mileage is to earn more miles than the minimum amount required to use bonus tickets or seat upgrades. The problem is that, besides these basic conditions, there is a greater restriction on the use of mileage due to limited transfer, purchase and extermination. Mileage issued by an airline is deemed to be a deferred liability from the airline’s perspective, so its disappearance will lead to a decrease in the debt of the airline.
That is, after a certain period of time, such mileage will be converted to airline revenue so this is why airlines put various restrictions on its usage. Customers are complaining about the unreasonableness that their property, mileage, can not be used freely, but the reality is that there are still many unrealistic parts scattered about it.
Business Value of Aircraft Mileage
There are many factors contributing to globalization, in which transportation cannot be neglected. Moving from cars, railways to airplanes, the transportation development has become faster and more convenient. As automobiles, airplanes were not as active in the early stages due to cost and awareness. However, over time, modernization has brought considerable popularization.
According to statistics by Airbus, the aviation market is expected to grow steadily over the next 20 years. As the world population surges, explosive growth will occur with passenger, transportation and alternative demand.
This means if the world could become one on the ‘World Wide Web’ over the Internet, the physical movement time would soon be significantly shortened. Just as the automobile industry has greatly flourished as the whole world came within the reach of the daily life zone, the aviation industry is expected to potentially grow even more explosively.
As the number of aircraft users increases, the size of the airline mileage market will also grow. In other words, the aircraft mileage industry will have greater value in the future, and trading interest and demand will increase accordingly.
