I just don't waste my time worrying about this. I play what games I can to maximize miles. Then, I use them when I can. I know that any "deal" I can get today will be gone in the next revaluation. I get free trips. They try to limit what I can get. Yes, both are real.
Oh—io, they ain’t ‘free’… (Admit it, you’re hooked. You lil’ points junkie, you…)
Funny because the government from time to time has no issues with the banks providing you with a 1099-MISC for points that you received in a non-rebate manner (referral bonuses and such). And they usually value those points at 1 cent per point for those purposes. So they must be worth something... or more likely the government is just happy to take your money.
At least Chase gave us 2 years to spend our 1.5cpp CSR points? Of course naturally they didn't give you the choice which points to transfer out - shockingly the 1.5cpp points must be used first. Now that's what I call a points boost!
Honestly, I sort of understand FB making the move they did. You basically pay 15k for luggage, the ability to change, and lounge access. I also like that they made a tier where you can pay more points to reduce cash surcharges. That will appeal to the people that print points with small businesses and such.
I'm not loyal to an airline, so I don't think they owe me anything. I am willing to direct my spend places when I have incentives to do it. I think Flying Blue has this part right with their card relaunch. Remember: They also did a deal with Bilt for 3x points on rent (for a 3% fee), just like Alaska. You can build up to FB gold status and maintain it with 25k spend and a little flying -- that card isn't bad for everyday spend either. There's a pretty easy formula to give Americans good award access and that card is a direct competitor to Delta cards at lower price point.
Ultimately, airlines want to make this somewhat attractive without giving away the store. I'm lazy, so if it gets too hard, I'm out. But so far, the adjustments are mostly fair.
“Or should it try to prioritize rewarding a loyal customer over someone who just moved some points from a credit card program?”
If they start to prioritize their most loyal members, at some point selling points to credit card companies should become less lucrative as card holders figure out amassing points is pointless
I was going to London recently and the business cabin (like the rest of the plane) was half empty. Wasn't the whole point of these programs to get revenue out seats that would otherwise go out empty? And now that's an ever better deal because if a guy gets two of those seats for 80k round trip he puts all his spending on the cobranded card and everyone wins. He tries to use his miles and it's 800k and he says / to hell with it I'll just use the cash back card.