Airline loyalty programs are big business for many carriers. They allow travelers to earn free flights based on the number of miles they fly. However, many carriers are changing the way they reward travelers by awarding points based on how much they spend rather than how far they fly.
Travelers who pay more for their air travel may reap the benefits of this new system sooner than those who spend less, but rack up more miles. Of course, the goal for all carriers is to reward those customers who have shown their loyalty to the company.
While many carriers allow travelers to book any open seat as long as they have enough points, some travelers experience difficulty booking seats because of limited availability and blackout dates.
Because of this, travelers who purchase travel insurance often consider insuring flights purchased with frequent flier miles or rewards points in the event they need to cancel their trip. Unfortunately, many travelers are unaware that flights purchased with miles or points are not eligible for coverage under travel insurance policies.
Trip cancellation benefits will only reimburse travelers for prepaid, nonrefundable trip costs. However, travelers may choose to insure the costs associated with rebooking or rebanking those miles or points. Travelers should check policy details for any limitations related to insuring related fees.
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Source: http://blogs.squaremouth.com/travel-advice/change-is-on-the-way-for-frequent-flier-programs/
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