Why Airlines Limit Frequent Flyer Miles During Holidays

Airlines that restrict the use of frequent flyer miles during the holiday season likely do so because the opportunity cost to the airlines of filling seats with frequent flyers is higher at these times. During the holiday season, there is typically higher demand for air travel, and airlines can sell tickets at higher prices to non-frequent flyers. By restricting the use of frequent flyer miles during this peak period, airlines can ensure that they maximize their revenue by selling seats to customers who are willing to pay the higher prices, rather than using up seats for frequent flyers who are redeeming their miles. Therefore, the opportunity cost of filling seats with frequent flyers is higher during the holiday season, leading to the restriction of frequent flyer mile usage.