Is it possible to over-loyalize?

I wonder if the airline loyalty programs have gotten so loyal, they’re hurting the overall business.

I just flew from Boston to the valley on American, which I haven’t flown in a while. Even with a relatively expensive fare ($800), I was surprised how hard it was to get out of a coach center seat to an aisle. Apparently, blocks of aisle/window seats are reserved for the most loyal customers, then gradually released as departure time approaches. I did get an aisle, but I had to wait my turn.

My friends lament that loyalty programs aren’t worth much any more, because there’s always someone “more loyal” in front of you on the upgrade list. I try to fly JetBlue I can; I am part of their TrueBlue program, but they appear to let anyone buy any available seat.

I know the airlines make money by taking care of their best customers, but I wonder if over-caring for your best customers is offset by losing regular customers?

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