Has your favorite frequent flyer program seemed a little lackluster recently? Well, the Department of Transportation is taking a look into it, as part of what they say has been "historic action to defend the rights of airline passengers and hold airlines accountable if they fail consumers" under Secretary Pete Buttigieg.
The Transportation Department is looking into a few different factors that they say may "hurt travelers," Reuters reported. This reportedly includes transparency in award tickets, the transferability of miles, and how much notice consumers get when changes are made to programs, sources told Reuters.
"We plan to carefully review complaints regarding loyalty programs and exercise our authority to investigate airlines for unfair and deceptive practices that hurt travelers as warranted," the Department of Transportation told Kiplinger in a statement. "DOT officials are actively meeting with U.S. airlines and gathering more information on this issue."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Another factor the department is reportedly looking into is how frequent flyer miles may devalue over time, making them less useful for getting new tickets. This is something Ganesh Sitaraman argued in a recent piece for The Atlantic criticizing mileage programs and travel rewards. "Online analysts try to offer estimates of points’ cash value, but airlines can reduce these values after the fact and change how points can be redeemed," he wrote.
This scrutiny by the Department of Transportation comes after members of Congress called for government action. Two senators, Dick Durbin and Roger Marshall, put out a statement asking the Department of Transportation and Consumer Financial Protection Bureau about actions they are taking to protect consumers from “the deceitful marketing tactics of these frequent flyer programs."
"There are troubling reports that airlines are engaged in unfair, abusive and deceptive practices with respect to these loyalty programs," the senators said in the statement. These include, for example, reports suggesting airlines are changing point systems in ways that are unfair to consumers, including by devaluing points.
Hopefully this will mean that airlines will have increased transparency in mileage programs, allowing you to better use your miles, whether you're going to one of the cheapest countries to visit or one of these great places to buy a vacation home.
Over the last year, the Department of Transportation has made some movement on air travel. After last winter's flight meltdown, the DOT heard people's cries about getting refunds for cancelations and delays. In May, the department proposed a rule to help passengers with cancelations and delays, and just this week imposed a $140 million civil penalty on Southwest Airlines for its role in last winter's flight chaos.
Related Content
-
A Checklist for Retiring in 2025Navigating the final stretch of your professional career can be daunting. We've compiled a checklist to help you put your best foot forward into retirement.
-
Leave Your Life Story as a Legacy for Your HeirsHere are eight resources to help pass your life story on to your family. How do you want to be remembered?
