Airlines that restrict the use of frequent flyer miles during the holiday season likely do so because:
A)the opportunity cost to the airlines of filling seats with frequent flyers is lower at these times.
B)the opportunity cost to the airlines of filling seats with frequent flyers is higher at these times.
C)passengers have more transportation alternatives available to them at these times.
D)the airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.
E)the opportunity cost to the airlines of filling seats with frequent flyers is zero.

Question

Quizplus · Accepted Answer

During the holiday season, demand for airline tickets is typically high, and airlines are able to sell their seats at a premium price. The opportunity cost of filling these high-demand seats with frequent flyer miles is higher for the airlines, as they could potentially sell them for a higher price to non-frequent flyer customers. Therefore, airlines restrict the use of frequent flyer miles during this time to maximize their revenue.

Airlines That Restrict the Use of Frequent Flyer Miles During