Frequent flyer programs are a form of price discrimination.

Question

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Frequent flyer programs are a form of price discrimination because they offer different prices to different groups of customers based on their level of loyalty to the airline. Customers who fly frequently and accumulate more miles or points receive benefits such as discounts on flights, free upgrades, and access to exclusive lounges. This allows the airline to charge higher prices to occasional customers while retaining the loyalty of frequent flyers.

Frequent Flyer Programs Are a Form of Price Discrimination