Knowledge Hub · Glossary
Revenue-Based Earning
Revenue-based earning means you accumulate points based on how much money you spend, not how far you travel. A more expensive ticket or a longer hotel stay earns more points, regardless of distance or nights in some cases. Most large airline and hotel programs now work this way.
What it means in practice
The older model rewarded distance flown, which favored long, cheap routings. The shift to revenue-based earning ties rewards to dollars spent, often with elite members earning at a higher multiple than base members.
For everyday travelers this is straightforward: spend more, earn more. It also quietly killed off most of the value in mileage runs, since flying far on a cheap fare no longer generates a big mileage haul.
Example
A program awards 5 points per dollar, so a $400 fare earns 2,000 base points while a $1,200 fare on the same route earns 6,000.
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