The Shrinking Point

Here's something loyalty programs never advertise: points lose value over time. Airlines are among the worst offenders. Award prices that once held steady have crept upward, and on many routes you now need far more miles for the same seat than you did a decade ago. Your points didn't earn interest — they suffered inflation. And unlike real currency, there's no regulation protecting their value.

Companies can devalue points anytime, with no warning and no recourse. Delta, Starbucks, and Hilton have all done it in recent years. You're essentially storing value in a currency controlled entirely by the company you're giving money to.