Hal Brierly, one of the inventors of the frequent flyer loyalty system, is annoyed. Despite paying $25,000 for a ticket (?!), he was treated like a second-class passenger. Now that experience was comparative. He was sitting in first class, but people around him, who were members of the airline's loyalty program, got more perks. (Damn straight, I hear some of you say.)

In fairness, Brierly's article in HBR is more insightful than I've implied. What I really appreciate is that he's touched on the push-pull of the loyalty program. You have to favor the long-time customer while welcoming the new customer. No easy answers. Loyalty programs have to evolve in meaningful ways. 

Harvard Business Review: Why loyalty programs alienate great customers, 2012-Jul/Aug, by Hal Brierly

Airline rewards are still based on miles flown. This is a mistake. The cadence is too slow. Airline programs were designed to reward high-mileage travelers by offering them loyalty perks next year for miles traveled this year. Today retail industry programs reward members who shop this month with rewards next month, measurably driving store visits. One such program has shown that reward redemption can increase profits by $100 million.