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Reward systems: a comparison
Anreizsysteme im Vergleich

Air miles

But what is a free lunch in real terms? After all, a free flight is never really free - we paid for it, but in a roundabout way. The psychology of air miles and hotel points works in a similar way. They are based on a classic reward system - "BOGOF: Buy One, Get One Free." Hotel point schemes offer 'free' hotel accommodation via a loyalty system. You 'earn' points, in the jargon of one major hotel chain, and the higher the city is graded, the more points you have to redeem to stay at a particular hotel. Things to watch out for are: which cities are offered? What are the hotel facilities/room grades like? Are all services included in your free stay? Don't forget, if you pay peanuts, you get monkeys! A slightly different system is an air mile credit card: for every fixed sum paid, air miles can be collected or you may be entitled to a discount or upgrade towards your car rental, petrol, or hotel accommodation according to how much you spend. However, it depends on whether the card is sponsored by an airline company or a bank what deal you get. Therefore, you should check for flexibility on airline company routes - an airline card might rule out competitors or demand a higher minimum mileage per air mile rewarded. And check the interest rate carefully on your repayments. This will be written in the fine print so it's worth reading closely since a fool and his money are soon parted, as they say.

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