Here is a fact that should be much more famous than it is.
There have been stretches where a major American airline's frequent flyer program was reportedly worth more than the airline itself.
More than the planes. More than the gates. More than the routes and the brand and the union contracts and the maintenance hangars.
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The points.
Read that twice, because it sounds like a joke and it is not. During the 2020 crisis, several airlines went to the credit markets and pledged their loyalty programs as collateral. Lenders looked at the planes and looked at the points and decided the points were the better asset.
Planes can be grounded. Points cannot.
So what exactly is a company selling when it gives you a little plastic card and a balance that goes up?
Not a discount. It is nothing like a discount, and treating it like one is the mistake that costs people real money.