How Ghost Bookings and Low-Risk Insurance Are Driving Up Airfare Costs for Frequent Flyers

Frequent flyers are increasingly using airline miles to make overlapping bookings across different routes as a hedge against travel uncertainty, a practice known as “ghost booking” that is contributing to higher airfares and reduced award seat availability.

According to Rob Burgess, founder of travel loyalty site Head for Points, using miles during periods of instability functions like low-risk insurance for travelers seeking to protect against sudden disruptions. This strategy has gained traction amid ongoing geopolitical tensions and flight volatility, particularly affecting routes to and from regions experiencing instability.

Airlines are responding to the rise in ghost bookings by tightening award availability and adjusting pricing strategies, making it harder for the general public to redeem miles for flights. The practice is reducing the inventory of award seats, which in turn drives up cash fares as airlines allocate fewer seats to loyalty redemptions and more to revenue-generating bookings.

Frequent flyers are increasingly using airline miles to make overlapping bookings across different routes as a hedge against travel uncertainty, a practice known as “ghost booking” that is contributing to higher airfares and reduced award seat availability. According to Rob Burgess, founder of travel loyalty site Head for Points, using miles during periods of instability functions like low-risk insurance for travelers seeking to protect against sudden disruptions. This strategy has gained traction amid ongoing geopolitical tensions and flight volatility, particularly affecting routes to and from regions experiencing instability. Airlines are responding to the rise in ghost bookings by tightening award availability and adjusting pricing strategies, making it harder for the general public to redeem miles for flights. The practice is reducing the inventory of award seats, which in turn drives up cash fares as airlines allocate fewer seats to loyalty redemptions and more to revenue-generating bookings.