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This is how frequent-flyer programs work. Once you are invested in one carrier, you are stuck with them. Am I going to give up pre-boarding, special security lines, free upgrades to first class, lounge access, and double mileage earning just to save $50 by flying the competitor? No.

When you give loyal customers free stuff, they stay loyal. It's too bad other industries don't get this.

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Without all those advantages you listed, the price to pick a competitor for your next flight would likely be close to zero though. So they have to provide those running incentives. The cost of switching the phone provider for my next call... way higher.

Even without frequent flyer programs, airlines still control markets. Most people prefer non-stop to connecting flights, and not every airline flies between every possible city pair. So people are locked in to the carrier that happens to fly to the destination of their choice. Taking a connecting flight to save money might be as inconvenient as switching phone companies to save money.

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