In 1981, American Airlines introduced the first frequent-flyer program, the AAdvantage program. Since that time the frequent-flyer program concept has been adopted by practically every major domestic airline, some smaller regional airlines, and many international carriers acting as partners with the domestics. The programs have been expanded, overhauled, changed, cut-back, added-to, used, abused, and turned inside out to where most members scarcely know from day to day what their rights and privileges are for their hard earned mileage points. They change so often that any attempt to delineate individual airline programs would be outdated by the time this book goes to press. Instead, we will give you program highlights, advantages and disadvantages and a few examples of recent special offers for members of frequent-flyer clubs.

Under a frequent-flyer program, a passenger can a accumulate/earn points for flying on the airline. Points are redeemed in the form of travel awards for free travel-class upgrades and free tickets to select destinations flown by the airline or one of its partner airlines. (However, upgrading a ticket to a better class doesn't actually qualify as a money-saving reward, as many upgrades are given on full-fare economy tickets only. Since you can easily save 40 percent or more on the price of a full-fare economy ticket, using a "free" upgrade can actually cost you money.)

The programs were first conceived as a way to build passenger loyalty among business travelers, the largest class of flyers. Theoretically, non-business travelers did not earn enough credit or mileage during a year to obtain worthwhile awards. However, if a person who earned the credit while traveling for business passes the award to someone who does not have the opportunity to travel for business, then those non-frequent flyers can also take advantage of the savings and upgrades from these programs.

Building brand loyalty among the nation's business travelers worked for awhile, until travelers stopped going to great lengths to stay with one airline to earn mileage and joined the frequent flyer clubs of all the other airlines they flew with. This allowed them to get the scheduling they wanted and still earn credit.

As a result, what the airline industry created in 1981 has turned into something of an unstoppable, consuming monster that refuses to stop growing and gobbling up more and more of what the airlines like to keep: profits. The frequent-flyer programs became so popular that they began cutting into the airline's coffers.

The airlines have responded to the unprecedented demand for free tickets and free upgrades by branching out into new areas of giving and earning awards. Their hope is that these new rewards will take the pressure off of giving away valuable seats. New ways to use mileage include:

o Free and discounted hotel rooms.
o Free and discounted car rentals.
o Free or deeply discounted companion tickets.
* Free car rental upgrades.
o Discounts on buying new cars.
o "Auctions" where members bid mileage points for different items.
o Free membership and services in private airline clubs.
o Free and discounted rooms on luxury cruise ships.
o Discounts on clothing, savings bonds, and a variety of consumer products.

Not long after the first frequent-flyer programs were introduced, a new industry was born: coupon brokering. This is where a frequent-flyer who has amassed more mileage than he could possibly ever use or give away to family or friends, sells (illegally, according to the airlines) his awards to a broker. The broker then sells them to consumers (who are usually less-frequent business travelers or vacationers), who buy the tickets at a price lower than the current published price. Some people also buy awards to use as free upgrades or because they carry fewer restrictions than excursion tickets.

Coupon Brokers are still very much a part of the frequent flyer industry-much to the chagrin of the airline themselves. Despite a number of lawsuits lodged during the "boom" years of the 1980's, it appears that legal efforts have not completely dampened the enthusiasm of those brokers who are intent on carving out a niche in a most unwelcoming business.

If you want to take the risk of using a coupon broker, you can search for them in Yahoo, by using the phrase Frequent Flyer Awards.