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Ive heard of people making this happen, but I literally don’t know how y’all achieve more than like a single flight or hotel stay per year without already having 200k+ income (i.e. could pay for the trip on your own, just don’t want to pay for it).
I’m pretty sure they’re also making more money for the airlines than if they just bought the plane tickets, but it’s slightly procedurally obfuscated, so people are like “omg free tickets”
The airlines do fine; they sell miles/points to banks who actually have money. Almost all US carriers are worth little or negative but their rewards programs have large valuations.
If you pay your bills in full and don’t pay interest you are beating the system, and it is “OMG free flights”/hotels/cash. You do give away tons of purchase info but you’re giving that away anyway unless you’re using cash.