Status seekers pulling back

by Tom Johansmeyer on

It’s not just the travel companies’ bank accounts getting hit in this market – loyalty programs are getting spanked, too. The management consultants, investment bankers and attorneys – now fewer in number than a year ago – who accumulate elite status quickly aren’t spending as much time on the road. With considerably less travel time being logged, the folks who used to have platinum status on multiple airlines and in multiple hotels aren’t hitting the same levels they have for the past several years.

A study by Colloquy, which conducts marketing research for loyalty programs, showed that loyalty program membership dropped 28 percent in the travel industry. In 2007, the average traveler belonged to 2.8 of these programs. Now, it’s down to merely two. Lower- and middle-income men are being cited as the source of the decline, as they’ve been hit harder by layoffs.

Additionally, active participation in loyalty programs is down almost a third. This year, the average traveler is participating actively in 1.5 programs – a year ago, it was 2.2. Among the wealthy, this type of engagement fell 13 percent – from 2.3 programs down to two.

According to Colloquy, travelers are focusing on fewer programs and looking to get as much as they can out of them, rather than spread around their travel with the knowledge that they’ll have enough to reach and maintain high statuses with several travel companies.

Score FREE US Airways silver status for 90 days!

by Grant Martin on

Curious about that fancy “elite status” that all of those frequent flyers are always bragging about? It’s true that joining the upper ranks of a frequent flyer program comes with perks — free upgrades, standby list priority and better seats to name a few, but it takes a lot of work, money and flown miles to reach many of these tiers, three things that many people don’t have in this economy.

So US Airways is giving you a shortcut. From now until month’s end, you can sign up at this special promotion page for FREE silver status for ninety days. All that you have to do is have a US Airways Dividend Miles Number, which you can get here, and you’ll be on your way.

Additional benefits to silver status on US Airways include bonus miles and waived standby fees, the full details of which can be found here.

The one caveat to silver membership appears to be that the benefits are only good for tickets booked after you sign up for the promotion. But either way, it can’t hurt to jump onboard. Have a drink for us in first class!

[thanks to bozo007 @ fatwallet]

Delta announces new Elite Elite status, loyal passengers retch

by Grant Martin on

It’s difficult making both parties happy during a merger, especially when the old dogs in one way of life have to learn all of the new tricks in another. Where this appears to be particularly scathing is in the frequent flyer programs, where loyal passengers to both Worldperks (Northwest) and Skymiles (Delta) are starting to get mashed together.

To appease some of the most frequent Skyteam travelers, the new Delta has revealed a new elite status above the traditional Silver (25k miles,) Gold (50k,) and Platinum (75k.) No, it’s not Berkelium, it’s Diamond, and one has to travel a whopping 125k miles to reach this holiest of statuses.

Benefits to Diamond status include free access to the Delta Sky Clubs (airport lounges,) better flexibiliy when using award tickets and a wider selection of “Choice Benefits” including upgrades and gift cards.

The problem for many current elites is that the benefits are too sparse for the time invested. Flexibility with award ticket redeposits, for example, is a feature that many Northwest passengers had before the airlines started to merge. Similarly, the mileage bonus on flights for a Diamond versus a Platinum (125% vs 100%) is just a throwback to the former NW Platinum level.

Upgrades are another great example. The upgrades currently earned by Platnium and Diamond members are only useable on the most expensive group of economy tickets (thumbnail: you’ll have to spend $1500 on a coach ticket to Europe to be able to upgrade.) Other programs sponsored by United and American Airlines let passengers upgrade some of the least expensive fares (say, around $700.)

As a result of the tepid benefits, more loyal passengers are straying away from the new merged airline. Or as one passenger at Flyertalk puts it:: “Delta: Driving Every Loyal Traveler Away.”

United reduces cost of mileage tickets

by Grant Martin on

Amidst all of the increased fees and reduced services plaguing the airlines these days, it’s refreshing to actually see a change that goes the customers’ way. Albeit temporarily, United just reduced the number of frequent flyer miles necessary to book a free ticket on the airline. Reductions range from 20% to almost 30%. Domestic travel, for example, has been reduced from 25K miles to 20K miles, while a ticket from the US to Australia ihas been reduced from 80K to 64K. Europe, on the other hand, which normally costs 50-60K on other airlines costs 44K on United. Not a bad deal.

You can see the price reductions and book directly at United.com for travel between August 18th and November 18th.

Why the sudden generosity? Well, demand is way down this year, and with the end of tourist season bringing further reductions, airlines are going to have a ton of extra space on their airplanes. It’s better to have a seat booked with a fee-paying passenger than an empty seat altogether, right?

Got hotel points? Now is the time to use them!

by Scott Carmichael on

Hotel award availability has long been the kind of thing that made actually getting to use your hard earned hotel points nearly impossible.

This Summer is different, and for reasons I’m not entirely sure of. I’m going to guess that hotels are seeing record low bookings, and are perfectly happy to get any guests.

Most of the large hotel chains have a ton of award availability, and a lot of it is available for dates that have historically been impossible to redeem on.

Even the upcoming memorial day weekend shows plenty of availability, and to make things even better, there are plenty of free rooms in cities that are usually filled to capacity for major events (like Indianapolis).

So, if you have any spare hotel points lying around, now is the best time ever to start using them – forget that whole “staycation” thing. Gas is still relatively cheap, and if your only expenses will be food, entertainment and gas, then you’d better have a good reason to stay home.