Airline elite status – does it still have any value left?

by Scott Carmichael on

When I started my frequent flying back in 1998, obtaining elite status on an airline was not really high on my list of achievements. Then, when I started to pay attention to the people around me, I realized I was wrong. Back then, elite status on an airline was the one thing that helped make flying even more enjoyable.

Forget good food or a snack at the airport – getting preferential treatment when things go wrong, or the occasional free upgrade makes a real difference. After about a year of heavy flying, I had reached top tier status on three airlines, and was on my way to a fourth.

Nowadays things are different. Elite status is not just a luxury that can make your trip a little more bearable, it’s what you need if you don’t like paying for checked bags, or if you don’t like spending an hour in the security line.
In recent years, the value of frequent flier status has plummeted –

  • Certain elite perks are now being sold at check-in or as a paid membership
  • Elite level bonus promotions are making it much easier to become a top tier member
  • Additional levels are being introduced, lowering the value of the current top tier
  • Credit card promotions are making it possible to be top tier without ever flying
  • Status matching is more popular than ever


Certain elite perks are now being sold at check-in or as a paid membership

In the past, perks like preferred seating, priority boarding and special security lines were reserved for passengers with airline status or those that were booked in a premium cabin. Nowadays, airlines are moving towards the à la carte system, selling many of those perks to non-elite members.

A good example of this is something I took advantage of on a recent flight – I was stuck in coach, and had a very bad boarding group assignment. When I checked in at the airline kiosk, I was offered an upgrade to first class for just $50. This means I was able to take advantage of priority boarding, get a decent meal and fly in comfort for just $50 more.

To me, this is a win-win; I get a better seat, and the airline makes $50 it normally would not have earned. To the people up front that paid full price for their seat, it would appear unfair, and it means there is one seat less for elite passengers hoping for an upgrade. On some airlines, the upgrade systems prefer to sell the seat to anyone willing to pay for it before giving it away for free to elites.

Elite level bonus promotions are making it much easier to become a top tier member

When you chat with frequent fliers, you’ll often get a feeling for their sense of entitlement – many of them will also mention how they reached their elite status. Terms like “I made it the hard way” are thrown around to make it clear they reached the top tier by actually flying a lot.

Take for example the newest promotion by US Airways – their reduced qualification levels mean you can be “elite” after just a couple of flights. More elite members = more people fighting for perks. We could be sitting next to each other on a flight and have the same status, but only one of us had to actually fly all year to earn that status.

Additional levels are being introduced, lowering the value of the current top tier

On United Airlines, the top tier in their mileage plus program was always “1K”. 1K passengers flew 100,000 miles or 100 segments. Once they reached this, the airline would hand over a bunch of nice perks. Then, back in 2003, the airline started a non-published level called “United Global Services”. The program is not part of their Mileage Plus program, and is offered on an invitation only basis.

The reason behind this was simple – too many people were making the 1K level without actually spending as much as the airline wanted. Clever travelers could become 1K with just a few thousand dollars in tickets – which is lower than the price of a single business class international ticket.

With the 1K level came an envelope containing several upgrade vouchers (these are now electronic), and smart travelers could convert those into thousands of dollars in premium cabin trips, far exceeding the value of the tickets they purchase to make 1K. On frequent flier chat boards, it became a sport to make 1K for as little as possible.

The new “UGS” level aimed to reward those passengers that actually spent a lot of their money with United Airlines.

The UGS level didn’t have any of the documented perks of 1K, but it is obvious that UGS members get preferential treatment. What this meant to 1K members is that they were suddenly no longer at the top of the pecking order. If someone was eligible for an upgrade, they airline would pick the UGS member first.

Credit card promotions are making it possible to get closer to top tier without ever flying

Very few cards actually offer “EQM’s” (elite qualifying miles), but there are a couple of them that give a decent EQM bonus upon reaching certain spending levels.

Granted, you won’t become top tier with the average household spending pattern on a credit card, but heavy business spending can often contribute as much as 25% or more towards elite level qualification.

Status matching is more popular than ever

A status match is what you can do if you are currently flying airline A, but wouldn’t mind switching to airline B, without losing your elite status. The game of status matching means you really only need to earn status the hard way once – and after that, smart people can continue holding on to elite status on multiple airlines for several years.

What this means to elite passengers, is that in every line of elites, there could be several people who are “just as elite”, but have never actually flown the airline.

This is all fine and dandy if there is a decent balance (ie. the same number of people defecting to from Airline A airline B as those moving from B to A). In the real world, this doesn’t always work – and when the quality on one airline begins to decline, an unfair number of new elite members might flock to a new airline. Obviously, the more elite passengers an airline has, the more people will need to share the perks. On a busy Friday afternoon at the airport, this could mean longer queues at the elite security lines than at the “commoners line”.

Free status

On some airlines, top tier members will be allowed to nominate friends and family for certain levels in the frequent flier program. These levels are usually “entry level”, but in some cases it means the difference between a bad seat and a good seat, or $300 in luggage fees or free luggage. If you know someone with elite status, ask them if they have any nominations available.

The bottom line

The bottom line is simple (as far as I am concerned) – elite status is not as valuable as it used to be. Don’t get me wrong though – being a top tier member on a decent airline is still very valuable, but I’m convinced that the lower tiers are the ones that suffer the most – they are the ones that have to share the few remaining perks with a lot of newcomers.

This really only applies to US domestic airlines, as international carriers have managed to keep the most important parts of their programs protected from too much devaluation. Though, even those carriers have removed quite a few of their perks.

Earn elite status on US Airways for 7,500 miles

by Grant Martin on

The jockeying for elite passenger revenue continues. Earlier this year, most of the major carriers announced double “elite qualifying mile” promotions, specials that drastically reduced the number of airline miles that one needed to fly to enjoy special perks. Usually, one needs to fly at least 25k miles to start earning low level perks such as bonus miles, preferred seats and upgrades.

With those promotions over in the spring, everyone reveled in their fortune of finding a shortcut to elite status this year — until this month, when American Airlines and United Airlines relaunched their promotions. Now, scrappy passengers (myself included) are racing to top off their frequent flyer accounts to reach even higher levels of status, a fall season full of mileage runs, lost sleep and airports.

The latest in a spate of elite promotions comes from US Airways. The Arizona based carrier just announced massive reductions in earnings tiers, now requiring only 7,500 flown miles to reach low level elite status. That’s only 30% of what you would normally have to fly. Their top tier of status, Chairman Elite, can be reached with only 30k miles.

Why the race to lock in elite passengers this year? Business travelers are one of the most reliable, return customers for airlines, and the better that they can be catered to (via elite status,) the more likely they’ll stay with an airline. In today’s global recession, they’re an important demographic to hold on to.

Check out US Airways’ page for more details on the promotion.

[Thanks to moody75 for the tip]

Five great ways to use your frequent flyer miles

by Grant Martin on

As the economy shrinks and belts begin to tighten, mileage programs are playing a larger and large role in the everyday consumer travel lanscape. Many travelers are turning to their caches of miles for use in lieu of spending their hard-saved money on a ticket. Similarly, airlines are also paying attention to our mileage accounts, changing many programs to restrict the number of awards that they permit and making our free flights few and far in between.

Let not these pressures cause you to spend your miles unwisely, however. Like any good investment, miles should be managed, earned and used efficiently. Wasting a wealth of miles on an inexpensive ticket is not only a shame, but also a poor return for your time invested in earning these very valuable rewards.

Not sure where to start? Here are five great ways to use your current stash of miles.

High season tickets: We all know that its more expensive to get to Cancun or Europe during the summer months when the kids are out of school. Mileage rewards don’t reflect this swing however – it costs the same number of miles to fly to London in February as it does in July. They are restricted in volume, however, as demand for those high season tickets will be greater. That’s why you need to book your tickets early. Check with your favorite carrier to see when availability opens, but as a rough estimate, you’ll need to think at least 8 months in advance.
Upgrades: Our good friend (and fellow blogger!) George Hobica from Airfare Watchdog wrote an excellent article on using your miles to upgrade your coach ticket the other day. It’s true that not all fares and itineraries are upgradeable, but if you find the right combination of paid coach fares frequent flyer miles, you can score a business class ticket for pennies on the dollar of a normal business fare.

Alaska: The Arctic circle is as close as Albany as far as most miles are concerned. Consider spending your miles on a longer haul, expensive flight instead of a short haul jaunt upstate.

Last minute flights: Anyone who has tried to fly at the last minute can tell you that airfare prices skyrocket as the departure drops below 14 and 7 days respectively. Conversely, more award availability often opens up. The one caveat to this availability, however, is that fees often incur in kind. Those with elite status can often get around this atrocity, but those with no perks may have to cough up a little cash.

Friends and Family: Don’t keep your 100k miles to yourself – as long as you book the ticket, you can put anyone’s name on the reservation. This is a great way to surprise your girlfriend or parents with a trip overseas or to come see you, all without spending more than a few dollars on tax. Those with fewer scruples can even venture into selling their miles on Craigslist or to a friend, although those transactions are usually “illegal.”

Charity: Almost all mileage programs have charity partners. If you and your friends are all traveled out, why not donate the miles to the Red Cross? It’s better than letting them expire.

Fly with Virgin Atlantic — get free spending money

by Grant Martin on

Mileage programs are famous for offering creative rewards for flights, but this is the first that we’ve seen that actually pays you to fly.

As part of Virgin Atlantic‘s big fall promotion, frequent flyers are earning a special bonus on top of their regularly scheduled miles: gift cards. Travelers in all classes of service will be given American Express gift cards of up to $300 round trip, depending on the class of service and date flown.

It’s money that could be used to upgrade to that sweet hotel right downtown, book nicer tickets at the theater, get that extra bottle of wine at dinner or at the very least, defray the cost of transatlantic travel.

Gift cards will be issued for flights between September 15th and November 30th, with limited restrictions on class of service and tiered rewards therein. Check out Virgin’s promotion page for more details.
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What strange things have been found on planes?


Get double miles elite on American Airlines flights through December 15!

by Grant Martin on

They’ve done it again! Earlier this year, American Airlines launched a pomotion to double elite miles on all AA operated flights. These special miles are the gateway to elite status, where tiers of rewards such as upgrades, bonuses and free drinks await savvy travelers.

In the several months that followed the initial promotion, travelers booked all sorts of tickets to maximize miles and earn status, from “Mileage Runs” from Boston to Los Angeles to weekend trips to Rio De Janiero. Everyone reveled in the victory, as double elite qualifying miles promotions only come around once in a blue moon and almost certainly never more than once in a year…that is, until today.

Just this morning, AA just announced that they’re running the same promotion again through year’s end, so for those of us that didn’t quite get enough miles to make Platinum or Executive Platinum, there’s still time.

You can sign up for the promo at their website using code ELTRW.

Keep an ear tuned to your favorite airline for similar promotions — earlier this year all of the other legacy carriers followed suit after AA launched their promotion.