United is slashing the number of you earn for flights by up to 40% unless you have one of their credit cards. If you do, you’ll earn slightly more. (Without their card, they’ll charge more for awards too.)
Henry Harteveldt warned that United risked sending the message to customers that ‘if you don’t have the credit card, you don’t matter.’
We can’t call these loyalty programs anymore and we can’t and shouldn’t call them frequent flyer programs anymore. These are travel spend programs and what United is saying to people very clearly is if you don’t carry a Chase co-branded credit card with United, you literally do not matter as much to us. Your money is not as green as the person who has that credit card.
That framing seemed a little harsh until United started spending ad money to make the exact point. (HT: Enilria)
This is all part of the airline’s goal to raise MileagePlus profits by 50% in four years, something the carrier attempted and failed at before. And of course there are customers who won’t or can’t get the card.
- United is by far the most global U.S. airline, and has customers all over the world in countries that make them ineligible to get a United credit card.
- There’s the expat business executive flying worldwide in business class but without a deep U.S. credit history.
- There are Global Services members who have had too many new cards to get approved for one with Chase.
- And there are customers whose credit is too new – but who will grow and mature and earn more and build credit, they’re already flying United, love the brand and the program, but will get told they don’t matter with these changes.
Some of them might get pushed to take and spend on the debit card (just having the United debit card isn’t enough). United may convert more customers to get the credit card with these changes. Of course, these changes do nothing to get customers to put any spend on the card, just get approved for it and keep it. But it might do that at the expense of having more cardmembers and more card spend later. Time will tell!
Grateful that for the investment in their card giving me more! This is loyalty from begging of purchase to end of flight.
Has United checked with Chase about this policy? We who are over 5/24 would love to support this new United marketing plan.
Kirby is making a run at the worst airline CEO.
Candor I find refreshing.
I wish there was an airline that took steps that makes me want to fly them, rather than giving me reasons not to….
The beatings will continue…
Airlines make their profits from credit cards so no surprise that is where their FF programs are headed.
Out of curiosity, I decided to find how much it would cost in points to purchase a one way business ticket on United NYC-TYO (New York to Tokyo) on May 23rd.
First problem I ran into, was that I was unable to view the miles price, unless I had a United Frequent Flyer number.
So I entered my number. I am Silver with United (I usually fly other airlines) and have a United Credit Card. So I get the discount and cannot see the non-discounted price. My ticket price is 250,000 miles for a one way ticket. I am thinking, I am not going to spend $100,000+ on my United Credit Card, to get a one way ticket.
My common sense take: Way too expensive, and this is not a viable business. But I am sure some airline CEO could show me the numbers, if they felt like it. Of course, there is always the saying, “Baffle Them With BS.”
Yes but you haven’t blamed this on Trump or maga, and haven’t identified any afflicted victim class, like some minority, or better yet, trans people. How am I supposed to be outraged?
I think your examples of not obtaining a Chase card are a stretch at a minimum. A Global Service unable to get an entry Chase because they have too many credit cards?! Denied for a credit history too new? College freshmen seeking 1st bag free are getting accepted by Chase. Chase-ing new memberships. They know the value of the United partnership. They need the numbers too.
Good really does not lead the way.
I haven’t taken much of a stance against the major mergers but the US3 continue to show the pricing power they have over consumers without much ability for consumers to choose viable alternatives