With United’s big announcement that they’re going to revenue-based mileage accrual effective March 2015, there will be some customers who benefit: Short haul flyers who pay high fares. These folks might average more than the 20 cents a mile that’s break-even for year-over-year earning. International premium cabin flyers. Buying very expensive business and first class tickets you can come out ahead — just be sure your ticket isn’t too expensive because mileage-earning is capped at 75,000 miles per ticket (buy two one ways if you’re a full fare long haul business passenger, instead of a roundtrip). But for folks that aren’t elite frequent flyers with United, who don’t need to credit their miles to United but will still fly the occasional revenue ticket with them, here’s what you might consider. Other than – of course…
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New Business Class, Cheaper Coach Travel, and More Bonus Miles
News and notes from around the interweb: Inside JetBlue’s new ‘Mint’ business class cabin which debuts on Sunday. Pilots unions and US airlines are still trying to shut down low cost Norwegian Air. Here’s their argument. Finnair is offering 2000 bonus points for hotel bookings and 500 points for (European) taxi bookings. That sounds much more lucrative than 2 American Express points per dollar spent on Uber! Could there be anything more ridiculous we could blame an airline for? You can apparently no longer convert American AAdvantage 500 mile upgrade certificates to frequent flyer miles. About a decade ago the rate was one 500 mile certificate to 2500 miles, then it became just 500 miles, and in recent years I didn’t even realize it was still possible to do (or I would have done it,…
Businesses Shouldn’t Stand for Revenue-Based Frequent Flyer Earning!
United’s current program is designed to reward high spenders. They award mileage bonuses for buying full fare and premium cabin tickets. Elite status requires a minimum spend on airfare ($2500 for Silver, $5000 for Gold, $7500 for Platinum, $10,000 for 1K) or driving value to the airline for other activity like credit card spend ($25,000). Ancillary revenue and partner activity is much less expensive for United than air travel. Global services. Their top tier of status is based on revenue, not miles flown. Now they want to make redeemable mileage earning based on ticket price, too. And while there’s a case to be made for focusing your greatest investment in your best customers (although in my view a better case to be made for focusing your greatest investment where you can generate additional business at…
United MileagePlus Has No Strategy, So Where Do We Go From Here?
Chris McGinnis won the internet yesterday by featuring a graphic by Charles M. Kunz aka CMK10 showing what United has done to their frequent flyer program. United’s decision to make its points-earning through flying a nearly carbon copy of Delta’s 2015 program was yesterday’s story that rocked the frequent flyer world. Miles can do more than they ever did in the past. Alliance awards – using your miles on several partners on the same award itinerary – didn’t exist 15 years ago. With the price of air travel is way up, miles are getting us something that airlines are charging more and more for. But we’re seeing a lot of change in how miles are earned and how awards are priced. Delta has been a real destroyer leader in this. United had already gutted its…
Packing for Overnight Trips Without Using the Overhead Bin
I love my rollaboard bag. I usually carry a 20″ Briggs & Riley for trips up to 5 or 6 days. But I actually hate to have to use it. That’s because I hate to board 30 minutes before departure. I’d rather stay in the lounge working, and board last instead of first. But even if I’m flying first class I need to board early to avoid being shut out of overhead space. And flying coach? Fugget About It… I hate checking bags of course, both because of the risk that the bag doesn’t make it and because of the time suck on arrival waiting for the bag. Some airports are worse than others of course, the late night Washington Dulles hour-long wait for a bag is just soul-sucking. So there’s little that makes me…
American’s Reciprocal Upgrades are Good, But Are They Enough? What I Would Have Done Instead
American and US Airways announced reciprocal elite upgrade benefits this week — at checkin within 24 hours of flight. And they let us know the next step is integrating the programs themselves, rather than taking a next step to treat each others’ elites equally while they’re still separate airlines. Upgrades are built on top of existing processes, available only at check-in when they’re offered to anyone elite or not. They’re free for American elites flying US Airways (all US Airways domestic upgrades are free) and they will come at a cost for US Airways Silvers, Golds, and Platinums on American (since American charges elites below top tier for upgrades). This is a positive step, one I expect to see benefits from flying US Airways out of Washington National. I often get offered upgrades at check-in,…
United Just Destroyed Its Frequent Flyer Program as a Way of Rewarding Travel on United
United announced today that they are moving to revenue-based frequent flyer earning next year. They say this is part of making their program better. More faux changes you’re gonna like. Here’s how many miles you will earn for flying United flights and crediting miles to United’s frequent flyer program starting March 1 of next year — based on the cost of your ticket. It’s not actually that simple, of course, since Actual mileage posting will be determined by the actual ticket price, purchased ticket routing, fare class, Premier status, residency and ticket issue date. For tickets purchased in a currency other than US dollars, we will convert the purchase to US dollars and then calculate the number of miles you will earn. Got that? United already devalued their award chart. This change is earning only,…
All American Express Membership Rewards Cards Have a New Category Bonus
I wrote earlier about Uber’s new points earning and redemption tie-up with American Express. Users with an iPhone (who update their app) can now toggle between redeeming American Express points for Uber rides (at one cent per point in value, not a good deal) or earning 2 Membership Rewards points per dollar spent on Uber. I wasn’t sure how this would work. The iPhone app will be required for the option to redeem points instantly for rides. But the release made it sound like this was necessary for earning, too. And if that was the case it might operate like a shopping portal with 2 extra points per dollar regardless of credit card used to pay for the ride. That’s not the case at all. Bonus points earning with American Express Membership Rewards operates as…
From the Maldives to Malaysia: A Boat, Domestic Flight, and Malaysia Airlines Business Class
In this post I’ll take the Park Hyatt Hadahaa Maldives’ boat to the Kooddoo airport, Maldivian Airlines from there to Male, and then Malaysia Airlines business class Male – Kuala Lumpur. And I get the best part was the inflight satay. Previous trip report installments Introduction: Maldives and Malaysia in First Class, How I Booked It and What it Cost Etihad Lounge and First Class, Washington Dulles – Abu Dhabi Premier Inn Abu Dhabi International Airport Etihad’s Abu Dhabi first class lounge, and business class Abu Dhabi – Male Maldivian Domestic Lounge, Flight, and Boat Transfer to the Park Hyatt Park Hyatt Hadahaa Maldives When it was finally time to leave , I made my way … not to the jetty but to the bar, for one final complimentary Sundowner cocktail. We then bid the…
Here’s What Happens When a Blood Bank Takes Marketing Cues from a Frequent Flyer Program
Frequent flyer and frequent guest programs don’t have the only loyalty currencies that devalue. So – it seems – do blood banks. And it turns out they even use the same marketing language to explain their changes. The second paragraph below is priceless. Blood bank points expire, too. Because even non-profits understand “breakage.” While redemption rates are increasing in the New York Blood Center’s program, at least earn rates stay the same, and elite status bonuses frequent donor bonuses remain intact. And they are giving about three weeks’ notice of the changes. So some travel loyalty programs could learn a thing or two from this blood donation center. (Then again, being a member of a few of those hotel programs that make changes without notice is like getting blood from a stone…) With thanks to…
