Industry Debate: Are Co-Brand Credit Cards Better Than Bank Rewards Cards?

by Gary Leff

credit cards fanned out
Dec 05 2020

Last year Airline Information asked me to debate Stifel analyst Joe DeNardi on whether airlines should spin off their frequent flyer programs. I argued that they should not, that they were more valuable with incentives aligned through common ownership.

This year Airline Information again asked me to do a debate as part of their loyalty industry conference. This time I squared off against Charanpal Brar from Bond Brand Loyalty on the question of whether airline co-brand cards are as valuable as bank currencies.

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Great ANA Business/First Class Award Space To Japan From August Through End Of Schedule

by Gary Leff

first class cabin
Dec 04 2020

Right now there’s great business and first class award availability on Star Alliance airline ANA from several US cities to Tokyo and back starting in August and running through the end of the current airline schedule (basically, October). That’s great for connecting onward to Asia.

Two passengers can fly from Houston, Chicago, Los Angeles, San Francisco, San Jose or Seattle using miles from United (or Chase), Avianca LifeMiles, or even better Virgin Atlantic (which partners with several credit card transferable points programs).

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Frequent Flyer Miles Are The Only Reason United And American Haven’t Filed Bankruptcy

by Gary Leff

cash
Dec 04 2020

How important are airline frequent flyer programs? United, Delta, and American Airlines have each mortgaged their frequent flyer programs for between $6.5 billion and $9 billion apiece. Stifel analyst Joe DeNardi says that without the ability to attract this cash, both American Airlines and United Airlines would be in bankruptcy.

Speaking on a panel at the Loyalty Summit online conference on Wednesday, DeNardi made this bold claim – but one that’s backed squarely by the numbers around cash burn and how much airlines have raised.

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Bob Crandall Speaks Out About The Future Of Travel

by Gary Leff

crandall
Dec 03 2020

Current American AAdvantage head Rick Elieson interviewed former American Airlines Chairman Bob Crandall at the Loyalty Summit. Crandall spoke about innovations at American, from computer reservation systems to launching the AAdvantage program, the failed launch of a hub and the need for transparency with customers.

He believes “a substantial share of business travel will not come back” and shares how he’d approach the business as a result.

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95% Of Passengers On One Flight Faked Their Negative Covid-19 Tests

by Gary Leff

Dec 03 2020

Passengers using fake tests in order to travel is a problem that confounds the re-opening rules several countries have put in place to reduce the amount of virus brought into the country by travel.

95% of passengers on a single flight used an identical test in order to travel, with more than 190 of 200 passengers on the November 25, 2020 Pegas Fly flight EO429 from Moscow to Zhengzhou presenting photoshopped negative results.

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Top Hyatt Elites Who Don’t Stay 60 Nights Next Year Will Lose Their Concierge

by Gary Leff

pier on beach
Dec 03 2020

Hyatt is cutting elite status requirements in half for 2021. They are giving extra elite nights to people who get their credit card by the end of the year. They are running double elite qualifying nights for the first two months of 2021 (and stays at the end of 2020 will also earn an elite night for 2021). Spending points transferred from Chase or the initial bonus on their credit card on free nights count towards status and they’re even rebating points.

Taken together Hyatt status is going to be very easy to earn in 2021 for the rest of that year and all of 2022. However Hyatt has decoupled some elite benefits from status, and reserves those for people staying a specific number of nights. The nights requirements for ‘Milestone Rewards’ have not been reduced.

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