Tag Archives for devaluation.
Virgin Atlantic says they are planning to make another no-notice change to their award pricing for travel on Delta, it’s expected to come in a matter of days, and they don’t even know what it is yet. That’s perhaps the worst possible practice in loyalty.
In general Virgin Atlantic has some of the least valuable miles but their points are ubiquitous since they’re a transfer partner of Chase, Ameriacn Express, and Citibank. They do have real sweet spots. My favorite is using their miles for ANA first class round trip to Tokyo for just 120,000 miles.
Perhaps their most useful redemption was award travel on Delta. Not anymore. And without any notice, boom, during the pandemic.
Andrew Kunesh writes at The Points Guy website that a second airline bailout may mean frequent flyer program devaluations, and calls for legislation providing for the bailout to require airlines “not to devalue their loyalty programs until government funds are paid back.”
However there’s no fundamental reason that a bailout means loyalty program devaluation, any such restrictions are likely to be toothless in any case, and aren’t going to make it to the top of any legislator’s or regulator’s agenda.
One way business class between the US and Europe on Air France and KLM has gone from 75,000 to 95,000 miles. Partner one way awards to North Asia are up to 102,500 miles. And Virgin Atlantic business class one ways booked within 3 weeks of departure can run as high as 195,000 miles. That’s insane.
United Airlines MileagePlus is now charging a premium for non-stop partner award tickets booked within a month of travel. Right now, of course, when people book air travel it tends to be at the last minute cause of all the uncertainty in the world. And United hasn’t even told members they made this change.
Elite status is one of the most powerful motivators for frequent customers to stick with a travel brand. When programs extend status outright during this crisis, they’re giving up a tool to encourage business when customers are able to come back. So they’re going to have to reach into a different bag of tricks.
The Coronavirus Aid Relief and Economic Security Act of 2020 (CARES Act), which contained a nearly $60 billion bailout of the U.S. airline industry, has a curious affect on the value you will get for your airline miles and points.
United Airlines MileagePlus no longer has anything to do with miles at all. You no longer earn points based on distance flown. You no longer earn status based on distance flown. Award costs aren’t based on distance either.
With elite status now based on money spent they’ve put an end to “miles” completely. They’ve been trying to do this for over 30 years.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
