US Airways Dividend Miles (Pre-FlightFund Merger) - How much would YOU pay for SP/GP/CP status up front?




PHL
Jan 14, 05, 8:22 pm
UA has caused quite a stir over on the UA forum. Selling their low tier, Premiere, for $5000. Midtier Exec. Prem. for $10,000 and 1K for $20,000. Pay up front, get the elite priveleges immediately for the rest of the year. And - the money you pay is credited towards future flights, so it's basically a pre-paid flying card. UA gets the cash up front.

Here's why I agree with some people that it's a good idea for the right kind of traveller . If I was one who travelled internationally a lot on Envoy tickets to Europe that easily amount to over $20,000 (or $5K, or $10K for that matter), I would consider doing it up front so that I have the elite status from day one.

But if you are one who does shorter trips at lower fares, then it might not work out since we all know how easy it is to get to Silver for a LOT less than $5000, let alone Gold or CP for the other amounts.

But, think about it for a second - it's a great way for the airilne(any airline) to capture some quick cash in a slow season. I wonder if U will consider something like it.

The flip side - how many existing elites are you going to pi55 off by diluting the status more? Would the elite perks change (unlimited domestic upgrades, etc.)? I say to USAirways - do it. I won't buy one, but I'm sure there is a percent of their frequent flying public that easily spend well over $20,000/year and would love to capture CP from day one(assuming they're not already minted for the year).


TomBascom
Jan 14, 05, 8:29 pm
It's a great idea. They should do it. For less money (after all US has less long haul flying and a substantially weaker product -- they need a price advantage for this...)

Dilution is a bunch of crap. If people fly they earn it. If they don't then they don't dilute a darned thing.

sbtinme
Jan 14, 05, 8:53 pm
US should do this ASAP. A frankly novel way of generating some fast cash and making certain customers especially happy (and EXCEEDINGLY loyal). Agree with Tom B that the dilution factor is minimal in the extreme. Most of us know that US is already doling out Gold status left and right to key accounts and F space-positive upgrades on domestic flights to good corporate customers......

Of course, every single flight I fly these days on US is on an RJ, a CRJ, an ERJ, or some other kind of RJ. No opps for me to do any better than exit row!!! :rolleyes:


sts603
Jan 14, 05, 9:00 pm
US should do this ASAP. A frankly novel way of generating some fast cash and making certain customers especially happy (and EXCEEDINGLY loyal). Agree with Tom B that the dilution factor is minimal in the extreme. Most of us know that US is already doling out Gold status left and right to key accounts and F space-positive upgrades on domestic flights to good corporate customers......

Of course, every single flight I fly these days on US is on an RJ, a CRJ, an ERJ, or some other kind of RJ. No opps for me to do any better than exit row!!! :rolleyes:

The numbers of all of the above are minimal. Yeah there is comped status and Space Positives given to corporate customers but the effect is minimal when divided through the # of pax. I think it's a good idea for them to sell it. At the end of the day they need to get $$. They couldn't get away with not giving preferred miles for restricted tickets. This is a far better option and will have far fewer effects on the system.

fly747first
Jan 14, 05, 9:17 pm
Please...

Who in the world is going to pay to fly US Airways' domestic First Class?

Lately, I have been flying a lot between Miami and Philadelphia, and the breakfast snack in First is a croissant (sometimes a bagel) and a fruit plate on a plastic plate. On the same route, American serves hot entrees and uses glassware and real chinaware in First. I think that currently, US Airways' domestic First Class is inferior not only to other major airlines' First Class product, but also to America West's First Class as well.

SoxIn7
Jan 14, 05, 10:50 pm
Please...

Who in the world is going to pay to fly US Airways' domestic First Class?

Lately, I have been flying a lot between Miami and Philadelphia, and the breakfast snack in First is a croissant (sometimes a bagel) and a fruit plate on a plastic plate. On the same route, American serves hot entrees and uses glassware and real chinaware in First. I think that currently, US Airways' domestic First Class is inferior not only to other major airlines' First Class product, but also to America West's First Class as well.


I'm sure there are quite a few people who travel for business who like having a reasonable sized seat with consistent laptop power availability. Great airline food is still airline food. I flew first on United, Delta, and US last year. US definitely lacks a little bit on the amenities, but I don't think if it came down to US F versus any other coach product that people wouldn't jump for US.

EnvoyBoy
Jan 15, 05, 5:39 am
Please...

Who in the world is going to pay to fly US Airways' domestic First Class?

Lately, I have been flying a lot between Miami and Philadelphia, and the breakfast snack in First is a croissant (sometimes a bagel) and a fruit plate on a plastic plate. On the same route, American serves hot entrees and uses glassware and real chinaware in First. I think that currently, US Airways' domestic First Class is inferior not only to other major airlines' First Class product, but also to America West's First Class as well.


Me, that is who.

What I don't do is buy an FC tkt for the purposes of fine dining. I buy transcon A-fares for the generally excellent cabin service as well as the additional space around me so I can spread out and do school work. Buying the A-fare let's me choose my seat at booking instead of doing the dance and taking what is left.

Choosing always to sit in 1A, no one will lean back into my laptop and I can still get to the aisle, even if 1C is sleeping and reclined. Furthermore, all the chaos, movement, carts in aisle are all behind me. Plus: class of service bonus miles. For 5+ hours in the air, regardless of the food, it is worth it to me.

While I agree UA has superior food service in F, they won't get my business until I am 100% guaranteed that I will get power for my laptop. I also find their FC cabin less spacious than on US.

US AIRWAYS FAN
Jan 15, 05, 6:57 am
Please...

Who in the world is going to pay to fly US Airways' domestic First Class?

Lately, I have been flying a lot between Miami and Philadelphia, and the breakfast snack in First is a croissant (sometimes a bagel) and a fruit plate on a plastic plate. On the same route, American serves hot entrees and uses glassware and real chinaware in First. I think that currently, US Airways' domestic First Class is inferior not only to other major airlines' First Class product, but also to America West's First Class as well.


Sorry but I have to agree with the other posters here as well. I fly first for the comfort and being able to work on my laptop as well. US Airbuses are spacious and quiet. I have yet to have an airbus laptop power outlet not work for me yet.

I have been on some first class airlines as well (the European ones.) And the food is still just airplane food to me. It tastes OK. If I want to eat good food I go to a 5 star resturant not on an airplane. I choose the airplane for COMFORT.

I would not fly AA even if you paid me. I have had way too many horrible experiences with them. And their MD 80īs are horrible and noisy. I fly to Miami many times a year for business. AA is the only non stop direct from DCA to MIA. I donīt even bother. I use US and then rent a car and drive down.

TomBascom
Jan 15, 05, 7:56 am
This isn't strictly about paying for F.

It's about buying status by pre-paying for future travel. Upgrades are a non-garanteed fringe benefit.

monitor
Jan 15, 05, 11:24 am
I love the idea of being able to buy status by prepaying, but if the US guys fail to hold things together, I would be very surprised if UA does not do a wholesale comp for the Preferreds. I would not buy a long term prepay from US in order to upgrade to CP, and I don't think that in light of their current troubles, they would be able to convert many elites from other airlines who have found those companies to offer adequate schedules for their purposes. I do not think that much of the more sophisticated traveling public would prepay on the U unless they thought they could use the prepay in the first two quarters of this year.

Since they do have the status for sale, I must think about UA, but it is not really very convenient for those of us who do a lot of short hauls in the East and a lot of north-south to Florida from the Northeast. That lets out even thinking about the buy up because we will not consider changing at ORD for our Midwestern locations and IAD for Florida (where we would be given Ted, the b*stard cousin of Song).

So, Right now, I am in the boat with the U, and I will not treat it like a sinking ship until proven otherwise. If something not so good happens, then it will be time for all of us to survey the landscape, see who's going where, and then worry about making our new choices, with the option of taking the free comp that I for one expect from UA.

TomBascom
Jan 15, 05, 12:32 pm
To do this they would need to recognize those weaknesses and counter them with positives. That's probably mainly a matter of price -- US won't be able to get the same price that UA does. UA is selling status for $5k, $10k and $20k. IMHO that's grossly over-priced to start with.... you can easily earn equivalent status for far less. US could, for instance, do it for $1k, $2.5k and $5k -- that would be far more attractive and far less risky to the buyer. (I'd also consider structuring the pre-paid ticket aspect as a 50/50 deal -- 50% per-paid, the rest at purchase...)

ruud
Jan 15, 05, 3:02 pm
If I was one who travelled internationally a lot on Envoy tickets to Europe that easily amount to over $20,000 (or $5K, or $10K for that matter), I would consider doing it up front so that I have the elite status from day one.

If you're flying in paid Envoy, don't you basically already get all the perks associated with being elite (apart from maybe the mileage bonus)?

sts603
Jan 15, 05, 3:05 pm
To do this they would need to recognize those weaknesses and counter them with positives. That's probably mainly a matter of price -- US won't be able to get the same price that UA does. UA is selling status for $5k, $10k and $20k. IMHO that's grossly over-priced to start with.... you can easily earn equivalent status for far less. US could, for instance, do it for $1k, $2.5k and $5k -- that would be far more attractive and far less risky to the buyer. (I'd also consider structuring the pre-paid ticket aspect as a 50/50 deal -- 50% per-paid, the rest at purchase...)

$1000 is a little low to start though. While it can be done by flying (think 5 $200 PHL-LAX r/t to make silver) most people don't get it that easily. They can't dilute the product that much.

PHL
Jan 15, 05, 8:34 pm
If you're flying in paid Envoy, don't you basically already get all the perks associated with being elite (apart from maybe the mileage bonus)?

Good point. I should have elaborated on that scenario more. If one was to only fly U on transatlantic trips in Envoy, then I guess there's no real perk to buying the status up front. But if that same person does a lot of domestic leisure travelling, or even non-premium flying as well, then it might make some sense.

There are the other associated perks like Star lounge access, reduced re-deposit fees for awards, and the well tuned Chairman's Preferred Liason. There's also no-blackout dates for travel on USAirways if you choose to redeem those points you'd surely earn flying paid J. So, if you want all that up front and know you'll easily be spending $20K, why not just grab it?

TomBascom
Jan 16, 05, 8:49 am
$1000 is a little low to start though. While it can be done by flying (think 5 $200 PHL-LAX r/t to make silver) most people don't get it that easily. They can't dilute the product that much.

Picking the right price point is an art... but if I were in US' shoes I'd go much lower than UA -- they need the cash and the product is comparatively very weak. They're in no position to be pretending to offer something that they don't actually have.

IMHO there's no real dilution -- I'm sure they'd comp status to pretty much anyone who could show a pulse right now -- getting a few bucks for it would be a nice win/win.

BTW -- you can get SP for less than $500 if you're sufficiently insane. Check out the goodwill tour threads ;)

dukeman
Jan 16, 05, 8:57 am
BTW -- you can get SP for less than $500 if you're sufficiently insane. Check out the goodwill tour threads ;)


I think the cheapest is is $381 all in..... ;)

sts603
Jan 16, 05, 9:58 am
I think the cheapest is is $381 all in..... ;)

But the 20K promotion is rare. It's only due to the state of the airline. I can't think of any other major who has run something that good.

I'm considering my goodwill tour as well to make Gold by mid-year.

TomBascom
Jan 16, 05, 11:00 am
In the good old days of GOM I put together an itinerary that would get you CP in one easy step. It was a while ago but I'm pretty sure it priced out at less than $1,000 ;)

Rumor has it that CPRich requalified for CP on a weekly basis...

pdhenry
Jan 16, 05, 12:46 pm
Most of the benefits of SP can be had for the $90 annual cost of the US Signature Visa card. I think it's only missing the bonus miles - but you get 15,000 bonus miles after the first use of the card, so there's some tradeoff there.

Jumpgate
Jan 16, 05, 8:32 pm
Most of the benefits of SP can be had for the $90 annual cost of the US Signature Visa card. I think it's only missing the bonus miles - but you get 15,000 bonus miles after the first use of the card, so there's some tradeoff there.

It's also missing the unlimited e-upgrades. That's a gaping hole if you ask me and makes having the Visa nowhere nearly as nice as being an SP.

Alysia
Jan 16, 05, 8:45 pm
BTW -- you can get SP for less than $500 if you're sufficiently insane. Check out the goodwill tour threads ;)

Huh? Insanity? Where do you get the idea that it is insane to take five roundtrips in two days? :D :D :D

pdhenry
Jan 16, 05, 8:47 pm
It's also missing the unlimited e-upgrades.
At http://www.bankofamerica.com/usairways_site/index.cfm?template=cc_usair_sign , BofA says that the Signature card gets you "Unlimited space available upgrades." The footnote says that the terms of this offer are provided with your card - so I don't know how it might differ than that for Silver.

dukeman
Jan 16, 05, 8:48 pm
At http://www.bankofamerica.com/usairways_site/index.cfm?template=cc_usair_sign , BofA says that the Signature card gets you "Unlimited space available upgrades." The footnote says that the terms of this offer are provided with your card - so I don't know how it might differ than that for Silver.


$50 per 500 miles if all the CPs, GPs, and SPs are already upgraded and there are seats left in F.....



SEO by vBSEO 3.2.0