American Express Membership Rewards - Another Centurion Benefit DOWNGRADED
DMDortho
Jun 13, 08, 12:07 pm
Currently, all centurion members have the US Airways Platinum membership. Well, according to US Airways, there will no longer be:
"End Preferred bonus miles for travel booked on or after August 6, 2008"
http://resp.myusairways.com/usaw40/c2.php?USPR/371697287/131989/H/N/V/http://usairways.com/awa/Content/dividendmiles/preferred/benefits.aspx?redir=Email&c=eml_dm_juneannouncement_preferred_06122008
Which means all Platinum members that travel on US Airways will no longer have bonus miles credited to their account.
I hope Amex is not paying US Airways the same even when they decide to decrease their benefit for Platinum members.
Saks...2008...gone
US Airways Platinum...2008...bonus miles....gone
What is next??????
MattUK
Jun 13, 08, 12:51 pm
The way you word it is like Amex have downgraded one of their benefits, but in fact its the airline downgrading one THEIR benefits.
I am trying to understand how American Express can be culpable for a change made by US Airways which affects every elite member, but I just don't see it. What do you suggest that American Express could do to assist Centurion cardholders?
What is next?
If other carriers decide to follow US Airway's lead, as airlines tend to do, I expect US-based frequent flyer programs will come to more closely resemble European-based programs which offer a larger bonus for paid class-of-service and a smaller bonus for elite status.
super-mileage-fan
Jun 13, 08, 8:23 pm
Well, the OP is correct, it is a loss for Centurion members. Of course, I blame the airline, not AMEX.
Tm me, getting rid of the miles bonus, is roughly the same to a FF member as raising the ticket price by $.015 per bonus mile. This will slightly decrease demand, making F upgrades slightly easier to get.
But it is mitigated by the fact that they downgraded coach too. For example, the free drinks in F now cost $7 in Y; even sodas will be $2 in Y. Thus, free drinks in F are worth $2 more than previously. They also waive the new 1st checked bag fee for any US status. Thus (F minus Y) is worth $15-$20 more than previously.
Now, it's the new award booking fee that is really bugging me.
The other thing, if they don't give me the 75% bonus anymore, I will take the miles on UA instead for US flights.
Still, I am very glad for the US Plat benefit; they the easiest free F upgrades and the *Alliance status is critical for many international travel itineraries.
I don't think that all airlines will dilute the benefits of premier status. Premier status is a very effective marketing technique for attracting and retaining some of the most valuable customers -- frequent business travelers who frequently book tickets at the last minute.
PHLbuddy
Jun 14, 08, 8:52 am
Believe me, losing US status is a bonus for Amex's best customers, not a devaluation.
MoreMiles!
Jun 14, 08, 12:28 pm
If AMEX would only allow membership rewards redemptions to US that'd be great - just as they do with the other Centurion partners Continental, Delta and Virgin... Since redemption hasn't been offered for some time and given these changes in mile accrual, I'll be accumulating miles with other Star members and only use the US *G status.
As others have said, this is not in Amex's control. It would be really nice if AMEX got into bed with the airlines completely and offered the top tier level of FF program. While I'm loyal to AA, I would certainly shift some if not most of my travel to US if I had Chairmans level or top tier on any other airline.
I'm sure no one at Amex or Starwood cares (judging by the unanswered EMails and VM's when Cent members dropped to SPG Gold) but my spend at Starwood has decreased drastically. Interestingly enough, my overall spend went up as my criteria for where I stayed shifted more to convenience rather than program benefits. I now stay at Peninsula's and Four Seasons more than I ever did.
Same applies to the airlines. AA gets my $'s now because of loyalty but if I had top level elsewhere, I'd probably defect......