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Why don't airlines just sell elite status?

Why don't airlines just sell elite status?

Old Sep 25, 2016, 8:16 am
  #1  
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Why don't airlines just sell elite status?

With the recent trend toward PQD/EQD/MQD, it's clear that the airlines don't want to extend elite status to customers who spend below a certain dollar amount.

Take me, for example. This year, I'll have enough PQM on United to re-qualify for 1K, but only enough PQD to be a silver. Now, some of you corporate apologists will accuse me of being an opportunistic freeloader, which is your right.

However, as a self-employed travel writer who funds most of his own travel, I'm loyal to the airline who lets me fly the most while spending the least, to say nothing of the rock-bottom hard and soft products the US 3 offer. "Elite" status simply entitles me to the same treatment classier airlines given ordinary customers, to say nothing of the outdated first/business cabins to which I'm occasionally upgraded.

Anyway, I wonder if the airlines will ever take this idea to its logical conclusion: Selling elite status outright. What are your thoughts?
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Old Sep 25, 2016, 8:57 am
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https://www.lifemiles.com/eng/tra/pr...ot.aspx?D=TTN9
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Old Sep 25, 2016, 9:10 am
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Let's continue this discussion in MilesBuzz.

--jpdx, MR Moderator
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Old Sep 25, 2016, 9:22 am
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Advice, MS your PQD waiver.

With your same logic, why don't credit cards just give us money for free? Since we can MS...

Now, airlines do actually sell status. To those who actually sit on their flights. Same way, credit cards give us money for free, to those who find the loophole.

In the middle of the equation to answer your question is everyone's time. Your time has price. What is it?
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Old Sep 25, 2016, 9:35 am
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While you may not realize it, because it is so different from your experience, there are people who don't qualify for status not because they don't spend enough but they don't fly enough. For example, some who happens to fly just one international flight in paid business class may get all the EQD they need for at least the first level of status (if not the second level) in that one flight, but that one flight probably isn't anywhere near long enough to qualify them for any status.

So the airline clearly in such a case doesn't want to give status to someone who just flew one flight.

And thus the mix of qualifying dollars and qualify miles.

There are some airlines that also sell status. (United in fact has done this in the past, though I don't know if they do it at this moment.) But when they sell status with no miles requirement, the dollar cost is way higher than the dollar cost when you also have a miles cost.

And the other problem is who pays. The elite status goes to the person who flies, whether they or their employer paid for the ticket. But if it was pure money, you could bet the employer wouldn't pay separately for status, just for the flights. So then no business travelers would have status! So it's because of the way many business travelers' flights are paid (by someone else than the person who earns the elite status) that the dollar factor has to be based on the cost of the flight, not on a separately-paid cost. That's the only way this game of "business pays, flier earns' can be continued.
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Old Sep 25, 2016, 9:38 am
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Originally Posted by LeaveYourDailyHell
...Anyway, I wonder if the airlines will ever take this idea to its logical conclusion: Selling elite status outright. What are your thoughts?
FWIW -

USAIR did it for years.

And I believe AA still sells roundups to the next level.
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Old Sep 25, 2016, 9:45 am
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Originally Posted by LeaveYourDailyHell

Anyway, I wonder if the airlines will ever take this idea to its logical conclusion: Selling elite status outright. What are your thoughts?
Many already do one way or another.

As for your loyalty and believing you deserve something more than the bargain-priced product that is all you're willing to pay for, why should the company reward you? If you're only buying the cheapest fares then you're arguably interchangeable with other passengers also just buying cheap seats. And the company rarely has trouble making that work when they want to. Filling cheap seats is relatively easy and doesn't depend on loyalty nearly as much as filling them as prices rise (though even then not so much).

But to suggest that you deserve more than travel a 3-4cpm simply because you want it defies business logic at many levels.
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Old Sep 25, 2016, 12:12 pm
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Originally Posted by Global321
FWIW -

USAIR did it for years.

And I believe AA still sells roundups to the next level.
I think AA sells renewals for your current level too, even if you are at 0 EQM for the year. Might double check that in the AA forum.
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Old Sep 25, 2016, 12:21 pm
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The airlines not only sell elite status they give it away. AA just gave Gold Aavantage to a family member who has flown zero miles this year and zero paid miles last year. I can not figure out the algorithm that made AA send out this free gold. The other airlines do the same and the clues are in the fine print foot notes. Delta says you must fly 8 segments to get Delta Elite status
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Old Sep 25, 2016, 12:39 pm
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Originally Posted by Centurion
The airlines not only sell elite status they give it away. AA just gave Gold Aavantage to a family member who has flown zero miles this year and zero paid miles last year. I can not figure out the algorithm that made AA send out this free gold. The other airlines do the same and the clues are in the fine print foot notes. Delta says you must fly 8 segments to get Delta Elite status
HUH? I've never seen a DL requirement of 8 segments. In fact, someone could get status by MQM rollover and the MQD waiver either by having a foreign address or by spending $25,000 on DL AmEx cards.

In fact, you can buy status on DL by depositing $100,000 in a DL Private Jets account, which can be used for two years, including on regular DL flights. IIRC this gets two DM memberships for two years, including SC memberships.
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Old Sep 25, 2016, 3:45 pm
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Originally Posted by MSPeconomist
In fact, you can buy status on DL by depositing $100,000 in a DL Private Jets account, which can be used for two years, including on regular DL flights. IIRC this gets two DM memberships for two years, including SC memberships.
same for united passplus flex($50k for their top level Global Services, 1 year, get dscounts on regular UA flights)
http://www.flyertalk.com/forum/unite...solidated.html

but what's the main point of FF elite?

1) upgrades (well, if you have money, buy it)
2) IRROPs routing (squeeze in the last flight out with 20 standbys.... can't buy this. overnight hotel comp, can buy this)
3) checkin service at airport/expediated baggage (can't really buy this)
4) lounge access (can buy )
5) what else?
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Old Sep 25, 2016, 4:02 pm
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Because some things have to be earned.

Status is pretty meaningless if you don't travel often enough to earn, and thereby use, it.

If you have the money to buy status outright, you probably have the money to buy tickets in premium cabins - where status is also pretty meaningless.

And besides, status is a carrot to encourage you to be loyal - and to spend money on tickets.
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Old Sep 25, 2016, 5:01 pm
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Originally Posted by sdsearch

So the airline clearly in such a case doesn't want to give status to someone who just flew one flight.
They sell status every single day. Full fare 1st or business class. There is no qualifying period, just a question of value.
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Old Sep 25, 2016, 9:40 pm
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Many airlines do.

And if they don't, there are good reasons not to do so. It's about encouraging repeat business, not just selling one first or business class ticket. Many people who fly premium cabins have all the benefits that come with elite status anyways.

If you sold elite status, you also can't control how many elites you have. Airlines can raise mileage requirements, accrual rates, and all sorts of games to control the number of elites. If you just sold it outright, then it just becomes a product, and you actually have to look at the value proposition.

IHG sells Ambassador status for $200, which is also IHG Platinum or Gold. It's also why IHG status is considered widely worthless.

BTW Robert I love your blog. It's spectacular. Didn't know you were on FT.
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Old Sep 26, 2016, 3:09 pm
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United doesn't sell status directly. But you can buy Accelerator Miles to increase the number of PQM you get on an existing flight. If you want status just for the club or for E+ you can buy annual subscriptions for those 2 things.
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