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Buy up to Preferred status T&C's changing March 1, 2014

 
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Old Feb 19, 2014, 9:36 am
  #1  
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Buy up to Preferred status T&C's changing March 1, 2014

Just got an email from US notifying me that the buy up program will be changing March 1, 2014. Most notably you can only buy up to a tier if you are within 25k miles or 30 segments.

http://www.usairways.com/en-US/divid...21217_02172014

Keep your Preferred benefits
We see that you're losing your Silver status on March 31, 2014. Buy up to the status you want today to keep or increase your benefits.* Plus, now that you can enjoy select elite benefits when you fly with American Airlines including a mileage bonus, and priority check-in, security and boarding, it's even more rewarding to be Preferred.

On March 1, 2014, the price and terms of the Buy up to Preferred program will change, so now is the perfect time to buy up to the status you want.

Last edited by skitch23; Feb 19, 2014 at 11:57 am Reason: Add hyperlink
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Old Feb 19, 2014, 9:39 am
  #2  
 
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Changes to Buy Up to Preferred Program 3/1/14

I received an email to buy up to preferred and to maintain my status before the program changes in March. Two major changes include a substantial price increase to the buy up to preferred program and a limit to buying up to a tier within 25,000 miles or 30 segments.

Wonder if this an indication on how quickly they would like to merge programs and create parity while limiting the number of top level preferred members to those who "fly the miles"

http://www.usairways.com/en-US/divid...21217_02172014
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Old Feb 19, 2014, 10:01 am
  #3  
 
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The March 1 changes include a significant price increase. I'm assuming this is all to cut down on people buying up from dirt to Chairman in advance of the FFP integration.

Code:
Miles needed		Seg needed	Price	3/1 Price
1 - 1,999		1 - 2		$249	$499
2,000 - 4,999		3 - 6		$399	$699
5,000 - 9,999		7 - 11		$579	$999
10,000 - 14,999		12 - 18		$789	$1,499
15,000 - 24,999		19 - 29		$989	$2,499
25,000 - 49,999		30 - 59		$1,499	N/A
50,000 - 74,999		60 - 89		$2,499	N/A
75,000 - 99,999		90 - 119	$2,999	N/A
100,000			120		$3,999	N/A
Something tells me there may be a lot of 85-90k fliers like myself buying up in the next couple weeks.
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Old Feb 19, 2014, 10:03 am
  #4  
 
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Originally Posted by PA Pilot
I received an email to buy up to preferred and to maintain my status before the program changes in March. Two major changes include a substantial price increase to the buy up to preferred program and a limit to buying up to a tier within 25,000 miles or 30 segments.

Wonder if this an indication on how quickly they would like to merge programs and create parity while limiting the number of top level preferred members to those who "fly the miles"

http://www.usairways.com/en-US/divid...21217_02172014
I believe you're pretty close to the mark. I expect matching for upgrades to be announced pretty soon so they are probably trying to cut off buy-ups by large numbers of elites from both carriers beforehand.
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Old Feb 19, 2014, 10:06 am
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So, who didn't see this coming?
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Old Feb 19, 2014, 11:11 am
  #6  
 
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Perhaps the restriction on tier jumping portends the fact CP = EXP later this year/next year.
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Old Feb 19, 2014, 11:30 am
  #7  
 
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The big question is, I only qualified for Gold this year due to reduced work travel....don't think it will get much better this year, may be able to hit Platinum. Do I buy up to either Plat or Chairman's or just fade graciously....

My concern is if you believe the rumor US Platinum (ie 75K level) is going away once the programs merge, so is there a real benefit it maintaining it?
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Old Feb 19, 2014, 11:39 am
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Ouch. This hurts. I've been buying up to CP from Gold for a few years now. I guess I will have to make mileage runs to get to Platinum and then buy, but it is going to be pricey.
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Old Feb 19, 2014, 11:44 am
  #9  
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Originally Posted by PA Pilot
The big question is, I only qualified for Gold this year due to reduced work travel....don't think it will get much better this year, may be able to hit Platinum. Do I buy up to either Plat or Chairman's or just fade graciously....

My concern is if you believe the rumor US Platinum (ie 75K level) is going away once the programs merge, so is there a real benefit it maintaining it?
Maintaining a 4th tier (current US plat) provides another point to buy up to. More buy up points = more money for US/AA. I don't think it's going away anytime soon - platinum trial is still being sold for the foreseeable future it seems.

They're also making it painful. One one hand it's still possible to top up to the next tier if you're short. On the other, the price has gone up significantly - more than doubling at the the maximum end. It looks like they're valuing PQMs at 10-20 cents per mile.

Certainly makes mileage running look better. Need 5-10k miles? I'm finding a couple $250 transcons instead of paying $1000.

Seems like they're trying to make it so it's not so easy to get (and thus preserving its value), but at least provide some sort of way to make up the difference with cash if you fall short one year. Seems like a good compromise.

Looks like the Trial Preferred program's sticking around for now too. No changes to the wording on that page.
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Old Feb 19, 2014, 11:48 am
  #10  
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Originally Posted by apeortdz
Ouch. This hurts. I've been buying up to CP from Gold for a few years now. I guess I will have to make mileage runs to get to Platinum and then buy, but it is going to be pricey.
Much cheaper to do MRs all around now.

Trial Preferred seems to be staying in tact - for now at least. Given that AA's had a similar program, I can see that staying.
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Old Feb 19, 2014, 11:51 am
  #11  
 
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Yikes. I'm not surprised they're restricting the program, but $500 for 2,000 miles is a bit ridiculous. I don't see how it benefits the company to have people mileage run for their last handful of miles. With BOS-PHL advance fares at $168 r/t it doesn't make much sense.

On the other hand, if they're changing the program, they're more likely to keep it, I suppose. And the cutoff at 25k might telegraph the retention of a tier at 75k.
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Old Feb 19, 2014, 11:55 am
  #12  
 
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Originally Posted by PA Pilot
The big question is, I only qualified for Gold this year due to reduced work travel....don't think it will get much better this year, may be able to hit Platinum. Do I buy up to either Plat or Chairman's or just fade graciously....

My concern is if you believe the rumor US Platinum (ie 75K level) is going away once the programs merge, so is there a real benefit it maintaining it?
Yeah, I'm kind of in the same situation. I have 82 segments so I won't re-qualify for Platinum. Do I spend the $579 to buy up to Plat?

I'll have 24 segments by the end of this week for 2014. And should be close to 90 by the end of June if things remain the same. Right now, Plat gets me nothing on the crappy CJ flights which is 100% of what I fly. Well, maybe it gets me exit row seats most of the time but I might be able to get those as a Gold.

Now that I think about it, it doesn't seem like it's worth it.
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Old Feb 19, 2014, 12:02 pm
  #13  
 
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Originally Posted by dtremit
Yikes. I'm not surprised they're restricting the program, but $500 for 2,000 miles is a bit ridiculous. I don't see how it benefits the company to have people mileage run for their last handful of miles. With BOS-PHL advance fares at $168 r/t it doesn't make much sense.

On the other hand, if they're changing the program, they're more likely to keep it, I suppose. And the cutoff at 25k might telegraph the retention of a tier at 75k.
I'd reckon that it weeds out a lot of people and that the number of people who actually will take the time to do some mileage running combined with the people who just pay the higher cost would be a net decrease compared to if they left the price lower. Given the spend requirements at UA and DL (which I am pretty sure will be making their way to AA in 2016), I think the overall aim is fewer elites who spend more money instead of more elites who spend less.

In other words... they're thinning the herd, and my bet is that 5-10 years from now it's going to be very difficult to have a meaningful level of status without being a very profitable customer.
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Old Feb 19, 2014, 12:04 pm
  #14  
 
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Makes sense, the fewer the airlines the more they can do without having to worry about upsetting consumers.
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Old Feb 19, 2014, 12:12 pm
  #15  
 
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Originally Posted by Superguy
Certainly makes mileage running look better. Need 5-10k miles? I'm finding a couple $250 transcons instead of paying $1000.

Seems like they're trying to make it so it's not so easy to get (and thus preserving its value), but at least provide some sort of way to make up the difference with cash if you fall short one year. Seems like a good compromise.
What's odd about this pricing is that you pay more for fewer miles -- 25k EQMs are $0.10 each, but 2k EQM will cost you $0.24 each. It seems like it should work the other way, both in terms of rewarding loyalty and just the airline's basic self-interest. Someone buying up 2000 miles at the end of the year has paid to fly the other 23k -- and you can bet the airline would be better off financially taking $250 than flying the passenger on that transcon.
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