FlyerTalk Forums - View Single Post - US/AA merger- MASTER DISCUSSION THREAD/incl 'when will US leave STAR'
Old Feb 14, 2013, 12:19 pm
  #126  
dcpatti
 
Join Date: Dec 2006
Location: Washington, DC
Programs: US-CP, UA, Marriott Rewards, HHonors, Avis,
Posts: 4,549
Originally Posted by psychoandy

Regardless of how you feel about the merger, AA miles are way harder to obtain thru non-flying methods, so I might as well maximize thru US credit cards and promos before it ends.
I wouldn't be surprised if earning PQM via credit card spend, club memberships or promos sticks around. US has been pretty creative in monetizing all sorts of stuff and if those vehicles are turning a profit, we'll see them stay.

How much extra income has Barclays made by people who push every charge through them just to get the PQM? I'm guessing it's pretty significant even if it's difficult to measure (maybe run a report of everyone who gets to exactly $25k then stops using the card? that is merchant fees on $25k for each of those users, though... a big sum, I bet... and US gets a slice from Barclays...)

US is financing their part of this deal in part with the money from miles promos, grand slams, PQM through credit card, etc etc etc. If it is a net profit, it will likely stay. I can't say they're making profit off of all of their PQM-earning channels but I can guarantee there's a room full of accountants and analysts somewhere who know what promos and opportunities are money-makers. I won't even be surprised to see Buy Up Preferred stick around (regardless of the name) as these benefits cost US pretty close to $0 to deliver--- capacity controls on CP certs help keep Envoy from being full of upgraders, and on domestic routes, the F cabin is full of upgraders anyway, with the buy-up getting the buyer moved up in the pecking order, not somehow increasing the number of upgraders--- basically some extra bonus miles and some waived baggage fees in return for hundreds of dollars depending on the levels. That's a nice chunk of money for not really doing anything. I don't think AA currently do something like this, and I really won't be surprised if the new program has that option.

Last edited by dcpatti; Feb 14, 2013 at 12:26 pm
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