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Speculation: New American AAdvantage FF Program Features (Discussion)

Speculation: New American AAdvantage FF Program Features (Discussion)

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Old Dec 1, 14, 10:53 pm   -   Wikipost
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Whatís next

We plan to bring current Dividend Miles accounts into the AAdvantage program in 2015
(date as yet unspecified - JD). That means we will combine your award mileage balances, your Million Milerô balances, and your elite-qualifying activity from both programs. In the meantime, continue to book travel and earn miles as you normally would. We will follow up with you when we begin the process of integrating accounts, but rest assured your miles and elite status are safe as we work to combine the two programs.

It will take some time to fully integrate our loyalty programs, including everything from the systems that support them to bringing our terms and conditions in line with one another. We will be sure to keep you updated as changes occur
.
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Old Jun 11, 14, 7:47 pm
  #736  
 
Join Date: Jun 2011
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Originally Posted by grahampros View Post
Well that's the point. They no longer need the millage runners to fills those seats with 85% to 90% load factors. They will fill those either way. Non status is actually a lot cheaper for them since they don't get free bags etc. in those cases they make more money off of non status folks.
Well UA definitely needs all the marginal pax they can find, low load-factors were a core driver of their loses last quarter. It's not just MRers either, a lot of people make marginal work or personal trips and partially rationalize them based on getting miles.
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Old Jun 11, 14, 8:00 pm
  #737  
 
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Originally Posted by Ambraciot View Post
Well UA definitely needs all the marginal pax they can find, low load-factors were a core driver of their loses last quarter. It's not just MRers either, a lot of people make marginal work or personal trips and partially rationalize them based on getting miles.
No actually not. LF was essentially flat y/y. it' was down less then half a percent. It was PRASM that was the issue.
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Old Jun 11, 14, 8:58 pm
  #738  
 
Join Date: Jun 2011
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Originally Posted by grahampros View Post
No actually not. LF was essentially flat y/y. it' was down less then half a percent. It was PRASM that was the issue.
Their load-factors dropped while the competitions improved, they lost money while the competition profited, PRASM is both a direct and indirect product of load-factor.
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Old Jun 12, 14, 2:12 am
  #739  
 
Join Date: Feb 2014
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Originally Posted by Dadaluma83 View Post
Reading the UA facebook page is a real hoot. Sad the canned responses from United trying to spin the change. Using buzz words such as innovative, and industry leading, LOL
Industry leading? Innovative? All they did is copy DL's changes to the letter. A bunch of real geniuses from Continental running UA into the ground. This creates a VERY unique opportunity for AA to literally steal many valuable flyers from UA and DL.
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Old Jun 12, 14, 2:14 am
  #740  
 
Join Date: Feb 2014
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Originally Posted by grahampros View Post
Not the likely outcome. Certainly have not seen that on DL who annouced this some time ago now. Folks complain and moan but doesn't seem to be changing travel behavior. Airlines have gotten smart and willing to call that bluff.
I think we will likely see the change in behavior when it begins to take effect. DL in Jan and UA in March of next year. That is when I think AA will see a surge of new FFers.
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Old Jun 12, 14, 2:20 am
  #741  
 
Join Date: Feb 2014
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Originally Posted by grahampros View Post
Well that's the point. They no longer need the millage runners to fills those seats with 85% to 90% load factors. They will fill those either way. Non status is actually a lot cheaper for them since they don't get free bags etc. in those cases they make more money off of non status folks.
This is one of the longest bull runs in history. UA is saying FU to their freq flyers. In economic downturns you need those loyal members to survive. It's not a matter of if but when the next recession is going to happen? Airlines and downturns don't mix. It usually leads to BK which means chasing away your loyal flyers isn't exactly smart. Unfortunately it's all about the next quarter. Oh btw UA has shrunk the last 9 quarters. Guessing capacity discipline isn't working for them. This has to be one of the worst management teams in airline history.
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Old Jun 12, 14, 2:25 am
  #742  
 
Join Date: Feb 2014
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Originally Posted by DataPlumber View Post
I like the $$$$ based DL/UA program. Status re-qualification aside, it nets me substantially more points to spend
And AA should respond but one up UA / DL by awarding whatever is greater (miles or dollars spent) x multiplier.
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Old Jun 12, 14, 3:56 am
  #743  
 
Join Date: Nov 2006
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Am I the only one who thinks that the mileage bonuses for elite status, which seem to come at the expense of base earning and cabin bonuses, are wasteful from a marketing budget standpoint? I doubt the main incentive to seek/maintain status among (profitable) passengers is the higher earn rate; it's for the additional comfort and convenience perks of status, even if just for the one non-international-first trip the customer takes that year.

Even under a revenue system, a multiplier for class of service makes sense to recognize the first class ORD-HKG $10k ticket purchaser over the Shuttle commuter who racked up $10k in fares but had to be transported with that money 30-100 times (and probably was less a decision maker in the purchasing process, instead bound to route maps and corporate contracts). Maybe something like 6x base, +1x for GLD, +2x for PLT/EXP, +2x for J/dom F, +4x for intl F would make sense.
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Old Jun 12, 14, 5:26 am
  #744  
 
Join Date: Jul 2010
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Originally Posted by Rus925 View Post
I doubt the main incentive to seek/maintain status among (profitable) passengers is the higher earn rate; it's for the additional comfort and convenience perks of status, even if just for the one non-international-first trip the customer takes that year.
This.

The bonus miles or RDMs or whatever you call them are just an afterthought for me, because I can't use them for leisure trips or I would not have time to earn the PQMs/EQMs I need for status.

And why do I need status? Because flying can be a grind without it, and I don't do the kind of work-related trips where I can count on F from OPM.

So the existing systems have worked well for me -- or I have acclimated myself to them -- since free upgrades domestically, often extended to family members traveling with me, and some better treatment from the airline have made the international long-hauls I do in Y worth it to me.

The new system won't, so I guess I'll turn down more work-related trips, fly less, and churn credit cards more for family trips. When the environment changes, you have to change, or become a fossil sooner rather than later. I can see it from the airlines' standpoint -- in an oligopoly, best to cut seats and raise fares. Alas, I'm not a CEO of an airline.
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Old Jun 12, 14, 7:03 am
  #745  
 
Join Date: Oct 2003
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Originally Posted by Rus925 View Post
Am I the only one who thinks that the mileage bonuses for elite status, which seem to come at the expense of base earning and cabin bonuses, are wasteful from a marketing budget standpoint? I doubt the main incentive to seek/maintain status among (profitable) passengers is the higher earn rate; it's for the additional comfort and convenience perks of status, even if just for the one non-international-first trip the customer takes that year.
.
I always viewed the 100% bonus for Plat/EXP as a way to allow the Plat/EXP to redeem miles for F/J travel with the same amount of travel that a non-Elite would do to earn the miles needed for a coach reward.

That's because in general, the low-level rewards are generally 2x for F/J travel over Y.
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Old Jun 12, 14, 10:08 am
  #746  
 
Join Date: Aug 2011
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Originally Posted by FlyerTom111 View Post
And AA should respond but one up UA / DL by awarding whatever is greater (miles or dollars spent) x multiplier.
Brilliant! Sort of like how Hilton had for a while when giving out airline miles. A flat rate of miles per stay, or miles per dollar.

AA should let the AAdvantage member choose either distance or fare based. That way people like me who fly mid-cons and trans-cons on Q fares are just as happy as the guy who pays 600 per ticket for a short flight on the east coast.

Would it really be so bad to let the AAdvantage member choose the way they want to earn miles? Would that really hurt the bottom line? Now I know as far as redemption they can completely gut the award chart and/or availability of saver awards and we can do nothing but bend over, but at least letting us choose the most beneficial way for earning miles would ease the pain.
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Old Jun 12, 14, 12:16 pm
  #747  
 
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Originally Posted by cova View Post
I always viewed the 100% bonus for Plat/EXP as a way to allow the Plat/EXP to redeem miles for F/J travel with the same amount of travel that a non-Elite would do to earn the miles needed for a coach reward.

That's because in general, the low-level rewards are generally 2x for F/J travel over Y.
I hadn't thought about it that way. I don't know how relevant this is with a revenue system, but it seems to me that principle should hold for F/C travelers: if x economy flights would get you one economy flight, x business flights should get you one business flight.
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Old Jun 12, 14, 9:06 pm
  #748  
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Originally Posted by Rus925 View Post
Am I the only one who thinks that the mileage bonuses for elite status, which seem to come at the expense of base earning and cabin bonuses, are wasteful from a marketing budget standpoint? I doubt the main incentive to seek/maintain status among (profitable) passengers is the higher earn rate; it's for the additional comfort and convenience perks of status, even if just for the one non-international-first trip the customer takes that year.
You probably are the only one. Were you around when UA meaningfully cut the elite bonuses for the lower levels after the OnePass-MileagePlus combination??? Elite bonuses are definitely a big selling point.
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Old Jun 12, 14, 9:38 pm
  #749  
 
Join Date: Nov 2006
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Originally Posted by ijgordon View Post
You probably are the only one. Were you around when UA meaningfully cut the elite bonuses for the lower levels after the OnePass-MileagePlus combination??? Elite bonuses are definitely a big selling point.
I do, but the greater March 3 general reservations fiasco was what drove away customers, to my recollection. Moreover, unlike both that bonus change and the current revenue-based proposal which pretty much reduce earning across the board, even for non-full-fare premium cabin tickets, what I'm proposing moves the miles from elites to premium cabin purchasers. Some people will like it, some people won't. The question remains whether the happiness outweighs the disappointment.
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Old Jun 13, 14, 6:28 am
  #750  
 
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I don't doubt that this is all a zero-sum game, with the airline(s) getting a bigger share. Now things seem to have devolved to figuring out which type of passenger gets the larger share of what's left.

As we move toward a system that looks to me little different from, say, Samuel L. Jackson rebating a steady 1.5% of whatever I already have to spend annually, I can't help but look back wistfully (and a little ashamedly) at what I always thought to be the beauty of the miles-for-miles system. It seemed to introduce two other "players" (suckers) into the zero sum game: the "others" in OPM ("other people's money"); and our fellow tax-payers.

The existing system has incentives for passengers and airlines to collude in sharing OPMs, with passengers getting an additional kick from not having to pay taxes on what strikes me at least as functional income.

The move to Samuel L. Jackson type fixed discounting systems makes it all volume based but with no real incentive to increase the volume. Unless, I suppose, the airlines are correct that there are enough high-end payers with inelastic demand. But are they motivated by the constant marginal effects of Samuel L. Jackson type rebate schemes?
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