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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 13, 14, 12:28 pm
  #751  
 
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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.
And now they've effectively cut elite bonuses for top tiers, as well. A 1K needs to fly 100k miles, and spend a minimum of $10,000 to requalify. Under the old system, they'd earn a 100% bonus, so 100k BIS + 100k bonus = 200k RDM per year minimum.

Under the new system, a 1K spending $10,000 annually to fly 100k BIS miles will earn 11 RDM per dollar -- so 110k miles.

To match previous earnings, a 1K would have to spend about $18,000 annually.
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Old Jun 13, 14, 12:52 pm
  #752  
 
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Location: los angeles, calif.
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If AA wants to innovate, then it should create a hybrid system.

For non-elites, you get miles based on a multiplier of price.

For elites, create a different system. Maybe base miles based on distance plus bonus miles are now based on a multiplier of price.

I personally will absolutely leave AA if they go to a revenue system - my travel on AA is 100% leisure and 100% on my dime. I'll switch to Alaska Airlines, with an excellent program that will keep me flying AA planes, or Virgin America, with a decent revenue program that will have me in coach all the time, but at least I'll enjoy it, and can redeem on VA, SQ and EK at decent rates (and fortunately for me, Virgin America's limited LAX network nonetheless touches the most important cities for me - LAS, SFO, SEA, WAS, MIA/FLL, JFK, BOS, CHI).
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Old Jun 13, 14, 6:59 pm
  #753  
 
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Originally Posted by MAH4546 View Post
If AA wants to innovate, then it should create a hybrid system.

For non-elites, you get miles based on a multiplier of price.

For elites, create a different system. Maybe base miles based on distance plus bonus miles are now based on a multiplier of price.
What about shifting the elite bonus from earning to redemption?

Award miles based on distance, revenue, whatever -- the same rate for everyone. Instead, give elites hefty discounts on mileage redemption -- particularly in premium cabins -- and mileage upgrades. Or create elite-only redemption products -- hotels have done that for years.
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Old Jun 13, 14, 7:36 pm
  #754  
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Originally Posted by dtremit View Post
What about shifting the elite bonus from earning to redemption?

Award miles based on distance, revenue, whatever -- the same rate for everyone. Instead, give elites hefty discounts on mileage redemption -- particularly in premium cabins -- and mileage upgrades. Or create elite-only redemption products -- hotels have done that for years.
Doesn't really make sense. You're supposed to encourage people to fly more on paid tickets. So you give them the bonuses while they're doing that. Kind of incongruous to award people for flying on mileage tickets. Plus I think many people would prefer to save their miles for when they have lower/no status and can still get the same benefits by redeeming in a premium class.
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Old Jun 13, 14, 7:39 pm
  #755  
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Originally Posted by Rus925 View Post
...what I'm proposing moves the miles from elites to premium cabin purchasers.
Well, the new system does that already, in a way, by virtue of the higher prices on the premium cabin tickets. The old system rewarded both - via elite bonuses and class of service bonuses. I mean, maybe it wasn't perfect - a top-tier on a coach ticket would get 33% more miles than a non-elite on a first class ticket (200% vs. 150%), but I don't think you need wholesale changes to the system to correct that "imbalance."
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Old Jun 13, 14, 11:15 pm
  #756  
 
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Originally Posted by ijgordon View Post
...but I don't think you need wholesale changes to the system to correct that "imbalance."
I agree. I think you could stay distance-based while getting some of the revenue-based benefits by just readjusting the bonuses.
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Old Jun 14, 14, 3:30 am
  #757  
 
Join Date: Dec 2006
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Originally Posted by MAH4546 View Post
If AA wants to innovate, then it should create a hybrid system.

For non-elites, you get miles based on a multiplier of price.

For elites, create a different system. Maybe base miles based on distance plus bonus miles are now based on a multiplier of price.

I personally will absolutely leave AA if they go to a revenue system - my travel on AA is 100% leisure and 100% on my dime. I'll switch to Alaska Airlines, with an excellent program that will keep me flying AA planes, or Virgin America, with a decent revenue program that will have me in coach all the time, but at least I'll enjoy it, and can redeem on VA, SQ and EK at decent rates (and fortunately for me, Virgin America's limited LAX network nonetheless touches the most important cities for me - LAS, SFO, SEA, WAS, MIA/FLL, JFK, BOS, CHI).
If you're booking on price AA won't really care. They actually make more money off non elites in such circumstances since the collect baggage fees etc. They have no issues at this point filling the plane.
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Old Jun 14, 14, 11:17 am
  #758  
 
Join Date: Jul 2013
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anyone able to log in to your aadvantage account?
It says https://www.aa.com/invalidState.do
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Old Jun 14, 14, 12:08 pm
  #759  
 
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Originally Posted by ijgordon View Post
Doesn't really make sense. You're supposed to encourage people to fly more on paid tickets. So you give them the bonuses while they're doing that. Kind of incongruous to award people for flying on mileage tickets. Plus I think many people would prefer to save their miles for when they have lower/no status and can still get the same benefits by redeeming in a premium class.
Just one person's opinion (mine) but anyone that's saving miles, points, etc. for anything anymore is losing ground... I don't see anything happening but degradation (oops, I meant "enhancements") of every frequent flier / traveler program so those points you are saving are doing nothing but losing value. And with everything going at DL and UA ("DL Lite") I think it's a reasonably safe bet that the combined AA / US program will feature some "enhancements" that will make your saved points less valuable too.
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Old Jun 14, 14, 12:11 pm
  #760  
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Originally Posted by dtremit View Post
To match previous earnings, a 1K would have to spend about $18,000 annually.
Isn't that the whole point of the changes at UA and DL? Not to mention the tens of millions saved since UA doesn't have to "buy" as many miles from MP (book transfer or no, it shows up as a cost savings and thus a contributor to profits in accountant speak).
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Old Jun 14, 14, 12:44 pm
  #761  
 
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Originally Posted by grahampros View Post
If you're booking on price AA won't really care. They actually make more money off non elites in such circumstances since the collect baggage fees etc. They have no issues at this point filling the plane.
I don't book on price. I never cross-shop airlines - I easily give AA more money than I would pay flying competitors, including paid J when I fly long-haul. Other than Alaska Airlines, the last time I purchased a revenue ticket on an airline that was not American was in 2006.
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Old Jun 14, 14, 1:19 pm
  #762  
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The sticker upgrade counter's visibility on aa.com was still being suppressed as of earlier today at least. Why would AA do such a thing if not for considering eliminating 500-mile sticker upgrades?
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Old Jun 14, 14, 1:27 pm
  #763  
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Originally Posted by grahampros View Post
If you're booking on price AA won't really care. They actually make more money off non elites in such circumstances since the collect baggage fees etc. They have no issues at this point filling the plane.
Non-elites won't pay a premium to fly AA in the way the AA elites are willing to pay a premium to fly AA, if/when AA goes to a DL or UA 2015 type program for earning regular (redeemable) miles.
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Old Jun 14, 14, 1:41 pm
  #764  
 
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But what percentage of elites will pay a premium if it's their money? Probably a relatively small percentage. The rest have employer/client restrictions to deal with.

It's also interesting that the BTS puts our lists, one of which gives the largest by market share and lowest average fare for city pairs. Every airline is the lowest fare in some markets and not in others. So the idea that elites always pay a premium to fly a particular carrier is myth.

Jim
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Old Jun 14, 14, 3:34 pm
  #765  
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Originally Posted by BoeingBoy View Post
But what percentage of elites will pay a premium if it's their money? Probably a relatively small percentage. The rest have employer/client restrictions to deal with.

It's also interesting that the BTS puts our lists, one of which gives the largest by market share and lowest average fare for city pairs. Every airline is the lowest fare in some markets and not in others. So the idea that elites always pay a premium to fly a particular carrier is myth.

Jim
Frequently -- not always -- pay a premium. But your second paragraph above has a conclusion that is not explained by the two sentences preceding it.

A lot of elites -- a majority -- pay some premium to fly the airline on which they have elite status instead of defaulting to the cheapest ticket out there, even when the trip is out of their own pocket. Why? Because there is some marginal value perceived (by the majority of elites) as arising from familiarity with the airline and from some of the benefits of elite status with the airline: upgrade chances, preferred check-in, priority screening, preferred seating, fee waivers/discounts, improved handling/possibilities when dealing with IRROPs, bonus miles, etc.
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