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-   -   ARCHIVE: AAdvantage Million Miler Program as of Dec 2011 (master thd) (https://www.flyertalk.com/forum/american-airlines-aadvantage/1966301-archive-aadvantage-million-miler-program-dec-2011-master-thd.html)

GUWonder Aug 25, 2011 5:23 am


Originally Posted by trach500 (Post 16991023)
As an infrequent flyer on purchased tickets, do you think it's worth the spend/transfer from Gold to Plat? I always travel on miles because I accrue many with business purchases. I am currently 900K miles about from Plat, but I can transfer many SPG points to hit Plat (2m) easily, do you think it's worth it? Is there a major difference between gold & Plat?

If I were in the position of considering transferring 700,000+ SPG points to AA to hit 2MM, I wouldn't do it even if an infrequent flyer on regular paid tickets.

The value I would get out of 700,000+ SPG points in such a scenario exceeds the value of 900k AA miles (and/or the value of 900k AA miles+AA Platinum benefits when flying mostly on award tickets). The lounge access can be bought one way or another without doing such a transfer.

But that's just me. However, if I were generating 400k+/SPG points a year, then perhaps I'd consider it too if in such a situation. But I'd probably still come back to not doing it for reasons expressed in my prior paragraph.

Dr. HFH Aug 25, 2011 5:31 am


Originally Posted by 2tall4economy (Post 16990829)
All in, they probably lost $100k-$200k of pure gravy from me over the next 18 months.

I assume there's at least 10 other people like me; as such they just took a hit of $1M - $2M on their bottom line because of this.

Pretty poor decision making on their part.

Really? AMR revenue for 2010 was approximately $2 billion. At $1-2 million, you're not even up to a rounding error. If you, even for a minute, entertain the idea that they didn't figure this out and model it in great detail before making the decision, you are mistaken.

(Not picking on you specifically, -- yours was the most recent post expressing this sentiment.)

koroleon Aug 25, 2011 5:33 am

What about DEQM? I searched the thread and it hasn't been mentioned.

GUWonder Aug 25, 2011 5:33 am


Originally Posted by jaynyc (Post 16990958)

For those that are LT PL, other than what I just mentioned, the program change has little impact on us. You still accrue miles for upgrades and free tickets. And in the long run, cuts down on the competition for upgrades. But I do see a loss of business by those who were focused on becoming LT Gold or PL. Not sure how changing the program would increase revenue for AA. People are not going to double or triple their flights to reach LT status, especially if they only have a few hundred thousand LT miles.

While I don't see how this change will be a longer-term revenue driver for AA mileage sales to AA partners, the change seems rather responsible with regard to protecting the longer-term value of AA elite status benefits and more closely aligning AA's costs for AA elite status benefits with more contemporary revenue flows. Also, the change to earning lifetime AA elite status is substantial enough that BA has one less thing to be concerned about its customers ditching the BA program for AA's program. ;)

If only the same kind of "protectiveness" could be said with as much confidence about AA's approach to the value customers get from the AA miles earned from flights for use on flights.

trach500 Aug 25, 2011 5:33 am

I also get domestic AA lounge access through my AMEX Platinum as well, so I wouldn't even need to buy a lounge membership Now that I look at it, I'm not so sure it's really worth it. I'm not sure I see any MAJOR differences between gold/plat. I figured I would need to transfer 600K SPG into 800K AA to hit the 2M mark, which would still leave me with a balance of approx 400K SPG.

GUWonder Aug 25, 2011 5:40 am


Originally Posted by trach500 (Post 16991128)
I also get domestic AA lounge access through my AMEX Platinum as well, so I wouldn't even need to buy a lounge membership Now that I look at it, I'm not so sure it's really worth it. I'm not sure I see any MAJOR differences between gold/plat. I figured I would need to transfer 600K SPG into 800K AA to hit the 2M mark, which would still leave me with a balance of approx 400K SPG.

There is the value of the 4 SWUs to be considered as well as lounge access. However, if travel is primarily on mileage tickets, SWUs have no applicability to such, even as they are valuable instruments -- worth at least $300+ each (or multiples more) to many who use them.

ma91pmh Aug 25, 2011 6:08 am

Reading through this thread, it is amazing to me how much value people place on lifetime plat and certainly lifetime gold. I mean in my book it really isn't that valuable. Why on earth anyone would, for example, direct $100-$200k of "gravy" AA's way so they can save $25 bag fees?????? C'mon!

richarddd Aug 25, 2011 6:09 am


Originally Posted by Dr. HFH (Post 16991112)
Really? AMR revenue for 2010 was approximately $2 billion. At $1-2 million, you're not even up to a rounding error. If you, even for a minute, entertain the idea that they didn't figure this out and model it in great detail before making the decision, you are mistaken.

You're missing the point. Anything which diminishes benefits, or even hoped for benefits, to FT posters is fatal to AMR's prospects. Next you'll be telling me AMR management has a better idea of how to run an airline than the people on FT.

pkerr Aug 25, 2011 6:25 am


Originally Posted by ma91pmh (Post 16991239)
Reading through this thread, it is amazing to me how much value people place on lifetime plat and certainly lifetime gold. I mean in my book it really isn't that valuable. Why on earth anyone would, for example, direct $100-$200k of "gravy" AA's way so they can save $25 bag fees?????? C'mon!

Not saying it's worth it but LT Plat = Free bags, exit rows, double miles

2tall4economy Aug 25, 2011 6:34 am


Originally Posted by AAExPlat (Post 16989515)
Unfortunately I disagree. AA is still an airline. Not a bank. Not a lending institution. They need to make their money flying paying pax.

In a word, no. For example, car dealerships make almost no money on their "primary" business of selling new-from-the-factory cars. They make all their money on selling old cars and repairing your car.

Car manufacturers make almost no money on their "primary" business of selling new-from-the-factor cars to dealers. They make all their money selling parts and accessories to dealers.

Computer printer manufacturers give away their printers at cost in order to sell you profitable ink.

Video game console systems are loss leaders and make up on software sales.

...the list goes on...

GUWonder Aug 25, 2011 6:40 am


Originally Posted by richarddd (Post 16991244)
You're missing the point. Anything which diminishes benefits, or even hoped for benefits, to FT posters is fatal to AMR's prospects. Next you'll be telling me AMR management has a better idea of how to run an airline than the people on FT.

I agree with the point that this change is certainly not fatal to AA's prospects. But I'd make that point in a different way than that done in the above post -- if only because the thing that ends up being most fatal to AA's prospect may be AA's own management decisions. Perhaps even AA management's decision not to take advantage of a bankruptcy protection filing to restructure more contemporaneously with DL and UA.

2tall4economy Aug 25, 2011 6:52 am


Originally Posted by FINASTORY (Post 16989746)
I have about 300k Marriott points. Is there any good way I can bring them into AA?

8.13:1 is the best you'll get. Convert to CO miles, then use points.com


Similarly, what is the best way to bring in Hilton points ==> not much, but around 30k points
5:1 via Hilton's website


Have about 250k Delta miles, is there any good way to bring them in?
Swap X Delta miles for 15k AA miles on points.com (doesn't work if you've already "shared" this year). The rest you can't move.


Have about 40k United miles, is there any good way to bring them in?
3.2:1 Convert to CO miles, then use points.com

Guy Betsy Aug 25, 2011 6:53 am


Originally Posted by jambajuice (Post 16990530)
AmericanAirline is clear about this in their post. It will not affect current lifetime members.

Thank you. I have Plat Life and don't fly AA much anymore.. so am glad it won't affect me... that is until AA decides to rename their Gold and Plat levels to something else!

2tall4economy Aug 25, 2011 6:58 am


Originally Posted by milehound (Post 16990043)
Your best bet is to check out the Mileage Converter at Webflyer.com

http://www.webflyer.com/programs/mileage_converter/

You'd think so but it only shows half the picture; points.com is the other half. In many cases, points.com lets you convert miles which otherwise aren't convertible.

AAExPlat Aug 25, 2011 7:15 am


Originally Posted by 2tall4economy (Post 16990829)
I'm really close to LTG; had a plan to cruise into 1.3/1.4M by year end and hit LTP next year around this time.

Very sad I won't have the chance; but now I'm free to pursue DL (which is better as it has a hub in my hometown unlike AA), and I'll cancel all the things I was working on and will work to get exactly 1M miles. I'll never fly AA again unless it's for work.

Dumb gamble on AA's part. In the last 4 hours they've lost (just in 2011):

3 Transpacific/Transatlantic business class paid flights
$50k spending with their CC partners (which they get a portion of directly or otherwise)

Next year, they'll lose ~6 business class trans-con flights, the fees I would have paid for miles sharing, miles buys, and mileage accelerator buys.

And their partners have lost:
buy hotel points and convert to miles for 6 hotels
credit card annual fees I won't be paying
online shopping mall spending which I won't be making
"service fees" for using credit cards for online payments

all of which result in less miles purchases from AA and lower revenue.

All in, they probably lost $100k-$200k of pure gravy from me over the next 18 months.

I assume there's at least 10 other people like me; as such they just took a hit of $1M - $2M on their bottom line because of this.

Pretty poor decision making on their part.

Could you please explain for me how you come up with your $100-$200k gravy number?

If I do the math, the 3 TPAC tix should be around $30k, the 6 TCONS around $10k and the cc spend nets them about $500 in miles sold (assuming 1 cent per mile). And I think I am being generous about the fare assumptions...all-in, it looks like you are bringing $40k to the table. Nothing to sneer at, but a far cry from $200k in revenue to AA. What am I missing?

At the same time, the hundreds of thousands of miles you are not getting, you can also not redeem for F or J awards on CX for example, so AA may easily save a few thousand back of the $40k you took off the table...


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