Significant changes to UA Mileage Plus program. Impact for AA?
 

UA MP discussion

Only had a quick read through the changes, but on the face of it this makes AA's jump from $12k to $15k of spend look reasonable. Either AA will take this as an opportunity to grab some current UA top tier folks or do some increases themselves.

IIRC AA followed DL's lead on the increase from $12K to $15K for top tier. If I was to place a bet I'd say AA will copy UA not compete to possibly gain more top tier flyers. I'm starting to see the way airlines are going to monetize the front cabins is to jack up the dollar spend for higher tiers that have unlimited, space available complimentary domestic upgrades. Just simply a different way of getting more $$ for upgrades.

At least with UA you now get credit for other types of spend.

Seems like UA is taking the lead on the conversion from 'mileage based' elite programs to a 'spend based' elite programs.

I think the threshholds are scary high, but (unpopular opinion): I have to admit that I like the simplification.

I think airline programs are bit too complicated (need FT to help figure out what is what), and not quite on topic, they are too top-heavy (large redeemable mile bonuses and rich benefits for the top, but mid and low tiers are nearly worthless in benefits and mile bonuses much more meh;back on topic, that makes the 'consolation prizes' for not spending quite enough for top level feel like a slap in the face. If you can't make top tier, why bother with 'loyalty' at all. My benefits for PlatPro this year have a nominal value of maybe $200 over what a CC gives me anyways).

I think AA and DL will follow because they have all shown that “innovating” is copying what the other ones do. Then they will say they had to make the changes in order to compete with the others. It’s all a crock of ��.

Remember when AA was the last hold out for fare based earning? They even had a marketing campaign based on how they were better because they were different—a mile equals a mile. That lasted a few months before they caved.

The 54 segment requirement is crazy. I requalified for EXP on 17 segments.

Talk about shifting the pool around quite a bit with either the 18K/54 segment or 24K requirement on UA. If AA were to copy it, it's almost like a mini-super EP level or a super basic CK level.

On UA It's 18K/54 segment + 100K EQM right?

I agree. Spend generally equates to profit and that seems to be the key thing nowadays. Hopefully thinning the 1K herd will allow them to up the benefits? Personally, being able to book one premium cabin saver award a year (with a 1 or 2 seat option) would be a good start as an inducement. Not a 100% any day any flight option, but I'm sure they could craft something that would considerably open up the ability to use miles on what has traditionally been a scarce option.

From reading through, it seems that most folks have identified that some relatively low spend on *A partners can generate the PQP's required to retain/achieve status due to the way PQP's are earned on these tickets. Only requirement to fly UA is for the 4 segment annual requirement on UA metal which will be the cheapest possible fare anyone can find.

Winners and losers as with any change, but here's hoping that AA sits back and watches the reaction before taking any steps.

Nope, EQMs (PQMs actually on UA) no longer matter, just dollars and segments (or lots more dollars)

Regards

For 1K there is no EQM requirement at all from 2020.

Either $24k spend OR $18k spend + 54 segments.

Wow. They might as well just change 1k to 100K as in a few years that's what the spend minimum will be.

At any rate I say I look forward to my last EXP year next year as sure as S Parker will change this spend threshold minimums. Game over for me. It was a nice ride while it lasted.

Are we sure it will thin? AU execs have said they expect elite ranks to expand, not thin, although they did not address specific tiers.

There are a lot of 100K flyers that will now leave UA and come to AA and DL.

Great.

Frequent customers, are not necessarily good ones.

It will be interesting to see DL and AAs retort.

Why?