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Any potential they extend status again in '21?

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Any potential they extend status again in '21?

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Old Mar 23, 2021, 1:28 pm
  #31  
 
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Originally Posted by Doppy
United already has a Q1 bonus elite qualifying promotion. Telling those people now or later in the year "haha, you didn't need to spend any money on that promotion" is not likely to be welcome news.
The incremental bonus PQP provided enable/enabled those pax to earn PlusPoints, as well as the potential to jump status levels. In April 2020, UA and AA extended status, but didn’t provide the additional benefits that come from BIS flying (eg, SWUs, ability to jump levels, higher priority on UPG list in the case of AA, etc). So, the pax participating in the Q1 promo that paid a higher fare or chose UA rather than a different choice are still getting benefits from their loyalty (confirmable upgrades, Admirals Club membership, AA status gifting, etc) they’re not getting from the status alone. I think most elites—even those in the Q1 promo—would appreciate the certainty of the free status extension rather than dislike it.

Also, as other have pointed out, the new domestic structure in which F is now being priced more competitively across carriers, reduces the value of elite status. In survey after survey, elites value upgrades as the number 1 benefit of their status. When the need or ability to upgrade decreases, the value of elite status decreases, and pax become less loyal to a carrier. The legacy carriers don’t want to have everybody- especially freq flyers-as free agents. That’s bad for their business.
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Last edited by SFO_FT; Mar 23, 2021 at 1:35 pm
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Old Mar 23, 2021, 2:18 pm
  #32  
 
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IMO, airlines are waiting to see if business travel will return to pre-COVID levels, and if so, when. If business travel will return, it makes sense to extend status until it does, thereby locking in the elites who will eventually return. OTOH, if they feel business travel won't return, then they need to restructure their loyalty programs to incentivize leisure travelers. In that case, who cares about keeping their old elites?
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Old Mar 23, 2021, 2:29 pm
  #33  
 
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I would have said no, but I think the third wave in Europe at the moment plus Japan canceling inbound foreign travel for the Olympics (and the knock on impact of that in general) has probably nixed the lower thresholds. Perhaps we'll see something similar to Marriott where they 'gift' you the other 25% to put you in reach going into H2 and hope it spurs some extra travel from folks wanting to retain. That's what I'd do anyway - the hotels have played the loyalty programs pretty well imo, they've drummed up mattress run business and all it costs them is few breakfasts in reality.
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Old Mar 23, 2021, 4:06 pm
  #34  
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I think the US3 for years have wanted to realign their FF program but no one would be the first to blink. Starting with upgrades. AA is monetizing the domestic F cabin. Clearly they'd rather get an extra $200 for that seat than give it to you elite for nothing. I have six flights this week, all within the EXP window, Not one of them have cleared and if they do it will be at the gate/onboard because of a non show F revenue pax. More and more when I'm in F its because I took AAdvantage of an upfare offer.

In fact, credit card holders seem to be the new airline love affair not FFs.

COVID will give the airlines the "excuse" to change FFs and onboard service. Look at what's happened to meals and MCE. There's no going back to hot meals (other than a few long haul domestic flights) and free booze in MCE.

It's over. It was a blast while it lasted.
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Old Mar 23, 2021, 5:34 pm
  #35  
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I don't think they will extend the status again for 2022, although I do believe they may temporarily lower the EQD requirement.
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Old Mar 23, 2021, 6:15 pm
  #36  
 
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Originally Posted by Doppy
I think a better plan would be a soft landing plus a Q1 2022 challenge to regain or retain status. Their status could even be extended during the Q1 challenge.
Concept of a challenge sounds reasonable, but expensive, logistically challenging to implement. How many dedicated CSRs would be required to manage such a program for the (???) thousands of current elites worldwide who would be eligible for such a program. Pitchforks would come out if AA charged a fee to participate.
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Old Mar 23, 2021, 9:29 pm
  #37  
 
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Originally Posted by SFO_FT
Announcing the status extension later in the year will really upset the pax that were making a concerted effort to fly incremental flights during the course of the year.

In the same way that I doubt many elites—those who were in the process of accumulating their 2020 requirements—were upset last year, when status extensions were announced in April 2020, it would make sense for the carriers to annouce the extensions now, so as to avoid free agency. Also, remember that one would still likely be required to fly this year’s (slightly, currently) lowered thresholds to get the new “elite choice” rewards, including SWUs, bonus miles, etc. So, there’s still pretty good incentives for status-extended elites to want to continue booking AA—to achieve those thresholds.
All good if 100% of AA elites were US based, but a fair number of people are in countries where we can't travel internationally (and won't be allowed for the majority of the year, if not into 2022). My last trip to Okinawa landed me a whopping 165 EQDs and 1,930 EQMs in Domestic Business Class, and I believe that's the longest domestic flight available on JL. If would take 36 round trips to hit the EQDs, it's just not practical, most people NEED international travel for those thresholds. I'm sure there are a fair few UK based AA elites as well, who are going to be in the exact same boat with a Ł5,000 fine for leaving the country until at least July. I know I've seen some posts by Oz residents as well, and that's definitely not happening in 2021.
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Old Mar 25, 2021, 9:25 am
  #38  
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Originally Posted by ramcm7
Obviously, AA wants high-revenue butts in seats. If business travel, particularly int'l, doesn't rebound, how would FTers view a soft landing? If you don't hit the (reduced) target of your previous level, you only drop one level. Is that enough to keep you from becoming a free agent?
If you haven't become a free agent already, it's unlikely anything coming down the pike will suddenly cause you to see the error of your ways and stop throwing money away chasing airline status.


Originally Posted by ChurnieEls
the hotels have played the loyalty programs pretty well imo, they've drummed up mattress run business and all it costs them is few breakfasts in reality.
With hotels these days, it's not even costing them breakfasts since those have been suspended under the guise of COVID.
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Last edited by Herb687; Mar 25, 2021 at 9:29 am Reason: multi-quote
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Old Mar 25, 2021, 10:03 am
  #39  
 
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Yeah: define breakfast. A chobani, an Otis Spunkmeyer packaged orange cake, and a banana. So much win!
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Old Mar 25, 2021, 12:13 pm
  #40  
 
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Originally Posted by Herb687
If you haven't become a free agent already, it's unlikely anything coming down the pike will suddenly cause you to see the error of your ways and stop throwing money away chasing airline status..
If you were spending any meaningful amount of extra money "chasing" elite status you were doing it wrong anyway...

I'm constantly amused by this perspective that airline status is something to be chased/pursued/effort made at. Airline status is something that comes as a byproduct of flying. Sometimes I think people here think flying is something that comes as a byproduct of chasing status...
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Old Mar 25, 2021, 9:53 pm
  #41  
 
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Originally Posted by bse118
If you were spending any meaningful amount of extra money "chasing" elite status you were doing it wrong anyway...

I'm constantly amused by this perspective that airline status is something to be chased/pursued/effort made at. Airline status is something that comes as a byproduct of flying. Sometimes I think people here think flying is something that comes as a byproduct of chasing status...
OT, but Status is absolutely something to be chased. In many situations, the flying one naturally does gets them close, but not to the status qualification finish line. I think many of us here enjoy flying purely for fun, so why not throw in a fun trip or three to make all those work trips paid in Y more enjoyable?

Additionally, what you book to get from point A to point B might vary greatly based on what sort of status qualifications it will earn you.
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Old Mar 26, 2021, 10:54 pm
  #42  
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Originally Posted by Doppy
United already has a Q1 bonus elite qualifying promotion. Telling those people now or later in the year "haha, you didn't need to spend any money on that promotion" is not likely to be welcome news.
Sure they will, just throw a little rollover in their direction and they’ll be happy as clams
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Old Mar 27, 2021, 10:32 am
  #43  
 
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Originally Posted by javabytes
Sure they will, just throw a little rollover in their direction and they’ll be happy as clams
I think rollover is a great way to give something worthwhile to the folks who are actually able to fly. Those who are lucky enough (or unlucky as one might see it) to fly enough for EXP or even PP this year are going to be a small minority of the normal roster.

The vast majority of the world doesn't have the vaccine rollout that the US and a select few other countries do, so borders open are still going to be very limited through most if not all of the year. Even people who usually qualify on domestic only, EQD earnings are much much lower still for many routes, even paid F.
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Old Mar 27, 2021, 10:56 am
  #44  
 
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As a 15+ year EXP, without any kind of extensions/threshold lowering/promos there is no way I'll qualify this year. I'm also the prime candidate to become a free agent, which I had contemplated in 2018/19 anyway, but organically attained EXP without trying. I look at it this way - if AA doesn't extend, it's just going to force me to do something I probably should do anyway. LAX is my home airport (despite my moniker) and I have a ton of choices for my travel - especially nonstops which I really value now. I've already had to take a coupe of free agent flights in the last year, and I've been pleasantly surprised at the competition.

I'm also a QF Platinum - they have been very generous at extending status, especially for their overseas members. They are in a little different situation though, with International travel essentially shut down nobody is flying engouh to maintain their top tiers.
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Old Mar 27, 2021, 12:54 pm
  #45  
 
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Originally Posted by SNA_Flyer
As a 15+ year EXP, without any kind of extensions/threshold lowering/promos there is no way I'll qualify this year. I'm also the prime candidate to become a free agent, which I had contemplated in 2018/19 anyway, but organically attained EXP without trying. I look at it this way - if AA doesn't extend, it's just going to force me to do something I probably should do anyway. LAX is my home airport (despite my moniker) and I have a ton of choices for my travel - especially nonstops which I really value now. I've already had to take a coupe of free agent flights in the last year, and I've been pleasantly surprised at the competition.

I'm also a QF Platinum - they have been very generous at extending status, especially for their overseas members. They are in a little different situation though, with International travel essentially shut down nobody is flying engouh to maintain their top tiers.
+1. Long time EXP that’s been achieved through almost entirely premium international travel. Also, lifetime Plat, so my inability to achieve the currently ludicrous EXP 2021 thresholds makes free agency even more likely. What often gets forgotten by folks who say that carriers want to thin the ranks of their elites is that when high value customers lose status, and subsequent interest in a loyalty program, they’re losing a customer’s interest that carrier’s entire FFP ecosystem (car rental, credit card, partner airlines, etc). I’d posit that CK and EXP spend on AAdv credit cards is higher than it is by other elites, so keeping these elites—including the one who through no fault of their own aren’t able to travel overseas and/or for business—is important, especially when the airlines have just $ leveraged their FFPs and need to keep their new investors comfortable.
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