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Loyalty Points discussion/questions - From 2022 now used for determining elite status

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Old Dec 17, 2021, 11:25 am
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: jbeckett
American Airlines announced that starting in 2022, the way to earn Elite status has changed. No more Elite Qualifying Miles (EQM), Elite Qualifying Segments (EQS), or Elite Qualifying Dollars (EQD)!

Now, you can get AA Elite status by earning Loyalty Points (LPs): https://aadvantagestatus.com/?anchor...=newaadvantage

How many LPs do I need for elite status?


Code:
Gold:       40K
Platinum:   75K
Plat Pro:  125K
EXP:       200K
How do I earn LPs?

Flying
What you get for redeemable miles (RDM) is what you'll get for LPs.

AA and B6 flights:
No status: 5 LPs per $ spent in base fare plus fees (excludes taxes)
Gold: 7 LPs per $
Platinum: 8 LPs per $
Plat Pro: 9 LPs per $
EXP: 11 LPs per $

Partner flights (other than B6):
Distance flown x accrual rate* x (1 + cabin bonus + elite bonus**)

* Certain discount fares earn less than 100% of miles flown. In those cases, the discounted accrual rate (0% to 75% depending on the partner and the fare class) should be applied to the flown miles. Otherwise, the accrual rate is 100%. If there is a cabin bonus, it should not be added to the accrual rate; it is applied separately within the parentheses. The accrual rate can never be more than 100%.
** 40% for GLD, 60% for PLT, 80% for PRO, 120% for EXP.

So for example, an EXP on a 5000-mile flight on QR booked in J would earn 5000 x 100% x (1 + 25% + 120%) = 5000 x 1 x 2.45 = 12250 LPs.

A PLT on the same flight booked in P would earn 5000 x 75% x (1 + 0% + 60%) = 5000 x .75 x 1.6 = 6000 LPs.

Earning chart for QR

Here's a great online LP calculator:

https://lpcalculator.com/#/calculator/

AAdvantage non-flying partners:
Generally, 1 LP per base mile earned. But in many cases you can earn large bonuses that post as base miles; see link here: https://exploreamerican.com/newaadva...nloyaltypoints

There are differences among how these programs work, ranging from minor to significant, in terms of awarding LPs. You will need to skim through the thread as there are too many different promo offers to address here. But here are the popular ones:

BookAAHotels and RocketMiles: You can earn large mileage bonuses here, separated into "base" miles and "promo" miles by the portals. For now they are all posting as base miles on aa.com, but there is a suspicion that the "promo" miles may start posting as bonus miles (and so would not count as LP). You don't even have to actually check in or stay at the hotel as long as you pay for the stay.

SimplyMiles: You must link a MasterCard to the account. Then you can add their promos to your card by activating the offers. When you accept one of their offers and then pay for it using your linked card, you will get the associated miles which currently post as base miles on aa.com.

AAdvantage eShopping: Once you click through the AAdvantage eShopping portal to a vendor offer and make a purchase, you will eventually get the associated miles posted to your AAdvantage account as both redeemable miles and Loyalty Points. If the merchant advertises an increase in the miles per dollar spent, you'll earn the higher amount in both redeemable miles and an equal number of Loyalty Points. The same applies if a merchant advertises a higher fixed amount per purchase, rather than a per dollar amount. Examples of this would appear on the portal as, "Extra miles. Was 1 mile/$. Now earn 3 miles/$" or "Extra miles. Was up to 3700 miles. Now up to 6200 miles." However, if the website advertises a "Limited-time bonus offer" for "bonus miles" after meeting a spending threshold, that bonus will only post as redeemable miles and not Loyalty Points. If a bonus is offered for some site-wide activity such as 1000 miles for installing an extension, or 500 miles for enrolling in the portal, or 2000 miles for meeting a spending threshold across multiple merchants, the bonus will only post as redeemable miles and not Loyalty Points.
(If a vendor has offers with both SimplyMiles and eShopping, activate the offer on SimplyMiles first and then make the purchase through eShopping with the MasterCard linked to your SimplyMiles account. Apparently that you can get a double-dip. You can also get a double-dip by stacking the promos with discount offers from your credit card issuers, basically reducing the cost to you.

Booking directly with hotels, car rental companies, etc.: The picture here is a bit unclear but it appears that if you book with a hotel that offers 5x miles, only 1 mile will post as base and the rest as bonus.

Credit card spend:
1 LP per $ spent on an AA branded card (except for one card which earns 0.50 LP per $ and several non-US cards which earn 2 LP per $). See the list of cards, and a lot more small print here: https://creditcards.aa.com/aadvantag...hange_ExecCard

What about spending bonuses?
E.g., your card gives 2x miles for hotels, or 3x for AA purchases, etc etc. These do NOT count.

These bonuses count:
Citi AAdvantage Executive World Elite Mastercard (the $450 annual fee card that gives Admirals Club access): 10K LP bonus when hitting $40K spend for the year.
AAdvantage Aviator Silver Mastercard: 5K LP bonus when hitting $20K spend, another 5K LP bonus when hitting $40K spend, and another 5K LP bonus when hitting $50K spend for the year.

Do miles earned at Bask Bank count?
No.

Will Loyalty Points count toward Million Miler status?
No, Million Miler℠ status will still be earned the same way as today, based on miles earned from flying with American and its partners.











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Loyalty Points discussion/questions - From 2022 now used for determining elite status

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Old Feb 10, 2022, 2:40 pm
  #2131  
 
Join Date: Aug 2021
Location: USA
Programs: American Airlines (Executive Platinum), Hyatt (Globalist), Hilton (Diamond), IHG (Diamond)
Posts: 2,917
Originally Posted by VegasGambler
Well Citi was an exclusive partner. We don't know what was going on behind the scenes but I suspect it was a combination of Citi being pissed off and possibly there being expectations by both AA and Citi of new accounts being used for longer and generating more spend. It's entirely possible that AA was selling the miles used for signup bonuses at a discount, expecting to make it up with more spend in the future. It's a lifetime value calculation. Citi signup bonuses don't earn LP now either; it's possible that these miles generate less revenue for AA.
The crackdown was entirely on AA's side.

As for Bask, who knows. Again, it's possible that Bask pays less for their miles than other partners. You really don't know that you are comparing apples to apples here. Maybe Cartera pays 2x what Bask pays for miles? We just don't know.

AA specifically calls out FTD as a partner whose miles do count for LP, so they are clearly ok with generating lots of LP for little spend (so long as the partner is paying AA enough). The fact that you can earn lots of miles per dollar with FTD is something that I'm sure AA is aware of (it's on their own website)
If Bask pays less, why wouldn't Bask earn at half the rate or something instead of zero?

None of this makes any sense.
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Old Feb 10, 2022, 3:02 pm
  #2132  
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Originally Posted by js1993
The crackdown was entirely on AA's side.
How is that relevant? It didn't mean that Citi wasn't upset with the profit that they were making on those cards. If it put Citi's relationship with AA at risk, of course AA would crack down. It's a partnership, after all.


If Bask pays less, why wouldn't Bask earn at half the rate or something instead of zero?
RDM still have value. It could be that .... what Bask is paying, AA doesn't want to give out anything more than an RDM. And (more importantly) having different earning rates would defeat one of the purposes of this change, which is to simplify things. "1 eligible mile = 1LP" is written in big letters on their site. That's an important part of this change. EQM, EQD, and EQS are confusing. 1 base mile = 1LP is simple.
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Old Feb 10, 2022, 3:10 pm
  #2133  
 
Join Date: Aug 2021
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Originally Posted by VegasGambler
How is that relevant? It didn't mean that Citi wasn't upset with the profit that they were making on those cards. If it put Citi's relationship with AA at risk, of course AA would crack down. It's a partnership, after all.
Your theory is that it was Citi upset about the CC "churners," but instead of Citi closing accounts or declining such people's CC applications, they had AA perform the crackdown instead? That seems ... unlikely.

RDM still have value. It could be that .... what Bask is paying, AA doesn't want to give out anything more than an RDM. And (more importantly) having different earning rates would defeat one of the purposes of this change, which is to simplify things. "1 eligible mile = 1LP" is written in big letters on their site. That's an important part of this change. EQM, EQD, and EQS are confusing. 1 base mile = 1LP is simple.
Spending $26 at a shopping portal and getting 3,700 LP isn't confusing, but depositing $10,000 at Bask and getting 2,000 LP would be confusing?
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Old Feb 10, 2022, 3:20 pm
  #2134  
 
Join Date: Dec 2014
Location: New York City + Vail, CO
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Posts: 3,226
Has anyone had success with doing multiple motley fool or wine club subscriptions from the same vendor credit more than once?
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Old Feb 10, 2022, 3:23 pm
  #2135  
 
Join Date: Jun 2015
Posts: 343
Originally Posted by js1993
The crackdown was entirely on AA's side.



If Bask pays less, why wouldn't Bask earn at half the rate or something instead of zero?

None of this makes any sense.
This is AA, they probably gave zero thought to how the program would actually work!


Originally Posted by donotblink
Has anyone had success with doing multiple motley fool or wine club subscriptions from the same vendor credit more than once?
Motley Fool specifically says once per loyalty number. I'm not sure of the other programs
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Old Feb 10, 2022, 3:25 pm
  #2136  
 
Join Date: Oct 2021
Location: TX
Programs: Alaska, AA, Marriott
Posts: 943
Originally Posted by js1993
Do you really believe AA is going to allow people to hit EXP by spending $1,400 at a shopping portal?
Why not? If it has the combined effect of causing them to use AA affiliated companies that buy AAdvantage miles AND might incent someone to fly AA vs. the competition now and then, it seems like a win-win. AAdvantage sells miles and AA fills seats. And, that "spend EXP" doesn't get any of the loyalty benefits that actually costs AA more to provide.

Originally Posted by js1993
Do those deals get people to top-level United or Delta or Alaska status after $1,400 in spending?
United and Delta run frequent flyer programs. AA no longer does - they run a loyalty program that drives spend and creates revenue via non-flight channels. AAdvantage is a huge profit center for AA between selling miles, co-branding cards, etc. It's far easier to make money on credit card spend than flying planes.

Originally Posted by js1993
Then, again, explain the crackdown against CC "churners" and Bask Bank.
What "crackdown" against Bask Bank? It would seem that Bask chose to offer the likely less expensive "bonus miles" vs. the likely now more expensive "base miles." We'll likely see soon whether the shopping portals start doing the same, or mixing and matching bonuses with base and bonus miles.
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Old Feb 10, 2022, 3:34 pm
  #2137  
 
Join Date: Aug 2021
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Originally Posted by thatmikereed
Why not? If it has the combined effect of causing them to use AA affiliated companies that buy AAdvantage miles AND might incent someone to fly AA vs. the competition now and then, it seems like a win-win. AAdvantage sells miles and AA fills seats. And, that "spend EXP" doesn't get any of the loyalty benefits that actually costs AA more to provide.
AA is fine with people hitting EXP by spending $1,400 at a shopping portal? The wishcasting here is rather strong.

United and Delta run frequent flyer programs. AA no longer does - they run a loyalty program that drives spend and creates revenue via non-flight channels. AAdvantage is a huge profit center for AA between selling miles, co-branding cards, etc. It's far easier to make money on credit card spend than flying planes.
Delta, in particular, was pushing and rewarding CC spend before AA. Thus the advent of "SkyPesos." And nobody would care about AA miles if they couldn't use them on AA planes.

What "crackdown" against Bask Bank? It would seem that Bask chose to offer the likely less expensive "bonus miles" vs. the likely now more expensive "base miles." ...
That's pure speculation, but if it's true, it's interesting that Bask appears to be alone among all of AA's existing partners.
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Old Feb 10, 2022, 3:51 pm
  #2138  
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Originally Posted by js1993
AA is fine with people hitting EXP by spending $1,400 at a shopping portal? .
There are many, many examples on FT of people making EXP on under $3K in the old (pre-EQD) days.
vasantn is offline  
Old Feb 10, 2022, 3:55 pm
  #2139  
 
Join Date: Aug 2021
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Originally Posted by vasantn
There are many, many examples on FT of people making EXP on under $3K in the old (pre-EQD) days.
And? AA didn't revamp its program so that people could get there by spending even less.
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Old Feb 10, 2022, 4:01 pm
  #2140  
 
Join Date: Jan 2022
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Originally Posted by vasantn
There are many, many examples on FT of people making EXP on under $3K in the old (pre-EQD) days.
The introduction of EQD would seem to suggest AA was not okay with that.
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Old Feb 10, 2022, 4:05 pm
  #2141  
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Originally Posted by js1993
And? AA didn't revamp its program so that people could get there by spending even less.
As VegasGambler points out, what you're spending is irrelevant to AA under the new program. What's relevant is what AA is making. What we spend to get miles has no relationship to what retailers pay AA for those miles. Under the old program your spend and AA's revenue corresponded 1:1.

BTW, I agree with you that it's not particularly rewarding to work through myriads of shopping offers to scavenge miles/LPs. It's a bit too much like coupon-clipping for my taste. But if this is the game AA wants to play, I'll reluctantly play it.
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Old Feb 10, 2022, 4:14 pm
  #2142  
 
Join Date: Jan 2009
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Posts: 1,680
Originally Posted by thatmikereed
Why not? If it has the combined effect of causing them to use AA affiliated companies that buy AAdvantage miles AND might incent someone to fly AA vs. the competition now and then, it seems like a win-win. AAdvantage sells miles and AA fills seats. And, that "spend EXP" doesn't get any of the loyalty benefits that actually costs AA more to provide.



United and Delta run frequent flyer programs. AA no longer does - they run a loyalty program that drives spend and creates revenue via non-flight channels. AAdvantage is a huge profit center for AA between selling miles, co-branding cards, etc. It's far easier to make money on credit card spend than flying planes.

What "crackdown" against Bask Bank? It would seem that Bask chose to offer the likely less expensive "bonus miles" vs. the likely now more expensive "base miles." We'll likely see soon whether the shopping portals start doing the same, or mixing and matching bonuses with base and bonus miles.
It looks like Feds will be raising the interest rate and this would move up the interest rates on saving accounts. This would give folks even less incentives to park money @Bask
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Old Feb 10, 2022, 4:25 pm
  #2143  
 
Join Date: Jan 2009
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Programs: AA EXP - 3.7MM, Bonv LIFETIME Titan, HH Dmd, Hyatt Glob., Priority Clb Dmd, Ntnl Exec El., Sixt PLT
Posts: 1,680
I think AA LP program has a simpler explanation. With business travel out of the picture, AA was interested in making some $ from something because they cannot make money from flying planes anyway. So, what if they sell more AA miles to credit cards and other vendors (hotels, car rentals etc.). But would this make too many Elites? It is not easy to get a lot of LPs through AA CC spending (unless you run your business expenses through it) and I am sure AA could get the number of folks getting 100K or 200K AA miles annually from CC. They also know the size of deposits in Bask. With such numbers in hand, they can project the number of Elites based on the new qualification rules and set the rules to the target Elite number. At least this is what I would do. Of course, the whole AAdvantage could be run by a few folks who just want to get promoted and move to greener pastures...
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Old Feb 10, 2022, 4:35 pm
  #2144  
 
Join Date: Dec 2014
Location: New York City + Vail, CO
Programs: American Airlines Executive Platinum, Marriott Bonvoy Ambassador Elite
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Just curious, how many of you are buying stuff on shopping portals associated with accounts for your family?

I’ve been taking advantage of deals on my account and was thinking—I fly with my mom a half dozen times per year and she flys on her own another half a dozen times, maybe I should get a motley fool subscription and a case of wine in her name—might get her up to gold. Any pros/cons other people have experienced with this? If I have wine from more than one AAdvantage account shipped to the same address will they pay out on all accounts?

(my mom doesn’t have any status on any airline)
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Old Feb 10, 2022, 4:37 pm
  #2145  
 
Join Date: Dec 2021
Location: EWN-RDU
Programs: AA Executive Platinum, HH Diamond
Posts: 67
Originally Posted by Alex_I
I think AA LP program has a simpler explanation. With business travel out of the picture, AA was interested in making some $ from something because they cannot make money from flying planes anyway. So, what if they sell more AA miles to credit cards and other vendors (hotels, car rentals etc.). But would this make too many Elites? It is not easy to get a lot of LPs through AA CC spending (unless you run your business expenses through it) and I am sure AA could get the number of folks getting 100K or 200K AA miles annually from CC. They also know the size of deposits in Bask. With such numbers in hand, they can project the number of Elites based on the new qualification rules and set the rules to the target Elite number. At least this is what I would do. Of course, the whole AAdvantage could be run by a few folks who just want to get promoted and move to greener pastures...

We have run all of our business wholesale purchases through our Executive card since January 1 and have already hit the number needed for EXP between that and our normal flights. Will be moving our spend back to cash back cards once the double dip period ends. Will rinse and repeat this each year for status and free vacations. This new reward system has encouraged us to travel more with AA.
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