Low-segment, high-rev flyers left in the cold?
Sep 12, 2022, 8:10 pm
#32
Join Date: Feb 2016
Location: EZE
Programs: UA Gold,Delta Gold Bonvoy Titanium Elite, HH Diamond , AA Platinum, EENational, Hyatt Globalist
Posts: 1,547
Sep 12, 2022, 10:35 pm
#34
Join Date: Oct 2021
Location: TX
Programs: Alaska, AA, Marriott
Posts: 943
Different answer: you expect AA to be an airline. Their recent financials show they’re a credit card company that flies planes in their non-profit division.
Spend $50k on their credit card and they’ll pay you more attention. Spend it on something unrelated to flights and they’ll love you more.
Spend $50k on their credit card and they’ll pay you more attention. Spend it on something unrelated to flights and they’ll love you more.
Sep 12, 2022, 10:42 pm
#35
Join Date: Aug 2003
Location: Washington,DC
Posts: 1,822
I'm with the OP on this one.
I believe the 30 segment rule makes sense to stop someone who spends $200K on a credit card getting 4 SWU's and the perks on AA of EXP, with whom they spend no direct revenue.
But imagine that you fly JFK to LHR RT twice a month. You'd be spending $150K a year on AA and yet only 24 segments.
This is a case where the rule was designed to catch 99% of issues, but OP is treated badly by this rule. If OP is spending $50K on J fares then he is high profit for AA and maybe a call to executive liaison desk will yield a better result than the regular line. I'v been AA EXP for years at a $30-$40K spend and never been less than #1 on an upgrade list. I'd bet 95% of eXP spend less than $50K a year
I believe the 30 segment rule makes sense to stop someone who spends $200K on a credit card getting 4 SWU's and the perks on AA of EXP, with whom they spend no direct revenue.
But imagine that you fly JFK to LHR RT twice a month. You'd be spending $150K a year on AA and yet only 24 segments.
This is a case where the rule was designed to catch 99% of issues, but OP is treated badly by this rule. If OP is spending $50K on J fares then he is high profit for AA and maybe a call to executive liaison desk will yield a better result than the regular line. I'v been AA EXP for years at a $30-$40K spend and never been less than #1 on an upgrade list. I'd bet 95% of eXP spend less than $50K a year
Sep 12, 2022, 11:35 pm
#36
Join Date: Nov 2003
Location: CGK/KOA
Programs: AA ExPlat HH Diamond
Posts: 1,682
Totally agree with OP on this one. I think AA should have combined LP points for their credit card spend
AND instead of 30 segment kept a dollar amount for airfare spend to unlock rewards.
AND instead of 30 segment kept a dollar amount for airfare spend to unlock rewards.
Sep 13, 2022, 5:03 am
#37
Join Date: Mar 2010
Location: PHL
Programs: AA Executive Platinum; Hilton Diamond
Posts: 2,662
I'm with the OP on this one.
I believe the 30 segment rule makes sense to stop someone who spends $200K on a credit card getting 4 SWU's and the perks on AA of EXP, with whom they spend no direct revenue.
But imagine that you fly JFK to LHR RT twice a month. You'd be spending $150K a year on AA and yet only 24 segments.
This is a case where the rule was designed to catch 99% of issues, but OP is treated badly by this rule. If OP is spending $50K on J fares then he is high profit for AA and maybe a call to executive liaison desk will yield a better result than the regular line. I'v been AA EXP for years at a $30-$40K spend and never been less than #1 on an upgrade list. I'd bet 95% of eXP spend less than $50K a year
I believe the 30 segment rule makes sense to stop someone who spends $200K on a credit card getting 4 SWU's and the perks on AA of EXP, with whom they spend no direct revenue.
But imagine that you fly JFK to LHR RT twice a month. You'd be spending $150K a year on AA and yet only 24 segments.
This is a case where the rule was designed to catch 99% of issues, but OP is treated badly by this rule. If OP is spending $50K on J fares then he is high profit for AA and maybe a call to executive liaison desk will yield a better result than the regular line. I'v been AA EXP for years at a $30-$40K spend and never been less than #1 on an upgrade list. I'd bet 95% of eXP spend less than $50K a year
Sep 13, 2022, 5:46 am
#38
Join Date: May 2010
Location: DFW Area
Programs: AA ConciergeKey; Hyatt Globalist
Posts: 385
I suspect that the low segment CK flyer (I have been CK for four years and have never flown more than ~14-16 segments in one year) is disadvantaged by this, but it isn’t that common and won’t change their flying behavior in any material way. It’s worse this year though as I have a million LPs (mostly AA card spend), so don’t get any of the choice awards even though I maxed out the tiers.
Maybe I need to do a segment run (though I guess that undercuts my premise that it doesn’t change flying behavior). Diabolical AA!
Maybe I need to do a segment run (though I guess that undercuts my premise that it doesn’t change flying behavior). Diabolical AA!
Sep 13, 2022, 1:43 pm
#39
Join Date: Jan 2011
Location: STL/ORD/MCI/SAN
Programs: AA CK MM, AC SE100K, UA 1K, DL Plat, Hyatt Globalist, Hilton Diamond, Marriott Platinum
Posts: 1,986
1: Your information is not accurate since you have ZERO evidence other than you stating that the $50K is false when you have no sources and yet you seem highly envious that AA would share more information with me. Jeez I don't know, maybe they consider me (or more realistically, my company in general) a better customer?
How can something be logical when you have stated over and over that the $50K minimum is false? If that's your belief, no problem, but that doesn't change the fact that you have zero sources to support that claim. Just because people posted here that they made CK spending well under $50K doesn't make it statistically significant.
Good for you, I guess? I didn't know that one pathway of achieving CK is better than any other. There are likely Airpass CKs who are more profitable to AA than you and your company.
I'm a bit surprised also, based on the posted information, but SFO home market could be the issue, or perhaps the profitability figure is still a bit low given the average length of those trips, or plenty of other unknown factors.
I suspect that the low segment CK flyer (I have been CK for four years and have never flown more than ~14-16 segments in one year) is disadvantaged by this, but it isn’t that common and won’t change their flying behavior in any material way. It’s worse this year though as I have a million LPs (mostly AA card spend), so don’t get any of the choice awards even though I maxed out the tiers.
Last edited by metallo; Sep 13, 2022 at 2:00 pm Reason: typos
Sep 13, 2022, 4:27 pm
#40
Join Date: Sep 2008
Location: AUS
Programs: BAEC Gold, AA PPro, Hyatt Globalist, Amex Plat
Posts: 7,027
To both fly747first and metallo, contrary to what you may believe this actually isn't a good look for either of you...
Regards
Sep 13, 2022, 4:46 pm
#41
FlyerTalk Evangelist
Join Date: Aug 2012
Location: KHOU/KIAH
Programs: AA EXP | Marriott Bonvoy Titanium| Hyatt Globalist
Posts: 11,214
I wouldn't be surprised if AA introduces a $ alternative to 30 segments in the future.
Above x $ spend on AA, you get a segment waiver.
Above x $ spend on AA, you get a segment waiver.
Sep 13, 2022, 5:13 pm
#42
Join Date: Mar 2005
Location: Austin, TX
Programs: CoUniHound 1K 1MM, AA EXP 2MM, DL Plat, Marriott Lifetime Titanium
Posts: 1,625
Sep 13, 2022, 5:52 pm
#43
Join Date: Mar 2021
Location: DTW/EYW
Programs: AA Executive Platinum, United 1K, Delta Platinum ,Hilton Diamond, Mariott Gold
Posts: 275
In my opinion, it is the high segment/mileage but relatively low spend flyers getting screwed over the most. With the new program there is 0 incentive to fly more than 30 flights. Also, on upgrade lists it is far more common to find yourself lower now to someone who flys only a few flights per year but have a crazy amount of LPs via cc spend, BAAH, etc. I am at 94 segments for the year and only 150k LPs (130k from flights).
Sep 13, 2022, 9:03 pm
#44
FlyerTalk Evangelist
Join Date: Aug 2012
Location: KHOU/KIAH
Programs: AA EXP | Marriott Bonvoy Titanium| Hyatt Globalist
Posts: 11,214
In my opinion, it is the high segment/mileage but relatively low spend flyers getting screwed over the most. With the new program there is 0 incentive to fly more than 30 flights. Also, on upgrade lists it is far more common to find yourself lower now to someone who flys only a few flights per year but have a crazy amount of LPs via cc spend, BAAH, etc. I am at 94 segments for the year and only 150k LPs (130k from flights).
Last edited by Antarius; Sep 13, 2022 at 9:23 pm
Sep 13, 2022, 9:31 pm
#45
Join Date: Mar 2005
Location: Austin, TX
Programs: CoUniHound 1K 1MM, AA EXP 2MM, DL Plat, Marriott Lifetime Titanium
Posts: 1,625
AA wants the high credit card spend customer because that's a high profit, low expenditure customer. Second, AA wants the program to reward high spend but high frequency travelers because the higher frequency means more chances to choose the competition.
