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CO Is Uncompetitive with Lifetime Benefits

 
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Old Jul 28, 2007, 12:07 pm
  #31  
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Originally Posted by MilesDavis
Based on my observations, CO does not seem overly concerned with keeping the business of 75K+ Plats. My travel mate just hit 75K and he remarked to me "now what?".
That might be part of the problem. If a person hits Platinum in July, chances are that he or she won't hit the top tier in US, UA or AA by the end of the year. Hitting the top level of DL or NW is possible, but there's no way to get a jump start to Gold based on the status with Continental, so it means having to start from scratch. My guess would be that, even though your colleague hit Platinum, there's no place else to go; sticking with CO is the easiest thing to do.

By the way, there appear to be other ways to get the equivalent of elite miles on either UA or US, but I don't think most people realize this option exists.
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Old Jul 28, 2007, 12:16 pm
  #32  
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Originally Posted by xFF
CO apparently observed that awards of Infinite correlated with reduced flying. One reason is that the incremental utility of a CO BIS mile dropped thereafter forever. The "who to fly" decision is then dominated by all-in cost considerations (price+schedule+expected pain-in-butt). But this is exactly the situation that attains right now for those of you who have attained '08 Plat already, and did last year, and will again next year.
I think that one factor you forgot is the elite status itself. People with elite status on Continental have an opportunity cost if they fly with another carrier where they don't have that status. EQM's aside, they give up accelerated mileage accrual and the benefits (upgrade chance, boarding first, etc.) that come with status on Continental. For road warriors, I believe that this factor--elite status--factors most heavily into the decision.
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Old Jul 28, 2007, 12:21 pm
  #33  
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>>Also - no other US airline has 50% EQM on cheap tickets except CO. DL backed off.>>

Thats why I never fly CO when I have to buy through a travel agent, and the same goes for virtually everyone at Qualcomm, SunMicro,Titleist, Callaway and TaylorMade here in So Cal
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Old Jul 28, 2007, 12:41 pm
  #34  
 
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Originally Posted by suitcasejockey
You know, every single time I hear someone say the words "lifetime platinum" a LARGE part of me rethinks my travel strategy. I'm doing different routes and lately USAir is becoming the logical choice. The VERY logical choice.
US Airways no longer has a lifetime status program. That's one reason I switched to UA.
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Old Jul 28, 2007, 12:52 pm
  #35  
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Dreaming of Lifetime Status is Tilting at Windmills.

I agree with those who point out that few people would qualify for lifetime status under current scenarios being proposed. Instead of tilting at that windmill, set your lance for something worthwhile and achievable. To wit, soft landings. And I don't mean the airplane kind. Take my example. I have 60,710 EQMs so far this year. I am a platinum who has thus requalified for 2008 Gold. I have a few optional business trips to semiannual conferences that I could push back to conference dates in early 2008. If I take them this year, I'd get more EQMs, but still fall short of 75,000 by about 5-7000 miles. If I can't requalify for Plat, then I'm motivated to settle for Gold and not fly again until 2008, to help qualify for Gold that year instead of wasting the miles this year. If I knew I would only fall to Gold from Platinum regardless of the number of miles I fly in 2008, I would not hesitate to throw miles at this year's total in the hope that somehow (late year mileage runs) I'd get up to 75,000. Soft landings would motivate me to fly more, not less.
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Old Jul 28, 2007, 1:00 pm
  #36  
 
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So RNE what you are saying is that CO has the opportunity to implement something innovative and forward thinking, instead of just copying the other airlines. Interesting.

FWIW, I think that this makes good sense. Guaranteed soft landings and reduced EQM requirements for Elite status, etc, would be great benefits and incentivize continued traveling (and loyalty)
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Old Jul 28, 2007, 1:33 pm
  #37  
 
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Lack of lifetime has cost my biz. Not that it's pile presently, but it does add up. Unfortunately for CO my wife's biz is also lost.

I flew 100-150K for 6 years running. Stopped flying for work. Hard landing and no promise of lifetime bennies almost ensures I will no longer fly CO.

Since I probably wouldn't even make silver it guarantees a 31" seat pitch and no real benefits whatsoever. What incentive does CO provide me for remaining loyal?

At least on UA I'm working toward 1K status and I can buy up to e+ on most flights. That almost guarantees UA will get my biz from now on.

As an alternate, I can purchase an economy fare on US Air and buy-up to first using their "Go-first" program or whatever they call it these days. Again, without running status, it's the best way to upgrade the travel experience without purchasing a first-class fare.

CO's "what have you done for me lately" policies completely ignore any possibility of "what could you do for me in the future". The prospect of lifetime status would almost certainly keep me flying CO. However, the bitter pill of a hard landing coupled with no lifetime status absolutely precludes any future loyalty to CO even if I end up traveling in the future (more likely on higher fares and purchased first).

As I've stated before, CO's elite program is extraordinarily myopic: It's great while you're traveling all the time. But if travel slows down, there's no reason NOT to jump ship to another carrier.

This same rationale could apply to uber-travelers earning zillions of miles a year. There's really no reason past 75K to stay.

Lifetime status would change all that.
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Old Jul 28, 2007, 2:24 pm
  #38  
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Originally Posted by Scott6067
Something that hasn't been discusse is the fact that some of these programs allow you to earn Lifetime benefits without having to step foot on a plane. AA's benefits can be earned through strictly a high CC usage and thus the reason so many people have gamed the previous promotions that they have had. To me this is the main reason to have a lifetime program developed on miles and/or dollars paid to the airline for flights as it is more representative of how that customer may potential benefit the airline.
I wouldn't be so sure that those credit card miles don't benefit CO as much or more than miles earned by flying. Check out this article on UA's program. From the info in there, I would have to guess that selling miles probably accounts for upwards of at least $400m per year.
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Old Jul 28, 2007, 2:39 pm
  #39  
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Originally Posted by CAL PHL FLYER
Its silly to give someone benefits who doesnt generate revenue.


If someone doesn't generate revenue by taking paid CO flights, then they won't be consuming the benefits of any lifetime status either.
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Old Jul 28, 2007, 3:27 pm
  #40  
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Originally Posted by ContinentalFan
People with elite status on Continental have an opportunity cost if they fly with another carrier where they don't have that status. EQM's aside, they give up ... benefits ... that come with status on Continental. For road warriors, I believe that this factor--elite status--factors most heavily into the decision.
I think you're right. What I was arguing had two points. First, that the goal of Infinite could be a big motivator of business. And the second --extended and supported directly by your observation-- is that the service dimensions you cite would favorably affect the decisions of a vested Infinite in the same way, for the same reasons, as they would an active road warrior who makes Plat early in the year.
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Old Jul 28, 2007, 5:18 pm
  #41  
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Not True

Originally Posted by ContinentalFan
That might be part of the problem. If a person hits Platinum in July, chances are that he or she won't hit the top tier in US, UA or AA by the end of the year. Hitting the top level of DL or NW is possible, but there's no way to get a jump start to Gold based on the status with Continental, so it means having to start from scratch. My guess would be that, even though your colleague hit Platinum, there's no place else to go; sticking with CO is the easiest thing to do.
This is not true.

First, the other carriers match each other's elite programs to some degree. As such, if you're Platinum on CO, you can easily get Platinum status (or at least a challenge to get to Platinum or equivalent) on another carrier.

I fly about 175k miles/yr ...mostly leisure. And CO only gets 75k of that. The rest go elsewhere to maintain top-tiered elite there too.

Once CO adapts a program to reward more than 75k+ Platinums or long-term mileage earners, my flying habbits may change. But for now, I can get elite upgrades and bonus miles in the air outside of CO.
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Old Jul 28, 2007, 9:16 pm
  #42  
 
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Originally Posted by chasbondy
I've read on this board that people have become Platinum for under $2,000 out of pocket.
under $2000 to reach platinum how?

Last edited by fly2w; Jul 29, 2007 at 5:16 pm
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Old Jul 28, 2007, 9:25 pm
  #43  
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Originally Posted by SAT Lawyer


If someone doesn't generate revenue by taking paid CO flights, then they won't be consuming the benefits of any lifetime status either.
I have read this line of reasoning a few times on this thread, but I think there is one fundamental flaw here.

If platinum status is awarded based on miles flown per year, then CO has the expectation that the customer will fly at least 75,000 eqm in return for the benefits of platinum status.

With lifetime status, the customer receives all the same benefits with no requirement that he or she fly CO at all. If this lifetime member never flies CO at all, then clearly CO hasn't given anything up.

But much more likely is that the lifetime member will fly fewer than 75,000 eqm's and receive all the same platinum benefits. The benefits represent a cost to the company without the guarantee of concomitant revenue in return from the customer.
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Old Jul 28, 2007, 9:53 pm
  #44  
 
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Originally Posted by cova
Also - no other US airline has 50% EQM on cheap tickets except CO. DL backed off. If it wasn't for the co.com promo - I suspect folks would be jumping ship as well.
I'd be gone pretty fast if that "promo" ended.

But wait.. when I think of "lifetime plat", I think of achieving and using that benefit at some point in the fairly distant future. In that future, I will retire but still travel... but probably not 75k+ a year. Now if, say 20 or more years from now, I have some kind of lifetime benefit on CO, I will almost certainly remain loyal in retirement, albeit as a less frequent flyer.

If I have no benefit on CO, and I'm not flying 75k+/yr, I am definitely just going to shop the ticket and go with whatever airline is cheapest.

So, for me, the lifetime status thing is about a 'thank you', yes, and about encouraging people to fly more to achieve the thresholds, yes, but the main aspect of it that sometimes makes me ponder switching to another carrier is being able to use it when I'm older...
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Old Jul 28, 2007, 10:05 pm
  #45  
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Originally Posted by perezoso
I'd be gone pretty fast if that "promo" ended.

But wait.. when I think of "lifetime plat", I think of achieving and using that benefit at some point in the fairly distant future. In that future, I will retire but still travel... but probably not 75k+ a year. Now if, say 20 or more years from now, I have some kind of lifetime benefit on CO, I will almost certainly remain loyal in retirement, albeit as a less frequent flyer.

If I have no benefit on CO, and I'm not flying 75k+/yr, I am definitely just going to shop the ticket and go with whatever airline is cheapest.

So, for me, the lifetime status thing is about a 'thank you', yes, and about encouraging people to fly more to achieve the thresholds, yes, but the main aspect of it that sometimes makes me ponder switching to another carrier is being able to use it when I'm older...
That all makes a lot of sense, but if CO is flying chock-full as it is, they don't need any lifetime plats.

In other words, if the traveler in your example stops flying CO because of a lack of lifetime benefits, he or she certainly will not be missed on an airline that is already overwhelmed with too many platinums for its actual capacity to accommodate them.

If that changes, they would be certain to tweak the rules...but I wouldn't hold my breath.
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