The ramifications of walking away from status.
 

For many years Hunki and I have held top status on UA, AS, SPG and HH. This year, however, we are very seriously considering walking away from AS MVPG, although we will still both make MVP. This is a very hard decision. We have loved AS, but the program has gone so far down hill that it no longer makes any sense for us.

What are the ramifications that the rest of you have experienced in walking away from top status on your programs, other than the obvious decline in upgrades. One of my biggest concerns is that if we are only MVP, we will not even bother and drop to basic member status. This will mean that we are limited to only 50,000 credit card miles each, per year as basic members.

Are there other things we should consider?

That limit applies only to the "Visa Classic."
http://makeashorterlink.com/?L2DA52E79
And IIRC you've mentioned in the past that your employees use the AS Business Visa from which you earn miles, though I could be mistaken.

Can't find the link, but the T&C popup on the BofA site says But I've gone a little specific to AS here, and really the question is 'how much does status matter?' and I guess it depends on the airline.

First, what are the primary benefits of status?

1. Upgrades. In the case of AS you give up your complimentary upgrades a few days in advance of flight. But if you spend enough on the credit card you can always burn miles for upgrades. 10k miles to upgrade each way off the lowest fares is still comparatively cheap, especially for the transcons. But do you really want to spend 10k miles on SEA-SFO? Probably not. So it depends on your routes as well.

2. Priority checkin. With checkin kiosks, elite priority checkin no longer seems quite as important.

3. Priority boarding/seating. Priority seating matters on UA with E+. Otherwise, sitting in the front of the plane doesn't mean as much (except with carriers that still do middle seat blocking). Priority boarding matters when you carry on lots of stuff and need the overhead space. But since the TSA restricts to one carryon, there's generally space to go around. Not always. And without status you could wind up having to gate check your bag occasionally, though likely not.

4. Bonus flight miles. You lose this. Miles may not be worth what they used to be anyway, and how much the marginal miles matter to you depends on how quickly you earn from alternate sources.

5. Priority waitlisting and priority baggage handling. How often do you really use the fomer? How often does the latter actually wind up happening?

There are other benefits, of course, and program-specific benefits. But truth is if you earn enough miles and can always upgrade then elite status doesn't matter a whole bunch. You don't need elite status if you're already in First.

Alaska is certainly a program that has altered its value proposition substantially over the past few years, going from limited upgrades issued to elites but confirming those upgrades out of paid inventory and providing class of service bonuses for upgrades... not to mention 5000 mile upgrades each way with the same benefits.. to unlimited upgrades from any fare for MVP Golds... to restricting both inventory and fare for those unlimited complimentary upgrades. :mad:

But this is a phenomenon across the industry. Are the airlines watering down their focus on loyalty? And does it really make them better off?

Thank you very much for the information gleff. I just assumed we needed status to go over 50,000 anually on any credit card. Glad to know that we can earn as fast as we can spend with BofA/AS regardless of status. :D

We have five BofA, AS Platinum cards and would very much like to run up lots and lots of mileage on them over the next 5 years, in hopes that AS will maintain a strong and diverse partner base to eneable us to enjoy lots of first class international trael during our retirement years. Losing the miles earned by spending was my biggest concern. ;)

We have more than enough miles to upgrade our necessary AS flights, SEA/LAS and SEA/SAN flights, and any occasional flights to Mexico that we might take, for the rest of our lives. I discovered this summer that I can fly and upgrade SEA/ANC far more easily and cost-effectively on UA than on AS. Anchorage was another big concern for me.

We currently have several million UA miles and that makes us a bit nervous given their Chapter 11 status. We aren't going to try to liquidate those miles at this time, but are keeping our fingers crossed for UA. We are also trying to diversify and rack up as many credit card spending miles as possible on other airlines, hoping to attain lifetime staus on AA before we ever fly them. ;)

We have UA, NWA, and AA cards, as well as SPG and HH AMEX cards in addition to our AS cards and are planning to maintain top status on UA, SPG and HH for the next five years. When we retire, the plan is to use miles for first class tickets, and points and charm for upgrades at hotels.

The whole system may fall apart and, if that happens, it happens, but, to date, we sure as heck have enjoyed our FF, top status experiences.

Not to rain on your parade but all FF programs are going down hill. Look at what DL has done the past year, AA is doing this year and most likely UA next year. The airlines think they are giving away too much and are starting to take back what once was taken for granted.

The ramifications of walking away from status are nowhere near as significant as many FlyerTalkers think. In fact, I would argue that the ramifications are near zero and there is at least one positive. Gleff has noted the two biggest ramifications; fewer upgrades and no bonus miles for flights. So what? The first class experience is not much above the coach experience these days, and earning more miles when the value of a mile (and the ease of using miles for award travel) is declining doesn't seem very prudent.

The one positive of not having status is that you are now free to book the best flights and hotel stays for your immediate needs (times, $$$, location, etc.). No more connecting thru some far flung airport or staying 30 miles away in order to accumulate status miles or status stays. Trust me, travelling domestic coach and not getting a suite at a hotel is not that bad. Millions of people do it everyday and survive....you will too. At first you'll have some withdrawl pains, but those will pass rather quickly.

I agree with MileKing. There is tremendous benefit to not being beholden. More nonstop flights, more schedule options, lower prices, etc.

You might considering keeping entry-tier elite in one of your carriers, in order to use elite security lines at the airports that you fly most frequently out of.

Can't F pax (upgraded w/ miles...) access elite security lines at SEA?

Having both lost and regained status on AA and UA, I would offer - in order of value - the following observations, some of which have already been duly noted by gleff:

1. Priority security clearance. IMO by far the biggest benefit if TSA lines are a problem at your usual embarkation points. Without AA Gold status, I would have missed my flights at BOS and SJC. On the other hand, status is worthless at OAK, LAS and DCA where the lines can be long for everybody.

2. Priority Seat Assignment On UA this often means the difference between a tolerable E+ seat or awful E-, particularly as UA may start charging non-elites for E+ seating. Less of a benefit on AA planes which mostly feature MRTC, though I missed the ability to book exit row seats, particularly on the dreaded 757 slave ships.

3. Upgrades. For both AA and UA, this means the ability to upgrade domestic US flights on any fare with 500 mile e-upgrades or "stickers. A huge benefit IMO as most of my leisure travel is booked on deep discount fares. Not so useful if you fly on mostly full Y fares. In addition, status will put you higher on the upgrade waitlist - quite valuable to those with midlevel status (UA 1P and AA Plat).

4. Priority Airport Check-In. As noted above, less useful in the day and age when you can print boarding passes on your home computer or an airport kiosk. But the shorter lines can be a lifesaver if you need to check luggage, change your itinerary, use a paper upgrade, etc.

5. Priority Boarding. Very useful if you never check luggage, even more so if you are not flying C or F. IMO somewhat less valuable as I haven't seen the bins fill as much as they used to, except on SW.

6. Bonus flight miles. Not worth much at the UA 2P and AA Gold levels (25% bonus), much more valuable at the 1P and Plat levels (100% bonus).

7. Dedicated CSR telephone lines. Can be a lifesaver when your flight get cancelled, sometimes useful when attempting to book award travel, but otherwise not a big deal in this day and age where people can go online to book flights, view seatmaps, request upgrades and print boarding cards.

8. Partner promos If memory serves, UA and AA elites have recently received comp elite status in Starwood and Hilton. Also, the discount codes for car rentals can sometimes be useful. This should probably rank higher.

9. Priority waitlist and baggage handling I've never used these features, but they may be important to you.

In general, I would agree with MileKing - The ramifications of walking away from status are nowhere near as significant as many FlyerTalkers think, particularly if you fly infrequently. OTOH, I think it is well worth keeping status if you intend to keep accumulating miles on that airline, particularly if it makes a big difference in terms of comfort (e.g. UA's E+) , time saved (e.g. elite counter and security lines) or upgrades.

I fly primarily with UAL. I am a 1k and I don't find any benefit except the 6 SWU's and the E+ seating. I don't see the elite line like in the past and mostly I don't get specail treatment in a unexpected situation. I don't even get the open middle seat much any more. Things have changed drastically in the last couple of years.

Try making 14 hour flights as I mostly do and still hold that same view. ;)

14 hours in coach is cruel and unusual punishment.

OK, I agree with you on that. 14 hours in coach is brutal.

My comments were directed at the vast majority of travelers who fly primarily (or exclusively) domestic U.S. Even if you travel trans-con frequently, status is a nice to have rather than a necessity.

only as we grow older :) i rem a time when traveling 20+h to my destination via bus, commuter turbo-prop and then a >14h flt in coach didn't bother me much ...

Actually, one hour in coach could be brutal. It depends.
That's the problem -- you never know what you'll encounter until you sit down.

I've had a short flight from PHX on a sardine can in a window seat with my head bumping against the curvature of the cabin. Then there was the 60-year old woman next to me with shoulders so broad they'd make an NFL linebacker blanch. And then there was the young buck who fidgeted endlessly, turning, twisting, sniffing, pulling out magazines, putting them back, reaching under his seat, reaching under your seat, fidgeting some more . . .

For those like me without wide bodies, a FC seat is more of an insurance policy than a luxury.

Up to this year, I flew whatever flight was cheapest and most convenient, ignoring the miles (in fact, even used Priceline many times for flights, since miles meant nothing). I stayed at the best hotel for the money paid, which was most convenient to my goal, and I rented the best car for the money when I went on vacation.

This year, I decided to throw all of my business toward getting AA miles. Stayed at certain hotels, booked flights and car rentals that might be a few dollars more in order to get Aadvantage miles, and flew virtually all (except for about 2 or 3) of my flights this year on American. That probably cost me about an extra thousand or so dollars, but I flew mostly first class at an average upgrade cost of about $350 more per trip.

I also even considered flying an extra 40,000 miles or so and spending an extra $1,600 in doing so to make Executive Platinum.

Now, AA has begun substantially devaluing its miles and reducing its elite benefits, most recently charging an extra $500 per round trip to use your miles to upgrade from any non-extortion fare. I am glad I did not fly the extra miles, and I am seriously re-evaluating the costs and benefits of my brand loyalty.

I am slowly reaching the conclusion that I have no need to pay substantial extra money to obtain service on flights that is not much better than I would get had I kept my old course. If I walk away from elite status, I will save myself a few thousand dollars this year, and not deal with substantially less in the way of benefits than I have gotten by becoming elite.

So, it might just be that the ramifications of walking away from elite status in these days are: 1) You save a bunch of money; and 2) You see a barely noticeable drop in service and benefits.