How do you view frequent flyer benefits?
 

After some heated discussion in another forum, I am curious how frequent flyers view their benefits (both miles and status benefits).

When you earn status or miles under a certain set of benefits, do you feel that airlines are legally obligated to maintain the same level of benefits? Are airlines morally obligated? Or is it all a giant gamble that future benefits will justify current efforts to earn those benefits, but we accept the fact that it might all change?

Just to use a couple of examples... DL used to give out SWU's to it's top elites in it;s begininng of year packets. After many DL flyers earned or re-earned status for 2001, they found out that the most valuable (to many) part of the elite status would be discountinued. Was this wrong (legally or morally) on DL's part or just part of the frequent flyer lottery? What if you a particular round-trip award cost 40K miles during the time that you earned your miles and then it suddenly cost 60K miles when you wanted to redeem those miles?

I know that many of us (including myself) take mileage runs specifically for miles or status. We calculate what we think the present value of these future benefits against the current cost in time and money. What would you do if you spent money on mileage runs and ultimately through reduction in benefits the ultimate value of those runs turned out to be less than the cost? How would you react towards the airline in question, mileage runs in general, or flying in general?

We have a cult of frequent flyers here. I'm just wondering what people really feel they are getting with frequent flyer benefits.

I'm 1K on United, and the SWU certificates are the most valuable part of the program for me (I'm a US citizen living in London, so all my travel is international)

Beyond that, the upgrade mileage awards are the next most important. Every time a new timetable or newsletter/statement comes out, the first thing I check is the mileage required for the upgrade awards. I use my miles for a lot of family and friends to visit on free & upgrade tickets. If I were earning miles and intending to use an award in the future, but they upped the mileage requirement, I'd be on the phone asking for a grandfather-exemption for my plans. I have faith they'd do it.

Otherwise, the airlines ALWAYS cover themselves (in their terms & conditions)
- program rules may change without notice
- program may be suspended without notice

Thus, my philosophy is....
- there's a lot of competition out there
- I may change my loyalty without notice

Luckily, it hasn't come to that. My sister, who is also a 1K with United, has put it in words that I think capture it best, "Just when you're ready to run, they suck you back in." This came after the Summer From Hell.

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- Bob

To me, every small favor I get from United (my FF airline of choice) is akin to a benevolent favor from a generous god. I don't worry very much about the FF program rules (unless I find a loophole); if I am treated well (such as being upgraded to F LHR-IAD on a $300 (one way) ticket) then I call it good.

Maybe because I expect so little from the airlines, I am so rarely disappointed. The benefits are not to my mind entitlements, but simply enticements, to keep flying the same airline.

I think of it as marketing monogamy. http://www.flyertalk.com/forum/smile.gif

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"Yes, but at least mine will be found in a first class seat." -- Peattie and Taylor

I view the benefits with a great deal of skepticism for lack of a better word. To me it seems clear that the airlines do what they have to do to keep loyal customers coming back. And when the market changes and they feel like they can reduce benefits they certainly will. Nothing bothers me more than hearing about airlines cutting things like hot towels and real glassware in first class. It isn't that I really need these things but it demonstrates that they will cut whatever they can when they think it the most cost effective. If they apply that logic to hot towels why wouldn't a person expect them to do the same thing with benefits and awards? I have always felt like a bit of a sucker for getting involved in pursuing miles anyway. If you fly a certain airline, maybe do a mileage run or two and try to be loyal in all your travel, the end result seems to be that you get a bunch of miles that you can try to redeem. And the operative word is TRY. I think acquiring mileage and benefits is a gamble. You hope that when you try to redeem the miles they will give you what you want and everybody knows that the first choice is often not available.

I am AA Platinum and I pay for 75% of the travel required to reach the status from my own pocket. I take more frequent and shorter vacations to try to run the miles up, always fly AA and this year will probably do a mileage run. All this so I can get to PLAT status and be able to upgrade more often than not. And if I decide that one year I am too busy to travel or I want to spend less on travel and more on a new kitchen or something I start all over at the back of the bus.

When you factor in the time and money spent on longer routes, mileage runs, and occasionally higher fares that passengers put up with to maintain loyalty I don't think the benefits are that great a deal (particularly for someone paying out of their own pocket). But the real kicker is the consistency required, having to do it year after year or starting over (unless of course you get to million mile plus). This year I will probably qualify for AA Plat but probably not next year. I occasionally do a calculation that is very important to me: I calculate the cost of maintaining Platinum status and compare it too the cost of taking fewer trips and just paying for first class three or four times a year. Up until this year it has worked out that maintaining status is cheaper (without counting the hassle of taking extra trips). I have a feeling that next year that will not be the case, particularly if AA raises the Platinum qualification level to 60k as has recently been suggested on the AA board. If that's the way it goes I will frankly find it liberating, I can go on to Expedia and find the cheapest, most convenient first class route on an airline that I like, buy the ticket and pick out a first class seat. The choice would be completely mine. And I think that is the worst thing about the miles and benefits system we have all bought into, we get some perks but we give up our freedom of choice to get it.

I think the whole idea of FF programs is a
gamble for the people who aquire huge totals
in their accounts. If the airlines decide to
change the terms, you loose. Plain and simple. It is almost like a country that
devalues it's currency.

If the company just plain goes under, you
really loose. How many people have paid for
a lifetime membership in one of the clubs
only to have the airline go belly up?

I really fear that the airlines will cut the
SWU out as a freebie to their top status or at
most greatly reduce the quantity and or type
of fares they are good on. They could just
as easy give me the same 6 SWU on UA and change the fare types that they are good on.
Tell me I got the same as last year, yet I
may never use any of them. No offense to my
brother elites at Delta, but I really hope
that airline suffers terrible so the others
don't try the same thing.

If the airlines cut the benfits to their top
elites, I think it would do just what the
previous poster said it would do. Give you
back your freedom. I know I would divide
up my travel among several and really only
care about getting to the level that gives
me the 100% mileage bonus.

There would be no great incentive to make
it to 1K.

I always find it amazing that companies cut
back on things that give them more business
when times are tough. I can't tell you how
many companies I deal with decided to cut back
on their advertising monies. Why do this
when now more than ever you need to drive
sales? The airlines by cutting benefits are
cutting their programs that bring back flyers.

If they cut out the FF programs I think I
would live. I would not fly as much and
would sure fly only when there was a sale
and on what ever airline I thought was safe
and provide the best service.

Oh god, I wonder if the airlines have thought
that far in advance.....best service.

And I think that is the worst thing about the miles and benefits system we have all bought into, we get some perks but we give up our freedom of choice to get it.

I tend to disagree.


For a person who has the passion for accumulating miles and points, nothing is more rewarding than the perks. Ask any seasoned FTer and they will swear by these..

* Mileage runs are taken so that you buy the cheapest fare to have the freedom of choice to fly where you want anytime you want.

* You get to fly business or First for a price lower than what most people in coach have paid for.

* You are treated as someone special. If something goes wrong, people are willing to an extra mile to make your life more comfortable.

* You get to access lounges. Anyone who has been to one would not sit outside if he/she can help it.

* You get to stay wherever you want whenever you want. And at the price lower than what most people are paying for.

* You get to walk into a car rental lot, pick any car you want and drive off. No lines no gimmicks. Ever stood in a line at 12:30 am at MIA for an hour. You would know what I am talking about.

For all of the above, you have to have the following traits..

* Love for travelling. This life is short and I need to see my planet.
* Should not abhor flying but have a passion for it.
* Read Read Read. You know what and where.


The perks far outweigh the effort we take to get them. But you have to have a passion for getting it. If that is missing, forget it.

Just a few tips.

Benefits and economy goes up and down. If the airlines are cutting costs, naturally the benefits are going to be cut to.

Prices go up not down. For a person with a million miles, it is not a gamble. Those miles are paid at today's prices to be used for a lifetime. And miles required for a reward have historically gone down. People with a few million miles plus know what they are doing and probably most farsighted of the lot.

The ultimate reward : Lifetime elite. Get it early in your life and reap the benefits for a lifetime.

Get out and meet a few FTers

[This message has been edited by Bourne (edited 08-30-2001).]

Besides all the benefits that Bourne has listed, there's one more I want to add. Last minute flying.

Imagine if there was an emergency and you needed to fly to a far-away city (say Taipei, for example) on short notice.

For the average person, you'd have the choice of a $1500 coach tickets or $3k for a business class ticket.

For a FF'er, there's the choice of using miles.

The difference is HUGE, and that's when your FF status and accumulated miles pay for themselves.

I agree there are definitely benefits but for my travel pattern, it is a close call as to whether I would be better off flying less often and paying for business class or first class. And it seems like the benefits either way are similar:

Either way I get the same lounge access (although as an elite it is $100-$200 cheaper each year)

I had better luck upgrading with miles as a CO silver 2 years ago than I have had with AA in the past 2 years, so my own experience has proven to me that I am not getting much benefit there

If I buy business class seats I can change the schedule just about any time without any problem.

As far as car rentals and hotels go the same issues apply either way, I can use them less and pay more each time to get the bigger car or better room or I can do it more frequently and occasionally get a free upgrade. I think I first got Avis and Hertz memberships free as a CO silver several years anyway so it doesn't seem to take much to keep this benefit coming.

I just haven't found that I have gotten that much benefit from the loyalty except for the non-mileage upgrades. And while that is great, I would rather like to be able fly with who I want on the days I want. The use of mileage is getting harder all the time and I don't see the airlines changing that.

I definitely see benefits to miles and SOME level of loyalty, but the services that truly benefit me are upgrades and skipping lines. To get that service at the same price I can fly 1/3 as much, buy more expensive tickets and a club membership. It does take a passion and I love to travel, I just don't want to do it every month so that I can get some decent service. Like I mentioned earlier I do the calculation for me and that is just the way it works out but everybodys pattern is different. And if I was traveling on business 3-4 times a month like I was three years ago I would still be trying to get all the free benefits and miles they are giving. Just finding the time to get 50000 miles on personal travel is tough.

Wow, I love Bourne's response and I echo it. A couple of things I would add: I really love it when the benefits can be extended to family member, friend or companion such as waiting out a delay or layover in a club instead of a gate waiting area. Being able to come across with a ticket for someone is pretty big and the "emergency travel fund" aspect is nice insurance too. I enjoy the "game" aspect to the whole thing and plotting strategies that pay off in spades. In a couple of weeks, I will take a dirt cheap flight which will set off a chain of events that will result in about 20K. Every time I'm sitting up front on a cheap ticket with a complimentary cocktail, it's a little victory. Hey, it's just plain fun! http://www.flyertalk.com/forum/smile.gif

I have very little faith in the airlines to maintain their current benefits in the future. They have all started to sell miles from flowers to cars to mortgages. With all these additional miles that they are selling, do you think that they really are planning on giving away more free seats. I highly doubt it. They are just selling miles now, which in the future will be devalued by less award availability and possibly higher mileage requirements. I think that they are just looking at profits now, without considering the future. Sure you can make the argument that they can't afford to risk angering customers, but i say that the airline industry is one of the most monopolistic around, and they don't have too much concern when all the other's are diluting there miles too. I see little talk about this, but I feel that the airlines selling miles really just dilutes our miles, and that frequent traveler's should take this as a slap in the face.

Plain and simple, FF benefits have been on the decline over the last few years and that trend shows no signs of letting up. The decline has been such that I am seriously beginning to wonder if a cost/benefit analysis might reveal that I am better off always flying the carrier with the cheapest fare on a particular route rather than paying more on a preferred carrier in order to accumulate miles. Sure, you may lose out on upgrades, but then again, first class is no longer what it used to be.

Airlines are largely publically held corporations, as such it is their fiduciary duty to maximize shareholder value. Their frequent flier programs will change to allign with this goal. They clearly have no legal obligation to keep any aspect of the program the way it is now, as spelled out in the terms and conditions. No one is holding a gun to your head and making you stay with a particular airline and frequent flier program, either...

The value of miles could easily plummet, imagine for example if your airline went the way of Delta, turning their miles into "placebo miles" that are nearly impossible to redeem. Nice big numbers in your account, but good luck trying to use them! Mwa ha ha. It could happen.

I always fly business, so I have short lines at check-in and extra baggage, more than I need. The price of business class tickets does not vary that much, short-notice travel is not much more expensive than booking months in advance - at least in my case. (I live in Asia.) I hardly ever upgrade to first class, because i don't like the extreme personal attention I get there. I feel comfortable in business.

Honestly, the main reason I WANT to belong in the top tier of a program is recognition. The attitude of the staff, the fact that I don't have to deal with hords of badly dressed, loud and obnoxious tourists around me, the feeling of having the right to complain, some sort of emotional leverage towards the airline, and not just be a sardine in a flying tin can. Call me a snob, but it is that which makes the travel experience worthwile. With top-tier membership, I feel I can WANT and HAVE things instead of having to ASK of BEG for them, or GET LUCKY.
I save a little money by occasionally upgrading to business, but in general its pure vanity. And the primordial collector's drive. And vanity.

The airlines should disclose their FF policies, perks, etc. by June of 2001 for 2002 and so on. So, that we can make an INFORMED decision if we want to pursue status for the next year.

If the airlines want to make radical changes/devaluations in their programs, we at least deserve enough advance notice.

It's all about the convienience.

It's about knowing that if something goes wrong, the airline will go the extra mile to make sure you're taken care of. Air travel is about getting from point A, to point B, as quickly as possible.

For me, that's what matters.