Does extending status extend loyalty?
#1
Original Poster
Join Date: May 2001
Location: ATL
Programs: FL, AA, DL
Posts: 663
Does extending status extend loyalty?
This is a post in response to the thread about American Airlines extending elite memberships through 2003.
And here's the question: When an airline extends your elite status an extra year, how does it affect your travel plans?
I can say right now that if my preferred carrier extended my elite status, I'd either: a) cut back on personal travel in general, and explore the area around where I live more; or, b) try to make elite status on another airline through a fast track promotion. (And if I did make elite status on the other airline, there's always the chance that I'd discover I liked the other airline more, and would defect to them...)
How would it affect others? Would you stay loyal to the program that extended your status, or would you abandon them at least until the end of the year in the quest for status elsewhere?
Of course, I don't think we here at FlyerTalk are a good representative group for how people responding to these gestures. I mean, some of us are the sort of people who fly halfway around the world for a 4 hour visit to Asia, all in the quest for more miles. We can't be considered normal.
And here's the question: When an airline extends your elite status an extra year, how does it affect your travel plans?
I can say right now that if my preferred carrier extended my elite status, I'd either: a) cut back on personal travel in general, and explore the area around where I live more; or, b) try to make elite status on another airline through a fast track promotion. (And if I did make elite status on the other airline, there's always the chance that I'd discover I liked the other airline more, and would defect to them...)
How would it affect others? Would you stay loyal to the program that extended your status, or would you abandon them at least until the end of the year in the quest for status elsewhere?
Of course, I don't think we here at FlyerTalk are a good representative group for how people responding to these gestures. I mean, some of us are the sort of people who fly halfway around the world for a 4 hour visit to Asia, all in the quest for more miles. We can't be considered normal.
#2
Join Date: Jul 2001
Location: Europe
Posts: 2,014
Personally, I think that all the fares will be the same across the board for a while, and extending my status a year would "keep me from straying" when coupled with the elite level bonuses. After all, if you made elite, you can deliver more business - and you should be given incentives to pull in more business - like, sign up a friend for a midlevel status, and if he/she makes it in "x" days, we will give you "y" miles and 50% bonus for the rest of the year on what your friend makes - that's right, the "Meet us half way (tm) (sm) (c)" offer. When you sign up that friend who qualifies, you will earn a 50% bonus of all base miles earned by your friend until the end of the year.
Think about what that would do for a promotion!
If it's just, here's your card and good luck, well, "if I were running an airline" I would be comping midlevel status like crazy and doing "personal perq's" (Hello Mr. Jones, we have your favorite wine from our selection onboard for you today) type of stuff, rather than blowing miles out my backside - and winning over the hearts and minds of the flyers.
(By the way, if anyone in the business uses my offer, I want a lifetime top status, minimum!!!)
Think about what that would do for a promotion!
If it's just, here's your card and good luck, well, "if I were running an airline" I would be comping midlevel status like crazy and doing "personal perq's" (Hello Mr. Jones, we have your favorite wine from our selection onboard for you today) type of stuff, rather than blowing miles out my backside - and winning over the hearts and minds of the flyers.
(By the way, if anyone in the business uses my offer, I want a lifetime top status, minimum!!!)
#3
Join Date: Oct 1999
Location: Allentown, PA USA
Programs: Northwest-millionair; Marriott, lifetime gold
Posts: 578
Extending status will encourage me to not fly the airline the rest of this year, since my status is assured anyway. Maybe it will make it possible to achieve status on my seconary airline. If other airlines don't follow AA in their status extension, I think lots of fliers will slack off in their AA flights this year, and why not ? It is an interesting concept to reward people for NOT flying the remainder of the year. I'm happy to take them up on it.
#4
Original Member




Join Date: May 1998
Location: NJ
Posts: 3,343
The effect which this will have on people will depend upon whether you are an "elite on one airline" person, or a person with the potential to be elite on more than one airline.
As for me, I am only elite on one airline currently (AA--and only as a successor to TWA). Extension of my elite status will certainly encourage me to fly AA for another year, since I get perks on AA that I don't get elsewhere, and may not be likely to get elsewhere.
Persons with possibilities of elite on another airline may shift to get the elite level on the other airline by the end of the year.
However, I believe that there are probably far more people in the first category, who will remain loyal to AA because of it, than there are in the second category, who will see it as an opportunity to get elite on a second airline. But that is just a guess.
Djlawman
As for me, I am only elite on one airline currently (AA--and only as a successor to TWA). Extension of my elite status will certainly encourage me to fly AA for another year, since I get perks on AA that I don't get elsewhere, and may not be likely to get elsewhere.
Persons with possibilities of elite on another airline may shift to get the elite level on the other airline by the end of the year.
However, I believe that there are probably far more people in the first category, who will remain loyal to AA because of it, than there are in the second category, who will see it as an opportunity to get elite on a second airline. But that is just a guess.
Djlawman
#5
FlyerTalk Evangelist


Join Date: Nov 2000
Location: Nashville -Past DL Plat, FO, WN-CP, various hotel programs
Programs: DL-MM, AA, SW w/companion,HiltonDiamond, Hyatt PLat, IHF Plat, Miles and Points Seeker
Posts: 11,405
I would fly that airline (we are talking AA right now) when I knew I could get a perk, upgrade, etc. But, I would not go out of my way, since after all, they have already given me the status, after only 8 months of flying. If I had a chance at elite status on another airline, I would surely give them my business.
Alot of it depends on your situation. If you are in a hub city and tied to one airine, your decisions are much different than if you can pick and choose.
If AA is trying to provide an incentive to fill their seats, they blew it.
If AA wants to reward those that have traveled with them all year, and will continue, they blew it (by insuring that number of elites was larger)
Marketing 101 - What is the objective?
#6
Join Date: Jul 2000
Location: San Francisco
Programs: UA Mileage Plus Premier Gold 1MM, Marriott Gold
Posts: 1,467
Well, I for one am a one-airline 'dillo.
The main thing a comp through 2002 would do for me would be to keep me from jumping ship
to a competitor. I don't fly enough to gain
status on multiple airlines, but I do look at
my Premier status as more a survival strategy
than a luxury or perk.
UA has always treated me well and I will admit to being comfortably spoiled.
As to whether or not this will swell the elite ranks on various airlines, I find myself coming more to the side of those who
say that it may very well increase the overall population of elite flyers, but those same membership cards might end up gathering more dust than use.
JD
The main thing a comp through 2002 would do for me would be to keep me from jumping ship
to a competitor. I don't fly enough to gain
status on multiple airlines, but I do look at
my Premier status as more a survival strategy
than a luxury or perk.
UA has always treated me well and I will admit to being comfortably spoiled.
As to whether or not this will swell the elite ranks on various airlines, I find myself coming more to the side of those who
say that it may very well increase the overall population of elite flyers, but those same membership cards might end up gathering more dust than use.
JD

