Widespread status comping: this year seems different
 

Every year - about this time - my travel agent might mention one or two airlines that are offering to match elite status from other airlines. (In other words, they are sending communication to big travel agencies *inviting* people to do it.) I have never taken advantage of the offer because of "once in a lifetime" comping rules that most airlines have. I'm AA Plat and UA PremEx and I fly little else, so I don't need or want NW, CO, US, etc. status - yet.

This year, however, seems different: my travel agent sent me a formal letter 2 weeks ago with about TEN airlines listed on it that are aggressively seeking new passengers by matching status. About five airlines are even inviting non-elites to take a free comp to the low-elite level, without any matching status on another airline needed.

The letter said that the airlines still consider mid-tier comps to be "once in a lifetime" and do not allow top-tier comps. However, for anyone who wants a low-level status or is contemplating a wholesale carrier change: this seems like your chance.

Is anyone else getting these offers more aggressively than in the past? Are you taking advantage of any?

(Without giving too much detail, I will say that my travel agent is among the largest travel agent companies in the US and the airlines listed included most of the largest ten US carriers. The only action I took was to upgrade from no-status to low-status on one major carrier.)

FWIW, I really wish the airlines didn't do this, but I understand why they are doing it now.

I fail to see the point of this.

From the customer's view ... I actually had to work to earn three of my 4 first-tier elite stati (yes, I was "instantly" granted NW status earlier this year based on God only knows what). Flying 25,000 miles on a carrier ain't exactly chicken feed, ya know. So now someone who's never before set foot on, say, a CO plane has just the same odds as I of snagging that last F seat?

From the airline's view ... Do they really think that doling out a bunch of new Silvers is going to get 1Ks and Platinum Medallions to abandon their favored airline in droves? Gee, let's see ... I can get a 125% mileage bonus and use some of my dozens of upgrade certs to ride in F the whole way ... or I can sit back in 32E and earn an extra 25% until I make it to 75K or 100K with the new guys.

I can see the point of once-in-a-lifetime status comps. I don't like it, but I understand it.

But this? This is ridiculous.

Mook


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"Timid men prefer the calm of despotism to the tempestuous sea of liberty."

-- Thomas Jefferson

Several years ago I was comped two years in a row to DL Silver status. I was also comped once to UA Premier Exec and have had multiple year comps to AA's mid-level Platinum. I'm not counting the same status comp AA gave me last year. I did not think this was a once-in-a-lifetime event. Did policies change on this? I'm sure the potential revenue based on travel patterns as seen on other airline statements can override any one-time restriction.

Its desparation plain and simple. The airlines are looking for any way to fill seats, and especially for last minute or higher business tickets.

It doesn't cost them anything, or almost nothing, only a few extra bonus miles for the elite level bonus, and maybe an upgrade that doesn't go to someone else. If the targeted person doesn't use the elite status, all they are out is a 37 cent stamp and maybe a quarter for the plastic card. As long as it doesn't become public knowledge that they are doing this it is win-win for them. And with many awash in red ink I don't think they are even thinking about making the people mad who actually earned elite status by flying. That could have something to do with why they are losing some of that money.

I don't fly on one airline only, as where I live there is no real dominant carrier. I do prefer one over another, and look more at the total flight time than the airline. Status in the airline program does enter into the equasion of which flight I book, as obviously I would prefer to upgrade, but because of fares or bad connect times or wanting to arrive at a location at a better time - say to avoid traffic, or avoid a RJ, or to arrive early so I don't have to fly in the night before carry weight. A better connection at a hub can beat an upgrade, but in some airports using the elite line is worth flying one airline over another. So I wind up being mid-level in four airlines rather than being top tier in one and mid in another.

I did take a comp on Alaska when they were after United's elite at the beginning of the year. I flew them as I had a trip where my choices were them or an airline I didn't have status. So the comp did bring them some extra revenue, and cost them nothing, so it was more cost effective than any other form of advertising.

This is just another example of the major carriers' strategy of treating the new/infrequent (e.g. vacation-only) customer like a king with regard to pricing/services. At the same time they treat the frequent business flyer like dirt with illogical/exorbitant fare pricing and constant dilution and reduction of our benefits.

The world's two airlines that don't have this upside-down business model are also the most financially sound: Southwest and RyanAir.

I think all of the airlines like to say "We're only doing this for you once, from here on out you'd better earn it!" Whether they enforce that or not probably varies. Are their systems good enough to tell the agent "We hooked this guy up with Plat in 1995. Don't give him another one!"?

Somebody told me once that CO plays hardball with the multiple comps, whereas NW throws around Silver cards like they are going out of style. Kind of interesting considering how linked the programs are...

Given the complex business rules that any frequent flier system must follow, e.g. when it comes to bonuses, targeted promotions, I would think that tracking whether any particular year's status was earned vs. comped would be a piece of cake.

This reminds me of the Fresh Samantha and Nantucket Nectar sort of strategy: you take a quality product that a select group of people enjoy, then mass-market it to everybody, let the quality go to blazes, take your cash and run...

The top tiers of NWA and CO have been diluted with compted Gold card elites from fall 2001 promos.

This reduces the value of the overall programs.

Anyone else have any thoughts about this?

I am NW Plat and would like AA comp. How do I go about it? I have flown AA only 2 round trips (6 segments)in coach this year: PHL-ORD-MCI and PHL-SJU. Also I have about 80,000 miles in my AA account. Any ideas?

Call AA and let them know what you want to do. I did this last November (thinking I was going to lose my UA Prem Exec status) and AA had me fax them a letter with my request stating I was contemplating switching loyalty and a copy of my current UA Prem Exec card. Within a few weeks, I was Platinum on AA (skipped right past Gold!). Of course UA kept me PremExec based on their complicated strategy this year.

For the record, this year 20% of my flights have been on UA, 80% AA.

disneybride,

Thanks for the info.

I called AA and they asked me to fax or mail a copy of my latest NW statement and a note requesting a comp. That in a couple of weeks I would receive a postcard from AA. I went online and printed a copy of my NW account history and sent it to AA by fax. I'll let you know when I hear from AA.

If I get the comp I'll probably fly AA the rest of the year since I have already made my platinum for NW for 2003.

[This message has been edited by MyDearMiles (edited 08-19-2002).]

MyDearMiles,
Great! Please post how it turns out! Good luck to you!

MyDearMiles

you have mail

pinniped-
May I ask which airlines were offering the comp. up from non-elite to elite? I can understand why some of you don't like this method of marketing by the airlines. If I flew as much as some of you, I wouldn't either. But for people like me, this can be very valuable. I fly less than 25,000 miles per year total. I don't fly for business anymore so all of it is out of pocket. This year my flights have been almost exclusively on UA, and I will most likely be just short of Premier qualifying. If there is a way to bump up to Premier I would jump at the chance. Any info anyone has would be helpful. Are these offers targeted? Do you have to have status on a competing airline to make it worth it for an airline to bump you up?

We just hired a new company travel agent -- they say the airlines, especially American -- are aggressively comping anyone (especially United flyers) who they think will bring them business, to all but the top tier.

pinniped, could you please email me privately?

thanks, ron

Also, Disneybride, could you please drop me a note too?

Thanks, R

GLeyser and RVR: You've got mail.

Yep.

As I posted in the AA forum, I'm a UA 2P ("lowly Premier") who rarely flies AA. However, in the last year I've been building a lot of non-status miles on AA as a hedge, and also in hopes of getting 1MM some day (if AA is still around and still offers this!).

And I recently took advantage (I mean AAdvantage) of an offer from AA to comp my UA status. The offer was through my workplace, where AA recently became a preferred carrier. I received my Gold card the other day, and it's good till end of 02/04!

So, while I'm busily doing mileage runs on UA this year to keep my "lowly Premier" status on them through 02/04 (not much biz travel this year http://www.flyertalk.com/forum/frown.gif ), all I had to do for the equivalent on AA was send a fax!


Kathy


[This message has been edited by KathyWdrf (edited 08-23-2002).]

Just to test the "one time only" restriction some posts have mentioned, I called UA and was able to get a Premier Exec comp again even though I volunteered I had been comped to this status in the past. Based on our discussion, I think she could see this previous comp in my file. The agent said she was making a special exception for me for a second comp based on my current ff status, however she only asked me to fax in my DL record. My UA history has no flights in two years except a few Aloha segments and award travel on Lufthansa. I do have two domestic rt on UA currently booked, but I don't think this played a part in the decision to comp.

I'm Delta Gold, with, by the end of October, about 200,000lifetime, 500.000 current total miles and 50K base miles (35ish segments) this year. What sort of Comps to what status might I be able to get on AA (where I have 750,000 miles towards million-miler, but over 25 years!)or UA?

Thanks
Steve

Steve-

You sound like a clear-cut mid-tier flyer on AA or UA. On AA, that's Platinum status and on UA, it's Premier Executive. Those are the levels I'd ask for if you are serious about going for the comp (knowing that they won't give away the top levels, even if you could convince them that you were about to do top-tier travel on Delta).

I just came across the AA and US threads about those two airlines (and DL, and perhaps others) drastically TIGHTENING the requirements to gaining elite status. i.e., Only travelers flying Y/B or higher would earn Q-miles and Q-segments, leaving nearly all leisure traveleres - and a good portion of biz travelers - in the dust.

(Note: at the time I post this, only US has announced this change. US says that other majors are following, but so far the AA and DL part is rumor.)

I find this strange, as it is a move 100% in conflict with what this thread is all about. Why would the airlines aggressively comp and upgrade flyers to their status levels, and then shut out their own loyal flyers who actually give them a lot of business - albeit on restricted fares?

Only thing I can think of is that the majors have gotten together at the highest levels and laid out a vision that truly puts the "elite" back in elite status by 2004 or 2005, thereby rewarding the high-fare business traveler (who, honestly, is probably frustrated these days when his Monday morning and Friday afternoon flights are 75% Platinum).

Hang on a sec, the only people that have said that other majors are matching this are a bunch of low wage phone answerers reading off a prepared sheet when answering angry phone calls.

Of course they would say this. I highly doubt that the other airlines would do this and to have US employees read it out to people over the phone would stink of collusion. Do y'all think that US is in a position to collude these days with DL??

On the other hand, having your "public face" people inform the general public that they are aware of other carriers' unannounced plans to tighten their elite requirements gives evidence that there is some under-the-table discussion going on. Why would US want to incriminate themselves?

Agreed - I noted in my original post that the AA/DL part is, at this point, rumor.

Why not? They already collude all the time anyway (all of the majors). Once in a blue moon, somebody files a lawsuit about it, and we all get a class-action $5 rebate if we are willing to jump through about $10 worth of hoops.

Today I received a postcard from AA dated 8/23/02 and post marked 8/29/02. It stated:
"IN RESPONSE TO YOUR RECENT REQUEST, EARN 10,000 POINTS FROM 9/1/02 - 11/30/02 ON AA, ALASKA, AER LINGUS, BRITISH AIR, CATHAY, FINNAIR, IBERIA, LAN CHILE, QUANTAS OR AMERICANCONNECTION AND RECEIVE AADVANTAGE PLATINUM STATUS THROUGH 2/04. POINTS RANGE FROM .5 TO 1.50 PER MILE FLOWN, BASED ON BOOKING CLASS (EXCEPT ON IBERIA AND QANTAS WHERE POINTS FOR DISCOUNT COACH ARE BASED ON MILES POSTED).

SINCERELY,
AADVANTAGE CUSTOMER SERVICE"

Is this the regular platinum challenge? Based on the above I will be AA platinum next year. I currently have one round trip flight for 10/02 (PHL-DFW-MCI) and I plan to do an international flight between now and 11/30/02.


[This message has been edited by MyDearMiles (edited 09-03-2002).]

Yes, that looks a lot like the normal Platinum Challenge. 10,000 Q-points in 3 months, starting on either the 1st or the 15th of a given month.

Note that restricted fares earn 1/2 Q-point per mile, minimum 500 per segment (not 250).

Interestingly.. H class on CX posted as Y or full Q-points. I was indeed happy as one RT to KUL from LAX gave more 18000 Q-points http://www.flyertalk.com/forum/biggrin.gif

Yeah!