FlyerTalk Forums - Number of elites per airline

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Number of elites per airline

Maybe it's Friday afternoon and I should be going home...

My question to the group:
After reading many complaints of complimentary upgrades to different programs (see Delta, Hilton, Continental...) I have been wondering if airlines/hotels like to hava a certain % of their members at certain levels.

For example, 30% silver, 10 gold, 2% platinum. On one hand the program should not be diluting their elites or they will leave, but on the other hand you want to continue to encourage high users. Some programs right now do not seem to care and just want to "steal" any elites they can.

So, is there a right mix of elites? What are the MBAs saying to the CEOs about this?

Old data about United, but perhaps relevant:

Quote:

Since May 1981, 37 million customers have enrolled in United's Mileage Plus and 27 million remain on file. Of these, 10 million members are active - meaning there has been activity in an account in the past 12 months.
United's Premier customers represent 8 percent of the active members, but generate 35 percent of the total transportation revenue. Premier members spend more than 6 times general members, while Premier Executives and 1K members spend more than 12 times and 30 times respectively. If just 1 percent of the Premier-level members resigned from Mileage Plus, the company would lose $58 million in transportation revenue.

In 1998, the different frequent flier groups generated the following percentages of total revenue.

General Members: 24.2 percent
Premier: 15.2 percent
Premier Executive: 13.6 percent
1K: 6.3 percent

While final numbers for 1999 are not in yet, they are estimated to be similar to 1998.

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View from the Wing: A blog about Free Miles and Free Markets

Quote:

General Members: 24.2 percent
Premier: 15.2 percent
Premier Executive: 13.6 percent
1K: 6.3 percent

Where does the other 40.7% of revenue come from?

Quote:

Where does the other 40.7% of revenue come from?

Non Members. Quite a few people do not participate in any FF program, some participate in only 1, but occassionally fly on other airlines

Ah yes... I always forget about those people. http://www.flyertalk.com/forum/smile.gif I mean, who could possibly imagine that there are people out there who fly and DON'T get points?!?! It's beyond comprehension.

When I first qualified for Gold Elite status (then the top level) on Continental Airlines in 1992 I received a letter stating that I was in the top 2% of OnePass members.

Quote:

Originally posted by bpauker:
Ah yes... I always forget about those people. http://www.flyertalk.com/forum/smile.gif I mean, who could possibly imagine that there are people out there who fly and DON'T get points?!?! It's beyond comprehension.

I'm always amazed by my co workers who feel signing up is too bothersome/ they only fly occasionally/ didn't think of it etc. But there does seem to be a large % of the population in that camp-- which is lucky for us ! Less competition for those elite perks!