Number of elites per airline
Feb 21, 2003 | 3:00 pm
#1
Original Poster
Join Date: Jan 2002
Location: RST
Programs: Delta Diamond; Hilton Diamond; Accor Gold
Posts: 4,845
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?
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?
Feb 21, 2003 | 3:09 pm
#2
FlyerTalk Evangelist
Join Date: Apr 2001
Location: DCA
Programs: AMC MovieWatcher, Giant BonusCard, Petco PALS Card, Silver Diner Blue Plate Club
Posts: 22,314
Old data about United, but perhaps relevant:
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View from the Wing: A blog about Free Miles and Free Markets
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">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.</font>
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.</font>
View from the Wing: A blog about Free Miles and Free Markets
Feb 21, 2003 | 3:20 pm
#3
Join Date: Jun 2002
Location: Smellington, NZ
Programs: AA EXP 2MM, UA 2P, Marriott LTPP
Posts: 1,455
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">General Members: 24.2 percent
Premier: 15.2 percent
Premier Executive: 13.6 percent
1K: 6.3 percent</font>
Premier: 15.2 percent
Premier Executive: 13.6 percent
1K: 6.3 percent</font>
Feb 21, 2003 | 3:22 pm
#4
Join Date: Jan 2003
Location: between DCA and BWI
Programs: SPG Gold, Hyatt Plat, UA Premier, Hilton Gold
Posts: 3,652
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
Where does the other 40.7% of revenue come from?
</font>
Where does the other 40.7% of revenue come from?
</font>
Feb 21, 2003 | 3:44 pm
#5
Join Date: Jun 2002
Location: Smellington, NZ
Programs: AA EXP 2MM, UA 2P, Marriott LTPP
Posts: 1,455
Ah yes... I always forget about those people. 
I mean, who could possibly imagine that there are people out there who fly and DON'T get points?!?! It's beyond comprehension.
I mean, who could possibly imagine that there are people out there who fly and DON'T get points?!?! It's beyond comprehension.
Feb 21, 2003 | 7:28 pm
#6
Original Member
Join Date: May 1998
Location: Tucson, Southern Arizona, North America, Western Hemisphere, The Earth, a small planet in the solar system. Previously OnePass Infinite Platinum Elite, now over entitled 1K
Posts: 2,293
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.
Feb 24, 2003 | 11:03 am
#7
Join Date: May 1999
Location: Central New Jersey
Programs: UA-Platimum 2 MM, HH-Gold, MR-Lifetime Gold, Hyatt-Discoverist
Posts: 6,238
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by bpauker:
Ah yes... I always forget about those people. I mean, who could possibly imagine that there are people out there who fly and DON'T get points?!?! It's beyond comprehension.</font>
Ah yes... I always forget about those people.
I mean, who could possibly imagine that there are people out there who fly and DON'T get points?!?! It's beyond comprehension.</font>