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-   -   Why won't airlines just take $ for status? (https://www.flyertalk.com/forum/milesbuzz/9225-why-wont-airlines-just-take-status.html)

opus17 Dec 24, 2003 12:42 pm

I actually posted a similar thread 3 years ago:

http://www.flyertalk.com/pasttalk/ft...ML/000092.html

I'm sure there have been others!

JerryFF Dec 24, 2003 12:54 pm

This raises an interesting difference between hotel and airline programs. With most hotel programs, you can book a guaranteed room, be a no show, pay for the room, and get credit for the stay.

So the question then is why you can't buy a nonrefundable airline ticket, don't fly, and get credit for the flight.

It used to be a problem because you could exchange a NR ticket for a new one with a $100 svc fee. However, now the airlines have software that requires you to cancel the reservation before flight date in order to have the residual funds available for the exchange. If you don't cancel the reservation, you lose your money. So now, theoretically at least, it could be the same as a hotel no-show.

Alan_Rosenthal Dec 24, 2003 3:51 pm

The double miles on the UA deal do count towards elite qualification, but you can't use them for award travel. You get double miles for flights taken between October 15th and December 15th. Unfortunately, you had to register and pay by December 15th to be eligible for this offer.

mitchell Dec 24, 2003 10:30 pm

These were two of my flights in 2003:
NW SFO-NRT-SIN 16,904 EQM for $357.58
CO OAK-IAH-DTW-IND 5,697 EQM for $121.50

At 2.1c/EQM,
50,000 EQM is $1,050
75,000 EQM is $1,575
100,000 EQM is $2,100

I don't think airlines want to sell status for so cheap.

The number of hours you have to physically sit on a plane keeps cheap flyers (like me) from displacing $50,000-$200,000/yr revenue flyers too easily.

For most people, the 200 hrs flight time & 200 hrs additional hours to/from airports necessary for 100,000 EQM is a big additional opportunity cost:
400 x $100/hr = $40,000
400 x $10/hr = $4,000

How about people who can bill $500-1,000+/hr?
Although I heard once that once your hourly rate goes above $500/yr, private jets make economic sense...

I wonder how many frequent travelers would snap up UA 1K/AA EXP for $2,000 if they didn't have to spend time on planes. Just consider the 6 SWUs/VIPOWs.

----
Personal opinion: I'm sure this idea has been tossed around before, but why not use $ spent as a possible way to qualify.

Level 1: 25,000, 50 segments, or $10,000
Level 2: 50,000, 100 segments, or $20,000
Level 3: 100,000, 200 segments, or $40,000
Level 4: 150,000, 300 segments, or $60,000
Level 5: 200,000, 400 segments, or $80,000
etc...

With unlimited levels. That way people who spend $200,000/yr on flights are definitely higher status than us riff-raff flyers.

[This message has been edited by mitchell (edited Dec 24, 2003).]

ACORD Dec 25, 2003 6:30 am

So what if you can buy status with $$$? If this were commonplace presumably those that would cough up the cash would not be flying that much anyway and therefore not "consuming" perks genuine frequent flyers are also seeking.

TWA4Ever Dec 26, 2003 8:45 am

I am not certain that this has gone in the correct direction. TWA used to offer status in one of two ways - either miles flown, or the amount of $$ spent on tickets, regardless of miles flown. For example, $10,000 spent with TW during the course of a year earned Elite 1 status (I'm not sure how much would equal platinum).

My first Elite 1 status with TW was due to having spent a little more than he $10K. After all, the bottom line with the airlines is the $$, not the amount of time you actually spend in their metal.

AA, however, is a different story. Last year I spent $11,000 on AA, but flew just 21K miles (lots of "short" flights, but all on F or YUP fares). Spoke and wrote to AA, but to no avail. They were only concerned about the miles in seats, not about the dollars spent.

And you'd think the dollars would count for something, too. Since when did the airlines stop looking at dollars as their most important resource?

mitchell Dec 28, 2003 6:43 am

I don't know why airlines don't treat $10K+ flyers better. This UA report from 1/2003 says that the average 1K only spends about $12K/yr.

http://www.the-mechanic.com/pdf/ual_creditors_01.pdf

pp. 27-30 describes types of travelers
The style of travel I'm using is called a "DIY Leisure Opportunist".
19% of travelers, contributes 10% of revenue

pp. 36-38 has average spending per year (in 2002)
1K $12,000 - 18 trips, $700/RT
1P $6,000 - 12 trips, $550/RT
2P $2,000 - 6 trips, $450/RT
General $500 - 2 trips, $250/RT

It came from these United threads about how much 2003 & 2002 United 1K flyers spent.
http://www.flyertalk.com/forum/Forum50/HTML/024488.html
http://www.flyertalk.com/forum/Forum50/HTML/017426.html

[This message has been edited by mitchell (edited Dec 28, 2003).]

ermdjdsj Dec 28, 2003 11:16 pm

[BORAXO wrote:}

"AA offers gold for $395 and plat for $595 if you previously qualified. . . ."

I'm confused. If you can requalify by just paying these amounts on AA, why are there still AA elites doing MRs to maintain status? Seems the MRs would cost as much, AND you'd have to fly!

waytogoflyer Dec 28, 2003 11:29 pm

{ermdjdsj wrote:}

"If you can requalify by just paying these amounts on AA, why are there still AA elites doing MRs to maintain status? Seems the MRs would cost as much, AND you'd have to fly!"


I think because you only get to to it once. A one-shot deal. So if you're real close this year and can do a reasonable MR to make it, then do it, and save the "paying up" for a year when because of whatever circumstances you're just really really behind and just have no other option. Because once you pay up to requalify they'll never let you do it again.

But maybe people have other reasons? That's just the one that I'm using.

Punki Dec 28, 2003 11:33 pm

Now wouldn't buying status just take all the fun out of it.

Just think, no more crazy multi-segment trips, no more weekend transcons just to rack up miles--we might all become normal. http://www.flyertalk.com/forum/rolleyes.gif What would be the fun in that? http://www.flyertalk.com/forum/wink.gif

hockeydiva Jan 14, 2004 11:00 am


<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ermdjdsj:
[BORAXO wrote:}

"AA offers gold for $395 and plat for $595 if you previously qualified. . . ."

I'm confused. If you can requalify by just paying these amounts on AA, why are there still AA elites doing MRs to maintain status? Seems the MRs would cost as much, AND you'd have to fly!
</font>
Well, I paid almost that much for a F MR ticket this past weekend. I could have gone much further for the dollars I spent, but a big factor in being able to do a MR run was being away from home for as short a time as possible.

But, in addition to my Plat status [which I would not have qualified for under the offer anyway], I also received just over 11,000 miles AND 4 500-mile upgrade stickers. And the total cost was a little less than $595, even with parking.

And since the purchased status is a one-time only offer (or so they say now), I may have the opportunity to use that option in the future (if I need to and they offer it.)

jasons2e Jan 15, 2004 5:55 am

On Air Canada, the Maple Leaf Lounge is an elite benefit. However, you can purchase membership, which also entitles you to the other benefits elite members enjoy. This is in a sense buying status. Quite cheaply I might add (dependent on how badly the dollar is doing at the moment).


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