spartacusmcfly

Car rental companies don't count. They hand out premium status in Crack Jack boxes.

It's one of the few industries where premium status helps the company more than the customer. Hertz just parks all their slop in one area, not worrying about space number, holding a specific model for a customer, cross-checking with late arrival data, etc. and they call that area President's Circle. It materially simplifies their operations, while I usually end up with a high-mileage Kia or a Suburban XL Cab...

limey1K

I realize it's not the same but its the gesture of goodwill that's important and should be noted, as opposed to the way UA is treating it's top tier customers.

spartacusmcfly

UA provided a gesture. GS will be no lower than 1K in 2021. That's certainly better than no status, which is where GS would end up if they didn't fly at all this year...

stevenshev

False. GS soft lands to 1K so in other words you've been given bupkis.

spartacusmcfly

Soft landing isn't a policy. It's a discretionary gesture, and certainly one they don't need to provide this year. What they've given is an iron-clad, in writing, commitment that you won't drop below 1K. That's not bad.

kb1992

This is false.

All GS would have made 1K anyway in 2019, and get their 1K status extended to Jan. 2022.

So for GS who spent far more than typical 1K in 2019, they receive worse treatment from UA if they don't spend enough in 2020.

limey1K

My issue is that Silver, Gold, Platinum and 1K are guaranteed status retention until Jan 2022, yet GS is not. I think UA's usage of the phrase "published tiers" is petty and short-sighted because it is quite obviously alienating their "best customers". My welcome letter said "As a loyal Premier® member, you’ve earned this prized honor — one that commemorates your many travels with us and marks the commencement of a much bigger journey. But the honor is all ours, and we thank you for the privilege of continuing to serve you". I'm not feeling that love right now.

What does UA have to lose by extending GS status in the same manner as the other tiers?

spartacusmcfly

That's the right question. Unfortunately, the answer is literally $1 billion USD.

1. The half-year run rate spend for GS is $25K.
2. If UA gifts you GS, you may simply not fly or try other airlines -- especially since UA's full route structure isn't coming back this year. Wouldn't it suck if a GS gave $8K to Eva for SFO-TPE because of a better schedule...
3. If they don't gift you GS, you will likely fly, and be eager to make the GS cut, so you may even fly 2x and get to $50K

There are ~20K GS. 20K * $50K = $1 BILLION USD. The govt bailout was $5B, with the majority going to employees, not UA. This $1 billion we're talking about is going to UA. It's a big deal and a lot of money to UA.

So UA actually has a lot to lose by letting the GS community off the hook...

villox

Honestly, United telling me GS will be extended will not change my behavior this year. I’m scheduled to complete around 30K IF I get back in the air by July. Maybe more depending on work. I’m only going to travel what work allows and border controls allow.

I’m not really in a position to do much more than that to try to squeeze in GS this year. But next year, an extension of GS will Definitely influence whether I decide to spend more once it’s allowed.

UAflyer93

Same boat here. Whether they extend this year or not, that won’t impact my flying for the remainder of this year. However, if I end the year at $25k and don’t requalify for next year (because UA didn’t extend while AA did for CK), then I’ll be a free agent in 2021 (and UA will most likely only see $20k from me in 2021 instead of $50k).

The feeling is the same among many other GS I know.

Boghopper

And the calculation is absurd. Many GS are locked in by Corp contracts, and many more by fortress hubs. And don’t forget the benefits. Add that up and the $1 billion estimate is a joke. And those will reconsider their options with the new year. Meanwhile those with options will consider alternatives this year to prepare for next with uncertain status prospects. Yes, yes, nothing is guaranteed but it’s pretty clear the 50k threshold has been proved out. UA obviously can’t set a revised one since the existing one doesn’t “exist”, so the mystery/uncertainty works against them and their only real options are to extend it or just keep gaslighting us. Add in the annoyance that everybody else got an extension, as did AA CK, and it seems like a bad call on UAs part. What’s the real cost that a few undeserved GS get handed out for a year? Seems like less than the loss of GS, who have got to be worth lots of $$$ and will be especially valuable because they’re more likely to fly early and often the rest of the year.

like I’ve said before, GS is a program to catch and retain HVFs, and not just for a year. So with a non myopic perspective is 2019 or 2020 flying a better indicator of how much a given customer will fly in 2021? I’ll bet that’s the calculus AA made now that Scott ”FFers are deadbeats” Kirby has moved on. And when my wife starts scheduling flights again we’ll be calling AA to see what they have to offer a 70-80k GS that UA doesn’t seem interested in keeping.

If UA extends GS she’ll be on UA for the foreseeable future (the exact opposite of what’s been suggested). If they don’t they create a free agent. It’s that simple. The fundamental problem is that they can’t incentivize flying with an uncertain reward, esp since the fallback is 1k which has already been guaranteed. What UA may end up getting from her is low roller 1k based on domestic flights while she books the high $$ fares elsewhere and gets a better product. In her experience on domestic UA doesn’t really seem to care she’s GS anyway. I don’t think that’s what they want, but I’m not a marketing supragenius like they are.

The ironic thing is it’s looking like she’s about to get a promotion that will result in even more flying and maybe hitting 50k or so for the year anyway. She’s already at 15 or so.

manstein58

Dead on point. I can just as easily go to PHL as EWR. IF UA thinks this is the smart way to treat long term HVF's, i will vote with my feet

onthesam

GS who don't earn their GS status through spend would not have necessarily made 1K.

villox

People keep bringing up this point but the people who don't earn their GS through spend are irrelevant to this conversation over extensions because by definition they already get it through other means.

Boghopper

And I’ll bet such grandees are a fraction of the overall GS population.