Does awarding status levels based upon spend generate more revenue?
Mar 19, 2024, 4:32 pm
#16
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,419
Mar 20, 2024, 8:45 am
#17
Original Poster
Join Date: Jan 2024
Posts: 22
Once folks understand that the only aspect of the frequent flyer program at United is the lifetime status the happier Mileage Plus members will be. Lifetime Gold is a nice place to be.
For United the focus is maximizing revenue for shareholders as that is how management is rewarded. [Slightly off topic but the recently announced changed at Boeing to including Quality in the management metric is telling on where management will now direct focus.]
Frequent flyer programs were originally introduced to encourage flying loyalty. This is no longer required to generate revenue for the airlines. My 1K perks keep me primarily with United. My friends who fly once or twice a year choose least cost.
For United the focus is maximizing revenue for shareholders as that is how management is rewarded. [Slightly off topic but the recently announced changed at Boeing to including Quality in the management metric is telling on where management will now direct focus.]
Frequent flyer programs were originally introduced to encourage flying loyalty. This is no longer required to generate revenue for the airlines. My 1K perks keep me primarily with United. My friends who fly once or twice a year choose least cost.
The key thing to remember is that you have a choice of airlines. I switched from UA to BA because a combination of the new MP program sinking to below BA’s, and generally better pricing on BA - the latter being variable and somewhat marginal. I generally prefer UA but, after the changes, its proposition is no longer compelling.
Last edited by WineCountryUA; Mar 20, 2024 at 3:21 pm Reason: merged consecutive posts by same member
