The Extra Mile

Changes at the Top Roil Elite Flyers

Q&A: $100 to change an award ticket!?!

October 27, 2003 - Top tier members of the third and sixth largest frequent flyer programs are seething. And their co-elites at other programs may soon have reason to do the same.

The current anger is directed at Continental and Delta. Both airlines have made it more difficult to earn elite status in their mileage programs by cutting in half the number of elite-qualifying miles awarded for most advance-purchase coach fares. For business travelers on a budget -- a growing slice of the frequent traveler pie -- that means traveling twice as much to earn upgrades and other elite perks.

What's behind the changes? According to Rob Borden, SkyMiles Program Director, the goal is to "recognize those customers who contribute the most revenue to Delta." And that requires "a shift from rewarding frequency to rewarding overall revenue contribution."

The move is a step in the direction of "dollarizing" loyalty, best exemplified by the hotel programs which generally award points according to members' expenditures rather than the number of nights or stays.

In the case of Delta, which was the first to implement such changes, disaffected SkyMiles members have taken their displeasure public, mounting a protest website, SaveSkyMiles.com, and underwriting newspaper ads and a mobile Save SkyMiles billboard.

The uproar notwithstanding, Delta has stuck fast to the new policy. But Continental backed off slightly, extending until the end of next year full elite credit for cheap tickets booked on its own website.

In the short term, business travelers who want to fly cheaply and earn elite status may redirect their business to one of the airlines which still awards full elite credit for discount fares. But that option may not be on the table much longer.

Like his counterpart at Delta, Ed French, president of American's AAdvantage, foresees "an increased focus on the most valuable customers, those who drive the most benefit for the airline." If American, which operates the world's largest program, eventually follows Delta's lead, as French seems to be signaling, it's likely the other major airlines will do so as well.

For those who do reach elite, there is a bright side. With a smaller number of elite members competing for them, there will be more upgrade seats available for the lucky few.

Current News & Offers

Following are two unusually lucrative mileage offers, both of which expire on Oct. 31.

Participants in the American AAdvantage miles-for-dining program can earn up to 2,000 bonus miles for eating eight times at participating restaurants. The bonus is in addition to normally earned miles, typically 10 miles per $1 charged to a registered credit card.

And Delta SkyMiles members will earn 5,000 bonus miles when transferring the equivalent of 20,000 miles from a partner account to their SkyMiles account.

Delta has points-exchange agreements in place with Diners Club, Hyatt Gold Passport, Le Meridien Moments, Marriott Rewards, American Express, Priority Club Rewards, Radisson Gold Rewards and Starwood Preferred Guest programs.

A maximum of two bonuses or 10,000 bonus miles per partner program may be earned.

Check the American and Delta websites for full details.

Readers: Miles on their Minds

Question from Mike

I claimed an award for me and my family (five tickets) using American AAdvantage miles for a trip late this month. As it turns out I need to cancel or reschedule the trip. American is telling me that it is $100 per ticket to change or reinstate the miles. Is this consistent with your information?

BTW... I have earned over 2 million miles with American and always had flexibility with changes in the past.

Answer

Most airlines raised fees for reissuing award tickets and for redepositing miles during the post-9/11 travel slump.

So while American's fees may seem high, those charged by Delta and United, which operate the two other largest programs, are comparable.

If you have indeed earned more than two million AAdvantage miles, you should have been awarded lifetime elite status in American's program. While it's not a published benefit of elite status, it's worth calling the elite hotline to request that they waive the fees.