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Losing frequent-flier elite status
miles & points
by Randy Petersen
September 2008
Losing elite status can feel particularly painful in the current economic environment, when airline perks are valuable commodities.
Frequent-fliers who have lost their elite status are looking for a little mercy from their programs. They’d like to be allowed to retain elite status, even if their flying schedule has slowed down.
I can see both sides of the equation: You’ve been a loyal customer, so why shouldn’t you continue to benefit from that loyalty, even if you need (or want) to temporarily slow your travel? But then, shouldn’t frequent-flier programs only reward their current most loyal customers with the benefits and status of elite membership? There is already extreme competition among elite members of each program for particular perks, so offering them to others on a subjective basis may dilute the status of membership and reduce benefit availability. While it may seem like one more member can’t hurt, many programs have demonstrated that just one more often turns into thousands, if not tens of thousands. Airlines must consider the expense, time and challenge of addressing every exception.
Many frequent-fliers are upset by seeing an airline employee sitting in first class, because they believe that employee may have “taken” the upgrade the customer expected. At a time when airlines are reducing capacity and relying more and more on regional jets (without first-class upgrades) to supplant their fleets, they have already cut back on what they can deliver to elite members.
But it’s not all about upgrades. Most programs also reduce fees (for example, recently imposed baggage fees) and extend additional award seats to their elite members, so the overall benefits package is very expensive for the carrier.
The lifetime elite status that some programs offer—usually when a customer hits one million elite qualifying miles—also means a considerable cost. Carrying up to an additional 10 percent of elite members in the program because of exceptions is positive for those who have earned the privilege, but it dilutes the delivery of benefits to current elite members.
On the other hand: Airlines have a strong incentive to entice a frequent-flier to stick around, even if her flying hasn’t been as frequent lately. In addition to circumstances that occasionally befall travelers and impact their travel patterns, carriers may experience exceptions of their own. Too often, it seems, airlines cancel flights, exit markets and otherwise make it difcult to fly. When these situations arise, the carriers certainly do not want their members to move on to other programs.
Here’s a rarely discussed secret in the industry: Frequent-fliers without elite cards in their pockets are more likely to end up on budget and low-cost carriers when paying with their own money later (as opposed to the company’s dime), while those who have elite cards will often pony up a few more bucks to fly with the airline that knows and treats them best. For the carriers, the cost of a membership card and packet is minimal when compared with the critical role an elite card plays when the member is selecting his next flight.
If you’ve lost your elite status and feel that your loyalty deserves a second look, communicate with your frequent-flier program. Start small by requesting lower-level elite status, so you can prove you plan to fly with that airline again.
Programs have also been known to match elite status for members of competing programs, so by requesting an exception based on your prior loyalty, you’re not asking for much more than you already enjoyed as the devoted customer of another airline. And hey, it never hurts to ask.
_______________________________________________________
RANDY PETERSEN is publisher of Inside Flyer magazine and president of Frequent Flyer Services. Email Randy at editor@executivetravelmag.com.
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, Aug 28 2008, 4:27 PM EDT
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