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aerolimani
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Changing reward programs affecting your airline choices?

Mon Jul 24, 2017 7:46 am

It used to be that reward programs were based on distance traveled. The trend is shifting, instead, towards a model that rewards how much the customer spends. As someone who takes only 10-12 round trips in a year, and who is budget-conscious, I find that I am less inclined to remain loyal. I still collect my points, but now I'm a member of many programs. At least the programs that have reasonable expiration policies, as I might eventually be able to do something with those points.

As someone who appreciates aviation, I find myself feeling more free up to fly with whoever I feel like! While budget is my first consideration, I also consider comfort to be important. Plus, the geeky side of me enjoys experiencing new airlines and different equipment. So, while I will miss the fun of collecting, and occasionally planning trips just to earn bonus miles, overall I'm actually feeling happier to be free of the airline/alliance-specific points programs.

What are your feelings? I'm curious to hear from people at all levels of flying, from once every 5 years, to 5 times in a week.
 
jetwet1
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Re: Changing reward programs affecting your airline choices?

Tue Jul 25, 2017 7:13 am

There was a time when I would go out of my way to earn miles on a certain airline, that time has come and past. Over the last few years it has become harder and harder to secure reward seats and in some airlines case, the fees and fuel surcharges have taken the cost of a free seat to the point where it is cheaper to buy a seat on a different airline.

I have a couple of accounts that each have over 300,000 miles sitting in them, if the family is taking a trip somewhere I will take a quick look at redeeming the miles, but so far, nothing.

What this has caused me to do of cause is switch from flying one airline to flying a group, last year it was Swiss, this year I am all over the place, but mostly DL, next year I have a bunch booked with DY.

Even as a top tier member, once you start flying up front, there is very little incentive to stay loyal to one airline or alliance.
 
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aerolimani
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Re: Changing reward programs affecting your airline choices?

Tue Jul 25, 2017 7:43 am

jetwet1 wrote:
Even as a top tier member, once you start flying up front, there is very little incentive to stay loyal to one airline or alliance.

Interesting! Thank you for weighing in. I'm surprised the even a top tier member would not feel overly loyal. A.net wisdom would have it that your dollar is the one they value most. Sounds like they're not doing a great job of wooing you.

I feel like the emergence of airline points program associated credit cards may have also made the situation worse. Instead of inspiring loyalty by offering a decent selection of award flights, they expect that people will stay loyal by using a credit card that earns them a lot of points. However, that plan seems to be backfiring, given that the banks are now offering their own rewards cards that provide better rewards than the airline points/miles.

In Canada, AC recently announced that they are breaking ties with aeroplan. AC originally started aeroplan, then sold it off. Now, they're abandoning it and preparing to launch a new program in 2020, and aeroplan miles won't transfer to the new program. It's going to be interesting to see what kind of a program they will offer. In my personal experience, as of the start of 2017, the availability of reward flights on AC seems noticeably worse; especially reward flights in first or business.
 
RoySFlying
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Re: Changing reward programs affecting your airline choices?

Tue Jul 25, 2017 10:11 am

When a passenger reaches top tier and travels in first, there isn't much a rewards scheme can offer other than reward flights and guaranteed last seat. Unless the passenger books business and attempts an upgrade to first (never guaranteed), the upgrade option doesn't apply. Things like lounge access or complimentary transfers are included in the fare. So all that's left is the ability to access offerings from partners. For example, EK offers access to a golf course in Dubai. How much use is that if a) you don't live in Dubai or b) don't have any interest in golf?
 
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PatrickZ80
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Re: Changing reward programs affecting your airline choices?

Tue Jul 25, 2017 8:29 pm

I'm not a member of any frequent flyer program, I just pick the airline with the lowest ticket price whichever that may be. I feel like such programs are something from the past that don't fit in the modern age anymore.

For an airline it doesn't matter who's sitting in their seats. A passenger is a passenger and they don't care if it's their first, tenth or hundredth flight with that airline as long as the seat is filled. So instead of giving returning customers a discount they just lower the overall ticket price. That way everybody profits the same.
 
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csturdiv
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Re: Changing reward programs affecting your airline choices?

Tue Jul 25, 2017 10:10 pm

I recently signed up for the QF program. I do have gold level on AA, but since I now Iive in Australia now and maybe only fly AA once a year when I go back to the US, it is hard for me to retain that status. Going with QF is a good choice, since when I do go back to the US, AA is the carrier of choice with the better choice of flights to my parents I can get some points and credits with QF. Not sure what I will do with my AA miles, I do have enough for some domestic flights. I will be back in the US for about a month over December and January and booked a few flights on AA and have already put in upgrade requests, so maybe I can burn off some miles with upgrades on my flights from Chicago to Florida and to Chicago.
 
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Super80Fan
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Re: Changing reward programs affecting your airline choices?

Wed Jul 26, 2017 12:13 am

Not anymore. Before I went out of my way to get Delta and American miles but now I have refocused on getting Southwest points.
 
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LAXintl
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Re: Changing reward programs affecting your airline choices?

Wed Jul 26, 2017 12:45 am

I applaud the changes and find the programs much more rewarding now.

Just like hotels, super market, gas stations, and other retailers do already, the most befitting and proportionate method is to reward points based on spending.

Certainly, someone that spends $1,000 on the flight deserves more rewards than someone that pays $100 on the same flight.
 
jetwet1
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Re: Changing reward programs affecting your airline choices?

Wed Jul 26, 2017 1:08 am

LAXintl wrote:
I applaud the changes and find the programs much more rewarding now.

Just like hotels, super market, gas stations, and other retailers do already, the most befitting and proportionate method is to reward points based on spending.

Certainly, someone that spends $1,000 on the flight deserves more rewards than someone that pays $100 on the same flight.


No real argument there, the problem isn't (at least for me) on rewards, it's on the redemption side, with the two Uk airlines I used to fly BA/VS, their fuel surcharge has gotten ridiculous, with DL they just keep devaluing and UA, well until they actually improve their J cabin there is no point redeeming miles, that may change.
 
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aerolimani
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Re: Changing reward programs affecting your airline choices?

Wed Jul 26, 2017 1:59 am

LAXintl wrote:
I applaud the changes and find the programs much more rewarding now.

Just like hotels, super market, gas stations, and other retailers do already, the most befitting and proportionate method is to reward points based on spending.

Certainly, someone that spends $1,000 on the flight deserves more rewards than someone that pays $100 on the same flight.

I'm actually not complaining about the fact they've changed the manner in which you earn miles. That doesn't really bother me, since most programs have many other ways to earn, besides actually flying. I just find that the programs don't encourage any loyalty from me. Especially, the crappy redemption end of things is NOT helping.

I guess if I were to phrase my question again, I would ask if the changes to the programs are affecting your loyalty.

Personally, I'm considering abandoning all the airline-run points systems, and instead going with a credit card that provides cashback or its own rewards system. The biggest factor actually affecting me is the lack of redemption options. In Canada, neither either Air Miles, Aeroplan, nor Westjet dollars offer any possibility of upgrade certificates until you are a top-tier member. So, my travel-related redemptions (best value for the points/miles) are limited to flights, for which there seems to be decreasing availability.

Just for the record, yes, I realize I'm not a high-value customer, and the airlines aren't going to work all that hard to earn my loyalty through points/miles. I'm going to make my choice based on price, quality of service, and what intrigues me from an aviation fan perspective.
 
VapourTrails
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Re: Changing reward programs affecting your airline choices?

Wed Jul 26, 2017 3:50 am

aerolimani wrote:
It used to be that reward programs were based on distance traveled. The trend is shifting, instead, towards a model that rewards how much the customer spends. As someone who appreciates aviation, I find myself feeling more free up to fly with whoever I feel like! While budget is my first consideration, I also consider comfort to be important. Plus, the geeky side of me enjoys experiencing new airlines and different equipment. So, while I will miss the fun of collecting, and occasionally planning trips just to earn bonus miles, overall I'm actually feeling happier to be free of the airline/alliance-specific points programs. What are your feelings?


I agree. I'm with QF and VA, I've used my points with QF for upgrades and Qantas Club Lounge access. It is incidental that I build and use points. For the most part I don't base my decision on loyalty programs, it is fare price firstly, then route and times and frequency on that route.

I want to fly TT next year and if that means not flying with the loyalty airlines it doesn't matter to me.

I am only with the VA one because it was free to join and you can earn points putting petrol in your car, which is something that I need to do so I might as well earn them that way, and use them someday when I fly VA again.
 
Chemist
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Re: Changing reward programs affecting your airline choices?

Wed Jul 26, 2017 11:57 pm

I used to have AA as my most major airline and through travel and card amassed over a million miles. But as AA and others have devalued their points, I realized that the only real value is cold hard cash. So I've switched to a cashback credit card and while I'm lifetime gold on AA, I will still choose any airline based upon price or if I'm lucky get an FF award with the miles I do have on a variety of airlines. Otherwise I pocket the cash and spend it any way I want.
 
Yflyer
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Re: Changing reward programs affecting your airline choices?

Thu Jul 27, 2017 12:51 am

I never really selected airlines based on mileage programs. I don't really fly enough to gain status on any airline anyway, so I usually just pick the airline that offers the best combination of price and schedule. I do have a membership in one frequent flyer program from each of the three alliances, so I'll just earn miles in whichever program the airline I'm flying partners with if I'm not a member that airline's actual FF program. It takes a while, but eventually I get enough for a free domestic flight.

One factor that may affect my choice of airline is the weakening of partnerships between airlines, as being able to earn miles in a partner airlines program does sometimes serve as a tie breaker if all other factors are equal. For example, in the past I have chosen Alaska over Southwest because their fares and schedules were similar, but Alaska allowed me to earn miles in my Northwest Worldperks account at the time. If I was in the same situation today, I'd have less incentive to select AS as I can no longer earn miles on Delta when I fly them, and now I can only get miles on AA if I book it as a code share. It wouldn't be worth it to me to sign up for either AS or WN's since I won't likely fly on them enough to earn any reward and I'd rather consolidate my miles in just a few programs. So since Delta now flies the route as well I might end up picking them if I have to go to Seattle unless one of the other airlines is significantly cheaper.
 
UALFAson
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Re: Changing reward programs affecting your airline choices?

Thu Jul 27, 2017 3:43 pm

Always flying one particular airline simply to earn frequent flyer miles in the hopes of redeeming for a free ticket was probably never a great strategy to begin with, especially if one was paying more to do so.

To be sure, I always recommend friends sign up for as many frequent flyer programs as possible, because they're free to join, and as long as you have some activity at least every 18 months or so (depending on airline), your miles will never expire. It may take several years to earn a free ticket, depending on how much or how little you fly, but you can eventually get there.

The real benefit in continuing to fly one airline is to achieve elite status. Even at the lowest level (which is usually 25,000 miles), this status comes with priority check in, priority security (if you don't already have TSA Pre-Check), priority boarding (to get first dibs on overhead bin space), access to priority seating, and sometimes priority baggage handling. There is a huge value to me in that combination of services and, when I lived in L.A., I would occasionally pay nominally more to always fly UA just so I could squeak Silver status out by barely flying 25,000 miles/year.

Especially with the redemption valuations and the numerous ways to earn "miles" (i.e. points) now--I earn waaay more miles with my AA Advantage credit card than I do flying, even traveling every couple of weeks--there's little reason to continually pay more to always fly one carrier if all you're doing is trying to bank miles/points for a "free" ticket.
 
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fbgdavidson
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Re: Changing reward programs affecting your airline choices?

Thu Jul 27, 2017 6:56 pm

Frequent flyer status definitely sways my purchases more than earning miles. As a top tier BA flyer with regular US domestic travel AA is my normal go to. Having a decent check-in area to use and lounge to wait in makes a big difference for me. Luckily my company pay for me to fly F and can normally justify J/F on my dime too but even so the status still makes quite a bit difference

As I flew enough to earn BA Gold twice over last year I could afford to whore myself out a bit even though BA Lifetime Gold is on my radar. My AMEX card comes with Priority Pass, use of DL lounges and Amex's own lounges too so I have done Jetblue flights on Mint (my preferred premium transcon product) and also some shorter Jetblue flights where the schedule worked better than AA's options.

I used to hold both Star Alliance Gold and oneworld Emerald together and that did give me more options to play with, now I'm NY based and close to JFK AA does a decent job for my domestic needs with BA for my Europe trips.

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