In October, United announced that they were moving to an “unlimited” upgrade system from their electronic certificate system. But as readers chimed in, one of the biggest complaints came from top-tier 1K members. The quarterly allotment of confirmed upgrades within North America was going away, and with that, a big perk of upgrade security.

United must have gotten a lot of complaints, as they’re reinstating the so-called “regional” upgrades:

1K® members will continue to earn Regional Upgrades
Sometimes no change is good news. After our last announcement, we heard from our 1K members how much they value their Regional Upgrades. To thank them for their ongoing loyalty, we’ve decided to continue issuing Regional Upgrades to 1Ks, even after the Unlimited Domestic Upgrades program launches.

That gives top-tier elites the best of both worlds: A reserved upgrade if booked in advance (and if United releases seats for upgrade early…) and the top of the free-upgrade list if they’re sweating it out at the gate.

And entry-level elites don’t really lose anything here. The 1Ks would be ahead of them in line, anyway.

—

Separately, United and Continental announced that reciprocal “unlimited” upgrade privileges will roll out in mid-2010. No word yet on what the hierarchy will be; I assume that, in a tie, UA 1Ks will still outrank CO platinums…

And on the semi-upgrade front: Continental elites will also have free access to the Economy Plus section on United flights — a privilege which United hasn’t been extending to other Star Alliance partner travelers.

In the comments thread of a previous post, Steve Kalman offered this anecdote:

I flew first class to Oslo on [Continental] a few months ago using miles (from Amex). Chief attendant (purser?) came around to all in 1st and asked if anyone had gold or better on another airline. My seatmate had SAS, so he filled out a form and got instant Gold on CO. Seems like a smart move.

Wow, that’s hustle.

Typically, requests for a status match — in which one airline attempts to poach the business of another airline by granting elite status to another airline’s upper-tier frequent flier program member — require the traveler to send in documentation proving their status on another airline. Perhaps the seatmate in this story had his SAS card handy and could be instantly verified by the purser.

Either way, that’s pretty proactive on Continental’s part. I’m curious to hear if any other travelers have witnessed a similar in-flight status matching on any airlines.

It’s commonplace to read that airlines will bend over backward for their most loyal customers. There was in fact an article in the NYT this week arguing just that point. But if you waver in your loyalty in any way, or for any reason, you’ll likely see that bending-over-backward ending really quickly. Timely, then, that reader J.R. writes in with a tale of frustration with the policies and practices of frequent flier program elite membership. He wrote to US Airways:

I have been Chairman’s [Preferred, the top tier of elite status on US Airways] for many years. My wife is expecting our first during the fourth quarter and this will stop my travel for a period of about 3-4 months. I am hoping to retain Chairman’s status but am afraid that with the lack of 4th quarter travel, I will come short. Is
it possible to have this waived to continue my status which I have held for many years due to this circumstance? Thank you for the consideration.

Here is the airline’s response:

Mr. ******,
Thank you for contacting US Airways.
We can certainly understand your desire to maintain your status at this level. We do not make exceptions to Preferred levels in fairness to
those who have worked hard to reach the requirements. We encourage you to do all possible to meet the Preferred criteria before the end of the qualification year on December 31st.
We do allow former Chairman’s Preferred members to cover the difference in their Preferred mileage and segments with a purchase option, however, since you are already a Chairman’s Member, you would have to wait until your current Chairman’s membership expires and at that point we would be able to advise the fee to retain your status.
Thank you for your continued patronage of US Airways.
Molly H.
Club Services

By the book, the airline is absolutely right. He’s not meeting the required mileage cutoff for Chairman’s membership. So he doesn’t get it.

Looking forward, though, they’ve shot themselves in the foot with this customer, a top-tier, 100,000-miles-per-year elite flier for 8 years. As J.R. writes, the lack of flexibility feels like betrayal:

Never felt that I got kicked so hard in the teeth after all the revenue I gave them for so long. If they had someone with an MBA or basic business sense enough to do a forward looking cost-benefit analysis, they would likely see things differently. As it turns out, I will be looking for another airline.

So what’s an airline to do? Bend the rules for big money fliers and keep to-the-book to the run-of-the-mill traveler? Doesn’t seem fair to the lower-tier traveler.

The real solution is to keep some flexibility in an elite scheme. One way to ensure that, in my opinion, is multi-year membership. Lufthansa does this: Top-tier “HON Circle” membership in their Miles & More program is measured based on 600,000 miles (!) earned over two years. Low earnings in one year can be made up in the second.

Alternatively, much like “rollover minutes” on wireless plans, airlines could allow miles over a tier cutoff to go toward the next year. (Delta recently introduced this.) It may mean more top-tier elites than now, which could mean a battle for upgrades. But recognizing longevity of loyalty, and not just short-term loyalty, could still pay off for the airline.

But what do you think? Does J.R. deserve some flexibility after eight years of loyalty? Is US Airways being stupid, or fair, in denying his request? What’s the best way to keep rewarding long-term loyalty without harming your business?

Take the poll, and hit the comments.

 Loading ...

(Reading this via a feed reader or otherwise can’t vote in the poll? Click here to visit the site to vote and leave comments.)

Northwest and Delta clearly really want to keep travelers loyal to their brands. Both airlines have been sending their elite-level frequent flier program members e-mails announcing a “gift” of elite-qualifying miles (EQMs, or, in the case of Delta, MQMs for “Medallion Qualifying Miles”), making it easier to requalify for status next year. Which, in turn, increases the likelihood that those travelers will stay with the brand.

With few exceptions, EQMs are earned primarily by flying, unlike the redeemable miles that can also be earned through credit card spending, rental cars, etc. So EQMs are a greater measure of loyalty to an airline (and its alliance partners) than redeemables.

The size of the EQM gift ranges from 5000 EQMs (20% of the way to entry-level status) all the way to 15,000, but according to reports on Flyertalk threads (here for Delta, here for Northwest), there’s no obvious rhyme or reason. A traveler with 140K miles under his belt for the year got a 5000 mile bonus (which doesnt’ really change anything) while a traveler with far fewer miles got more. I don’t get it.

Reader Cindy forwarded me a message she received from Northwest, quoted below:

A jump start can be the perfect beginning.

That’s why we’re excited to provide you with 10,000 complimentary Elite Qualifying Miles (EQMs) – which have already been deposited into your WorldPerks account – to help you requalify for Elite status in 2010.

We understand your ability to travel is more restricted this year, due to the economy and other factors, but we hope you’ll continue to fly with us and enjoy your elite status benefits while continuing to add even more Elite Qualification Miles to your balance. Take advantage of our vast new network, serving almost 400 destinations in more than 65 countries on six continents, including new routes to Johannesburg, Sydney, Saigon and beyond. Book a flight today.

You’re the reason we fly,

Jeff Robertson
Vice President – Loyalty Programs

This is bound to please many people who might have lost their status (and the commensurate perks) next year. On the flip side, it’s bound to annoy people who get fewer EQMs than they think they deserve, relative to others. It can equally annoy customers who earned their status through actual flying, instead of bonuses. But hey, it’s a business decision on the part of the airlines, and they think they’ll be able to keep more business this way.

Will other airlines follow suit?…

It came as a surprise to me when I saw the sign pictured above in the parking lot of a Country Inn & Suites in Asheville, North Carolina this weekend.

I admit that I’ve never become intimately familiar with the Goldpoints frequent guest program from the Carlson family of hotels (Radisson, Country Inn & Suites, etc.), largely because I’ve never been a fan of their properties and rarely stay there. (Needless to say, I wasn’t pulling in to that spot…) There is also no reference to a parking benefit on the Goldpoints website, so I don’t know if this is a property-specific offer or a policy across the chain.

The spot itself was located next to the handicapped spaces, near the front of the lot. It’s not like it was a covered space with complimentary car wash and detailing. Frankly, it’s not a big deal.

And yes, “it,” not “they.” Singular. There was only one space labeled for elite members, so either the hotel doesn’t get much business from frequent guests, or the signage was purely symbolic.

So what say you? Nice perk, or superfluous? Obnoxious, or a nice recognition of repeat business? Hit the comments…

Upgraded: Hassles for the obese Canadian traveler
Canada’s Supreme Court ruled recently that obese passengers could not be forced to buy a second seat. The court reaffirmed the Department of Transport’s “one person, one seat” directive. Air Canada and WestJet, Canada’s top airlines, in turn decided that passengers would need a doctor’s note declaring the passenger “disabled as a result of their obesity,” and not simply too large to feel comfortable in an airline seat, if they wanted the exemption from paying a second fare. Now Canadian doctors are complaining that the airlines are overburdening the medical system with the requirement for notes. I smell a lawsuit brewing.

Downgraded: Parking lot firepower
Not so smart: Driving to LAX with a trunk full of guns and ammunition. 16 firearms, 1000 rounds. Including one assault rifle. To the driver’s credit, the weapons were locked in separate containers from the ammunition, and he claims he was licensed for everything, but what kind of genius brings that kind of firepower to the airport?

Upgraded: Florida deals for DC residents who dislike inaugurations
Barack Obama is being sworn in as president on Tuesday, January 20, and Washington, DC will be mayhemic. Plus, hotels in the area are gouging their customers booked with record rates. (2-star hotels fifty miles away from the district for $550/night? Get real.) But rooms are marked down in Amelia Island, Florida, where hotels are trying to attract residents of the DC area who either want to avoid the congestion — or who just don’t like the new president.

Downgraded: United elite status duration
United has shaved a month off the validity of their frequent flyer elite status. Reader Craig writes in:

I opened up my new [United Airlines Mileage Plus] premier exec card yesterday and noticed that instead of expiring at the end of February 2010, it expires at the end of January. Also looking at the brochure that accompanies the card they have eliminated the Elite Choice reward at 40k miles. These are minor things, but still.

Indeed. Status used to last 14 months — January 1 through the next year’s February. Now, it’s 13 months. Lucky, lucky 13.

United Airlines, intent on proving that anything — anything — is for sale, is starting to sell a package of elite-esque services for $25 a pop.

“Premier Line” is the latest in the “Travel Options by United” series of a la carte services available for purchase. Premier Line, starting at $25 per passenger each way, will let passengers:

• check in at the (generally shorter) business class line;
• use the (generally shorter) elite/first class security line;
• board in Seating Area 1, earlier than non-elite coach passengers.

Notably not included: Economy Plus seating.

Once again, United proves that it is willing to sell its lower-level elites down the river. Fly 25,000 miles, and you’ll still have to compete with those willing to pay a handful of bucks. Awesome.

There’s nothing that was once only available through loyalty which can’t be bought for one-shot cash payments. Nothing. They’ll sell you Economy Plus. They’ll sell you early boarding. They’ll sell you bonus miles. It’s all for sale.

On the flip side, United is offering infrequent travelers the opportunity to pay a little extra to get a little more service. Is it worth $25?

So, is this a slap in the face of lower-tier elite members, or a brilliant business decision? Hit the comments. Weigh in.

(image)

For some time, traditional airlines have given the customers who provide them the most revenue a perk: early boarding. United, for example, started off putting its elite members into the first seating area. But at hub airports, there have been instances where nearly every person on board holds elite status. (I once flew from Chicago to DC and the gate agent announced that all but three passengers were in seating area 1… so they boarded old-school, by row.)

Boarding early has one single perk, increasingly important in an era of checked-luggage fees: Early access to the bins. If not for the bins, there would frankly be no reason to board early. You’ll be sitting in an aluminum tube for hours as it is, so why extend the torture? But the bins… the bins! We must win the battle of the bins!

So United is tinkering with its boarding order, beginning tomorrow, November 12, 2008. Via e-mail to customers:

Beginning November 12, our Premier Executive members and Star Alliance Gold guests will board before Seating Area 1 customers through the Economy Lane.

The new boarding order will be as follows: Global Services, 1K and customers sitting in United First will continue to board first through the Red Carpet Lane, followed by our United Business customers.

Our Premier Executive and Star Alliance Gold members will then be invited to board. After all of our most-valued guests are on board and getting settled, the regular boarding process of seating areas 1 through 4 will begin.

We strive to consistently reward you, our premium customers, for your loyalty. We hope that as a Premier Executive and Star Alliance Gold customer, you enjoy this added benefit.

Time for United to switch to letter-coded boarding groups… Obviously they decided they couldn’t downgrade those in group 1 to a different digit, but they now effectively have a group 0 and a group -1. Let’s switch to A through F, then.

In the meantime, the move isn’t garnering universal praise. The sticking point: the phrase “most-valued” in the e-mail above. Por ejemplo, Charles Cooper argues:

By favoring some customers more than others—I am not talking about nice club amenities but rather obvious distinctions being made at the gate—all you really accomplish is the raising up of a few in full view of the rest, and the rest is not going to be happy about it. If United’s goal is to keep their various levels of business and high-end travelers at the expense of their coach trade, then they are doing a great job. There are plenty of other airlines to choose from, enough so that flying United is quite optional.

Perhaps United is being particularly crass with their elitism — and the language they use to describe it — but name one airline in the United States that’s genuinely egalitarian. JetBlue gives their better customers better seats. Ditto Southwest. Seriously: Is any airline not rewarding their best customers?

The problem isn’t rewarding the rainmakers. But it could become problematic if non-elite customers feel slighted.

So has United gone too far in their multi-class system at the gate? Too far in their verbiage, as Cooper suggests? Or will anyone really care? Or even notice? Hit the comments!

Related:
- Faster boarding with an astrophysicist’s touch
- Magic carpet? United adds separate elite boarding area at gates
- Southwest guarantees A-group boarding passes to expensive tickets and elites

(image)