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.

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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.

US Airways is rebranding their Dividend Miles program as “GoAwards” and making the miles worth less. What a shock.

This should come as no surprise, given that US Airways’ Dividend Miles program had a more generous redemption structure than Star Alliance partner United. The US Airways release says nothing about partner awards — we await the next shoe to drop — but you should expect a similar scale. (For the time being, newbie alliance member Continental is the go-to carrier for cashing in alliance awards now.)

The biggest change is the introduction of two additional tiers of awards. Instead of the old “saver” and “standard” awards, the new program introduces “Off-peak,” “Low, “Medium,” and “High.” Delta added a third tier to their program recently; US Airways now has four. Whoo. As the names imply, the cost will vary according to the desirability of those dates.

As per the FAQs, the discounted “off peak” seats are available in a small window: “Off-peak awards are available from North America to Central America, Mexico and the Caribbean September 1 – 30; to South America May 1- 31 and October 1 – 31; and to Europe January 15 – February 28.”

So, while a saver business class award from the US to Europe now costs 80,000, it will soon cost either 60,000, 100,000, 200,000, or a whopping 350,000 miles, depending on the dates. And those 60,000 mile off-peak seats are only available for six weeks in winter. OUCH. And what are the odds that the 100,000 seats aren’t much more readily available?

The new program into effect January 6, 2010. Check the old award chart. Then compare to the new award chart. See where you stand. And if you can, book now.

Especially if you’re taking advantage of the great deal on purchased miles I posted about last week, as reader Chris notes in the comments.

Also, Preferred members of the program will not be exempted from blackout dates, of which there are several, though, oddly, they are different from the current program’s blackout dates.

This is a disappoint. Not a surprise, given United and Delta’s recent devaluations, but a disappointment nonetheless.

Upgraded: Your ability to earn lots of British Airways miles
Chase and British Airways have launched a pretty amazing airline mileage-earning credit card offer. 50,000 BA miles after one purchase, then 50,000 more after spending $2000 within three months. Gary Leff has thought this through and come up with a scheme for 420,000 miles between two people. That’s a lot of free tickets for a $75 annual fee.

Downgraded: Track suits
A Best Buy executive says that United refused him an upgrade because he was wearing a track suit. “United says there is no passenger dress code, but they cited two rules. Ticketed passengers can not be barefoot and must be clothed.” Standards!

Upgraded: Fees for Expedia phone bookings
Expedia announced that it was dropping the booking fees it charged for booking any flight, car rental, hotel or cruise on the phone. As online agencies compete to attract customers, this is the latest fee to drop. Yay, lower fees! Priceline immediately tweeted that they had never had phone booking fees. Nyahh.

Upgraded: Responsibility for rental car reservations
Avis Budget Group has worked with global booking systems to prepare their networks for an eventual introduction of no-show fees for car rental bookings. Frankly, I’m amazed that this is a fee that hasn’t been enforced more widely already.

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Periodically, US Airways runs a sale on buying their frequent flyer miles. Usually, buying miles is no bargain. But when they offer you double the miles for the same price…

Over at View from the Wing, the bottom line is clear:

With this offer you can buy 40,000 miles for $1030, get 80,000 miles in return, and fly business class from the US to Europe. Or if you and a friend each have 40,000 miles, you transfer to each other for $430 apiece, and you now both have 80,000 miles — enough for a business class Star Alliance partner award to Europe.

And don’t forget that US Airways doesn’t block Star Alliance partner flights like United does. This is a great deal, and a great way to book a complex ticket in business class at a low price.

Downgraded: TSA
Upgraded: Airports with independence
Near Glacier National Park, in Kalispell, Montana, Glacier Park International Airport is hoping to boot the TSA off its property and replace the government security agency with private contractors. What?? I had no idea this was possible, but sure enough: Under the Screening Partnership Program, an airport can apply to reprivatize security, generally if TSA isn’t meeting the airport’s needs. The issue for Glacier was staffing: The TSA calculated staffing levels based on October traffic levels — when August is the peak travel time for the area. About 15 airports, including several in Montana, have opted out of the TSA’s domain.

Upgraded: Efforts to keep convention business. ANY convention business
Hotels need business. So, is there any problem with hosting a convention of swingers as a Holiday Inn in upstate New York did? The annual spouse-swapping event, “Entice the Falls” (link not entirely safe for work), featured some exciting events like “Flogging 101″ and a (canceled) body painting party. But how many bonus points do you earn for a weekend of debauchery?

Downgraded: Chrysler at the rental counter
The Dollar Thrifty Automotive Group is slashing its purchases of Chrysler vehicles. Their fleet is currently 76% Chrysler, but Ford will nearly tie Chrysler for new purchases (34 and 30%, respectively).

Upgraded: Luxury in Mecca
Downgraded: Raffles Hotels’ management’s common sense
Islamic pilgrims to Mecca who aren’t feeling particularly pious, but who are looking to live large, may be pleased to hear that Singapore’s Raffles Hotels are planning an enormous luxury hotel that will cast a shadow on the Muslim world’s holiest site. But what on earth is the hotel chain thinking? I’m sure some will find the uber-luxurious hotel an affront to the religious meaning of the site; are they painting a giant target on all the hotels in the Raffles brand?

Upgraded: Recliners!
The dip in travel has been a boon for furniture makers. What? Yes, according to the industry, sales of reclining chairs are up, as Americans travel less, stay home more, and look for greater comfort in their living room.

Upgraded: Spotlights on mileage running
I’ve been known to go on a mileage run or two (though not for a few years now) in order to bump up my elite-qualifying miles to the next tier, but I’m nowhere near the big leagues that these guys play in. Check out this 20-minute documentary on mileage runners, and the OCD spirit that drives them to collect miles and points with a singleminded focus:

United has rolled out an enhancement to their Mileage Plus frequent flier program: You’ll now be able to book hotels, rental cars, or packaged hotel/car combos using your mileage balance.

United has tested this sort of thing in the past, but only for their elite-level Mileage Plus members. The new program allows all members to redeem miles this way.

On the surface, this is a good thing, which is how the majority of the media are bound to spin it. More redemption opportunities are a good thing, clearly. The selection of hotels and car companies isn’t seemingly limited by proprietary side-deals and exclusivity arrangements. And there aren’t blackouts, which is nice. But simply having another place to spend your miles isn’t a huge improvement if the cents-per-mile value proposition stinks.

And yes, the value proposition stinks.

The FAQ’s don’t list the conversion rates up front, but open up a few new browser windows, run a few parallel hotel and car searches, run the math, and we’ve got our answer: about 0.75 cents per mile.

The 0.75 cents per mile number assumes that the cash-booking would be done with the supplier directly, with full cancellation possible. Which isn’t fair, since the United bookings aren’t cancellable. Changes incur a $35 fee.

So not only do you have harsher terms, you even get LESS than 0.75 cents per mile if an agency or consolidator offers a lower price for the same dates. In one test, I found night at the Intercontinental Boston in October that goes for 42,725 miles on the United site. The hotel chain’s own site has a rate of $329 a night for a cancellable reservation (0.77 cents/mile). Prepaid costs $297 (0.70 cents/mile).

If you’ve got more miles than you know what to do with, or the last thing you want to do is cash in miles for more travel, then this might be for you. But if your mileage balance is more down-to-earth, you’ll probably want to try spending your miles on travel — particularly long-haul travel in premium cabins — before you empty the piggybank for a rental car.

Related:
- Is Starwood Preferred Guest’s “SPG Flights” a game-changer?
- Cashing in miles, but not on flights
- Reader mail: What kind of point-earning credit card is best?
- Reader mail: Can I cash in miles for magazines?

It had to happen, and I’m surprised it took this long.

A reader forwarded me an email he received from a spammer: The e-mail promised a large sum of frequent flier miles.

In a secured environment, I opened the attachment, which offered low! low! prices on male pharmaceuticals that Bob Dole used to endorse. Lovely.

But appealing to your desire for miles could be a new trend in spam. Unlike the normal phishing scam where someone tries to convince you to give up your e-mail or banking login information, spammers could start using a promise of free miles as a hook to get you to give up your frequent flier account data. Beware!

The forwarded e-mail follows, for your reference:

American Airlines

Hello [******] [*] [*******]

American Airlines has awarded your account 50,000 air travel miles.
To claim the miles, you must open the attached pdf and fill out the
questionnaire.

Many Thanks,
American Airlines
Consumer Rewards Director

Attachment: “Bonus Miles Award.pdf”

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.

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(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.)

Delta announced changes to their SkyMiles frequent flier program yesterday. Changes were bound to happen: With the merger of Northwest and Delta, and the upcoming combination of their mileage programs, that’s a lot of accounts coming in.

I’m late to the discussion, and others have already hit the main points, so I’m just going to give you the short version and recommend others for the detailed breakdown of the pros and cons.

The biggest news is 1) the introduction of a new (fourth) elite tier at 125,000 miles, 2) the ability to roll over qualifying miles from one year to the next, so you get a running start on status the following year, and 3) upgradable award tickets.

For the most part, the changes are good. The fourth elite tier is a bit annoying, in that it creates greater complexity in an already complex system. Rollover miles are nice, but they come at a price: The following year, there will be a LOT of other travelers with a running start; the upgrade competition will be fierce. And upgradable award tickets? Great idea, but let’s see how it’s executed. (I.e., who gets priority for the upgrade, the Diamond-level elite with an award ticket, or the Platinum with a full-fare paid ticket?)

For full reviews, see these other fine blog posts:

On the “pro” side:
- Henry Harteveldt of Forrester Research is downright ga-ga for the changes.
- Brett over at Cranky Flier calls it good news for frequent flier junkies.
- The Delta Blog is positive. I was really expecting some hard-hitting critiques…

On the “con,” or at least skeptical, side:
- Gary Leff calls the changes “unimpressive.”
- One Mile at a Time notes that United and American top-level flyers already have most of the Diamond benefits, at a lower mileage level.

In any case, it’s going to change the calculus for top-tier fliers in the new Delta. Lower-tier elites and general members are frankly going to see little difference.

Update: Seconds after publishing, I see Jared Blank had the same exact idea for handling this topic as I did.