Are frequent-flier programs losing their luster?

[straitman]

Are frequent-flier programs losing their luster? - USATODAY.com

Rich Spear belongs to 13 airline frequent-flier programs, but he's not as big a fan of them as he once was.

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By John W. Adkisson, Getty Images
A customer speaks with the ticket agent at the American Airlines counter at Miami International Airport in March.


It's difficult to redeem miles and understand the "ins and outs" of each program, says the frequent business traveler and technology integration consultant from Cranberry Township, Pa.

"The golden age of frequent-flier programs — when miles were earned by flying and airlines competed for the top customers with promotional offerings and realistic award availability — was the late 1990s and early 2000s," Spear says. "Now, it's just a moneymaker with airlines selling miles to credit card companies, florists and everyone else under the sun, and then limiting when you can use them."

Next month marks the 30th anniversary of American Airlines' introduction of the first frequent-flier program. And despite complaints from Spear and other fliers, the popularity of the programs hasn't waned. They've grown from their original mission of building brand loyalty among fliers to billion-dollar revenue generators that lure non-fliers and are vital to an airline's profitability.

 

[Bundy Bear]

Are frequent-flier programs losing their luster? - USATODAY.com

Rich Spear belongs to 13 airline frequent-flier programs, but he's not as big a fan of them as he once was.

• 

By John W. Adkisson, Getty Images
A customer speaks with the ticket agent at the American Airlines counter at Miami International Airport in March.


It's difficult to redeem miles and understand the "ins and outs" of each program, says the frequent business traveler and technology integration consultant from Cranberry Township, Pa..

Well he is doing it all wrong, being a member of 13 frequent flier programs is his first problem, and obviously he hasn't spent much time reading websites like The Australian Frequent Flyer Online Community - The Australian Frequent Flyer or FlyerTalk - The world's most popular frequent flyer community

 

[Blackadder]

13 FF programs..:shock:
He is either travelling alot to have status with them all, or just a few miles here, a few there etc and given the tone of his article it would be the later IMHO, hence his disappointment with the FF programs.

 

[cove]

Yes 13 programs is over the top so you would get confused as to how each site works.
In Australia there just aren't that many airlines so we are lucky in my opinion.
I am in 3 programmes for flying with one I have never used(VIRGIN).
Essentially I have been using QF and SQ to not get stuck anywhere and that flexibility has really worked a treat.
Having 150k Virgin points sitting is like a get out of jail free card that I have kept.
With 13 programs you certainly would never become a creature of habit.

 

[anat0l]

This article was written in a US context.

The first FFPs started in the USA; they're pretty much leading the charge as far as membership and activity goes (they might not have the best programs or the best airlines, but that's another story).

Have they lacked their lustre compared to years ago? Yeah, maybe they well have. But then again:

• The number of flying public has exploded. The number of seats has not (at the same explosive rate). This leads to repricing of awards to suit the market ("do you really want this seat? It'll cost you"), but on top of that there will be cases where there will be no seats - period. The explosion has an effect on absolute numbers of elites, let alone that non-elites earn and burn points as well as elites.
• The number of methods of accumulating frequent flyer points has increased; well beyond simply flying, you can get them through credit card spend (or simply signing up for credit cards!), or just buy them!
• USA airlines' FFPs have amongst the lowest charges for award flights in the world, both in terms of points required to redeem (even if you compare these on an "even" basis against other FFPs) and ancillary charges (in no short part due to the need not to levy fuel surcharges). Even with some of the upward drift being seen, they are still quite cheap, especially if you live in the USA where you can hold a co-brand credit card = more points! On top of this:
  • Award space is not typically tiered by status. Even a no-status can make a good grab at decent awards. It's generally a case of if the space is there, you can get it. Partner airlines are a key exception, but even sometimes the American ethos of "I know my freedom and don't you try and use your corporate boot to step on me" can sometimes make airlines see things differently, especially if status is used as a bargaining tool.
  • Award routing rules are quite generous, although this is usually beyond the scope of the public and more for the arena of our collegiate and similar who like to maximise premium awards.

For one of the examples, DL 50k for a SLC/HNL return is about the same in the QFF system, although they are not immediately comparable since most award charts in USA airlines are based on geographical zones vs. QF's mileage range zones. For example, although it is many more miles, ATL/HNL return would cost the same mileage. I don't know what the routing rules are, but even JFK/HNL (via ATL) might cost the same if routing allows transit without stopover for free (QF restricts transits before they cost you extra mileage). DL has an interesting tack going since it uses a L/M/H mileage system rather than just QF's/DJ's Classic/Any Seat system (i.e. a base cost, and a "flexible guaranteed" cost). DL was the first program to "enhance" its program, so before the 35k return cost was really a steal and now it's pretty on-par. And, presumably the FF member they found was able to find some sort of award for many days in December? That's rare! And once again, this is on DL, which is now supposedly one of the worst FFPs of the USA airlines (funny enough in its "sidepanel review" it got a B+ whilst US - the Star Alliance's greatest "consolidator" - got a C+!)

If USA programs matched some of the other larger programs around the world, most people in the US would cry very, very foul. Yet it is some of these very generous facets which ultimately will have to give, although the rest of the world is pretty much "used" to such already.

It's like comparing traffic in Brisbane to that of Jakarta. Brisbane is growing and traffic is getting worse, but relative to Jakarta we really don't have anything to complain about until we become as bad as Jakarta.

The article also sidesteps some of the other subtleties of FFPs, which are the elite benefits (such as lounge access, though in the USA complimentary lounge access for elites is rare, and the feature benefit mostly is free upgrades). Now whether these have gotten better or worse is a whole another argument.

 

[kamchatsky]

I think it is not how many programs he has, especially that he has to fly whatever the company assign him to. it is how he should focus earning points to a few "good ones" and ignore the rest (until great offers comes in).

Theoretically I have 14 FFPs registered under my name:

QF, SQ, VS, CX, DJ, BD, EK, AA, UA, DL, US, MH, AF, NZ

However, I really only collect points in the following:

SQ (flights/CCs), DJ (flights/CCs), QF (flights/CCs), VS (Hertz), BD (flights), EK (flights)

And occasionally do some Amex Membership Rewards transfer on the following:

SQ, VS, CX

I pretty much ignored the rest of the FFPs unless my habit of flying change (eg if I fly to USA often again I will revisit AA/UA/DL/US).

I actually found US CCs to be very generous and he should just join the bandwagon and collect points on CC sign ups and do lots of redemptions.

 

[browski]

However, I really only collect points in the following:

SQ (flights/CCs), DJ (flights/CCs), QF (flights/CCs), VS (Hertz), BD (flights), EK (flights)

Just curious why you would collect on BD when they could credit to either SQ or VS. Similarly Hertz could credit to any of SQ, EK or DJ.

 

[medhead]

Just curious why you would collect on BD when they could credit to either SQ or VS.

It's likely I've mistaken what BD is, the FF program for BMI. (?) But I sure I've read in here that it is easier to get *A status with BD.

 

[simongr]

In't it lustre?

I think the multiple programs thing is the main issue this guy has. I experience this with hotels as my company has a preferred hotel list rather than a preferred chain list - all hotels in MEL are rubbish and not part of any real chain

 

[kamchatsky]

Just curious why you would collect on BD when they could credit to either SQ or VS. Similarly Hertz could credit to any of SQ, EK or DJ.

I am already BD (BMI) Gold and their Miles + Cash award for Asia is fantastic value compare to most other FFPs. But I will be scaling back awaiting for decision by LH whether to roll it into Miles and More.

Yes Hertz can be credited to SQ/EK/DJ but VS gives me 1000 points instead of a few 00's like SQ/EK/DJ. Also I go to HKG regularly and VS SYD-HKG award on Y/Y+/J is much cheaper than others, not to mention 1:1 transfer ratio from Amex MRs.

I have quite a few number of points in Amex Membership Rewards and I always transfer points to appropriate airline (SQ/VS/CX) just before I redeem them.

 

[drron]

Another who thinks it is a function of too many programs.Personally I am really happy with Aadvantage even though I dont get to the top tier.Never had an upgrade knocked back.Really good earning and burning rates.Always get the awards I want when i want.

 

[JohnK]

Luster? Is that someone who lusts too much?

I am a member of 7 FF programs (QF, DJ, AA, DL, SQ, VS, BD) and each have their purpose. Sure I can narrow it down but I prefer to spread the earning around.

Just curious why you would collect on BD when they could credit to either SQ or VS. Similarly Hertz could credit to any of SQ, EK or DJ.

Simply because their burn rate is much better and allows cash + pay awards.