The Extra Mile

Some Airlines Offer Shorter Path to Elite Perks

Q&A: No BA Elite Credit for Discount Fares?

December 29, 2003 - Before the new year begins, and the clock is reset for earning elite status, many travelers who covet the extra perks reserved for the most frequent of frequent flyers are reconsidering their choice of mileage programs.

Historically, the elite requirements and rewards of the largest frequent flyer programs have been largely interchangeable. To gain elite status, travelers had to fly at least 25,000 miles during the calendar year, in return for which they were rewarded with a standardized package of perks including upgrades.

But the rules have changed, resulting in one area of significant disparity among programs. As a result, those traveling often on restricted fares -- a growing segment of the business travel market -- will find their chances of attaining elite perks materially impeded at two major programs.

Until recently, 100% of the miles earned for coach-class travel counted toward earning elite status, and extra elite-qualifying miles were awarded for business and first class.

Now, in Delta's program, only 50% of the flown miles earned for discounted coach fares count toward elite status. Continental has matched Delta's policy, although discounted fares purchased directly on the airline's website continue earning full elite credit through 2004.

Delta and Continental clearly expected that other airlines would eventually match their new earning scheme. That hasn't happened, and doesn't seem likely to. Which leaves some budget-minded frequent travelers wondering why they shouldn't switch their allegiance to a program which awards full credit for discounted fares.

It's a good question.

Current News & Offers

In unusually high-profile marketing initiatives, Atlanta-based AirTran and Denver-based Frontier are offering to award elite status in their loyalty programs to travelers who have achieved elite membership in other airlines' programs.

In both cases, would-be elites must provide proof of their elite status by faxing a current account statement from another program in which they enjoy elevated status.

The AirTran offer ends Dec. 31; Frontier hasn't announced a deadline.

Such "elite matching" has always gone on behind the scenes. But airlines have typically stopped short of such overt poaching of their competitors' best customers.

While consumers tend to welcome easy access to elite, there's a potential downside: If the airlines allow the ranks of their elite members to swell, there will be more demand for upgrades, which are already in short supply.

In a move likely to be copied by other major hotel chains, Starwood will withhold room upgrades and other benefits normally accorded elite members of its Preferred Guest program when bookings are made through "pre-paid channels" (i.e., Expedia, Hotels.com, Hotwire, Orbitz, Priceline, Travelocity, Travelweb, etc.).

The new policy, which takes effect Jan. 1, 2004, is part of the ongoing trend among hoteliers and airlines to drive sales through preferred distribution channels, principally their own websites, which yield higher profit margins for the suppliers.

Readers: Miles on their Minds

Question from Barbara

Can you enlighten me with regard to the situation on accumulating mileage towards premium (elite) status (rather than free trips)? I took two cross Atlantic trips on British Air and didn't get any mileage accumulation for them because, they told me, my ticket was not a full fare ticket. They assured me that other airlines were going to follow suit. Have they?

Answer

British Airways' program has two currencies, BA Miles (which may be redeemed for free awards) and Tier Points (which count toward earning elite status). For coach travel, BA awards 100% of actual flown miles for unrestricted tickets and 25% for cheaper restricted tickets. But they award no Tier Points whatsoever for travel on restricted tickets.

While two U.S. airlines have indeed reduced elite-qualifying miles awarded for discounted tickets (see above), other airlines have declined to adopt a similar policy. So it was speculative and misleading for BA to have suggested that their policy would be adopted industry-wide.

If you had flown on an American carrier, your miles would have counted -- wholly or partly, depending on the airline -- toward elite status.