Mileage devaluation letter offends frequent fliers
How did American Airlines spin its decision to start charging more miles and “co-payments” for certain upgrades? Not very well, based on the reaction to an email sent to its best customers yesterday.
In fact, this might make a business school case study on how not to talk to your customers.
Let’s go straight to the letter:
Did you realize that your AAdvantage(R) miles could move you into Business or First class on your next trip on American Airlines*?
That’s right - AAdvantage members traveling on most purchased fare tickets have the ability to use miles or miles plus a co-payment to upgrade to the next cabin of service.
Since this letter was sent to American’s frequent fliers, the answer is: of course I knew! But wait, what’s this business about a co-payment?
You can request a mileage award upgrade when you purchase your ticket or alternatively, at anytime up until 2 hours prior to departure. If an upgrade is not available when you request it, we will add you to our upgrade waitlist and you will be automatically confirmed when an upgrade award becomes available**.
This is news to most frequent fliers, even though American announced it a few months ago.
Members purchasing full Economy fares (booked in Y or B) may use as little as 5,000 miles each way to upgrade on domestic itineraries and as little as 8,000 miles each way to upgrade on international itineraries.
Clearly, American is hoping you haven’t paid close attention to what its redemption levels used to be and, of course, that most of its awards used to be “free.” This announcement reads like the airline wants to share an exciting new opportunity with its best customers.
Hang on.
Effective October 1, 2008, Upgrade awards from most Discount Economy fares will change as follows:
Upgrade within the continental U.S. and Canada, within and between the continental U.S. / Canada / Mexico / The Caribbean or between North America and Central America will require 15,000 miles plus a $50 co-payment.
Upgrade between North America and Europe, Japan, China, Argentina, Bolivia, Brazil, Chile or Uruguay will require 25,000 plus a $350 co-payment
Upgrade between North America and India will require 40,000 miles plus a $350 co-payment
Let’s be clear about this. You now have to pay American Airlines real money to use its “rewards.” They shouldn’t be allowed to call that a reward.
The current award structure will apply to members who request upgrade awards prior to October 1. For complete information regarding award changes, visit www.aacom/awardchanges.
Make the most of your AAdvantage miles and treat yourself to an upgrade on your next trip. We hope to see you on board soon!
They’re wrong about that. I received several angry letters from American fliers who received this email. I knew I had to write something about this when my brother announced he was switching his loyalty to another carrier as a result of these changes — and specifically, the way in which these changes were presented to him.
American should have been honest with its best customers. It needs the money and that’s why it’s charging them for something that used to be free.
By spinning this with a cleverly-written letter, it has offended its frequent fliers.
You may also be interested in these articles
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- Nervous Northwest frequent fliers get new assurances from Delta — sorta
- How to “upgrade” the value of your frequent flier miles
- Who says airlines don’t listen? United makes big change to Mileage Plus
Comments
9 Responses to “Mileage devaluation letter offends frequent fliers”
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I had the same reaction, and these charges aren’t trivial. On top of it all, they are ONE-WAY. So upgrading a ticket to Europe will now cost 700.00 - on top of the miles…and of course, on top of the fuel surcharge. For example, a roundtrip discount 42 day advance ticket business class ticket JFK to London is only 1976.00 (albeit plus the same fuel surcharge.)
Cashing in 50,000 miles, plus buying a ticket for say about 600.00, plus the 700.00 co-payment…. Wow, American is really being generous here, aren’t they?.
(Not to mention, book a cheap ticket, accrue actual flight miles, book a discounted business class ticket, receive a 25 percent mileage bonus. )
The copayment has been around for YEARS. We paid it in 2004 when we traveled to Italy on AA. So it is no news.
What IS new are the amounts. The fee used to $250 each way. Now it is $350 to Europe. $700 a roundtrip. $2800 for a family of 4.
Yes, it is generally easier, with fewer restrictions, to simply buy an advance purchase business class ticket. Plus, if there are any ’schedule irregularities’ you are ahead of every single coach and free ticket passenger on that flight getting accommodated.
WE have CANCELED ALL of our airline affinity credit card arrangements and have gone to 1% cash back - its REAL money and offsets payments and we do not have the play the silly airline frequent flier game chasing points that in 2 years will be devalued to 20% of what the airline promised when we got them.
The best way to go is to get the premium award tickets if you can a) afford the miles and b) get the tickets. I’m an Exec Platinum on AA, and I can hardly get premium award tickets, even 6+ months out.
It’s sad watching my stack of miles devalue more quickly than my 401k.
Time to switch over to Hotel or Cashback CC.
Also time to seriously consider spent down/donate miles in ALL airline programs.
I began questioning AA management’s grasp on reality when they tried to pass off a box of raisins as an acceptable “fruit” on a fruit and cheese tray that was offered for sale at $4. After reading AA’s latest love note to its frequent fliers, well, let’s just say I don’t any more questions.
AA used to make an effort to satisfy their frequent flyers, whereas DL for the past 5 or so years seemed to be intent on irratating their frequent flyers.
Recently, DL seems to have switched back to improving bennies for Skymails Elite flyers, whereas AA is clearly going the other way.
Did the genius who was running Skymiles (into the ground) get a new job running AAdvantage?
These days, all the airlines have made it harder and more costly to use frequent flyer miles. Based on my recent expereince, the “saver” tickets are essentially unavailable. These moves by all the airlines that I fly has decreased the value of miles, at least for me. Consequently, it is the elite level bennies that matter more than ever in selecting an airline.
Whatever airline wants my 150k+ per year business needs to understand that I make my selection based on what their elite programs offer me. I have many choices flying between the US and East Asia.
AA, and thus Oneworld, have basically slammed the door in my face with these actions.
I was already frustrated at the cost, in cash each way, to “upgrade” with lots and lots of miles for US - Europe flights. Now I’ve had it. Have been loyal to AA since it bought TWA years ago, and loyal to TWA for a decade before that. But now, what is the point?!
My question, Chris, is what we do with the upgrade we have already purchased. I used 30K miles to get these a few months ago. Any ideas?
Thanks…
If you have already purchased an upgraded ticket, you won’t have to pay the higher copays. These new copays are outrageous.
Isn’t this the same difference as United Airlines, who charges a much higher fee for a fare to be “upgradeable” in the first place? I paid $3000 for an upgradeable economy ticket to Beijing from Washington and used miles to upgrade to business class. The same flight was available to me for $1300 at an unupgradeable fare in economy class. In essence, that is a co-pay of $1700 plus miles to upgrade. By the way, purchasing the upgradeable fare does not guarantee that there will be an upgrade available and you can’t get your money back if you find out that one or all of your legs will not be upgraded.