Elite Strategies for 2009

January 2009
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Elite-qualifying season for 2008 has officially drawn to a close —where did you end up? If you fell just a few miles short of that next tier (or of retaining your current status), FCF’s heart goes out to you. But don’t give up! In the coming year, your elite status will play a more pivotal role than ever in getting premium seats and saving money while doing it.

To prepare for this year’s elite campaign, let’s look at some developing trends, highlights of the major U.S. carriers’ pro-grams, and strategies to help fortify your qualifying-miles account. Maybe these tips can even help you boost your elite level for 2009 travel.

The State of Elite Status

Though elite-status benefits haven’t really increased in the past year, being exempt from the airlines’ expanding menus of added fees saves you more money than ever before. That might seem like a backhanded reward, but if it keeps some of your cash from finding its way to the airlines’ coffers, grab it.

Many elites have been irked to see their benefits put on the open market, an airline revenue-booster unlikely to go away anytime soon. Pioneered a couple of years ago with US Airways’ GoUpgrades, more goodies are going to those with open wallets. Almost all airlines are selling preferred coach seats, once set aside for elites, to the rank-and-file, and United is now offering its priority boarding as “Premier Line” starting at $25 a head.

The foreseeable results are a depleted inventory of decent coach seats and bogged down priority boarding lines. Elites can take solace in the fact that their advance-confirmation windows still give them a head start on snagging upgrades.

Tracking the Elusive EQM

Unlike award miles, which can be accrued by performing nearly any human function, Elite Qualifying Miles are still earned, primarily, by flying. Many airline-branded credit cards offer EQMs as a sign-up incentive and continue to mete out modest portions as you spend. For more information, check out the links we’ve included in each airline’s spotlight on pages 4 and 5, but be warned: A common trait among these cards is the complexity of their benefit calculations.

A more useful source of extra EQMs is bonus promotions from the mileage programs themselves. At some point in the year, most programs offer a limited-time double or triple mileage match for a price. Fees for similar programs through American, Delta, and United last year ran from $200-$600. Keep an eye on the websites for promotions in 2009.

American offers an intriguing and lucrative EQM-building opportunity known simply as The Challenge. Participants are given 90 days to earn 5,000 miles for Gold-level status, or 10,000 miles for Platinum. Those who reach the goal win that status for the remainder of the year (so start in January). The ante is $80 for Gold, $150 for Platinum. The Challenge isn’t advertised: call an AAdvantage rep to set it up.

US Airways ran a similar clandestine operation last year, dubbed the Trial Preferred program, which issued challenges for all three elite tiers and for jumps between tiers. Fees ran from $200 to $600. Plans to reintroduce the program in 2009 have not yet been announced.

Turning Back the Clock

Sometimes the airlines’ creative pursuit of the greenback produces a genuine benefit for passengers. That’s the case with year-end life preservers offered by American and US Airways. For elites who fall short of their mileage goals, these carriers offer the option of making up the difference with cash. For instance, AAdvantage Platinum members who miss the 50,000-mile mark by 10K or less, can pay $549 to retain their status. US Airways has an elaborate array of choices, including buying your way straight to its top tier for $10,000. Look for more programs like this to crop up through ’09. Links:

American Airlines: http://www.aa.com/aa/pubcontent/en_US/urls/elite.jsp?anchorLocation=DirectURL&title=elite

US Airways: http://www.usairways.com/awa/content/dividendmiles/preferred/buy-up-to-preferred.aspx

No News is Good News

Even though there have been no gains in benefits or service for elites lately, there’s still plenty to strive for at the next level. Here’s a look at the rewards for the middle and upper tiers of the major programs, and some tips on how to move up. Unless otherwise indicated, assume that each program’s base elite tier offers priority boarding, preferred seating, free upgrades with a 24-hour window, and 25% bonus award miles for travel.

AMERICAN AIRLINES

Base tier offers four 500-mile upgrades per 10,000 miles flown.

Platinum: 50,000 EQMs / 60 EQSs

• 72-hour upgrade window • 100% bonus miles • Oneworld Alliance Sapphire status

Platinum Elite: 100,000 EQMs / 100 EQSs

• Eight systemwide upgrades, with no surcharge, can be confirmed when ticketed. • Free upgrades from any fare to North America, the Caribbean, and Central America

• 100-hour upgrade window • Oneworld Emerald status

FCF Notes:

AA’s Platinum Elite perks are the best among the major U.S. carriers. Eight one-way systemwide upgrades trump the six offered by Delta and United. Gold (base) tier’s upgrade plan is slightly below industry standard.

CONTINENTAL AIRLINES

Gold: 50,000 EQMs / 60 EQPs (segments)

• Three-day upgrade window • 100% bonus miles (includes SkyTeam partners) • Companion upgrade (two-hour window).

Platinum: 75,000 EQMs / 100 EQPs (segments)

• Five-day upgrade window • 100% bonus miles

FCF Notes:

Top-tier benefits fall short of some other programs, but it only takes 75,000 miles to get there. Free upgrades are based on elite level, then fare code: a hierarchy that favors elites. Booking through a travel agent reduces EQM yield on discount economy tickets 50%; the same ticket booked online yields full mileage.

Credit Card: Continental Airlines Presidential Plus World MasterCard ($375 annual fee). Link: http://www.firstusa.com/cgi-bin/webcgi/webserve.cgi?partner_dir_name=continental_presidential_bizcard_75sc&page=cont&mkid=6KCW

DELTA AIR LINES

Gold: 50,000 EQMs / 60 EQSs

• Three-day upgrade window • 100% bonus miles (includes SkyTeam partners) • Companion upgrade (12-hour window)

Platinum: 75,000 EQMs / 100 EQSs

• Six systemwide upgrades • Waived fees for reward redemp-tion, reissue, and redeposit

FCF Notes:

Systemwide upgrades for some domestic travel (as well as Canada, Mexico, and the Caribbean) can be used with almost all published fares, and are well-suited to Hawaiian routes. International upgrades require an M fare or better.

Credit Cards: Two Amex cards offer generous EQM bonuses after initial purchase:

American Express Platinum Delta Airlines SkyMiles Credit Card ($150 annual fee; 5,000 EQMs with first purchase).

American Express Delta Reserve Credit Card ($450 annual fee; 10,000 EQMs with first purchase). Link: http://skymilesoffers.delta.com/credit_card_partners.php

NORTHWEST AIRLINES

Details are valid through Feb. 28, 2009, after which North-west’s program will change based on merger with Delta. For now, base (Silver) tier offers 50% bonus award miles.

Gold: 50,000 EQMs / 60 EQSs

• Three-day upgrade window • 100% bonus miles • Award ticket upgrade with one-day window

Platinum: 75,000 EQMs / 100 EQSs

• 125% bonus miles • Five-day upgrade window

FCF Notes:

Northwest’s was the only program to allow upgrades to award tickets, and yields on Silver and Platinum bonus award miles were tops among the majors. Those features could be cut, with members gaining Delta’s six systemwide upgrades. For more details on the post-merger program, see page 7.

Credit Cards: WorldPerks Visa Signature card ($90 annual fee).

http://www.nwa.com/features/signatureeqm/?omni=em.solo.20080905.wpVisa.eqmAnnouncement.nwa

UNITED AIRLINES

Base tier offers 48-hour upgrade window.

Mileage Plus Premier Executive: 50,000 EQMs / 60 EQSs

• 72-hour domestic upgrade window • 100% bonus miles • Star Alliance Gold status • Four 500-mile domestic upgrades

Mileage Plus 1K: 100,000 EQMs / 100 EQSs

• Six systemwide upgrades • Two Region One upgrades per calendar quarter • 100-hour upgrade window • Exclusive Saver Award inventory

FCF Notes:

Between systemwide and Region One upgrades, there’s plenty to keep 1K elites happy. Starting Jan. 1, all elites earn 500 EQMs per segment. United offers a fast track to entry-level status for $799 a year; can upper-tier buy-ins be in the wings?

Credit Cards: United Mileage Plus Platinum Visa ($140 annual fee; 5,000 EQMs with first purchase). Link: http://www.united.com/page/article/0,10017,3865,00.html

United Mileage Plus Choices Visa. Link: http://www.united.com/page/article/0,6722,51666,00.html

US AIRWAYS

Dividend Miles Platinum: 75,000 EQMs / 90 EQSs

• Four-day upgrade window • 75% bonus miles

Dividend Miles Chairman’s: 100,000 EQMs / 120 EQSs

Four systemwide upgrades to Europe or Hawaii (two for member/two for companion) • 100% bonus miles • Seven-day upgrade window

FCF Notes:

US Airways offers “Go Upgrades” for both domestic and international travel: Platinum and Chairman’s members booked in Envoy Class can upgrade to Envoy Sleeper any time before departure for $300 each-way.

Credit Cards: US Airways Premier World MasterCard ($79 annual fee). Link: http://www.mostmiles.com/app/japply/lp/domains/mostmiles_aep.jsp?source=dmcontent10

LOOKING AHEAD

FCF expects a decline in domestic air travel in 2009, to which the airlines will respond by reducing air traffic through code shares and cutting redundant service. Fares will stay high, making award demand soar and award inventory plummet. The best way to avoid fees and guarantee access to the prime seats is to embrace your loyalty program and maintain or elevate your elite status. Some points to keep in mind in ’09:

• The higher your elite rank, the longer your award window. That equation will dictate your success in scoring premium seats and upgrades this year.

• Know your alliance partners. More than ever, you need to fly exclusively with carriers that will build your EQM bank.

• Know the fare codes that earn at least 100% elite miles. When upgrading from economy to Business Class, pay a bit more for the fares that earn 100%; some deeply discounted coach fares earn only 50% (depending on airline/program).

• Knowledge is power. Sign up for any email updates your program offers and check its website regularly. Getting the jump on promos and policy changes gives you more control over your premium-travel destiny.

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