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Why I Could Care Less About Elite Status Covid Promotions

Why I Could Care Less About Elite Status Covid Promotions

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Status Seeker, Status Quo, or Status Pro: Where Do You Stand With Airline’s Covid Elite Lasso?

The airlines are in crisis right now and one of their ploys has been to appease nervous loyalists with a slew of elite status earning promotions. That’s all well and good, but the fact remains that elite status is still overpriced and underwhelming, for most travelers.

Covid-19 has led to big moves for American, Delta, and United, who’ve reduced their services by up to 90+%. These are radical and remarkable steps. With so much uncertainty in the air, it’s no wonder airlines are looking at how they can stem the bleeding when it comes to a fearful traveling public. This includes overhauling their elite system for elite status seekers, status quos, and status pros. More on that in a moment, but first, my unchanged take on elite status.

Mr. Upgrade’s Take

For a decade (and most recently in November), I have been telling you to forget about chasing elite status, arguing that nowadays it is little more than a con game. We think airlines are taking their loyal customers for granted. That’s because those seeking elite status have to meet increasingly higher spending requirements to hold onto increasingly valueless perks. And on top of that, elites often end up paying more for their Business and First Class tickets to earn elite credit.

We’ve written about it recently in these two special reports:

Hub Capped? Don’t Fall for the Allure of Elite (it’ll Cost You Much More)

It’s Not Too Late to Excommunicate Yourself from ‘the Elite Class’

The sentiments outlined in those reports have not changed. Even now, in the midst of coronavirus, I couldn’t care less about elite status.

Hang On a Sec, Bennett, My Status Just Got Extended

True. The three major U.S. carriers just extended status membership to the beginning of 2022 (an extra year), and they’re making it easier to reach a higher (or maintain current) level of elite status.

So let me be clear, I’m not against elite status per se. I just believe that for a long time now (and even in the current crisis) elite status is way overpriced.

I really have a problem when people “fly out of their way,” or “pay higher fares,” just to keep or earn elite status. Talk about diminishing returns! Because like any broken relationship, you’re giving way more than you’re getting.

In our March issue, we wrote about how the airlines are always focused on the bottom line. And if you live in an airline hub city they can (and do) charge you higher fares. For example, it often costs 37% more on flights to Europe for Delta loyalists, often $1,300 more on flights to Europe for American loyalists, and often $2,001 more on flights to Asia for United loyalists.

Does Bennett Practice What He Preaches?

In 2019, I earned United Silver status by accident (mostly on domestic flights). I earned it without flying out of my way or paying higher fares. That’s because I fly whatever schedule is most convenient and competitively priced. Simple formula. Value based. In fact, in December I had 44,519 Premier Qualifying Miles (most of my flying is international and ~80% of that is on miles) and I only needed 5,481 more to achieve Gold status.

Now most members at that point would have gone on a “mileage run” (taking a flight to “wherever” just to earn the status requirements and flying right home) to reach the Gold status. Not me. I reached Silver status incidentally–it just happened.

I am a Loyalty-Free Traveler, which means that I’m not shackled to one elite program. As a result, I have the opportunity to go with the best fare, schedule, airline, or whatever I’m feeling like for that particular trip. AKA freedom—something easy to underrate. If, by chance, I reach elite status, that’s fine, but I certainly don’t chase it. I am Gold on American too. No big deal.

Corona Elite Promotions Summary

Here is a high level summary of what some of the major airlines are doing to make their elite programs interesting at the moment:

In a nutshell they want to be thinking like this:

Status Seekers to become elites in the first place.

Status Quos to stay happy at the elite level they’re at.

Status Pros to move their current elite status up to the next level.

American Airlines: Their current 2020 elite status has been extended until January 31, 2022, and new elite requirements are being reduced across the board by 33% to 50% (accounts will be updated by May 15, 2020). Members who reach the lower thresholds during 2020 will receive their status immediately upon qualifying, valid through January 31, 2022.

  • Status Seekers: New low elite requirements (up to 50%) will enable you to get your foot in the door as you’ll be able to qualify for entry level (Gold) status with new lower Elite Qualifying Dollars (EQD): $1,500 instead of $3,000, 15,000 instead of 25,000 Elite Qualifying Miles (EQM), or 15 Elite Qualifying Segment (EQS) instead of 30.
  • Status Quos: If you’re happy with your current elite status, and you just want to stay where you’re at, the news is good. You can still take advantage of the new lower elite requirements. For example, if you are currently a Platinum elite and used to spending $6,000 EQDs, now you only need to spend $4,000 EQDs (33% less). It’s also now 30,000 EQMs instead of 50,000 (40% less), or 30 EQSs instead of 60 EQS (50% less).
  • Status Pros: If you want to get to a higher elite level, this is your chance as it will be much easier to move up with the new lower status requirements. For example, are you currently a Platinum and want to move up to Platinum Pro Elite? Under the old rates you would have needed to spend $9,000 EQDs, but now you only need to spend $6,000 EQDs (33% less). It’s also now 45,000 EQMs instead of 75,000 (40% less), or 45 EQSs instead of 90 (50% less). Another way to look at it: You can spend the same or less now than you would have spent for Platinum, but get bumped to Platinum Pro Elite status.

Delta: Current 2020 elite status has been extended until January 31, 2022, and all 2020 MQMs (qualifying miles) will be rolled over to 2021 for qualification towards 2022. For Medallion status, however, Delta has not lowered their elite qualifying dollar amounts.

  • Status Seekers: If you always wanted elite status with Delta but came up short on qualifying miles, now is your chance. Now you can earn elite qualifying miles over a two-year period with 2020 earnings being rolled over to 2021 to qualify for 2022 status.
  • Status Quos: If you are happy with your current status, and you just want to stay where you’re at, you can still take advantage of the new lower elite requirements. For example, if you are currently a Gold elite and are used to having to earn 50,000 MQMs in one year, you now have two years to earn them.
  • Status Pros: If you want to get to a higher status, it will be much easier to move up with the new lower requirements. For example, if you’re currently Gold and want to move up to Platinum elite, you will be able to earn status qualifying miles (75,000 MQMs) over a two-year period.

United: Current 2020 elite status has been extended until January 31, 2022. They’ve also reduced the amount of Premier Qualifying Points (PQP) and Premier Qualifying Flights (PQF) needed to earn status for the 2021 program year by 50% (a minimum of four flights must still be flown on United).

  • Status Seekers: New lower (50%) elite requirements enable you to get your foot in the door as you’ll be able to qualify for entry level (Silver) elite status with new lower elite qualifying flights (PQF): 6 instead of 12, and qualifying points (PQP): 2,000 instead of 4,000.
  • Status Quos: If you’re happy with your current elite status, and you just want to stay where you’re at, you can still take advantage of the new lower elite requirements. For example, if you’re currently a Gold elite and are looking at flying 24 elite qualifying flights (PQF), now you only need 12, and instead of 8,000 qualifying points (PQP), now you only need 4,000.
  • Status Pros: If you want to get to a higher status, it’s now a lot easier to move up with the new lower status requirements. Say you’re currently Gold and want to move up to Platinum elite. Under the old rates you would have needed to spend 12,000 PQPs, whereas now you only need to spend 6,000 PQPs (50% less), and 18 PQFs instead of 36 (50% less).

Alaska: Current 2020 elite status has been extended to December 31, 2021. Currently they have not announced any adjustments to elite status qualification criteria.

Air Canada: Current 2020 elite status has been extended until the end of 2021. On top of that, Air Canada elites who requalify for elite status in 2020 can gift elite status to a friend or family member for free.

Perhaps not immediately obvious,
 with everyone being elite again
no one will be elite again.
There are only so many upgrades to be had.
The more elites the longer the elite line.
The longer the elite line,
the lower the odds of getting to the front, right?

Covid-2019 Hotel Elite Program Update Summary

Airlines are not the only ones hurting right now and wanting business to pick up again. Here’s a summary of what some of the major hotels are doing to get you to think about their programs.

Marriott: Current 2020 elite status is extended through February 2022, regardless of how many nights you stay in 2020.

Hilton: It has extended expiring elite status on March 31, 2020, to March 31, 2021, and members who have status expiring on March 31, 2021, now have it through March 31, 2022.

Hyatt: Current elite status as of March 31, 2020, will be extended to February 28, 2022.

Elite Perspective

I urge you not be blinded by all the cheery airline “goodwill” and backpatting going on. Now that the shoe is on the other foot and airlines need you again, they are pulling all the strings to entice members to stay and fly with them.

I’m not going to look a gift horse in the mouth, who would? I’ll take the offered status for two years, but I will continue to stay a Loyalty-Free Traveler, and shop around for the best schedule, fare, airline, or whatever my priority is for that particular trip. If, by chance, I reach status again, or earn higher status, or gain status with multiple airlines, then fine, I’ll take it. But I won’t chase status. With few exceptions, neither should most of you.

See you up front.