By Shawn Gallagher
Last week, British Airways announced major changes to their loyalty program. They are rebranding the Executive Club to the British Airways Club and are making significant changes that have many frequent flyers scratching their heads.
The changes include a shift to revenue-based elite status tiers and overhauling and increasing their tier thresholds. This unfortunately hinders the ability for the average traveler to obtain higher status with British Airways. We’ve seen this from other airlines in recent years too, including ones in the United States.
This begs the question: Is chasing airline status worth it anymore?
It’s All About Spending Money
Frequent flyer programs used to be based on distance flown, hence the name “miles.” In the mid-2010s, however, US legacy carriers began adopting revenue-based programs, where passengers would earn miles based on the amount of money spent. Delta began it in 2014, followed by United, followed by American in 2016. This trend can now be seen with many airlines around the world.
Revenue-based loyalty programs can benefit heavy-spending business travelers. Those who travel internationally multiple times a year in first and business class or business travelers who snag last-minute, expensive tickets can still earn a lot. However, it’s much harder for the everyday traveler who flies between Charlotte and Los Angeles while looking to snag cheaper fares. It’s all about spending money.
Higher Thresholds
In addition to the revenue-based frequent flyer programs, these have often been accompanied by increasing status thresholds. Many airlines now require more miles/points to reach the next status. British Airways is the most recent example, but we’ve also seen Delta, United, and others do so in recent years.
For example, these were the new thresholds for Delta’s SkyMiles program starting last year, compared to what it used to be:
- Silver: 5,000 MQDs (up from 3,000)
- Gold: 10,000 MQDs (up from 8,000)
- Platinum: 15,000 MQDs (up from 12,000)
- Diamond: 28,000 (up from 20,000)
This was even after Delta scaled back its increases in those elite status thresholds after receiving feedback and backlash. Simply put, it’s harder to obtain status with an increasing number of airlines.
Buy It When You Want It
First Class upgrades are getting rarer for elite status holders. More people are buying these seats outright, which decreases the amount of seats available for upgrades.
An eye-opening statistic was discussed at a Delta Investor Day back in November: A staggering 75% of First Class seats are being sold today, compared to just 12% 15 years ago.
A big perk of holding elite status was the opportunity for these upgrades. But since these are now rare, and with passengers willing to pay for them more, this major benefit is diminishing. You’re often better off just buying or paying for an upgrade when you want a premium seat.
Related: First Class on the Delta A220, a review
My Thoughts
With frequent flyer programs becoming revenue-based, elite status tiers thresholds that keep increasing, and First Class upgrades becoming rarer, I don’t see a huge incentive to stick with one airline unless you’re a heavy traveler. You definitely do yourself a favor when you check out other airfares from other airlines and go with the cheaper option.
I’ve been bouncing back and forth between American and Delta for the past couple of years. Both have their benefits that work for me personally (routes, hubs, partner airlines), but I don’t necessarily need the highest elite status tier from either airline. At that point, I’d be throwing away money just to gain status, and I won’t gain anything. I just go with whichever airline makes the most sense for each trip, based on the fare and itinerary.
Elite status is not the only thing about travel. You don’t have to put all your eggs in one basket and try to retain your status and overspend. Whenever you’re scratching your head and thinking about what to do about your elite status tier or choosing airfares, remember to prioritize yourself and your budget, not the airline.