American sweetens premium-flier awards

[700UW]

http://www.usatoday.com/story/todayinthesky/2014/12/15/american-premium-fliers-will-get-bonus-miles-in-2015/20414943/
 

American Airlines and merger partner US Airways will award more frequent-flier miles to customers who buy first- and business-class tickets next year.
American dubbed the move — announced on Monday — as a "bonus mile promotion," though the offer will not require registration and will remain in effect for all of 2015. American says customers will automatically receive the extra miles on eligible flights.
American's offer comes as rivals United and Delta have switched to revenue-based frequent-flier systems. Under that set-up, those airlines will begin providing greater award mileage totals for more expensive airfares starting Jan. 1. American's change will help it narrow the gap between the miles it awards for its most expensive tickets and what Delta and United will start offering in 2015.
 

 

 

[WorldTraveler]

apparently the sting of not being chosen as the preferred airline by business travelers hurts.

IF your product is worth buying, you don't to increase the amount of it you give away.

the only thing that is surprising is how quickly Parker is turning AA into the low fare/low quality airline that US was.

FWAAA long predicted it would come. He is right.

 

[MetalMover]

apparently the sting of not being chosen as the preferred airline by business travelers hurts.

IF your product is worth buying, you don't to increase the amount of it you give away.

the only thing that is surprising is how quickly Parker is turning AA into the low fare/low quality airline that US was.

FWAAA long predicted it would come. He is right.

Or maybe AA is just rewarding its loyal customers after DL and UA changed their program. 
Even Mercedes Benz offers incentives from time to time.

 

[WorldTraveler]

profit motivated companies don't give away their product if they can sell it.

to believe otherwise shows a complete lack of the principles of the free enterprise system.

AA is giving away more of its product because it can't sell it at levels that other carriers can sell their product for while giving away less.

Revenue performance on AA's system is underperforming the system.

If you don't see it now, it will be obvious with each successful monthly and quarterly financial release.

 

[FWAAA]

This is merely a poorly-written news article detailing AA's adoption of big mileage bonuses for paid F and J long-hauls to negate any advantage UA and DL had hoped to build over the AAdvantage program.

For those who don't know, UA and DL slashed the frequent flyer miles earned on cheap tickets and boosted the miles earned on expensive tickets by changing their programs so that passengers now earn miles per dollar spent rather than miles flown. Top-tier elites earn more miles per dollar spent than low-level elites or no-status flyers.

AA has chosen a different path for now, by not cutting the miles awarded on cheap tickets but instead by awarding bonus miles to paid F and J. AA may imitate DL and UA later on, but for now, AAdvantage is different than DL or UA.

Here's more details for those who are interested:

http://hub.aa.com/en/nr/pressrelease/american-airlines-rewards-its-customers-with-lucrative-mileage-promotion-for-2015

http://www.aa.com/i18n/urls/aadvantage-currency.jsp?anchorLocation=HomePageHero1&reportedTitle=Your%20travel%20just%20got%20more%20rewarding&reportedPosition=0&url=undefined&_locale=en_US&repositoryName=undefined&repositoryId=undefined

Despite WT's ignorant and incorrect postings to the contrary in this thread, this is not about AA "giving away" things that DL is able to sell. It's merely leveling (thereabouts) the frequent flyer mile playing field.

I'm not convinced that passengers are swayed by big mileage bonuses when they're choosing from which airline to buy a very expensive ticket, but if passengers are so swayed, then as of yesterday, UA and DL no longer have that advantage over AA. Expensive tickets (high-value customers) will earn lotsa miles at AA or DL or UA.

 

[WorldTraveler]

yes, AA is giving away more of its product.

Your own version supports that.

You don't increase what you give away if people are willing to pay for it.

AA can't do a revenue based program so they are losing some of the highest value customers to DL and UA so AA is doing a blanket policy in order to reverse the tide - but in the process they are diluting the value for their highest revenue customers.

DL and UA both knew that AA would not be able to match the revenue based component to their frequent flyer programs which means that DL and UA can accept higher value customers and will force lower value customers who do not have corporate contracts governing their travel over to AA. Just one more disadvantage regarding the timing of AA's merger that DL and UA have passed.

And AA will be the only of the big 4 in the US that doesn't have a revenue based FF program - which may be also why Parker wants to make sure AA is the only one without profit sharing as well.

AA is giving away more than it needs to because of its inability to offer a revenue based program.

They are giving away what they cannot sell for a higher price whether you want to admit it or not.

 

[eolesen]

DL giving away more Skypesos is good business, and not giving away the store.

AA giving away more AAdvantage miles is bad, and giving away the store.

Got it.

It's not an inability for AA to offer a revenue based program if they wanted to. They have the feeds.

It's a choice. I know, it's difficult for you to think that AA might want to follow their own strategy...

 

[WorldTraveler]

DL has a revenue based FF program.

And AA has made the choice to not do a revenue based FF program because it requires far more than just data feeds - and it has to be duplicated in 2 res systems.

AA made a choice based on cost and where they are in the merger - and the AA program is less valuable to the highest revenue passengers compared to DL and UA's -and AA's RASM changes will continue to reflect it.

 

[cltrat]

yes, AA is giving away more of its product.

Your own version supports that.

You don't increase what you give away if people are willing to pay for it.

AA can't do a revenue based program so they are losing some of the highest value customers to DL and UA so AA is doing a blanket policy in order to reverse the tide - but in the process they are diluting the value for their highest revenue customers.

DL and UA both knew that AA would not be able to match the revenue based component to their frequent flyer programs which means that DL and UA can accept higher value customers and will force lower value customers who do not have corporate contracts governing their travel over to AA. Just one more disadvantage regarding the timing of AA's merger that DL and UA have passed.

And AA will be the only of the big 4 in the US that doesn't have a revenue based FF program - which may be also why Parker wants to make sure AA is the only one without profit sharing as well.

AA is giving away more than it needs to because of its inability to offer a revenue based program.

They are giving away what they cannot sell for a higher price whether you want to admit it or not.

no one that remembers you hijacking every thread on the board after the merger you said would  never be approved was announced  like a petulant child knows to take anything you say with a grain of salt. Mostly you just come across as an a$$clown.
you should know no one here give a damn about DL and your homer view of them.

 

[WorldTraveler]

and yet you quote me and keep posting.

and yet AA is still giving away more of its product while others sell it for higher revenue.

 

[cltrat]

ok AC (a$$clown)

 

[jcw]

So let's get this double standard correct

DL is giving more miles for high fare tickets and it's the perfect strategy - when AA does its a loser - can you say double standard

Let me check again - who has the largest FF program , wait, wait, wait - that would be AA if DL was so great with their program they would have the largest program

What proof do you have that AA runs their program as a loss leader

 

[WorldTraveler]

again, the characterization is incorrect.

DL AND UA are reducing benefits for lower tier passengers... they are shifting around resources to where they produce the greatest results.

AA is INCREASING benefits for all passengers... .they aren't shifting resources/

where did I say that AA runs their program as a loss leader?

 

[MAH4546]

again, the characterization is incorrect.

DL AND UA are reducing benefits for lower tier passengers... they are shifting around resources to where they produce the greatest results.

AA is INCREASING benefits for all passengers... .they aren't shifting resources/

where did I say that AA runs their program as a loss leader?

 
You are really, really bad this reading thing.
 
Nothing is increasing for all passengers - AA is only increasing miles awarded for passengers on paid, premium class tickets, and the number of miles also varies based on status, so that EXPs are awarded the most.

 

[WorldTraveler]

and you fail to note that DL and UA are REDUCING perks for lower level fliers while increasing perks for higher value passengers.

AA does not have a revenue based FF system. They are trying to replicate it using fare classes.