I Guess They Really Need The Money

[Art at ISP]

I don't know why this should surprise me, but US Airways, which can't seem to make any money from their core business of operating an airline, now has their hand out to customers by offering to sell status...

http://www.consumertraveler.com/today/putting-elite-status-up-for-sale-%E2%80%94-usair-removes-all-pretense/

Seems to me they should be concentrating on reducing costs and getting the separate operations issue resolved BEFORE coming to their customers for yet more money....not to mention the backlash from elites who actually EARN their status by FLYING the airline now having to compete for their benefits with people who may not fly more than a few times a year.......

Oh and by reducing costs, I do NOT mean taking more from the employees--you guys have already given more than enough......

At least they're open about it.......

 

[Bear96]

....not to mention the backlash from elites who actually EARN their status by FLYING the airline now having to compete for their benefits with people who may not fly more than a few times a year.......

?

If these folks do not fly much anyway, there will not be much "competition" from them for upgrades, better seats, priority boarding, etc., right?

 

[USFlyer]

This isn't new. I've seen these offers before.

Since US factors in EQMs flown in the past 12 months when processing upgrades, this should have little net effect to those who actually earn status by flying. And, speaking as someone who changed jobs and now am not traveling nearly as much, I would gladly pay to get my status back should my travel increase again. In fact, US should offer a reduced rate for "previous elites" to entice them to come back. Luckily, I'll have Silver for life now that Million Miler Flyers were granted that perk late last year.

 

[Art at ISP]

Maybe maybe not....imagine a silver preferred who flew 40,000 actual miles, being bumped by a Gold who bought his way up and flew 5-10,000 or less.... but in any case it will not make the people who did it the hard way feel any better....my main point is that they should concentrate on their core business.

I would imagine that they will lose more high spend customers. In any case, if they look for statistics regarding the number of elite members, I am sure the numbers will be somewhat inflated now.

More importantly it shows that picking up an extra dollar today is more important to them than having a loyal customer spending tens of thousands during the year....penny wise and pound foolish...and consistent with their obvious business philosophy.

 

[USFlyer]

I guess I have to disagree on this one. The folks who will "buy" status are likely those who would otherwise earn it anyway over time. And, to me this is no different than the "challenges" all the airlines offer: If you fly X miles in Y time, then we'll grant you Z status. That's been going on for over a decade ... this just makes it less arbitrary how someone can be fast tracked to status. I would argue it's a more customer friendly version than the old way of having to know who to call or what specifically to say to get put on a challenge (i.e., less gaming of the system).

 

[US1YFARE]

Maybe maybe not....imagine a silver preferred who flew 40,000 actual miles, being bumped by a Gold who bought his way up and flew 5-10,000 or less.... but in any case it will not make the people who did it the hard way feel any better....my main point is that they should concentrate on their core business.

What makes it any different than CO's "Ellite Maximizer" program which allows people to "maximize" their EQM's by buying double or triple EQM's when taking a flight? Is there really something inherently "better" about allowing a passenger to pay more for more EQM's rather than selling status outright? In the end, I wonder if US will make more money off of their program than CO does.

 

[Bear96]

I think you can buy UA Premier status as well.

 

[Art at ISP]

I am no troll--I am merely calling it as I see it---last I checked it's still a free country--and board...

I don't call you names for drinking the koolaid now do I?

As a matter of fact, I object to this practice by ANY airline which does it...it diverts these programs from their original intent-which is to instill LOYALTY in their customers. Loyalty is not defined as buying your way in, it is someone flying butt in seat every week or so.......

 

[UPNAWAY]

I am no troll--I am merely calling it as I see it---last I checked it's still a free country--and board...

I don't call you names for drinking the koolaid now do I?

As a matter of fact, I object to this practice by ANY airline which does it...it diverts these programs from their original intent-which is to instill LOYALTY in their customers. Loyalty is not defined as buying your way in, it is someone flying butt in seat every week or so.......

Go post this on Flyer Talk or Airliners.net where the real adults are and watch them completely shoot down your point of view.

 

[Art at ISP]

I will when you grow up and realize that its okay to disagree with you.

And the discussion has been posted elsewhere, and reaction is mixed.

 

[cynic]

They found a way to make money without a tangible cost in return, seems like a good idea to me. Sure, the people whose company pays for them to reach status are going to complain about someone giving up their own money to pay for elevated status, I wouldn't expect anything else.

 

[Bear96]

I am no troll--I am merely calling it as I see it---last I checked it's still a free country--and board...

I don't call you names for drinking the koolaid now do I?

As a matter of fact, I object to this practice by ANY airline which does it...it diverts these programs from their original intent-which is to instill LOYALTY in their customers. Loyalty is not defined as buying your way in, it is someone flying butt in seat every week or so.......

Not sure who the first part of that is directed to (and if to me, I have no idea why), but as to the bolded part . . .

Airlines are not encouraging loyalty for loyalty's sake alone, but for the purpose of extracting more revenue.

If I am an airline and Person A gives me $5K for nothing, while Person B gives me $5K but in exchange expects me to fly him all over every week safely, relatively on time, with baggage, etc., I think I would want more of my "customers" to be like Person A.

Sounds like Person A is a good deal for me. Why not give him something that does not cost me much if anything, and that has minimal impact on my offerings to other customers?

 

[Art at ISP]

I do see the opposing points of view, however, I believe that an airline should be an airline, and it should price its product so it can be profitable at being an airline--not a marketing company....I guess I am a purist.

The fundamental problem exists all through the industry. Fares need to reflect the cost of providing the service--which today they do not.

And the comment at the top of my post was aimed at an individual who actually called me a troll.....

Also for what it's worth this policy has been around for a while--but it made news today-most likely because someone in the media decided it was newsworthy.....and I was just commenting on it.

Everyone is entitled to their opinion.

 

[UPNAWAY]

The fundamental problem exists all through the industry.

Exactly but this is the airline that you have a personal grudge against so you direct all your post here.

Fares need to reflect the cost of providing the service--which today they do not.

Why? If the business can stay in business what does it matter how they do that especially if you like to use the part that usually doesn't make money?

Also for what it's worth this policy has been around for a while--but it made news today-most likely because someone in the media decided it was newsworthy.....

It wasn't in the media or news today it was a rant by a blogger on a travel site. Probably a friend of yours.

Non story, not new, not news, not detrimental to VFFs, not devaluing anything, but you felt compelled to make this a thread like you do almost weekly. And as US has continued to improve the things that you have to find to make your rants are getting more and more ridicules. BTW what does your meager and weak point have to do with the title of your thread? Just bashing not adding any value or even attempting an honest discussion!

 

[Art at ISP]

I was the first to mention the improvements in US when I flew a couple of weeks ago. I give credit where credit is due - to the FRONT LINE people at US.

And it wasn't a rant, it was an article by a travel writer, who I happen NOT to know personally.

And I am not ranting, I am making observations, which you choose to attack rather than debate. There are people who agree with me and those who don't.

So now you can crawl back into your cubicle at Tempe until you find someone else to attack.