Airlines are adjusting their loyalty programs to reflect the fact that travel demand is back to its pre-recession level.
The thresholds for elite status were raised by Delta Air Lines last month. Southwest Airlines raised the bar to get a Companion Pass in October.
The broadest update yet was shared by United Airlines this week. According to one track, the Chicago-based carrier is bringing back the requirement for flyers to spend at least $24,000 a year in order to earn top-tier status.
It's going to get harder to earn elite status with United as the new year begins.
I'm not as concerned about the changes just yet, so I don't think it's worth it. There is a reason here.
Delta and United will give elite qualification for award tickets.
You will be able to earn points and flights when this feature launches. The earning rate is 1 PQP for every 100 miles redeemed and 1 PQF for flights.
The perks are limited to flights operated by United and United Express, and must be redeemed with the carrier's Mileage Plus program to be eligible for premier accrual.
I usually need to end the year with a few United tickets to close the gap. I no longer have to worry about trading points for tickets.
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I will try to redeem points when I find a value that will help me get to status. I'll be studying the numbers more closely on award redemptions next year because it makes mileage more valuable to me.
I think that this feature will help some members close the gap to status, and I think that it will also help those members who have had to increase their requirements.
With the ability to earn elite status on award tickets, United is making it more lucrative to use your co branded credit card.
The maximum number of PQPs you can earn from the United Quest Card and the United Club Infinite Card will be doubled in 3 years. The thresholds are going from 3000 to 6000 PQPs and from 4,000 to 8000 PQPs. Up to the increased PQP limit, you'll still earn 500 PQPs for every $12,000 spent on these cards.
I will not use a United card early next year. I'll wait and see how my flight activity tracks over the first few months of 2023, and then I'll decide if it's worth moving some expenses from other lucrative points-earning credit cards to a United card.
Even though I know I can get a big boost from spending on a United credit card, I still feel reassured.
The PQPs earned from co branded spending won't count towards the PQP only track.
The airline wants to right-size the population.
Luc Bondar, United's president, said that they wanted the program to balance access to status with the number of members that achieve each tier with the benefits that they can give to members once they achieve that tier.
Lower thresholds, lucrative promotions and blanket extensions have bloated United's elite ranks more than any other carrier.
It's been difficult for me to take advantage of the complimentary upgrade program because of the number of elite members.
The larger-than-normal elite pool has led to a lot of long upgrade lists, even on Tuesdays and Wednesdays, which have historically been quieter travel days with better odds of getting an upgrade.
There are less premium seats available for upgrade because of the dramatic rise in travel demand.
Everyone is an elite flyer. I have felt this way on a lot of United flights this year.
Many of us have felt that it's been harder than ever to get a seat on United, so we compiled a list of our upgrade tips.
The premier thresholds are going up, but at the same time it should help the elite tiers. The program will be able to deliver the benefits that come with each tier even though it will be harder to get status.
United seems to be planning for the future.
Travel demand is at an all time high and the airline is doing well. It makes sense for United to bring back the requirements that they never implemented due to the outbreak of the swine flu.
There are a lot of head winds at the moment. It is possible that the macroeconomic landscape and rising inflation will have a lasting effect on the travel industry.
United can always add promotions and make changes to the thresholds in the new year if travel demand is to once again decline.
It has been done over the past two years and there is no reason to think it can't be done again. The team worked to meet members where they were the past two years, from extending status to lowering thresholds.
Going into the next year, that seems to be the sentiment as well. There is always a chance that United will have to make another adjustment next year.
It seems that United might need to help elite members requalify. The airline is giving existing premier members a head start on requalifying for status next year with a PQP deposit.
There are between 500 and 2,500 PQPs for silvers and 1Ks. Something is better than nothing, even though the amounts aren't huge.
The status thresholds were first introduced in 2019. It makes sense given the trajectory of the recovery. Airlines are making money again because demand is off the chart.
The move isn't necessarily as bad as it looks.
It's easier to close the gap to earning status now that award tickets are counted towards the qualification. Credit card spending is more important than ever.
Existing elite members will get a head start bonus at the beginning of next year.
The increased goal posts should make it easier for United to provide a more elevated elite experience. The elite pool will likely be smaller and the stratification across the tiers will shift.
Overall, I think they're not as bad as they might seem on paper.
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