Nine months after American introduced a major change to its AAdvantage program, the airline is back with another update.
American is introducing a new rewards structure called Loyalty PointRewards, which adds tiers for earning rewards and expands the selection of benefits available at current thresholds.
How you earn miles on the cheapest tickets is one of the changes the carrier is making.
The latest is here.
The American preps say goodbye to saver redemptions.
elites have a menu of benefits to choose from
Last year, the program got a major upgrade with the introduction of Loyalty Choice rewards, and now it's getting its biggest upgrade yet with the introduction of Loyalty Point rewards.
There will be 11 additional tiers of rewards for a total of 15 Loyalty Point thresholds that each unlocks additional benefits and perks. Travelers will receive perks after they earn elite status.
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There are new benefit options to choose from.
You can choose one of the following if you want to join Group 5.
You can enjoy AAdvantage Gold status.
Avis will give you a 20% Loyalty Point bonus on spending with certain partners.
It is possible to enjoy AAdvantage Platinum status.
Avis Presidents Club status will allow you to receive a 30% loyalty point bonus on spending with partners.
You can enjoy AAdvantage Platinum Pro status.
You have the option of choosing one of the following.
You can enjoy AAdvantage Executive Platinum.
You have the option of choosing two of the following.
You'll get two choices when you cross the 400,000, 550,000 and 750,000 Loyalty Point thresholds.
You have the option of choosing one of the following.
You have the option of choosing one of the following.
You have the option of choosing one of the following.
There are a lot of benefits that you can take advantage of. You will have between March 1 and February 28 to accumulate Loyalty Points for each threshold.
You have until March 30 of the following year to choose your reward from the Wallet section.
Platinum Pro members will need to earn 175,000 loyalty points to get a pick from the enhanced perk menu.
The status perks that used to be available for just 200,000 Loyalty Points will need to be earned by Executive Platinum members in order to be unlocked.
The 30- segment requirement for loyalty points is being removed by American. Last year, American shared that it wanted travelers to actually fly with the airline to earn perks, and now the thinking seems to have changed.
Heather Samp, managing director of AAdvantage, said that the program is rewarding customers wherever they are with the company.
"So whether that be on the aircraft or in their everyday spend on their credit card or staying with our hotel or using our car rental partners or using our eShopping platforms, there are multiple ways for members to go aboutunlocking Loyalty Point rewards," Samp said.
Much of the thinking that went into JetBlue's new "Perks You Pick" offering is reflected in American's new benefit thresholds.
The benefits of airline loyalty don't start until you reach a certain status threshold. General members don't usually get any special perks. Even for casual travelers who engage with their loyalty programs, the status quo is being changed by JetBlue and now American.
Samp said that American isn't making any changes to systemwide upgrades.
American introduced a new currency called Loyalty Points that tracks your progress to elite status and travel benefits. Spending on co branded credit cards is one of the ways in which loyalty points are earned.
The threshold required to earn entry-level status is being changed. You will need to earn a certain number of loyalty points.
You need to accumulate Loyalty Points between March 1 and February 28 in order to get status.
The number of Loyalty Points required for Gold status has been increased by a third. There are no other changes happening at the moment.
Delta and United have increased their status thresholds in the last few weeks. Those vying for top-tier status will be affected by the changes; for example, United's premier 1k will require up to $24,000 in annual spending.
The American is doing something different. The threshold for Gold status is being raised by the airline.
"Yes, United and Delta are our competitors, but we are setting our own course and we feel confident in the levels that we have and the ability to continue to provide value to our customers that are choosing to have a relationship with us."
alty is a two way street Samp said that they wanted to make sure that they were rewarding customers that were engaging with them.
The cheapest main cabin fare in the US is basic economy. The deep-discount fares were originally designed to better compete with ultra-low-cost carriers, and as such, American stripped out many of the extras you'd typically find in an economy ticket for those purchasing the cheapest fares.
There will be restrictions on the fares going forward, such as fewer miles and loyalty points.
American will award two miles and Loyalty Points for every dollar spent on basic economy fares. Basic economy fares will be covered by elite mileage bonuses.
American doesn't know how it will account for rounding a fractional number of miles.
Basic economy tickets have the same rewards as any other economy or premium cabin fare.
The move will sting those who purchase deep-discount tickets, as it will further segment products and give additional opportunities for American.
American's basic economy offer isn't as punishing as it used to be. Travelers were allowed to purchase ancillaries on these fares.
Basic economy tickets from American now include the ability to receive free upgrades, checked bags and more.
There are rumors of American re-adding basic economy restrictions. Samp said that you will be able to bring a full-size carry-on bag and enjoy all the benefits.
All technology that had to be cleaned up was not related to what we're talking about today.
When American, Delta and United switched to revenue-based mileage earnings, they all added a 75,000 mile cap.
Delta permanently eliminated the cap earlier this year and now American is following suit.
Delta retroactively gave more miles to those who hit the cap, but American isn't as generous. The cap doesn't apply for flights after March 1, 2020.
The number of miles you can earn from a ticket is limited at United. Competition will push United to remove the cap.
More ways to redeem miles are being added by American.
AAdvantage members will be able to redeem miles for the airline's vacation packages, and U.S.-based AAdvantage Mastercard credit card holders will be able to cash in miles for private dinners, sporting events and more.
We will be sure to follow up with the details once these redemptions go live. Historical data points show that mileagebookings won't offer as much value as flights.
In recent years, the major U.S. airlines have turned miles into currency.
flyers have historically saved miles for flights, but they can now be used across the entire travel journey This includes redemptions for extra-legroom seats, Five Star Service bookings, Admirals Club access and now vacation packages and cardmember exclusive experiences.
Changes to status perks and the loyalty program experience are just under a year old.
American is going from five to fifteen levels of benefits, and the airline is expanding the menu of choices you will receive after crossing each threshold. You won't have to fly 30 segments with American and its partners to get these rewards.
The news is not all good. The number of miles you'll earn from basic economy tickets is being reduced and the award charts are being revised.
The last point is perhaps the one with the widest appeal, so be sure to check out the dedicated story of the company.
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