Another lovely article by Chris Elliott

Chris Elliott is a frequent flier program skeptic. Who would’ve guessed? His latest article once again is nothing but paragraph after paragraph of utter garbage, and that’s putting it nicely. In the article, Chris more or less argues that the only types of travelers that should take part in loyalty programs are managed business travelers — those with preferred vendors. As far as Chris is concerned, loyalty programs are a scam and complete waste for everyone else. He argues it causes us to act irrationally. And there’s no doubt it often can cause us to act irrationally.

What Chris completely forgets to mention (which isn’t surprising given his target audience) is that you just have to be smart about using loyalty programs. In many cases it does make more sense to fly the airline you’re loyal to or stay at the hotel chain you’re loyal to, even if they’re more expensive.

Even for a simple domestic trip, I’m willing to pay an extra $100-200 to fly United over another non-affiliated airline. Why? I get elite check-in, elite security lines, free checked bags, free upgrades, lounge access, miles, etc. While there are cases where it might not make sense to fly United (if they were $250+ more expensive than the competition, for example), often it’s smart to pay a premium to fly your preferred airline. Seriously, think about the value of all the things you’re receiving in exchange for your loyalty, and then do the math. If it works out, fly your preferred airline, if it doesn’t, don’t.

Same goes for hotels. It can make sense to stay with your preferred chain, even if they’re more expensive. With Hyatt I get free internet, lounge access, free breakfast, bonus points, etc. That’s incredibly valuable to me, because it saves me a lot of money.

But Chris still argues that “more often than not, the loyalty goes only one way.” For the savvy traveler that couldn’t be further from the truth.

I’d love for Chris to take a look at the Hyatt promotions going on right now and tell me that the loyalty only goes one way there. I’d love for Chris to take a look at the value you get as a top tier elite at an airline and tell me that’s not worth anything (let alone a substantial premium).

And Chris argues that the benefits we get as elite travelers are services that should be offered to everyone anyway. C’mon now, really Chris? Yeah, you’re right, I think everyone should get suite upgrades, club lounge access, free internet, and bonus points at hotels. And I think when flying everyone should get free checked bags, lounge access, free upgrades, priority security and boarding, etc. I mean, what could possibly go wrong with that plan?

Sorry Chris, now more than ever, loyalty goes both ways.

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dhammer Guest

Coins said 'Even for a simple domestic trip, I’m willing to pay an extra $100-200 to fly United over another non-affiliated airline. Why? I get elite check-in, elite security lines, free checked bags, free upgrades, lounge access, miles, etc. While there are cases where it might not make sense to fly United (if they were $250+ more expensive than the competition, for example), often it’s smart to pay a premium to fly your preferred airline. Seriously, think about the value of all the things you’re receiving in exchange for your loyalty, and then do the math. If it works out, fly your preferred airline, if it doesn’t, don’t.' Dan says... you're preaching to the choir. Lets face it, there's a small percentage of the population that 'gets it'. Everyone else laughs at us... until they hear about flying in business or first class on international routes... staying in a nice upgraded room... and listening to how we booked JFK/SYD for $575 R/T all-in (with a $250 voucher)!

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beltway Guest

<i>If you go over to the mileage run forum on FT you see people flying on ridiculous itineraries for 0.05 cents a mile. Complete nonsense.</i> If the cost per mile were actually "0.05 cents," you'd be a fool not to fly twice before breakfast every day.

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Grace Guest

I just read that thread on supercouponing. I thought they were crazy, then I realized it's just like mileage running to get miles for intl flights. Everyone has their crazy hobby

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Chris Guest

The so-called "mileage addiction" can be reflected by the number of posts in the thread "Will there be a DEQM this year?".

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chasgoose Gold

I admit my example wasn't perfect, but I wasn't putting that much effort into realism. The point was more to illustrate that there is a "cost" to attaining status, that for many people outweighs the benefits afforded by elite status. In some ways I think it would just be more honest if airlines charged people for elite status. Elite status is not a way of saying "thank you for flying us" its a service provided for those who give the corporation more money than others. There is a reason why you hear stories of people achieving elite status because they spent a lot of money on the airline (ie all full fare flights) even if they haven't met the mileage/segment requirements. In the airline calculation, money talks and someone who spent $20,000 on two TPAC F trips is worth more to their bottom line then someone who flew 25,000 on mileage runs and ended up spending only $5-10,000. Elite members fool themselves into thinking that airlines are giving them the status as a recognition of loyalty, whereas they should truly view the elite benefits as a means to keep people from flying with the competition. Now I am not saying that every elite member is a slave to the airlines, but most people--even most elite members--aren't as savvy about travel as the typical FlyerTalker. I think Elliot's point, despite being poorly made, is essentially that you always end up "paying" for elite status. He was trying to point out that a lot of people make financially irrational decisions to attain elite status and get a cadre of supposedly "free" perks. No matter how savvy you are, those perks are not free and they should be viewed more as goods provided for a price than a "loyalty benefit." I don't want to come off like a hater on elite status. I have top-tier status on a couple airlines and I don't want to give it up if i don't have to, but I understand that my relationship with my elite status is financially irrational. I am willing to go the extra mile to maintain status because the benefits are valuable to me since I travel so often. I understand the extra costs involved to attain that status and am willing to pay them to get what I want. That said, if I only traveled 10,000 miles a year, elite status really wouldn't be that valuable to me and unless I really liked the thrill of hunting elite status (and I had the time and disposable income to go after it) .

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