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Does It Make Sense To Switch Airline Loyalty?

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(@lucky)
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Joined: 13 years ago
[#2078]

Reader John Delta left the following comment on the "Ask Lucky" page of the blog last week: lucky, Well, you probably have guessed that I am bailing on Delta after more than 4 decades with them. Like you (were), I am Washington resident and am asking you where should I begin to place my loyalties…

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Diamond
(@ivany)
Joined: 5 years ago

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Posts: 0

I agree with the post. FWIW, if John is at least SPG Gold and Silver Medallion, he can get crossover rewards (1 Starpoint for every dollar spent on Delta flight and 1 mile for every dollar spend on Starwood hotels).


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 Bill
(@Bill)
Joined: 13 years ago

Posts: 166

Absolutely agree. My husband and I both are Lifetime United Premier Gold (having flown 1 million miles each). We still fly United on paid tickets domestically when the routing is best and the price is comparable to that which we can find elsewhere--since we automatically get free EconomyPlus seating and priority check-in and 2 free checked bags. When the routing isn't great or the United price is too high, we use Chase UR points, BA Avios, SPG points, or Amex Membership rewards points to get tickets on another carrier, preferably in Business or First. For all international tickets, we use points almost exclusively for Business/First on whatever carrier has the best routing and concomitant quality. We both own businesses and rack up points using credit cards (SPG Amex, Chase Sapphire and Ink Plus, Amex Platinum mostly, but also Alaska Visa and Lufthansa Visa). I even paid all my taxes using Chase Sapphire and Lufthansa cards so I'd get more miles, since we want to get Business/First international tickets and the cost of paying taxes with credit cards is still much less than the comparable cost of buying those tickets.


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(@Chris)
Joined: 12 years ago

Posts: 6

My issue with respect to loyalty is -not- miles; I rarely use them, because "free" tickets don't accrue Qualifying miles. My interest is primarily airport handling (premium checkin, security and boarding)and upgrades (which,since my primary use of DL is on transcon flightsn is pretty much gone.)


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(@Morgan)
Joined: 14 years ago

Posts: 2

A very level-headed approach to a tough question. Thanks, Lucky.


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Diamond
(@anthony-3)
Joined: 5 years ago

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Posts: 924

I would caution against statements that loyalty doesn't matter. It all depends on what type of customer you are.

If you are a customer that earns most miles through credit card spending or sign ups and is interested primarily in redeeming miles for international travel in premium cabins, this may be right.

A large number of customers earn the majority of miles via actual flying and use the miles they earn to fund trips. Most of my flying is purchased via a corporate card (no points for spending). I know fliers that fly hundreds of thousands of miles annually in this category. For them, loyalty is meaningful as it can get them premium security, boarding, lounge access, etc. In this case, how miles are earned by flying are critically important. These customers may value elite status more than everything else and more or less give away miles (in the form of trips) to friends and family.

Fliers with the ability to gain elite status and value those perks should seriously consider being "loyal" enough to an airline to gain that status.


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Diamond
(@anthony-3)
Joined: 5 years ago

Member
Posts: 924

Just for some context - I travel a relatively low amount (25,000 miles) domestically for business. I was a Delta Silver last year but just missed for 2014. Even though Silver is a meager perk, it is still meaningfully better traveling with status domestically than it is not. I've noticed not having those perks this year. Is it enough to make me consolidate travel? Maybe not at Silver. But if were closer to Gold territory, I would absolutely go for status (either on Delta or American)

Some people have to fly for work. Loyalty may make that experience easier.


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(@Eric D)
Joined: 12 years ago

Posts: 4

I'm pretty novice when it comes to airline miles/rewards but the one thing I've learned early on is to not be loyal to any particular airline program. What I prefer instead is having a miles/rewards card that I can use for travel in general.

For example, I have a Discover Miles card that has a $0 annual fee but only accrues 1x miles for every dollar spent on it. I also just signed up for the American Express Premiere Rewards gold card that accrues points much faster than that but does have an annual fee.

Point is that using a card that accrues points you can use on travel in general is better in my opinion than being loyal to specific programs. The points I can earn on either card can be used on airlines/hotels/rental cars and other travel needs as well as being used to shop at certain sites like amazon.com overstock.com etc.


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(@Deltasegmentfly)
Joined: 13 years ago

Posts: 4

I go along with Anthony's comments. If you have to fly for a living there are large advantages for being "loyal" to one airline. Forgetting about miles but just the perks that you get along with better customer service makes a difference.


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(@Derek)
Joined: 12 years ago

Posts: 1

My advice would be for John to re-qualify for elite status for next year, then status match with whatever airline he fancies. Since it's so easy for him to get status this year as a Washington resident, that's a no brainer to me -- he can do status matches and "sample" the other flavors next year, then decide if he wants to jump ship or stay.


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(@John DELTA)
Joined: 12 years ago

Posts: 66

@Derek,

That is exactly what I am planning. I have spoken with lucky regarding my mileage run plan to get DELTA Gold Status (through their bonuses and CC offers) and immediately go for status match with two specific airlines that would serve us well in the Pacific NW.


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(@compspy)
Joined: 12 years ago

Posts: 2

Loyalty programs were created a long time ago when people chosen airlines they fly based on previous experience. This is what is happening now with many European and now especially with Asian and Middle East carriers.

US airlines on the other hand know that they have to be price competitive. I work for the employer where we have a search engine that does not allow us to book if there is cheaper air fare available. Many companies have same rules.(majority of business class seats are taken by business passengers)

And for majority people who are flying economy, when they search for the flight they go to kayak.com and search for cheapest airfare, therefore its not surprising for airlines slowly remove loyalty in order to keep their cost low to get more passengers.


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 JB
(@JB)
Joined: 13 years ago

Posts: 7

My new strategy is SPG and credit to Alaska (even though I live in NYC).


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