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| Terry Allen |
American Airlines is making international first-class award flights more expensive. Delta is making free upgrades to seats with more legroom more elusive for elites traveling with low-status companions. Marriott is acquiring Starwood, which will likely spell the end of a top hotel loyalty program.
As reward programs continue to be devalued, is it still worth being loyal?
“Times like these can be good,” said Brian Kelly, a miles expert and founder of Thepointsguy.com. “It forces people to be smart about their strategy.”
Here’s how.
Airlines
Occasional fliers need not commit to a single carrier. Miles hobbyists advise playing the field. Choose flights based on practical factors (cost, desirable airports and times), but continue to sign up for and use frequent flier numbers. It’s easy, free, you might amass enough miles for an award ticket, and, if all else fails, you can use the miles to get a magazine subscription.
If, however, you fly 25,000 miles or more a year, you may want to stick with one airline, said Gary Leff, the author of the miles-and-points blogView From the Wing. Travelers who fly 25,000 miles a year, which is typically the lowest elite tier (the highest is usually 100,000 or 125,000 miles or more), can still obtain a few perks such as free upgrades on certain flights and a free checked bag — although you can sometimes get similar benefits simply by signing up for an airline credit card. The American Airlines Citi/AAdvantage Platinum Select MasterCard, with a $95 annual fee, for instance, gives members traveling on domestic flights priority boarding (Group 1) and a free checked bag (for you and up to four companions).
Those who are already elite fliers on American will probably be most affected by some of the coming changes. They include new award prices (March 22) and, in the second half of 2016, the awarding of miles based on ticket price instead of distance flown. How many miles you receive will also depend on your status in the AAdvantage loyalty program. For instance, if you’re a “member” (the lowest status in AAdvantage), you’ll receive five miles for each dollar you spend. If you’re Executive Platinum (the highest status), you’ll receive 11 miles for each dollar spent. If you don’t have elite status, things won’t change much when it comes to redeeming award tickets. Some coach award trips will cost more; others will cost less. International business class award tickets will go up slightly. “It’s really international first-class awards that get much more expensive,” Mr. Leff said
The changes coming to Delta are also more likely to affect travelers with elite status. For those traveling on or after May 16, 2016, the airline will treat its Comfort+ seats in the main cabin (which include more legroom, priority boarding and free drinks), as a separate fare class. Mr. Leff said that for now most elite passengers traveling on their own shouldn’t notice a big difference, but in the future the change Delta made to Comfort+ could allow the airline to capacity control upgrades, preventing elites from getting a Comfort+ seat even if they are eligible for one. Additionally, elites who want to travel with family or friends will have greater difficulty. That’s because in the past up to eight people traveling with you on your reservation could be upgraded to a Comfort+ seat at the time of booking. Now Delta Diamond and Platinum members can take one companion on their reservation, not eight, and eligibility for an upgrade to a Comfort+ seat is based on the lowest status in the reservation and will be confirmed only 24 hours before departure. In other words, a Delta Diamond (the airline’s highest status passenger) traveling with a spouse who has no status would be sent to the back of the upgrade line.
On the bright side, there are still many ways to earn miles, even from your couch.
For example, do your holiday shopping (heck, all your shopping) through airline portals that link to various retailers’ websites and give members miles for what they spend. For example, American Airlines hasAadvantageeshopping.com, where recent offers included 10 miles for each dollar spent at Saks.com, and 5,000 miles for certain smartphones onVerizonwireless.com. On the United Airlines shopping portal,Shopping.mileageplus.com, offers included 10 miles for each dollar spent atPetSmart.com, and two miles for each dollar spent at Apple.com.
Remember, too, that you can earn miles in many other ways including signing up for an airline dining rewards program (you get miles for what you spend at participating restaurants), or by purchasing Broadway show tickets through an airline partnership with the Audience Rewards program.
To get a windfall of miles or hotel points at once, you need a rewards credit card. A recent sign-up offer from Chase Sapphire Preferred included 50,000 points and the annual fee was waived for the first year. Cards like Chase Sapphire Preferred, which gives users double points on dining and travel-related expenses, allow you to transfer those points to multiple loyalty programs including United MileagePlus and Virgin Atlantic Flying Club, helping you get closer to international award travel in a premium cabin.
Hotels
As with airlines, you should join the rewards program of whatever hotel you visit. It’s free to sign up and big chains have many brands under the same umbrella. The Hilton HHonors reward program, for instance, includes the Waldorf Astoria, Conrad Hotels and Resorts, Embassy Suites by Hilton, and DoubleTree by Hilton brands.
What will happen to the Starwood Preferred Guest program remains to be seen. Points experts predict that it will be absorbed into Marriott’s existing loyalty program. Marriott members will be able to choose from an array of more luxurious properties. Starwood members will be able to use their points at many more hotels, though as Mr. Leff put it: “There’s no world where Starwood elites are better off from this.” Marriott doesn’t do as much for its elite members as Starwood, he said, adding that “Marriott Platinum is not even guaranteed late checkout” (Starwood Preferred Guest Gold members receive a 4 p.m. late checkout at most properties). If you’re a Starwood elite, he thinks it’s probably best to redeem your points before changes are made. He and others estimate you have at least a year.
The Takeaway
Devaluations are, alas, par for the course. But there are still perks. So continue signing up for reward programs. Flying at least 25,000 miles a year? Consider committing to one airline. If you’re just meeting the lowest elite level requirements of the airline’s loyalty program, compare its benefits to those on offer from the airline’s credit card.
Earn miles and points when you shop online by registering with an airline portal, and when you eat out by signing up for a dining rewards program. And don’t hoard the miles and points you earn. Airlines and hotels can change their worth at any time. If you’re wondering, “Should I use my miles?,” said Mr. Kelly, the answer is yes.
“Stop stressing about what could happen,” he said, speaking from the Etihad lounge at John F. Kennedy Airport in New York before flying off to Abu Dhabi. “Plan a trip.”
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