AAdvantage as we know it: Taking off, or flying away?
Over the past two years, most U.S. airlines, including Delta and United, have shifted their frequent-flyer loyalty programs from points-per-mile-flown to points-per-dollar-spent. American, the lone holdout, may be headed that way, if rumors prove true.
Tim Winship, the guru of frequent flyer programs and editor of the Frequent Flyer Crier, reports this week on rumors that American, which has refused to publicly speculate on AAdvantage's future, is quietly training its customer-service reps to handle a new dollar-based system to be implemented in late 2016 or 2017.
A dollar-based system puts the most rewards in the accounts of travelers who buy the most expensive tickets, and presumably contribute the most to the airline's profits. In theory, they are mostly business travelers who fly often, as opposed to coach leisure travelers who fly only a couple of times a year.
Delta's and United's changes have provoked widespread anger among some travelers, which may affect American's planning, or at least its implementation. At this point, having the only mile-based plan may be a competitive advantage.
In any case, a change-over to spend-based will affect mainly those point-collectors who earn the bulk of their miles "butt-in-seat," and not the many whose miles come from points earned by using credit cards affiliated with loyalty programs and the bonuses given for opening new cards.
Only Delta has made the change that would affect that: They've ditched the charts that tell you how many points are needed for a trip in favor of varying the cost depending on season and schedule.
Long and short: Keep piling up the miles, and keep your seatbelts buckled: There may be turbulence ahead!
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