Is Airline Loyalty Worth It?

How much travel do you have planned this year? The start of a new year brings about that feeling of wanderlust… right as work travel picks up, too!

With travel at the forefront of your mind, you may be taking another look at that frequent flyer status. Now is a good time to examine your travel strategy for 2020 – these days, is it even worth it to stay loyal to an airline or should you just book in favor of the cheapest and most direct itinerary?

The Case Against

Prior to the 2008 recession, the airline industry was much more competitive and, thus, rewards programs were more robust. But the consolidation that occurred in the wake of the recession has left us with fewer airlines, even as people begin flying more than ever for both business and leisure.

As a result, the fewer airlines we are left with have no problem filling up planes – and less competition means less emphasis on rewarding customers for their loyalty. Across most carriers, the tiers of elite status have been restructured to become much more difficult to attain, while the rewards have been slowly devalued (with some benefits phased out altogether). 

Gone are the days of miles-focused qualifications, where frequent flyers could reach the upper echelons of loyalty tiers even through economy tickets. The expectation to gain status with airlines is that you’ll fly a lot… and spend a lot more. The earning structures are now heavily skewed to favor high-revenue flyers. Using spend requirements, airlines reward those who purchase expensive first class tickets with better service and better bonus earnings. One of the most striking examples of this is United Airlines‘ Mileage Plus program which, as of January 1, 2020, requires flyers to spend at least $12,000 for its Premier Platinum status and an astounding $18,000 for Premier 1K status in addition to separate flying requirements.

The fine print of your ticket also makes a difference in how you earn – fare classes determine the amount of miles and dollars that will count towards status. Depending on where and when you purchase your ticket, or in what cabin, you can earn less or more for your loyalty.

But still, if you are flying more often, doesn’t that mean you’re inherently spending more and therefore earning more than before by remaining loyal?

Not necessarily. You may be surprised to know that they price of the average airline ticket is lower today than it was 10 years ago – that is, until you remember that there are a million and one fees for anything else you may need. A checked bag will cost you $25, a practice that became universal to the large legacy carriers only in 2008. Getting a stand-by seat on an earlier flight used to be free, too. Now, that’ll cost you $75 on most carriers. Many of those fees do not qualify towards earning status with carriers. Neither do the veiled surcharges or taxes paid on the ticket you purchased.

And then there’s also the fact that airline loyalty often costs much more than whats in your pockets: it can mean having to take routes with multiple layovers, causing you to lose time, energy, and comfort. This is especially true if you live in a city where your nearest airport is a hub for one airline, yet you prefer to fly with another. 

The Case For

That said, any status is better than no status. For frequent flyers, this is especially true. The perks that come from elite flying status can make create a great deal of added value over time.

Waived bag fees can save you hundreds of dollars each year, and priority boarding means you’re more likely to have overhead bin space available for you. In the event of unfavorable contingencies, your loyalty may get you preferred treatment: not only in the way of waived stand-by fees and priority stand-by status, but also by increasing your chances of getting expensive change fees waived when you have to modify your travel itinerary. Several airlines have dedicated phone lines for their most elite flyers.

Even against the aggressive spending requirements, some rewards are well worth it. For instance, Delta offers its Platinum and Diamond Medallion SkyMiles Members a set of 4 upgrade certificates for domestic and global routes. Redeeming them over the course of a year could completely offset the $9,000 spent to get Platinum status or the $15,000 spent to get Diamond Status.

Most frequent flyer programs allow you to accrue miles that never expire, and it’s easier to aggregate them if you are flying with one carrier consistently. If you live near an airline hub, it makes sense to be loyal since you are already getting competitive ticket prices to many destinations. Additionally, the more elite tiers often allow you to earn bonus miles which means you accumulate faster.

The Bottom Line

For all the time, effort, and money put in, the benefits are too marginal to encourage all people to be explicitly loyal to one airline. Still, though, make sure to sign up for each airline’s frequent flyer program. You may incidentally earn more than expected over the course of a year, given all the possibilities that life throws at you!

Only when you are already spending a great deal of money on travel does it truly makes sense to try to be loyal to an airline… provided you also know how to work the system accordingly. 

And remember – whether you decide to go rogue or chase elite status – there are plenty of ways to make your travels more rewarding.

The primary way of receiving rewards from your travels should be through strategic, responsible use of a travel credit card. Many cards can provide you with same perks of elite airline status without you even spending a dime, and they’ll arguably provide better rewards for when you do. Airline co-branded cards often offer bonus miles, and some even count everyday purchases towards the spend requirements of elite status. Plus, there are several options for cards that provide you with access to lounges across the globe: both the Chase Sapphire Reserve and the Citi Prestige cards get you into Priority Pass lounges, while the American Express Platinum Card enables you to visit Priority Pass and Centurion Lounges in addition to Sky Club lounge access when flying on Delta routes. These cards, and others, also allow you to breeze through security if you are approved for TSA Pre-Check and Global Entry by offering statement credits for the application fees. 

In the event of disrupted travel plans, travel credit cards often offer trip insurance, along with lost and delayed luggage allowances. Some of them allow you to enjoy elevated hotel status without having to meet the spending thresholds, an especially helpful perk for those who live especially nomadic lifestyles.

More importantly, though, the points you earn on your credit card spending are much more flexible, easier to earn, and sometimes more valuable than the redeemable miles earned through airlines. 

Also, be sure to use the utilize airline alliances! Alliances and codeshares make it easier to earn miles and dollars but are often forgotten about, especially in the excitement of planning international travel. Partner airlines will usually recognize your status and provide commensurate perks.

Depending on where you fly, one alliance may be better suited for you than another. International travelers based on the West Coast, for example, may find the strongest appeal in the OneWorld Alliance, especially after last week’s announcement that Alaska Airlines would be joining the partnership. Alaska Airlines offers competitive pricing as a lower cost carrier, comparable service to the three big domestic airlines, and can now offer seamless itineraries and status recognition through its new partner airlines (one of which includes American Airlines, making OneWorld Alliance the only alliance with two U.S. domestic carriers).

I like to consider myself partial, but not loyal, to Delta Airlines. It’s no secret that I love the Biscoff cookies the offer for in-flight snacks, but the service is what makes them stand apart from the competition to me. However, if I see a great flight deal on another airline, I wouldn’t hesitate to book it – nor would I shell out hundreds (or thousands) more to fly Delta or SkyTeam Alliance just for status.

When it comes to travel, I’d rather we spend money enjoying the company and the destination rather than the journey.