Airlines and hotels have been generous with status extensions for 2021. Will you reward them with more business or use the chance to be a free agent while still maintaining your status?
With a dwindling number of holdouts, airlines and hotels are offering complimentary, no-strings-attached status extensions for 2021 since travel has been so interrupted by COVID-19 this year.
That’s wonderful news for frequent travelers, many of whom have seen travel dramatically reduced or curtailed completely. The status extension will avoid “unnecessary” end-of-year mileage runs for those on the cusp of re-qualification and serves as an important reminder that loyalty is a two-way street.
But there’s an uncomfortable reality underlying these status extensions. If I don’t have to stay at a Hyatt any longer in 2020 to qualify for Globalist status in 2021, why should I go out of my way to stay at Hyatt? If I don’t have to fly United any longer in 2020 to qualify for 1K status in 2021, why should I go out of my way to fly United?
Perhaps airlines and hotels have already written off 2020 and are only looking ahead to 2021 and hoping to maintain their cadres of loyal travelers. But, at this point at least, I assume travel will resume later this year and travelers like me are left in an interesting position.
Will I still use United for most of my travel needs? Likely. But I won’t think twice about flying American (where I also hold top-tier status), Alaska, or Delta if the schedule and pricing is more attractive. I’ll also use the remainder of this year to burn more miles and focus on new and exotic airlines, since I may have to return to the elite qualifying game next year.
When it comes to hotels, I always go out of my way to stay at a Hyatt. Sometimes that is not possible, like during my recent trip to Africa, but most of the time you can find a Hyatt. While I will still not think twice about staying at higher-end Hyatt properties, you can bet I’ll think twice before my next Hyatt Place or Hyatt House stay if there is a more convenient or cheaper hotel nearby.
With this unavoidable paradox, I was so impressed with Air Canada’s clever option of combining status extensions with the promise of being nominate a friend or family member if you still actually re-earn Altitude status in 2020. It’s smart because it it gives otherwise-loyal Air Canada travelers an extra reason to be loyal, a new milestone that might push business that is already there.
CONCLUSION
I’m grateful that hotels and airlines have stepped up to extend status through 2021. That said, I’ll probably use the opportunity to branch out and check if the grass is indeed greener on the other side of the pasture.
How about you? Do status extensions alter your hotel and airline choices in 2020?
Exactly right. They did not think this through very well. They should have instead lowered status thresholds for this year. Im Explorist and was going to try for Globalist, but now no point. Instead I’m thinking of *gasp* getting a Marriott biz card for 30 nights credit and going for Plat or Titanium.
I am thinking the same. If I can expect to receive a lot of elite status benefits, I will certainly book that airline or hotel brand. However, if for example it is a lower end brand hotel like a Hyatt Place/House but it is 40% more per night than a newly built Hilton Hampton Inn next door where I also receive free breakfast without having status, why bother spending the extra money? I would like to reward the companies that showed goodwill in this situation, but with the economy hitting a recession, my own cost cuts will also play a role in my loyalty.
I’ll take the opportunity to redeem miles and take that liability off the books for United. Otherwise, it won’t affect my flying patterns – if they resume – because I don’t have status with anybody else.
Well I’m with BA gold and if they don’t extend I’m getting a status match and going elsewhere. Their current tier ‘flexibility’ option is a joke.
Ever since graduate school my entire strategy behind loyalty programs has been to focus all of my activity with one company (I am much better about this with airlines than hotels, though). I have what my wife considers to be a lot of travel, but I am well aware that the only way I maintain decent status is by sticking to one company … just as these companies intend. I suppose that I could try to status match and explore other airlines, but I doubt I’ll be able to enjoy the same status level and fly enough to actually fully match my status with a second carrier, particularly for the remainder of this year.
And who knows if airlines will figure out some way to provide incentives for its elites to keep flying with them? We’re still very, very early in 2020.
All that said, I suppose that it is something to think about …
Currently EXP with AA, largely a function of being based out of PHL. So – barring an extreme shakeup of the airlines at PHL in the wake of COVID – I don’t see my airline “choice” changing.
But I had already made the decision to switch from (long-time) Marriott loyalty to Hyatt at the beginning of this new year. I’m currently Ambassador with LT Titanium with Marriott, but, like many, I have been underwhelmed by the program in recent years.
The sales manager at the Hyatt I switched to for my current long-term project actually sponsored me for Globalist in mid-January (I came in with zero Hyatt status), and the staff has been fabulous. Add in how out front Hyatt has been in addressing the current situation as compared to Marriott, and I’m definitely sticking with Hyatt!
Also, Hyatt’s Milestone awards are a great mechanism for encouraging future stays this year, as I’m sure others have pointed out. Because I only have 36 nights so far, I get benefits like the free breakfast but don’t yet have any suite awards.
@ Matthew — Punish some, reward others. We will be looking out solely for our best interests, just like the greedy crooked executives of certain companies. I have a very long memory.
Assuming AA offers it up eventually, the only different travel pattern I’m planning on exploring is trying to get Gold with United (really just for *G to use outside the USA). Assuming international travel exists at some point in 2020, it shouldn’t be that hard considering the reduced PQP thresholds.
It will result in a reward for the particular airline in terms of goodwill. It won’t result in punishment. For example, if one is elite in Alaska Airlines, they aren’t likely to get a status match with Delta and start flying almost entirely Delta unless they were planning to do so months ago.
One exception might be if one airline is a hold out then some people who are not angry will fly to maintain status for the next year. However, quite a few will be angry and some may quit the airline.
I think that United’s calculus is that elites would leave if they hadn’t followed Delta.
If so, I would think they’re right.
Agreed.
My partner and I will punish China. We cancelled our 2020 trip and 2021 plans.
We’ll reward Taiwan with our $.
Don’t forget to go vote for idiot Dump while you are at it.
Yeah, instead let’s vote for an economically illiterate socialist or a senile corrupt sleazeball who gave billions in cash to our enemies and wants to do more of the same.
Pretty telling that you hate our president more than our enemy China.
@ WR2 — Your description of Trump is spot on — “senile corrupt sleazeball who gave billions in cash to our enemies and wants to do more of the same.” However, you did leave out the parts about being a pathological liar and giving billions in cash to himself and his family.
WR2 you are pretty clueless so I think Marriott will treat you quite well! Buh bye.
Travel will be tougher this year. I will be loyal to my preferred partners (American and Marriott) as much as possible. They are making it difficult always being the last programs to announce changes and/or extensions and if that continues, may need to re-think.
Hyatt doing a status extension has absolutely cemented my loyalty to them. They’ve done the right thing a couple of times now in this mess. First there was pushing back variable pricing. To the best of my knowledge, no other major travel company has rescinded variable pricing. That took guts. Then the offer of status extension for an entire year, with every benefit and certificate extended as well? Find any other big travel company doing something of that magnitude. These don’t even consider the milestone awards, which will continue to provide incentives to stick with Hyatt. I was loyal to Hyatt before, now I’m SPG loyal to them.
The analysis is correct but misses the point that status earns benefits. I’m Diamond with Delta and Hilton, so I enjoy perks that I wouldn’t get (at least without paying extra for them) from other providers. While it’s true that I won’t need to make any year-end mileage runs, the status extension incents me to continue choosing those companies since I receive greater value from them. It also mitigates to some extent the benefits that I’m missing by not traveling during the pandemic.
I wonder if these companies will actually use the re-start, when it happens, to continue to downgrade the features and benefits of these programs? Look at what was happening in the past few years when these companies were flush, or semi-flush. They eroded the benefits, raised requirements to achieve statuses, increased point requirements while adding “convenience” fees, shrinking lounge services, etc. Now, when they re-open, their balance sheets will be in terrible shape and they will be looking to cut corners, costs and benefits. Just as they waited to extend status, taking a herd approach, just as they would increase points requirements or check bag fees, or seat reserve fees until the first company did, I think we will see the same behavior come 2021…I do hope I’m wrong! 🙂