Dear American Airlines,
It’s not too late to save your loyalty program. You need not go down the path of Delta and United.
On the redemption side, both Delta and United have moved toward a more dynamic pricing model. Such a model eliminates awards charts and allows, in both theory and practice, for a rapid escalation of pricing. These airlines point toward “new lower prices” for select short-haul redemptions, but the most valuable redemptions–the sort of redemptions that truly make collecting miles worthwhile–have been sacrificed or are being prepared for slaughter.
I see you are already halfway to that goal with a confusing new award-search tool that no longer distinguishes between a “saver” and “standard” award. I also note that your pricing, at least in terms of “AAnytime” standard awards is already fairly dynamic.
But you have upper limits on awards. You also have clearly-defined pricing for partners that takes out the mystery of how much a flight will cost. Although we will still be at the mercy of that partner making space available, at least we will not be at the mercy of wondering if we will have enough miles for the trip.
I’ve focused on the redemption side, but on the loyalty side, you also have an opportunity to save the program. While I’m resigned to the fact that distance-based earning (versus $-based earning) is a relic of the past, meaningfully rewarding loyalty through unparalleled customer service is within your grasp. Why? Because I remember how wonderful the Executive Platinum call center once was. It no longer is. Quite the contrary, agents often have no grasp of even handling simple matters. This much change. But it’s possible because you’ve done it before.
You lose money flying but report profit due to the AAdvantage program. Please do not overestimate the elasticity of customer demand when the value is continually diminished from your program. Please understand that you make money, via selling more miles, when you offer a program that is worth being loyal to. It’s not too late!
Best Regards,
Matthew
So, so sad… I was an EP for many years. Breaks my heart what has happened to the AAdvantage program. I know AAdvantage prez Bridget and her heart is definitely in the right place. However, the program is in the hands of USAir and the glimmer of hope it’ll ever return is long gone.
It’s a lost cause. I have about 600k miles….guess I’d better burn them fast.
@ Matthew — Nice letter, but the party is over. If we have a moderate to sever recession, it wouldn’t surprise me to see AA bankrupt again.
Sad indeed, and making it more difficult to make redemption choices. Do I continue to save big miles for down-the-road int’l J&F redemptions? Will they even exist by the time I’m ready to fly? Is it better to purge them on domestic flights to be flown ASAP, before they get pricier as well?
Too bad. There is literally going to be no reason to be loyal to any airline. Luckily I live in a major city with lots of airline competition and two major airports. Once AA makes the change, the deciding factor will come down to price per ticket, and that’s all.
I quit AA when they went revenue based and no Regrets now fly the cheapest airline for the route. It is no longer AA anymore than America West was when US Airways destroyed them also ! Exec Plat for 12 years and 1,679,000 miles for nothing , my only regret is that I gave American my loyalty for so long only for them to stick a knife in my back.
I gave up too after loosing useless Worldwide Upgrades. Now i fly Lufthansa for Europe and Avianca for South America with Lifemiles program. Thanks AA i have discovered something better than AA.
My husband flies AA twice weekly regardless of what else is available, mostly due to the convenience and the loyalty program.
Deciding to do away with your AAdvantage program will not only affect millions of travelers but could possibly send American into bankruptcy once again.
I read about the decline of the AAdvantage program in multiple places, but still AA march down a path of maximizing short term profit while times are good. When times get tough, and they will, it’s your loyal flyers who see you through. AA in chasing those short term profits, are dismantling their safety net.
How many times do people have to be kicked in the teeth before they realize most corporations don’t give 2 sh**s about them? Does Starbucks open in every corner of the world because they want to provide more access to coffee? (Notice I didn’t say “good coffee”). Some companies realize that good customer service is the key to long term profitability. Most just want to suck you dry and worry about the fallout later. Hello, American!
American just won Best Frequent Flier program for elites for the Americas at the Freddie Awards. You’re full of crap.
Lol.
I’m a 2 million miler who now avoids AA at all costs. Just dumped my credit card. When you’re treated like you don’t natter, the message gets through.
“While I’m reticent to the fact that distance-based earning (versus $-based earning) is a relic of the past, meaningfully rewarding loyalty through unparalleled customer service is within your grasp.”
I think the word you were looking for is “resigned,” not “reticent.” The latter is all too often misused.
https://www.merriam-webster.com/dictionary/reticent
https://www.merriam-webster.com/dictionary/resign
Correct. Thank you. I’ve edited this.
I’ve been disappointed to discover the shortcomings of American Airlines Million Miler program compared to United. I’m a 4 million miler and lifetime Platinum with American Airlines. If I had done the same with United, I would be lifetime Global Services and able to extend that status to my wife. I wish I had it all to do over again. Matthew, have you ever written about this difference between these programs or contacted American Airlines?