United gives elite fliers miles for sharing rival info

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United gives elite fliers miles for sharing rival info
By Barbara De Lollis, USA TODAY

Reeling from a slump in high-fare business travel, United Airlines is
quietly trying to learn if its most frequent fliers are switching to
competitors. United recently mailed offers to some elite-level Mileage Plus
members inviting them to fax their mileage statements from up to three
other airlines. Their reward: 3,000 bonus miles for each statement to help
them requalify for another year in the perk-loaded top levels of Mileage
Plus. The offer is getting notice from some United fliers because usually
only paid flying miles count toward Mileage Plus Premier, Premier Executive
or Premier Executive 1K membership. Fliers need at least 25,000 miles in a
year to reach Premier and 100,000 to attain 1K status.

Frequent fliers covet elite status for the generous bonus miles for travel
awards, complimentary upgrades and priority services. Many frequent fliers
are elites in two or more programs. 1K member Russ Sharer didn't hesitate
to fax his statements. "3,000 miles are not a big deal; 9,000 are. I'm
willing to jump through some hoops to stay a 1K," says Sharer, a Santa
Barbara, Calif., marketing executive. Sharer plans to maintain his 1K
status for a sixth year, even though American is also courting his
business. American, he says, is quietly offering United 1K fliers access to
the elite level of its frequent-flier program to get more of their
business. Other United fliers say they might not share their statements,
citing concerns about privacy or the possibility of being "flagged" a
disloyal customer.

United's "Great Offer" also promises elite fliers additional bonus miles if
they make more United flights, at higher classes of fares, from mid-May
through mid-August than they did in the first quarter. The promotion could
raise badly needed revenue as United reorganizes under bankruptcy court
protection amid weak demand and intense competition from low-fare airlines.
"It's no secret that we want our loyal customers to stick with us," says
United spokesman Jason Schechter. "Programs that award our frequent fliers
help drive traffic." By analyzing fliers' travel patterns on other
carriers, United could try to lure back customers who show the greatest
revenue potential, says Thom Nulty, a former airline executive. "They're
thinking, 'Maybe we can get $30,000 a year more from this guy.' " The data
also could help United identify why it might be losing good customers to
competitors, says Blair Pomeroy, global director of airline strategy for
Accenture, a consulting firm. "That might lead to some marketing changes or
flag further analysis into whether it's a service issue, schedule issue or
maybe a terminal or lounge issue," Pomeroy says.

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