SFGate: The 3-tier frequent-flier award levels analyzed

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Sunday, August 10, 2008 (SF Chronicle)
The 3-tier frequent-flier award levels analyzed
Ed Perkins, Tribune Media Services


   The next big frequent-flier devaluation is under way. Alaska Airlines be=
at
Delta Airlines to the punch by a few days, but both carriers unveiled
three-tier award schedules that replace the traditional two tiers. The
upshot is that you'll have to pay more miles for even a slim-chance seat
on many trips and a lot more miles for a reasonable chance at a seat for
any trip. Look for other big lines to follow, in short order.
   The biggest change is from Delta, which has converted almost all its
awards to three levels:
   -- The base award level for domestic and most international coach/economy
travel remains at the almost universal 25,000 miles. That's for access to
a highly limited inventory of seats - the seats that range from difficult
to impossible to obtain. Delta calls that its Discounted level; in my
earlier report, I called it "fat chance." Sample round-trip credit
requirements in coach/economy will be 25,000 miles for the United States,
except Hawaii, and 60,000 miles for Europe (up 10,000 miles). Sample
premium-class awards are 45,000 miles in the United States and 100,000
miles to Europe (also up 10,000 miles).
   -- A new intermediate level provides access to a larger but still limited
inventory of seats. Delta calls it Expanded. Sample requirements are
40,000 miles for the United States and 90,000 miles for Europe in economy;
80,000 miles for the United States and 200,000 miles for Europe in
premium. Those amounts are only slightly below the previous any-seat
requirements.
   -- Delta reinstates availability to the last open seat; Delta even calls
the level Last Seat. Samples here in coach/economy are 60,000 miles for
the United States and 125,000 miles to Europe; in premium, they're 100,000
miles for the United States and a whopping 350,000 miles for Europe. Those
are all higher than prior levels.
   In general, the new intermediate levels are only slightly below former
Last Seat levels, and the new Last Seat levels are much higher. The new
amounts are punitive for some awards: At 350,000 miles, a sure-thing
premium seat to Europe would wipe out lots of mileage balances in one or
two trips. Delta obviously doesn't want its frequent fliers scoring many
seats up front.
   The new Delta award schedule goes into effect in September. Until then, I
expect Delta will be even stingier than usual with its "fat chance"
awards. For a full award chart and more information, log onto Delta's Sky
Miles page, click on "what's new" and "go to program updates."
   Alaska had earlier announced similar but more limited changes. Three
levels apply only to coach travel: The Super Saver systemwide requirement
for round-trip U.S. travel is up from 20,000 miles to 25,000; the new
intermediate Choice level will be 40,000 miles, and Full Flex will
increase to 55,000 miles. First-class awards will be 50,000 miles for
Super Saver and 100,000 miles for Full Flex.
   Flights to Hawaii and Mexico will increase comparably. In addition, Alas=
ka
will add some lower-mileage awards for intrastate travel in Alaska,
California, Idaho, Montana, Oregon and Washington. The new awards will go
into effect with bookings made starting Nov. 1. For a full award schedule
and more information, go to www.alaskaair.com.
   What remains murky is how these changes will affect awards on Alaska and
Delta partner airlines, none of which has yet switched to a three-tier
program.
   I suspect the other big lines are likely to copy. The net effect will be
to increase the number of miles most travelers pay for a domestic coach
trip from 25,000 to 40,000 miles.
   Those big airlines have created a monster. They make a huge profit selli=
ng
miles, then make it almost impossible for us to use those miles. What they
should do, of course, is fulfill their implicit promises for adequate
numbers of award seats at "fat chance" levels. For now, however, that
remains a "fat chance" outcome.

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Copyright 2008 SF Chronicle

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