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FREQUENT FLIER By
Tim Winship
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Twenty-five years after American Airlines launched the first mileage program, AAdvantage, more than one-third of Americans are members of one or more airline and hotel rewards programs.
That success delights travel marketing executives. But from their perspective, the programs' success is less about the big numbers than the small ones. The programs enable marketers to identify a company's core group of profitable customers and reward them in proportion to their contribution to the company's bottom line.
Those rewards are a "thank you" in the short term. And retaining those benefits is the carrot which keeps travelers coming back.
Airlines began distinguishing among good, better and best customers in the programs' early years by adding tiers. Most major programs have four categories of membership: general members, by far the largest group; and three elite groups, usually silver, gold and platinum or the like.
A traveler typically earns silver status by flying 25,000 miles during a calendar year. Gold requires flying 50,000 miles, and platinum status kicks in at 100,000 miles.
In exchange for their loyalty, as measured by miles flown, program members receive more bonus miles and easier access to flight upgrades as they reach higher tiers.
Hotel programs have elite members, too.
It's possible to generalize about airline elite qualification and benefits because most larger airlines designed their schemes along similar lines. There's no such conformity among hotels.
The benefits of the hotel programs' elite tiers are upgrades and bonus points, but they differ in qualifying criteria and perks offered.
While Hilton maintains a low threshold for attaining elite status, the benefits also are modest. Silver elites receive a 15 percent bonus on earned points and free use of the hotels' health clubs. But members will have to reach Gold status — awarded after 16 stays or 36 nights — to receive upgrades.
InterContinental and Marriott also reserve upgrades for higher-level elites. Both restrict upgrades to program members who stay at least 50 nights per year.
Starwood is the only one of the mainstream programs to bundle upgrades with first-tier elite benefits, which include a 50-percent points bonus. So although Starwood has a higher threshold for earning elite status, it also takes fewer Starwood nights to qualify for upgrades than in competing programs.
For those seeking upgrades across a national network of hotels, Starwood's Preferred Guest program may be the best choice. If upgrades are not a priority, Hilton puts the benefits of elite status within reach of many travelers who otherwise might not think of themselves as candidates for special benefits.
Other benefits, other roads to elite: Experienced travelers know that elite membership benefits go beyond those published in the handbook. Hotels understand that elite members are their bread-and-butter customers and express their appreciation in ways large and small. So, for example, hotel employees may exercise more flexibility for early check-in or late check-out for elite guests. They're less likely to book elites into the room next to the ice machine.
For those who don't register the required number of nights or stays, there are other routes to elite. Credit cards linked to the programs of Hilton, Marriott and InterContinental offer elite status among their benefits.
And travelers can purchase Gold status in InterContinental's Priority Club for $50 per year.
Reach Tim Winship at questions@frequentflier.com.
Reach Tim Winship at questions@frequentflier.com
