How did American Airlines spin its decision to start charging more miles and “co-payments” for certain upgrades? Not very well, based on the reaction to an email sent to its best customers yesterday.
In fact, this might make a business school case study on how not to talk to your customers.
Let’s go straight to the letter:
Did you realize that your AAdvantage(R) miles could move you into Business or First class on your next trip on American Airlines*?
That’s right – AAdvantage members traveling on most purchased fare tickets have the ability to use miles or miles plus a co-payment to upgrade to the next cabin of service.
Since this letter was sent to American’s frequent fliers, the answer is: of course I knew! But wait, what’s this business about a co-payment?
You can request a mileage award upgrade when you purchase your ticket or alternatively, at anytime up until 2 hours prior to departure. If an upgrade is not available when you request it, we will add you to our upgrade waitlist and you will be automatically confirmed when an upgrade award becomes available**.
This is news to most frequent fliers, even though American announced it a few months ago.
Members purchasing full Economy fares (booked in Y or B) may use as little as 5,000 miles each way to upgrade on domestic itineraries and as little as 8,000 miles each way to upgrade on international itineraries.
Clearly, American is hoping you haven’t paid close attention to what its redemption levels used to be and, of course, that most of its awards used to be “free.” This announcement reads like the airline wants to share an exciting new opportunity with its best customers.
Hang on.
Effective October 1, 2008, Upgrade awards from most Discount Economy fares will change as follows:
Upgrade within the continental U.S. and Canada, within and between the continental U.S. / Canada / Mexico / The Caribbean or between North America and Central America will require 15,000 miles plus a $50 co-payment.
Upgrade between North America and Europe, Japan, China, Argentina, Bolivia, Brazil, Chile or Uruguay will require 25,000 plus a $350 co-payment
Upgrade between North America and India will require 40,000 miles plus a $350 co-payment
Let’s be clear about this. You now have to pay American Airlines real money to use its “rewards.” They shouldn’t be allowed to call that a reward.
The current award structure will apply to members who request upgrade awards prior to October 1. For complete information regarding award changes, visit www.aacom/awardchanges.
Make the most of your AAdvantage miles and treat yourself to an upgrade on your next trip. We hope to see you on board soon!
They’re wrong about that. I received several angry letters from American fliers who received this email. I knew I had to write something about this when my brother announced he was switching his loyalty to another carrier as a result of these changes — and specifically, the way in which these changes were presented to him.
American should have been honest with its best customers. It needs the money and that’s why it’s charging them for something that used to be free.
By spinning this with a cleverly-written letter, it has offended its frequent fliers.
