With Mileage Makeover, we take a typical frequent traveler, and we show them how to manage their miles so that they can achieve their travel goals. Then we show you the results so that you can learn from their experience.
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Name: David A.
Residence: Rochester, NY
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I finally have a worthy situation. I've been a US Airways Silver Dividend Miles Preferred Member and US Airways Dividend Miles Visa Platinum holder for the past two years. I recently received a letter stating that my Visa will be converted to a "US Airways Signature Visa" in 2004. Here are a couple of the benefits that accompany this new Signature Visa:
Preferred check-in with First Class/Envoy Class/Elite Dividend Miles members
Preferred boarding with First Class/Envoy Class/Elite Dividend Miles members
One free US Airways Club Pass* Companion tickets at $99 with purchase of ticket priced more than $250
So, here's my question: why should I continue logging 25,000 miles a year on US Airways if I can basically have the same privileges for just being a Signature Visa cardholder? Yes, I have unlimited upgrades as a Silver Preferred member, but I have not been able to use any in 2004 since first class seating is limited or non-existent. And, with the Silver Preferred membership, I never received a free Club pass. In many ways, I get the same or better perks with little commitment (i.e. no 25,000 miles flown in calendar year).
Initially, I thought this offer was extended to a select few that may have elite status and the Visa card, but I saw the offer on the US Airways website, which led me to believe that the card offer was not exclusive (on a basis other than credit worthiness). What gives? The elite benefits led me to consolidate my travel on US Airways and, in some cases, at a premium to do so. Now, I'll focus my travel business on another carrier to obtain elite status and fly US Airways sparingly since their flights and prices are not always conducive to my plans. I doubt that this is the effect that US Airways attended. Care to offer an insight as to why this is a smart move by US Airways?
David, this is a wonderful example of a current trend among frequent flyer programs and certainly one that I believe we'll continue to see more of, despite the seeming inconsistency you so astutely point out.
First of all, let's look closely at the comparison of benefits between the two opportunities:
Silver Preferred Benefits
Star Alliance Silver Status for Silver Preferred members.
Silver Preferred members and their traveling companions are eligible to receive unlimited E-Upgrades. Any E-Upgrades in a member's bank will automatically convert to miles upon qualifying for Preferred status.
Silver Preferred members may confirm an E-Upgrade request any time in advance of departure for travel on unrestricted fares and one day prior to departure on all other eligible fares.
Silver Preferred members earn a 50-percent mileage bonus for paid, qualifying flights on US Airways, ANA, Caribbean Star Airlines, Caribbean Sun Airlines, Lufthansa, Spanair and United.
Silver Preferred members are invited to check in at any of the following airport ticket counters:
- US Airways Preferred or United Premier counters *May only be used for same-day travel on United.
- US Airways First-Class counters when traveling in the U.S., Canada, Mexico, Bermuda, the Caribbean and Central America
- US Airways Envoy-Class counters for transatlantic flights.
Preferred Boarding. Members are permitted to board the aircraft early along with First-Class and Envoy-Class customers, as well as with United First, United Business and United Economy Plus passengers.
Preferred Seating. When traveling in Coach Class on US Airways, premium aisle and window seats are reserved for members when possible. When traveling on United, members are eligible to reserve a United Economy Plus seat on a first-come, first-served basis.
Private Connections. Members have access to private, toll-free phone lines for reservations and customer service in both the United States and Europe. In addition, members can contact the Dividend Miles Service Center via a private e-mail address.
Blackout Dates. Blackout dates for award travel on US Airways and United do not apply to Silver Preferred members and their traveling companions.
Club Benefits. Silver Preferred members are eligible for a discounted annual Club membership rate.
The benefits highlighted in blue are those that overlap with your Bank of America card offer. Perhaps you are underestimating the value of the other benefits of the Silver level of elite. Let's take a closer look at the benefits of both offers and actually compare the pros and cons of each benefit.
We don't believe there is any value at all in the Star Alliance Silver status benefit. All the really worthwhile benefits of that program start at the Gold level, and achieveing that may be a stretch for you considering your hesitance to put more into your Dividend Miles membership.
The value of unlimited e-upgrades may also be overblown. Fact is, the upgrades are tough to get. While we certainly don't believe US Airways is purposefully withholding them from their members, the airline's reliance on a route system that features a substantial number of regional jets results in a system which offers no reliable upgrade benefit.
Bonus miles. As a Silver Elite member you do earn a 50-percent bonus each time you fly on US Airways and on United. This is certainly not a bonus to turn you nose up at. In effect, this amounts to more than 12,500 bonus miles annually. While it is true you will receive a 15,000-mile first purchase bonus with the Visa Signature Card, that is a one-time event only. Say what you will, but we have a hard time ignoring the 12,500-25,000 annual bonus miles you'd receive as a Silver elite member. You might consider playing the Dividend Miles frequent flyer game to at least 15,000 flight miles annually, then combine those with the 10,000 Preferred miles this credit card will give you when you spend at least $25,000 annually.
Preferred check-in. You mentioned this so it apparently holds high value to you. We feel that in a day and age of online and kiosk check-in, this benefit may have seen better days.
Preferred boarding. Unless you are on a full-size aircraft, the changes airlines are making to speed along the boarding process may mean zone boarding is about the best you're going to get, and that usually means no benefit at all.
Preferred seating. This is a biggie, and it's only offered with Silver Preferred status. With travel rebounding and US Airways re-thinking its pricing strategy, you're bound to see three across much of the time. For our part, we'll take all the opportunities we can get to control our seating assignments.
Private Connections. Uh, unless you aren't very good at managing your miles, this should not be much of a factor.
Blackout date holidays for awards should not be overlooked. While many already scream of not getting the awards they want, imagine trying to plan your award trip to Hawaii around the 19 days that award travel is not permitted for regular members, or to the Caribbean (19 blackout dates), or to Europe (37 days blacked out). Heck, there are even nine days blacked out for domestic travel. As a Silver Preferred member, however, you can take advantage of one of the 'secrets' of award travel -- you can plan your award travel on these blacked out days. It works like a charm, so don't overlook this as a plus for maintaining elite status.
Club benefits. If you are a penny pincher, you'll see value in getting a $50 discount on US Airways Club membership renewal. Sure, you can get a single Club pass from the credit card offer, but what's a single pass to a true frequent flyer. If you're on the road often, you need more access. And, when you consider your membership can and does allow you access to other airline's lounges, we'd say you may want to rethink this benefit.
To be fair, we do like a couple of benefits offered with the credit card that you didn't mention. As noted above, we really like the 10,000 Preferred miles that are credited to your account when you spend at least $25,000 annually with the credit card. We also like that the credit card occasionally offers discounted awards to cardholders only. While this is similar to some elite-member offers, it's nonetheless a benefit that can be counted on as being valuable.
At this point, we're almost ready to call this whole thing a tie. There are very specific benefits that can only be earned as a Silver elite member, yet there are a number of things you could accomplish with just the credit card alone. But there is still one more benefit we need to address -- the annual $99 companion ticket. This is a very rewarding and valuable benefit that should not be overlooked. Sure it requires a purchase, but what you are purchasing is essentially an award for $99, and that value can't be overstated when you take into account the limited nature of award availability.
OK, we're down to the wire. What to do, what to do?
Frankly, US Airways is going through a lot of change right now; some of the changes will benefit you and some will not. While we'd love to support US Airways on this one, honestly, you would probably be better off earning elite status on another program that serves the Rochester area (the airline alliances can really make it work for you) and use the Dividend Miles credit card, and it's benefits, to suit your needs.
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