David J.
Danto
Business travel
thoughts in my own, personal opinion
eMail: ddanto@IMCCA.org Follow Industry News: @NJDavidD
Where Have All The
Frequent-Flyers Gone? – July 2022
You can probably hear the music in your head. I
refer to the late Mary Travers, Peter Yarrow and Noel “Paul” Stookey singing “Where have all the flowers gone?” (If you can’t hear it, feel free to click the
picture to the left.) I take this poetic
license to highlight a growing phenomenon in domestic US air travel – the lack
of frequent flyers in the air.
There is no argument that the state of US air travel
this summer is just a mess (and that’s the most polite term I can use to
describe it.) Just take a look at some
of my and other trip reports on JoeSentMe.com if you need more evidence. The issue and the reasons for it are clear.
But something else that is very interesting is
happening in the background. A number of
factors are converging, and they don’t bode well for the US airlines.
· Airlines have gutted their frequent flyer programs
over the last few years. Passenger fares
spent has become more important than frequent travel to qualify for
benefits. That means the airlines are
set up to be nicer to the person that travels once on a high-priced ticket than
the person that is flying with them every week or month, filling seats on a
repeated basis. In addition, there is no
longer any loyalty back to the frequent customer from the airline. The ‘no
waivers and favors’ policy has been in place for many years now, and the
airlines’ disdain for their most frequent customers has never been higher. (See the recent Delta ‘get
out of our clubs’ stories as one example.) Airlines have totally forgotten that their
mission is to provide great service.
They firmly believe they exist solely to increase shareholder value.
· The COVID-19 pandemic had the ancillary effect of
showing knowledge workers that they can do most of their jobs quite well while not
heading into offices. Remote and hybrid
working is winning in the minds of the workforce, and they are commuting and
traveling far less than before.
· Many airline affinity credit cards have been cut-up by
smart travelers that see they can get better deals and more travel support from
firms like Capital One (see their
Venture card) and others. The
airlines already admitted (during their pandemic efforts for loan collateral)
that their frequent flyer programs are a more profitable asset than their
actual air service, so watching them squander the public interest in this asset
is not a good sign.
· The aforementioned summer 2022 travel “mess” (in
addition to all these other points) is keeping savvy people away from air
travel. Why even bother and have to face
the insanity if there are other ways to get the job done. One of the other results is the sky-high
fares of the summer are starting to drop.
When you combine these and a few other factors, you
find that the people that used to make-up the airline’s ‘best customers’ – what
used to be “Frequent Flyers” – are simply not traveling now. And that should be of grave concern for the
airlines’ current greedy management.
Take a look at the below United seating charts from a
trip I am likely traveling on as you read this.
Two days before travel, the back of the plane is nearly full, but
Economy Plus seats are mostly empty.
I find this more and more often on what used to be
very heavily traveled routes out of EWR. Who is entitled to get those E+ seats at time
of booking? Of course, the answer is UA
Elite travelers (the levels gold, platinum, 1K, and Global Services.)
Combine this with my previously blogged point that as
a United Million-Miler (that nowadays only gets me lowly gold status) I’ve been
upgraded a number of times on some routes where I used to only get to 28 or so
on the upgrade list.
My conclusion from all of this is elite frequent
flyers are just not flying at nearly the level as they had done in the
past.
Just maybe, after years and years and years of abuse
from greedy airline management (that actually once referred to their elite
passengers as “overentitled”) people are finally voting with their wallet and
telling the airlines to go %$#@
themselves.
If this trend continues, expect the airlines to come
to congress with their hat in their hands again, begging for money. At that time I’d again (‘till I’m blue in the face) strongly advise everyone to just let
capitalism work and let this greedy and out-of-touch group of airline managers
just fail as a result of their customer unfriendly policies. What will then come out of the ashes of their
collapse will eventually be services that at least admit to themselves that
they are in fact services, and not only investor satisfaction engines.
This article was written by David Danto and contains solely his own, personal
opinions.
All image and links provided above as reference under
prevailing fair use statutes.
Copyright 2022 David Danto
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As always, feel free to write and comment, question or
disagree. Hearing from the traveling
community is always a highlight for me.
Thanks!