American sweetens premium-flier awards

[eolesen]

Uh, no. They're not replicating anything. They adapting their own methodology.

Using fare family as a basis versus actual revenue is a heck of a lot easier for customers to understand, it's certainly easier to calculate on the business side, and it's just as easy to roll back if it doesn't work in the long run.

I helped frame that type of recommendation to an unnamed carrier about five or six years ago when we were doing a consulting mission with them on their loyalty program. They had fare families, but no differentiation to push an upsell.

 

[MAH4546]

and you fail to note that DL and UA are REDUCING perks for lower level fliers while increasing perks for higher value passengers.

AA does not have a revenue based FF system. They are trying to replicate it using fare classes.

 
I don't fail to realize anything. You just suck at reading, comprehending, understanding facts, etc. 
 
AA has chosen not to adapt a revenue based FF system because it, like Alaska, it currently believes that is not an ideal program. As the language of the press release touts, American Airlines is now using distance-based earning as a selling point, but creating new incentives in which the most premium customers still earn mileage on par - in some cases even more - with UA and DL's pure revenue scheme. 

 

[WorldTraveler]

AA has chosen not to adapt a revenue based FF system because it, like Alaska, it currently believes that is not an ideal program.

again, it isn't just DL.

WN and UA also have revenue based FF programs.

AA on yet another issue is choosing to go the opposite direction of the industry without the evidence that it will result in greater revenue.

In fact, based on AA's RASM performance which has lagged other carriers, there is ample reason to question everything about the way AA is running its network and marketing programs.