Airline loyalty programs for small businesses: Which is right for you?

For many business travelers, their company makes the decision to purchase tickets from one airline over another — so why not reward the company making the decision, in addition to awarding the traveler with frequent flyer miles?

Earning the loyalty of a single business can result in tens of thousands of dollars a year in additional revenue for the airline. That’s the idea behind the business rewards programs operated by some airlines; they’re a great way for you and/or your company to double dip on employee travel.

Even if you're just a small business entity, we'll take a closer look at some of the airline traveler programs to help you determine whether or not your company can benefit from them.

Related: How to pick a small-business credit card strategy

What are airline loyalty programs for business travelers?

All three of the remaining U.S. legacy carriers offer at least one business program for small- and medium-size companies, although the qualifications for joining vary (large companies tend to have corporate sales agreements with airlines).

The traditional business program model rewards companies for booking their employees' travel through the airline. These programs complement the airline’s frequent flyer program, so individual travelers and their companies earn rewards in separate accounts. There’s no choosing between earning in one program or the other; essentially, it’s an opportunity to double dip and earn reward miles for your company while the traveler earns miles in their personal account for each flight.

However, this type of business program typically requires a minimum number of flights or dollars spent each year, making it harder for smaller companies to participate. Airlines have begun to recognize this and offer other options — business programs that provide discounts and travel tools to small companies and even individual business travelers.

Let’s dive into specifics for each of these business programs for the three legacy U.S. airlines.

Related: Why small businesses that use American AAdvantage need a cobranded business card

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American Airlines AAdvantage Business

American recently retired its Business Extra program and introduced AAdvantage Business. Unlike its predecessor (and most airline business programs), AAdvantage Business doesn't just reward the company — it also rewards the employees who travel.

Businesses of all sizes can join the program and start earning rewards, but to use those rewards, your business must have a minimum of five active travelers and have spent at least $5,000 on American Airlines flights over the last 12 months. These requirements are waived for Citi® / AAdvantage Business™ World Elite Mastercard® cardmembers (see rates and fees).

You can register your business for the program at this link. Once you've registered and added employees to your account, you can start earning rewards. When your employees travel on American and its partner airlines, your business will earn 1 AAdvantage mile per dollar spent on eligible flights. Your employees will continue earning AAdvantage miles and Loyalty Points in their individual accounts, plus they'll earn 1 additional Loyalty Point per dollar spent for flying through AAdvantage Business. If you hold the Citi / AAdvantage Business Mastercard, your business can earn another 2 miles per dollar spent, and employees can earn another 1 Loyalty Point per dollar spent through AAdvantage Business.

Businesses can use miles earned from the program to offset business travel expenses or reward employees. You can redeem miles for flights, upgrades, hotel stays, car rentals and more for yourself or your employees, or you can transfer them to employees for personal use.

American recently made several improvements to AAdvantage Business, like creating a dedicated phone line and letting businesses and employee travelers earn rewards on flights booked through third-party travel agencies.

Related: Complete guide to the AAdvantage Business program

Delta Air Lines business programs

Delta Air Lines currently offers two programs for business travelers, designed to complement each other. SkyMiles for Business (formerly SkyBonus) rewards businesses for employee travel, while Delta Business Traveler is geared toward the employees themselves. Let's take a closer look at both.

Delta SkyMiles for Business

SkyMiles for Business is similar to AAdvantage Business. Any company can enroll at the Member base level, but to earn rewards at the Plus tier, your business must have at least five unique employee travelers and spend at least $5,000 in eligible flight revenue every calendar year. To earn additional benefits at the Elite tier, your company must have five unique employee travelers and spend at least $300,000 per calendar year.

If you meet the criteria of the Plus and Elite tiers, your company will earn SkyMiles on flights and upgrades with Delta and select partner airlines (Air France, KLM, Virgin Atlantic and Aeromexico). The earning rate depends on the fare class and departure airport — from 1 mile per dollar spent on main cabin tickets that depart from select hubs to 10 miles per dollar spent on first- and business-class flights from nonhub airports (basic economy fares don't earn miles). Meanwhile, your employees who fly will continue to earn SkyMiles in their individual accounts.

You can redeem your company's miles for eCredits (dollars off flight purchases), Silver Medallion elite status or Delta Sky Club individual memberships. You can also transfer miles to yourself or your employees to be redeemed for flights, upgrades, Delta Vacations and more.

To enroll in SkyMiles for Business, you must be a business owner or administrator of a company. You will be required to provide a valid tax identification number or value-added tax number, and you may need to show written proof of authorization from the company.

Related: How to redeem Delta SkyMiles for maximum value

Delta Business Traveler

Unlike most airline business programs, Delta Business Traveler rewards anyone who travels for work. This program is complimentary, and you can set up an account here. Plus, you don't have to own a business, and no employer verification is required.

Instead of rewarding you with miles or elite credits for flying Delta and its partners, Delta Business Traveler provides perks and offers with various travel and work-related partners, such as Hertz, Clear, job-search site Indeed and remote workspace provider Industrious.

Related: Best business travel backpacks for every budget

United Airlines business programs

United offers two programs for business travel. PerksPlus has been around for a while but has undergone some changes, and it comes with a minimum spending requirement. United for Business is a newer tool geared for companies that don't qualify to join PerksPlus.

United PerksPlus

United's PerksPlus program rewards companies whose employees travel on flights operated by United, United Express, Lufthansa, Austrian Airlines, Brussels Airlines, Swiss and All Nippon Airways. To join, your company must spend a minimum of $5,000 per year in the U.S., Canada and Latin America. As of Feb. 1, PerksPlus is exclusively available to corporate customers booking through a travel agency.

Like Delta for Business, PerksPlus awards points per dollar based on the fare class and location — ranging from 1 point per dollar spent on highly discounted leisure fares from hub markets to 6 points per dollar spent on premium fares from nonhubs.

While American's and Delta's business programs have transitioned to earning airline miles, PerksPlus still earns points — a separate currency from United MileagePlus miles. However, PerksPlus now lets you convert these points into MileagePlus miles at a ratio of 2:1 and deposit them into your employees’ individual MileagePlus accounts.

Other ways to redeem points include award travel certificates, United Club lounge passes or memberships, or MileagePlus Premier Gold or Silver status.

Related: Last-minute strategies for earning United Premier elite status

United for Business

United for Business is the airline's new travel management tool for small businesses. Rather than rewarding your business with miles or points, it aims to streamline your travel planning experience by letting you and your employees book business travel via the United website and app, keep track of expenses, and save money on tickets. It also gives your travel admins access to complimentary features such as travel reports and booking settings.

United for Business offers three complimentary travel plans:

• Savings plan: Offers the most competitive discounts on airfare for companies that focus on minimizing trip costs.
• Productive plan: Offers a mix of discounts and travel add-ons like Economy Plus for companies with a variety of travel needs.
• Indulge plan: Offers maximized discounts on travel add-ons like Economy Plus and Premier Access for companies wanting to provide an elevated travel experience.

There are no minimum flight or spending requirements, so this is a good option if your company doesn't qualify for PerksPlus. You can learn more and register here.

Related: Best United Airlines credit cards

Comparison

Of these three programs, American’s is the only one that offers the same number of points per dollar spent, regardless of fare class or whether or not you travel through a hub. This alone may be enough of a differentiator for you to consider going with American.

United's PerksPlus and Delta’s SkyMiles for Business are very similar to one another, with Delta offering a more dynamic chart for earning. This features greater rewards for nonhub travelers purchasing the most expensive tickets but provides paltry rewards for hub-captive travelers on discounted tickets. If your company is based in one of the four Delta hubs that receive fewer points and your employees typically travel with advance notice, it will take a monumental amount of spending to earn any meaningful rewards with the SkyMiles for Business program. That being said, both SkyMiles for Business and PerksPlus can be very rewarding for Delta and United flyers in nonhub cities.

Since some businesses may not meet the spending thresholds or employee requirements to join the above programs, it's nice to see Delta and United providing complimentary options. Delta Business Traveler and United for Business don't reward companies like traditional airline business programs, but they offer free access to discounts and planning tools, so it doesn't hurt to join and try them out.

Related: The best airlines in the US

Bottom line

One of the most important lessons of the points and miles world is to maximize your earnings at every turn, and this is especially true for small- to medium-size businesses. Whether that means opening new business credit cards or leveraging online shopping portals for supplies and equipment, there’s no shortage of ways to boost your return on everyday spending, including employee travel. Any time you can double dip on your rewards with a program like this, you come out ahead. With no cost and minimal requirements to join these programs, it makes sense for business owners to sign up for all of them to see which works best for their company.