Is it worth being loyal to a single airline or hotel if you don't travel enough to earn elite status?
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Reader Questions are answered twice a week by TPG Senior Points & Miles Contributor Ethan Steinberg.
Frequent travelers account for a disproportionate amount of the revenue at most major airline and hotel chains. In order to retain this business and loyalty, these travelers get showered with incredible perks in the form of elite status, including bonus points, free upgrades and often an improved customer service experience as well. TPG reader Josh wants to know if it's worth staying loyal to a single airline or hotel if he doesn't travel enough to earn elite status ...
[pullquote source="TPG READER JOSH"]I realized that I don't travel enough to earn elite status with any major airline or hotel chain. In my case, is there any benefit to staying loyal to just one company or should I shop around for the best price instead?[/pullquote]
Josh's question is important, because as nice as elite status is, loyalty often comes with a cost. Maybe you pick a more expensive flight to travel with your preferred airline or a hotel a bit farther away from your destination just to requalify for next year, but whether you're a top tier elite or a general member, it's important to be cognizant of how much it costs you to stay loyal.
First of all, there are plenty of shortcuts that Josh could take to earn elite status much faster, especially when it comes to hotels. A number of incredible travel rewards cards offer automatic elite status to their customers, so Josh could earn the luxury perks normally reserved for frequent travelers simply by opening any of the following cards. Note that this is not meant to be an exhaustive list, just a few of the most popular options:
| Credit card | Elite status offered |
|---|---|
The Platinum Card® from American Express | |
The Hilton Honors American Express Aspire Card | |
Marriott Bonvoy Brilliant™ American Express® Card | Marriott Gold status |
World of Hyatt Credit Card | |
IHG Rewards Premier Credit Card |
The information for the Hilton Aspire Amex card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: On the hamster wheel of chasing hotel elite status? Buy it instead
Earning airline status solely from credit cards is a little bit harder, but not impossible. With the current elevated offers we're seeing on the Delta Amex credit cards, you could earn Delta Silver Medallion status without taking a single flight. If you open the Delta Reserve® Credit Card from American Express you'll earn 40,000 miles and 10,000 Medallion® Qualification Miles (MQMs) after spending $3,000 on purchases in the first three months of account opening.
The card also comes with a "miles boost" option, allowing you to earn 15,000 bonus MQMs and 15,000 redeemable miles after spending $30,000 on your card each calendar year, and another 15,000 MQMs and 15,000 redeemable miles after spending $60,000. Even better, spending $25,000 a year earns you a Medallion® Qualification Dollar (MQD) waiver all the way up to Platinum Medallion status. So if you open the card now and squeeze in $30,000 in spending before the end of the calendar year, you'll earn 25,000 MQMs and an MQD waiver, giving you Silver Medallion elite status (in addition to 90,000 Delta SkyMiles to use for your upcoming travel).
If Josh can't apply any of these strategies to his travels, the case for staying blindly loyal to a single airline or hotel chain is pretty weak. Money talks, and you can't expect much in the way of elevated treatment unless you pay for it outright or have a long-term financial relationship with the company in question. Still, I can think of a few reasons why Josh might want to consider picking one airline and hotel company to stay loyal to, assuming it doesn't cost him that much more money.
While we talk often about diversifying your points earning, there is absolutely such a thing as too much diversification. Someone who flies so infrequently that they aren't earning elite status might be spending $1,000 a year or so on airfare, which roughly translates to 5,000 miles a year earned with the three U.S. legacy carriers. If Josh splits that travel up between Delta, American and United, and thus only earns 1,000-2,000 miles on each airline, he'll have a hard time ever saving up enough for an award flight. Sure, he could transfer points from Chase Ultimate Rewards to United or from American Express Membership Rewards to Delta to top off his accounts, but he might find that it's worth consolidating his points with one airline so he can actually earn enough to redeem.
Based on TPG's valuation of airline miles, the 5x miles per dollar that non-elite members earn on airfare amounts to a roughly 6-7% return. If Josh never earns enough miles to redeem, he's essentially leaving that money on the table.
The second scenario that jumps to mind has less to do with what Josh wants and more to do with where he lives. Many travelers around the U.S. are so-called "hub captives," which means their primary airport is dominated by a single airline, so they end up "loyal" whether or it not it benefits them in any way. If you live in Miami (MIA), Charlotte (CLT), Atlanta (ATL) or San Francisco (SFO) you've probably experienced your hometown airline jacking up prices on short routes due to the lack of competition. Many travelers who live in Atlanta will end up loyal to Delta as a matter of convenience, even if they don't get anything in return for it.
Bottom line
Josh is certainly not alone, as there are many travelers who are on the road just enough to want elite status but not enough to actually earn it. When it comes to hotels, there are plenty of shortcuts Josh can take to earn some form of status with the major players, but airline elite status is a bit tougher.
At the end of the day, there are some mild convenience benefits to staying loyal to a single airline even if you aren't able to earn elite status. What Josh needs to do is figure out how much it would cost him to stay loyal. While many airlines match prices on routes where they compete for market share, Josh would probably come out ahead focusing more on price and less on loyalty.
Thanks for the question, Josh, and if you’re a TPG reader who’d like us to answer a question of your own, tweet us at @thepointsguy, message us on Facebook or email us at info@thepointsguy.com.
Featured photo by Zach Honig/The Points Guy.
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Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.