The top innovations in airline loyalty of 2020 — and TPG's Editors' Choice award winner
In "normal" years, November (and December) is usually time to consider a mileage run.
Maybe you're within an earshot of a higher status tier or you're about to cross the threshold for additional upgrade certificates. If you weren't going to organically hit these milestones, then some (crazy) people, myself included, might consider flying somewhere just to hit the threshold.
Well, 2020 is far from normal. Instead of mileage runs, every major U.S. carrier has extended currently valid elite status through 2021.
As part of these loyalty program updates, carriers have also announced some innovations. We'll recap the best ones here, and then award one airline with an Editors' Choice award for best loyalty innovation of 2020 as part of Airlines Week at the TPG Awards.
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Alaska: Offering full status to those on a challenge
Almost every major U.S. airline offers some form of a status match or challenge program. Say you’re loyal to one airline but decide — for whatever reason — that you’d like to try a competitor. Instead of starting from scratch, you can frequently get temporary status for a short period of time — during which you need to complete a set amount of flying and/or spending to keep the status for the rest of the year.
And of all the airlines that offer these programs, Alaska’s the only one that granted full status through the end of 2021 for those participating in a challenge. If you initiated one with Alaska between Dec. 1, 2019 and March 31, 2020, your temporary status was extended through Dec. 31, 2021. This is incredibly generous and certainly well above expectations.
RELATED: What is Alaska Airlines elite status worth in 2020?
American: Basic economy changes and more
American Airlines has used the pandemic to make a slew of updates to its AAdvantage program.
For one, the carrier is the first of the Big 3 to relax basic economy restrictions. Since Oct. 1, elite members can enjoy their perks when purchasing basic economy tickets. This includes free access to extra-legroom Main Cabin Extra seating, the ability to enjoy complimentary (and confirmed) upgrades, and the option to make same-day confirmed flight changes.
This is a big deal. Previously basic economy tickets were non-changeable and non-refundable — and elites couldn't enjoy any of their benefits on these fares. (In exchange for all the new perks, AA is eliminating the ability to earn elite-qualifying miles, segments and dollars on basic economy tickets effective Jan. 1, 2021.)
But American isn't stopping there. It's the first U.S. carrier to announce changes to earning elite status in 2021. In addition to lowering the qualifying thresholds, the Fort-Worth-based carrier is counting all flight activity from Oct. 1, 2020 through Dec. 31, 2021 for elite status in 2022.
Finally, the carrier has joined Southwest in making award tickets fully flexible. Effective Nov. 11, all AAdvantage awards, including revenue-based Web Specials, can be changed or canceled before departure for free. If you decide to cancel a trip, you'll receive the miles back and a refund of the taxes.
RELATED: Exclusive TPG interview with American's president of AAdvantage
Delta: Two-time extensions
Delta was the first U.S. carrier to announce elite status extensions into 2021. As part of the news, Delta also made it easier to earn elite status in 2021 for 2022 — all Medallion Qualification Miles (MQMs) earned in 2020 will roll over to 2021.
But that's not all. The carrier has been the most generous in terms of extending other associated loyalty benefits.
As such, Delta is the only U.S. airline to have extended perks twice. Most cobranded credit card benefits, such as companion certificates and flight credits now expire at the end of 2021, which should hopefully give flyers enough time to use them.
JetBlue: Gifting a year of top-tier status
JetBlue was the last of the major U.S. carriers to extend elite status through 2021.
But the airline made up for its tardiness with a very lucrative promo for its loyal Mosaic flyers. Every Mosaic member could gift a full year of status to a friend or family member of their choosing.
While JetBlue's announcement was generous, the carrier quietly increased the cost of extra-legroom Even More Space seats purchased with TrueBlue points a few months later — a big devaluation to Mosaic elites.
Southwest: Convert vouchers to points
Southwest is very different than the other U.S. airlines.
It's the sole carrier to have never charged change or cancellation fees, even on non-refundable tickets. If you cancel a non-refundable ticket, you get a Travel Fund that's valid for one year from the date of when your ticket was issued (for use by the ticketed passenger only).
Due to the pandemic, Southwest offered a limited-time opportunity to convert Travel Funds to Rapid Rewards points. The conversion rate was quite generous. Plus, Rapid Rewards points can be used for anyone, not just the person listed on the Travel Fund.
RELATED: Complete guide to coronavirus and airline elite status
United: Making it easier to earn status through credit cards
Hours after Delta announced elite status extensions, United matched.
The Chicago-based carrier also unveiled a lucrative promotion making it easier to earn elite status through cobranded credit card spend. From May 1 until Dec. 31, you can earn double the Premier-Qualifying Points (PQPs) from the United Explorer Card family or quadruple the PQPs from the United Club Infinite Card family. Unfortunately, PQP earned from cobranded cards are only applicable up to the Premier Platinum level.
RELATED: What is United Airlines elite status worth in 2020?
While United deserves credit for making it easier to earn status without flying, the carrier has used the pandemic to make a host of negative changes to MileagePlus, too. UA has removed partner award charts, increased partner award costs, added another close-in mileage surcharge, made it harder to earn status through partner flying and more.
Of course, the airline also deserves credit for being the first to announce its no-change-fee policy that caught industry observers by surprise — an update that may be only the beginning of what's to come in 2021.
Notable mentions
While we've so far focused exclusively on U.S.-based carriers, both Air Canada and Virgin Atlantic deserve mention for innovation in the loyalty space.
For one, Air Canada unveiled a completely overhauled Aeroplan program earlier this month. The new Aeroplan launched on Nov. 8 with a ton of flyer-friendly innovations like points sharing, the ability to earn status exclusively through credit card spend, the promise to keep award charts and much more.
Virgin Atlantic made a surprising, yet welcome, change when it announced that award redemptions will earn elite-qualifying credit as of Sept. 1. This permanent adjustment makes Virgin Atlantic one of the only airlines to count award tickets toward elite status. The move underscores the point that you're a valued flyer, regardless of whether you're on a revenue or award ticket.
The winner is ...
While every airline loyalty program has innovated in 2020, only one can win the Editors' Choice award.
And that award goes to American Airlines AAdvantage. The carrier has made the most sweeping updates to its loyalty program. From improving the basic economy experience to being the first to announce changes to earning elite status in 2021 to eliminating all award fees, AAdvantage deserves kudos for being the most innovative in 2020.
Here's hoping these innovations are just the start for airlines as they look to woo back loyal travelers in 2021 and beyond.
All photos by Zach Griff/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.