Korean SKYPASS announces major changes to program, award rates increasing as much as 110%
Early Friday morning — fittingly on a Friday the 13th — Korean Air's SKYPASS announced major changes to its program. Thankfully, there aren't any immediate changes, and we are getting plenty of notice before the first changes kick in starting November 2020.
The changes fall into four major categories:
Adding a "Cash and Miles" redemption option
The first change will be a new "cash and miles" payment option with a "test-run period from November 2020." However, details are nonexistent, with Korean only saying that the "cash and miles option is expected to make mileage more accessible as members will be able to use small amounts towards flight tickets."
If other airline cash-and-miles options are any indication, it's very likely that this option will provide less than TPG's valuation of 1.7 cents per SkyPass mile in value.
Changes to SkyPass accrual rates
Starting in April 2021, SkyPass is "taking global standards and airfare levels into consideration" and changing its mileage accrual charts.
Korean points out that passengers taking first or prestige classes "will be able to enjoy increased accrual rates of up to 300% and 200%, respectively." But, when it comes to economy class accrual rates, SkyPass is much less specific, merely noting that they "will be reorganized into four categories based on booking class." This is a trend we've seen across airlines: offering lower mileage-earning potential on cheaper tickets and higher earning potential on premium-class fares.
New SKYPASS award chart
The worst news by far is the changes to SkyPass' mileage award charts starting April 2021. Instead of a reasonable, region-based award chart like the one currently in effect, the new mileage redemption rates for award tickets will be based on zones categorized by flight distance.
Again, it's telling which details SkyPass shares in its press release and which details aren't shared. Korean notes that there will be a "significant markdown of mileage redemption on short-distance routes." The only examples given are flights between Seoul and Qingdao or Taipei, which will only cost 20,000 and 25,000 miles, respectively, compared to the current rate of 30,000 miles.
However, that's not illustrative of the overall changes.
Economy: There are no changes to economy class redemptions within Korea. Across its 125 international economy routes, Korean SkyPass says that "64 routes will require less mileage, 49 routes more mileage and 12 routes the same amount."
First/business class: Korean isn't sharing any details of its new first and business class redemption rates in its press release. And there's a reason for that: it's brutal. According to a Korean-language webpage, the new distance-based award chart is the following:
| Flight miles (one-way, per segment) | Economy | Prestige | First | One-cabin upgrade |
|---|---|---|---|---|
| Domestic | 5,000 | 10,000 | n/a | 5,000 |
| <500 | 10,000 | 20,000 | 30,000 | 10,000 |
| 500-999 | 12,500 | 25,000 | 37,500 | 12,500 |
| 1,000-1,499 | 15,000 | 30,000 | 45,000 | 15,000 |
| 1,500-1,999 | 17,500 | 35,000 | 52,500 | 22,500 |
| 2,000-2,999 | 22,500 | 45,000 | 67,500 | 30,000 |
| 3,000-3,999 | 27,500 | 55,000 | 82,500 | 37,500 |
| 4,000-4,999 | 32,500 | 65,000 | 97,500 | 45,000 |
| 5,000-6,499 | 40,000 | 80,000 | 120,000 | 55,000 |
| 6,500-9,999 | 45,000 | 90,000 | 135,000 | 62,500 |
| 10,000+ | 60,000 | 120,000 | 180,000 | 85,000 |
For reference, the current award chart is:
| North America to: | Economy | Prestige | First |
|---|---|---|---|
| Korea, Japan, China, Northeast Asia | 35,000 | 62,500 | 80,000 |
| Southeast Asia | 42,500 | 75,000 | 95,000 |
| Southwest Asia | 47,500 | 85,000 | 105,000 |
| Oceania | 55,000 | 97,500 | 120,000 |
| South America (on partners) | 30,000 | 52,500 | 70,000 |
That means nonstop flight awards between the US and Seoul are increasing up to 69%:
| Miles (one-way) | Prestige Class | First Class | ||||
|---|---|---|---|---|---|---|
| Between Seoul (ICN) and: | Current | New | % increase | Current | New | % increase |
| Seattle (SEA) | 62,500 | 80,000 | 28% | 80,000 | 120,000 | 50% |
| San Francisco (SFO0 | 62,500 | 80,000 | 28% | 80,000 | 120,000 | 50% |
| Los Angeles (LAX) | 62,500 | 80,000 | 28% | 80,000 | 120,000 | 50% |
| Las Vegas (LAS) | 62,500 | 80,000 | 28% | 80,000 | 120,000 | 50% |
| Chicago (ORD) | 62,500 | 90,000 | 44% | 80,000 | 135,000 | 69% |
| Boston (BOS) | 62,500 | 90,000 | 44% | 80,000 | 135,000 | 69% |
| Dallas/Fort Worth (DFW) | 62,500 | 90,000 | 44% | 80,000 | 135,000 | 69% |
| New York Kennedy (JFK) | 62,500 | 90,000 | 44% | 80,000 | 135,000 | 69% |
| Washington Dulles (IAD) | 62,500 | 90,000 | 44% | 80,000 | 135,000 | 69% |
| Atlanta (ATL) | 62,500 | 90,000 | 44% | 80,000 | 135,000 | 69% |
And that's just for nonstop flights between the US and South Korea. The new award chart will price awards by segment. That means one-way first class awards between North America and Southeast Asia that currently price at 95,000 miles will increase to as much as 202,500 miles one-way (135,000 US-Korea + 67,500 Korea-Southeast Asia flights over 2,000 miles).
The only silver lining is that these changes won't take effect until April 2021, so we're being given almost a year and half to finalize awards before the new rates are implemented.
Changes to elite qualifications
The last element being announced today is changes to elite member qualification starting in 2022. SkyPass is reporting that "elite member qualification requirements will be significantly lowered" and flyers will only need to "earn either 10,000 miles or take 10 flights in the previous year to qualify for elite membership." In addition to lower requirements, there will be "greater benefits such as 20% to 80% mileage accrual rates, free seat upgrades and elite member level transfers to family members."
SKYPASS will also expand its current three-tier elite membership with four tiers — with names that will sound awfully familiar to Delta flyers: Silver, Gold, Platinum and Diamond.
Other than that, we don't know exactly what this will look like, so we'll just have to wait until details are announced to determine how positive these changes will be.
Who's affected by these changes
These changes are going to have a limited impact on most points and miles collectors. While Korean SkyPass was a valuable transfer partner of Chase Ultimate Rewards, that partnership ended in August 2018.
That only leaves a few groups of readers that are going to have to worry about these changes: those who plan to transfer Marriott Bonvoy points to Korean (3:1 ratio with 5,000-mile bonus for transferring 60,000 points), flyers that credit miles to Korean SKYPASS or if you transferred Chase points to Korean before August 2018 but haven't spent them yet.
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| 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. |
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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
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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.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.