The future of award charts and elite benefits: Discussing Star Alliance with its loyalty director
Loyalty is a bit complex in the airline world.
In addition to running their own frequent flyer programs, many airlines also participate in airline alliances, which offer additional benefits for passengers. These include making flight connections easier, allowing you to earn miles across more airlines, providing frequent flyers an additional suite of elite perks and much more. So, rather than being loyal to a single airline, travelers are encouraged to be loyal to an entire alliance of airlines.
We recently sat down with Renato Ramos, Loyalty Director at Star Alliance, to discuss Star Alliance's loyalty strategy and its future.
Star Alliance is the oldest and largest of the three major airline alliances, with member airlines ranging from United Airlines to Lufthansa to Singapore Airlines, among about two dozen others. Our conversation covered topics ranging from alliance-wide elite benefits to round-the-world tickets to award pricing and availability.
Expect more Star Alliance branded lounges
Whenever you fly on a Star Alliance carrier and are eligible for lounge access, you can usually visit other lounges in the Star Alliance network — not just the one operated by your carrier. In addition to individual member airlines’ lounges, such as United Clubs, Star Alliance offers a small set of Star Alliance branded lounges.
The idea of alliance-branded lounges is to offer them where no airline has a big enough presence to justify operating its own lounge but the alliance collectively offers a lot of member flights there.
Star Alliance operates more alliance branded lounges than either of the other major alliances. You can currently find its branded lounges in Amsterdam (AMS), Rome (FCO), Rio de Janeiro (GIG), Buenos Aires (EZE), Paris (CDG) and Los Angeles (LAX).
While Ramos didn't have any future potential airport locations to share, he did say that he expects a bigger push for alliance-branded lounges moving forward. With airlines making dramatic cuts to their route networks due to the pandemic — many of which will be longer-term — Ramos believes that there will be a greater need for these lounges.
Individual airline lounges that were financially justifiable before the pandemic may no longer be so. Individual lounges are costly for airlines to operate so it would make more sense to consolidate them at some airports.
Related: Best credit cards for airport lounge access
Making elite status more valuable
Elite status with any Star Alliance member airline automatically grants you some status benefits with the alliance. Star Alliance currently offers two tiers of "alliance status" — Silver and Gold. By comparison, SkyTeam also offers just two elite tiers, while Oneworld offers three.
These tiers exist to provide frequent travelers reciprocal benefits across the Star Alliance network. Here are their benefits:
| Star Alliance elite benefits | Star Alliance Silver | Star Alliance Gold |
|---|---|---|
Priority Reservations Waitlist | x | x |
Priority Airport Standby | x | x |
Gold Track (Expedited Airport Experience) | x | |
Extra Baggage Allowance | x | |
Priority Boarding | x | |
Business Class Lounge Access | x | |
Priority Baggage Handling | x | |
Priority Check-In | x |
Overall the benefits are a bit ... underwhelming. For instance, while Star Alliance Gold only offers business class lounge access, Oneworld's top-tier passengers get first-class lounge access. Star Alliance also doesn't offer any reciprocal seating benefits.
Ramos recognized this and acknowledged that the alliance can do more to promote loyalty.
Although there was talk of Star Alliance adding a third and potentially fourth elite tier a couple of years ago, those plans were called off and Ramos doesn't see them coming back for the time being. Instead, the alliance plans to improve its existing elite tiers.
One way it plans to do this is with new software that will make it easier for member airlines to share their seat maps with each other. This way, when you book an itinerary that involves multiple Star Alliance carriers, you'll be able to select your seats for all of the flights directly through the website of the airline you booked your ticket with. Ramos suggested that once this is ready, it'll be easier for the alliance to potentially roll out new elite perks, such as access to preferred or extra-legroom seating.
Related: What are airline alliances, and who’s in them?
Other developments in the works include making miles post faster. Specifically, Ramos said that miles should post just as fast when you fly on a partner as when you fly your primary airline. The alliance is also working to crack down fraudulent behavior, such as faking lounge access, selling miles and trying to share your elite status with others.
While the alliance has no direct control over this, Ramos also shared that he expects airlines to announce additional elite status extensions due to the current situation.
Related: Is it really worth being loyal to one airline?
Dynamic pricing will become the norm
Airlines have been increasingly moving to dynamic award pricing over the last few years and Ramos expects this trend to continue.
Ramos shared that his favorite loyalty program is Starbucks Rewards. The reason? Its simplicity. Both the earning and redeeming structures are very straightforward. You can redeem your "stars" anytime, and almost anywhere without having to deal with availability restrictions.
Dynamic pricing offers just that. It allows travelers to redeem points for any flight with no blackout dates.
While some awards will be more expensive, Ramos believes most travelers will be fine with that because they'll appreciate the better award availability.
The alliance doesn't have any minimum requirements for how much saver space an airline needs to release to partners. This is why United is able to offer expanded saver availability to its own customers and Singapore Airlines gets away with not releasing premium cabin awards to partners. However, Ramos believes that dynamic pricing would help solve these issues.
Related: The golden age of travel isn’t over — it’s evolving
Round-the-world tickets aren't going anywhere
One of the best uses of points and miles is to book round-the-world awards.
Exactly as it sounds, these awards let you see multiple destinations across multiple regions on one ticket, but at a much lower rate than if you were to book all of the tickets separately. There are also cash 'Round the World' tickets you can book, which can also be valuable.
Although these types of tickets are low-yielding for airlines and dynamic pricing may complicate things a bit, Ramos said they definitely have a future as there is a demand for them.
Most people booking these tickets are retirees and businesspeople, with some of the most popular destinations being New York, Paris, London, Tokyo, Frankfurt and Zurich. It's also common to book them when traveling to Australia, when your itinerary may require multiple layovers anyway. Most 'Round the World' tickets only require a minimum of two or three stopovers.
Ramos also shared that Star Alliance is exploring ways to add value to the cash 'Round the World' tickets. For instance, it may want to add a hotel component to the ticket. Ultimately, this, along with the other developments like the shared seat maps, could make the alliance's website more of a one-stop-shop for travelers, whereas nowadays, most people have no reason to visit it.
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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. |
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| 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
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
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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.