American Airlines' new cash upgrade offers raise questions about loyalty program

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American Airlines' new cash upgrade offers raise questions about loyalty program

Research

Gary Leff Chief Financial Officer | View from the Wing

By Sky Industry News

Jul 15, 2024

American Airlines has recently shown a paid upgrade offer to a passenger listed for a systemwide upgrade, indicating a potential change in their policy. The offered upgrade was less than the cash co-pay on a mileage upgrade, raising questions about inventory availability for mileage upgrades.

Hilton's non-refundable rates remain changeable, despite not being mentioned for six years.

A social media post by BourteneyLove highlighted issues with American Airlines' aircraft cleanliness: "@united ITS BAD ENOUGH THE PLANES ARE FALLING APART… BUT TO HAVE ROACHES CRAWLING THROUGH THE PLANE IS INSANEEEEE #news#Boeing#unitedairlinespic.twitter.com/YfR97rHe6o" (July 12, 2024).

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In other news, loyalty members accounted for 50.8% of room nights booked in 2023, up by 2.5 percentage points from the previous year. Loyalty program redemption revenues reached $1.1 billion in 2023, an increase of 11% year over year. This growth is attributed to increased travel, higher average daily rates (ADRs), and more points needed for free nights. The cost to hotel owners averaged $3.59 per available room per day.

Additionally, there are reports of passengers vaping or smoking on Delta flights, with one individual being removed from the aircraft after smoking in the lavatory prior to departure.