Are Elite Upgrades Fact or Fiction? The Verdict Is in

Frequent flyer programs are all about loyalty: recognizing it, rewarding it, and encouraging more of it. Elite status is the airlines' way of ensuring that the airlines' most profitable customers receive the most recognition, the most rewards, and the most encouragement.

Elite status can only be effective (from the airlines' standpoint) and attractive (from the members' standpoint) if airlines are willing and able to dole out meaningful awards to elite members. By far, the most sought-after perks are upgrades from coach to first class.

But, travelers have begun to doubt the carriers' ability to deliver those upgrades, and these uncertainties have in turn undermined the perceived value of earning elite status. A reality check is therefore in order, and the results may surprise the more cynical flyers.

Elite program changes

Frequent flyers' doubts about the availability of upgrades have arisen in response to several recent developments in the airline industry:

More elite members

First, the airlines have made elite status more accessible. Never before have there been as many ways to earn elite-qualifying miles.

With the global airline alliances, frequent flyer program members can earn miles that count toward elite status not only with the airline that hosts the program, but with all airlines linked together in the alliance network. Most airlines have also upped the number of elite miles earned for higher-priced tickets. And in a significant departure from the programs' original philosophy, the airlines are awarding elite miles for non-flight activities, including credit card use and online booking.

While the airlines were unwilling to divulge membership and growth numbers for their elite programs, the assumption is that these changes have resulted in more travelers earning elite status.

More complimentary upgrades

Beginning in 2004, elites at Continental, Delta, Northwest, and US Airways have been offered "unlimited complimentary" upgrades, allowing elite members ticketed on full coach fares to reserve upgrades subject to availability any time before departure. Members traveling on qualifying discount fares may request upgrades according to their elite level.

At American and United, the upgrade policy is less generous. At American, Gold and Platinum members receive complimentary upgrades only from full-fare coach tickets; Executive Platinum members can upgrade from cheaper fares. And at United, all elites must purchase full-fare coach tickets to receive complimentary upgrades. Still, the effect of all these policies is to increase demand for a limited supply of upper-class seats.

Fewer first-class seats

Airlines generally offer complimentary elite upgrades only for flights within the U.S. and to close-by destinations like Mexico and Canada. And these days, there are simply fewer first-class seats on domestic routes. The shrinking upper class is a result of equipment downsizing, as airlines replace larger aircraft with regional jets and turboprops, which often have no first-class cabin.

SimpliFares

In February, Delta capped domestic first-class fares at $599 each way, and in late July, raised the cap to $699. Other airlines matched, making first class more affordable than ever. With more travelers able to afford first class tickets, many travelers assume that fewer seats will be available for upgrades.

Word on the street (and in the air)

Based on the situation outlined above, frequent flyers have every reason to believe that the complaints about upgrade availability are the norm, not the exception.

To test that assumption, I asked subscribers to a travel newsletter who have elite status to comment on their personal experiences with upgrades. Here are their stories:

Gary Sagiv, a marketing executive in St. Paul, MN, who flies 900,000 miles per year, is a Platinum member of Northwest's WorldPerks program. With the exception of two Minneapolis to Boston flights, Sagiv "has never not been upgraded." He guesses that lower-level WorldPerks elite members are upgraded 95 percent of the time.