Elite status doesn't have any value?

(Note: Hunter helped with this post. I might even venture to say that this is a "co-post" by both of us. Enjoy.)

Scott Carmichael is an idiot.

He's a writer at Gadling.com, and he usually writes about travel tech. (This gives him the opportunity to try and convince the masses to use the Zune. Like we said... he's an idiot.)

Today he posted a blog entry called Airline elite status - does it still have any value left? In it, he spreads a bunch of misinformation and suggests that elite status isn't what it used to be, and is therefore mostly useless.

Obviously, we disagree.

Below are Carmichael's seven ridiculous claims, followed by responses from Hunter and Josh.

Claim 1: Certain elite perks are now being sold at check-in or as a paid membership.

"In the past, perks like preferred seating, priority boarding and special security lines were reserved for passengers with airline status or those that were booked in a premium cabin. Nowadays, airlines are moving towards the à la carte system, selling many of those perks to non-elite members."

Then he talks about the fact that some airlines sell available first- or business-class seats as inexpensive upgrades at the counter.

"To me, this is a win-win; I get a better seat, and the airline makes $50 it normally would not have earned. To the people up front that paid full price for their seat, it would appear unfair, and it means there is one seat less for elite passengers hoping for an upgrade. On some airlines, the upgrade systems prefer to sell the seat to anyone willing to pay for it before giving it away for free to elites."

Hunter says: Bullshit. We clear at DL at 5 days out. Give me a fucking break. I've never heard of any airline selling until all elites are accommodated.

Josh says: First, Hunter's absolutely right. As far as I know, it's an outright lie to say that any airline would sell an upgrade to non-elites before upgrading elite members. Second, Carmichael may be right that airlines are selling some elite perks on an a lá carte basis. But there are two problems: the word some and the word selling. As an elite flyer, I get all elite perks without having to pay for them. And certain elite perks aren't for sale. Tell me, Mr. Carmichael, where I can buy an eVIP or SWU that entitles me to an upgrade on an entire leg of an international itinerary? (I mean, I guess I can buy a first class ticket on those flights...)

Claim 2: Elite level bonus promotions are making it much easier to become a top tier member.

"Take for example the newest promotion by US Airways - their reduced qualification levels mean you can be "elite" after just a couple of flights. More elite members = more people fighting for perks. We could be sitting next to each other on a flight and have the same status, but only one of us had to actually fly all year to earn that status."

Hunter says: As a result of a depressed economy, there are generally less elites than ever, and most importantly, there will be fewer next year.  Airline statisticians haven't forgotten this.  That's the reason for the promotions, which still leave lower numbers in the long run.

Josh says: Using US Airways to prove the poor quality of elite frequent flyer programs is like using the Pittsburgh Pirates to prove the poor quality of Major League Baseball. And also... we're not all fighting for the same perks. Maybe you somehow managed GLD or PLT on American (by getting a million miles via an AA-branded credit card, or by challenging in), but I don't have to fight with you for perks... I'm an EXP on American. Sure it's easier to earn EXP this year because of double EQM promotions, but I still had to fly a shitload to get here. And for many reasons (the economy being number one, as Hunter pointed out) there aren't so many of us to fight over so few perks.

Claim 3: Additional levels are being introduced, lowering the value of the current top tier

Hunter says: So fucking what. This is America. You get what you deserve.

Josh says: This isn't true on every airline. It's kind of true on Delta, but introducing the Diamond level was mostly a response to the merger with Northwest, and according to the Delta flyers I know, the introduction of the new level didn't so much hurt Platinum Medallion as much as it added extra benefits to super elite travelers. (Furthermore, Platinum Medallion requires 75,000 EQM. That puts it somewhere between mid-tier and top-tier on AA and UA. So adding an even higher level actually puts Delta more on par with other legacies.)

Carmichael also uses United's Global Services program as an example. He seems to be trying to claim that the very existence of UGS devalues 1K. This is utter bullshit. When UA introduced UGS, it didn't take anything away from 1Ks. (And correct me if I'm wrong, UA flyers, but I've never heard a 1K complain that they were losing out on upgrades because UA was giving them to UGS members.)

Claim 4: Credit card promotions are making it possible to get closer to top tier without ever flying

"Very few cards actually offer "EQM's" (elite qualifying miles), but there are a couple of them that give a decent EQM bonus upon reaching certain spending levels.

Granted, you won't become top tier with the average household spending pattern on a credit card, but heavy business spending can often contribute as much as 25% or more towards elite level qualification."

Hunter says: Same as above.

Josh says: [1] Scott himself admits that "very few cards actually offer" this benefit. So how can it be having much of an impact? [2] Yes, there are UA and Continental cards that offer these sort of perks, but they also cap EQMs at well below what it takes to get bottom-level status. (Again, correct me if I'm wrong, but as far as I know the UA card caps at 10,000 EQM, right?) It's not like there are a bunch of 1Ks running around who earned that status using their credit card.

Claim 5: Status matching is more popular than ever

"A status match is what you can do if you are currently flying airline A, but wouldn't mind switching to airline B, without losing your elite status. The game of status matching means you really only need to earn status the hard way once - and after that, smart people can continue holding on to elite status on multiple airlines for several years."

Hunter says: For good reason. Stop being a ***** and realize the problem. And you can only match once, asshole.

Josh says: I'm not sure that he has any idea how popular status matching is in comparison to year's past. Certainly, anecdotal evidence suggests that more people matched to Northwest last year because they were generous with status matching, and people knew that getting status on Northwest would eventually equate to status on Delta, which is a little stingier. But other airlines (AA, USAir, United) got stingier with status matches in the past few years, preferring to force travelers into challenges instead.

And, of course, you can't match into an airline and keep that status the following year without flying them. (And even if you could, what would the point be?) In the comments thread to his blog post, Scott points out (in response to me, natch) that there are tricks for getting around this. I'm sure there are tricks. But again... Are there so many people utilizing elaborate status matching schemes (including constant international address changes) so as to seriously devalue the elite program?

Claim 6: Free status

"On some airlines, top tier members will be allowed to nominate friends and family for certain levels in the frequent flier program. These levels are usually "entry level", but in some cases it means the difference between a bad seat and a good seat, or $300 in luggage fees or free luggage. If you know someone with elite status, ask them if they have any nominations available."

Hunter says: Yep, those of us at the >VERY< top can nominate someone to be bottom or mid tier.  Which doesn't mean shit, anyway.

Josh says: No, Scott, I am not nominating you for status.

Claim 7: The Bottom Line

"The bottom line is simple (as far as I am concerned) - elite status is not as valuable as it used to be. Don't get me wrong though - being a top tier member on a decent airline is still very valuable, but I'm convinced that the lower tiers are the ones that suffer the most - they are the ones that have to share the few remaining perks with a lot of newcomers."

Hunter says: The bottom line is that this guy is a jackass and an idiot and needs to leave analysis to experts.

Josh says: This is the first correct thing that you've said all day, Scott. Yes, the lower tiers suffer when elite status becomes easier to come by. But then you shouldn't have started out your post with an inflammatory title and an introduction that suggests that elite programs in their entirety are being devalued. Furthermore, so what if bottom tiers are being devalued? It wasn't like they had that much value in the first place. A once-in-awhile upgrade is still a once-in-awhile upgrade, even if it's slightly rarer. I concur with Hunter: you're mostly an idiot, and you should leave this sort of analysis to people who actually understand elite frequent flyer programs.