A line of United Airlines parked at the gates of Denver International Airport in Denver, Colorado.
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United Airlines We increase the annual airport lounge membership and its reward credit card fees. This is to test how much consumers fire for popular travel perks.
The carrier announced the changes on Monday, along with a sign-up bonus for JPMorgan Chase co-branded cards and new card holder perks, including ride-sharing credits and award flight discounts.
“Yes, there are fee increases, but we were very aware that increased value and profits would outweigh the increased costs of those cards,” Richard Nunn, chief executive of the United’s MileagePlus Loyalty program, told reporters. United have been working on changes to their card portfolio for the past year or so, Nunn said.
The airline steadily raises prices for everything from check bags to seat allocations, offering perks that were offered free of charge as part of the package when customers signed up for co-branded credit cards.
It also increased the number of premium credit card holders and travelers with elite status, and increased the price and tightening requirements for entering popular airport lounges. AmericansUnited, and recently Delta Air LinesThey operate separate tiers of lounges for customers traveling in long distance business class, but in recent years they have all opened large lounges.
United have added around 17 million mileage and members over the past “several years,” Nun says, and sees the perks of the new card as a way to encourage more United Flyers to sign up for co-branded cards.
Loyalty revenues from popular reward credit cards have given airlines involved. Aside from passenger and freight revenue, United brought in $34.9 billion in “other” revenue last year. This is mainly due to an increase in co-branded card spending and other non-aircraft partners, as well as increased number of airport lounge memberships.
This is what’s changing in the lounge:
Starting Monday, United will offer two memberships to the United Club Airport Lounge Network. Individual membership earns $750 or 94,000 United Royalty Points per year, with access to pass holders only. In 2019, customers with frequent elite flyer statuses had discounts, but customers with existing memberships will remain on the terms they signed up until their membership expires.
This is some of the new benefits as the credit card fees have been changed.
New fees will be effective with new sign-ups starting Monday, but perks will be active for existing card members. The United Explorer Card will start from $95 to $150 a year, with additional perks including $60 ride-sharing credits. The $525 also includes the ability to earn Premier 1K Elite Status through annual lounge membership, ride-sharing credits, and card spending and bonus qualifying points.
Modification: United generated $34.9 billion in “other” revenue last year, up 10% from the previous year. Previous versions were incorrect.
