United Airlines increases annual costs for fairs, credit cards rewards

United Airlines Increases the costs for annual membership at the airport show and its credit credit cards, a test of the quantity of consumers will spend for the benefits of popular travel.

The carrier announced the modifications on Monday alongside registration bonuses for its co-marked cards of JPMorgan Chase, as well as new benefits, in particular carpooling credits and flight discounts.

“Yes, there are cost increases, but we were very, very aware of ensuring that the value increments and the advantages that are offered to it on any increase in the cost of these cards,” Richard Nunn, director general of the Mileageplus program of United, told journalists. United has worked on changes in his card portfolio for about a year, Nunn said.

Airlines have regularly increased the prices of everything, from checkered bags to assignments of seats and offered advantages that came for free as part of a package when customers register for co-marked credit cards.

They also increased the price and tightened the entry requirements to access popular airport salons as the number of premium credit card holders and travelers with an elite status increases and has led to outpased in certain facilities. AmericanUnited and more recently Delta airlinesUse separate lounges levels for customers traveling in long-haul business class, and they have all opened larger fairs in recent years.

United added around 17 million members of mileage more in the last “a few years,” said Nunn, and considers the new advantages of the card as a means of encouraging more united leaflets to register for co-marked cards.

Loyalty income, including credit cards for popular awards, have given airlines a windfall. In addition to the income of passengers and cargoes, United reported $ 3.49 billion in “other” income last year, up 10% compared to the previous year, mainly due to an increase in co-marked card expenditure and other non-air partners, as well as members of the airport show, he said in his annual file last month.

Here is what changes with the salons:

• From Monday, United will offer two membership levels to its UNITED Club Airport Lounge network.
• Individual memberships will cost $ 750 per year or 94,000 united loyalty points, with access to the pass holder only.
• For customers who seek to take up to two guests in the living room, it will cost $ 1,400 or 175,000 miles, for United Clubs and Star Alliance Partner Lounges.
• Memberships in Lounge, including two guests, previously cost $ 650 per year, although there were discounts for customers with frequent elite status.
• Customers with existing membership will keep the terms to which they have registered until their membership expires.

Here are the credit card costs that change and some of the new advantages:

• The new costs come into force with the new registrations from Monday, but the advantages will be active for the members of the existing card.
• The United Explorer card goes to $ 150 per year, compared to $ 95, and the additional advantages include a carpooling credit of $ 60.
• The United Quest card goes to $ 350 per year, going from $ 250 and includes $ 100 of carpooling credits, two upgrades to additional legs and $ 200 in united travel credits.
• The Infinite Card of United Club goes to $ 695 per year, against $ 525, which also includes annual membership at the show, $ 150 in carpooling credits and the possibility of winning the status of first 1K elite status through card expenditure and bonus qualification points.

Correction: United reported $ 3.49 billion in “other” income last year, up 10% compared to the previous year. An anterior version has destroyed the timing.