American Raises The Cost Of Business Extra Gold Status Nominations

American has a business rewards program called Business Extra. This program is run in addition to AAdvantage, meaning you can double dip — you can earn miles with AAdvantage and points with Business Extra for a given flight. Reader Sam F. wrote a post last year sharing all the details of this program, which is a no brainer to join, assuming you have a business (though there’s not really anything in place to prevent someone without a real business from joining).

Amercan-Business-Extra

Through this program you earn two points per $10 spent on eligible flights, so you don’t earn points as quickly as you would with AAdvantage, but I don’t think anyone expects that to be the case. The cool thing is that you can credit points from multiple people to your Business Extra account, and over time rewards should nicely build up.

You can redeem your Business Extra points for all kinds of things, ranging from free flights, to upgrades, to nominating someone for AAdvantage Gold status, to Admirals Club memberships.

Business-Extra

Well, it looks like American has recently raised the cost of a popular redemption. American has raised the cost of AAdvantage Gold nomination from 2,400 points to 3,200 points. So that’s a ~33% increase, which is significant.

American-Business-Extra

On one hand I find this puzzling, since in general status is less valuable than before. Perhaps the justification is that the qualification criteria for Gold status went up (in terms of there now being a revenue minimum), so they increased the cost of this award as well.

Interestingly they haven’t raised the cost of any of the other redemptions, best I can tell. One-way upgrades within the U.S. are still 650 points, Admirals Club memberships are still 3,000 points, etc.

Historically my favorite redemption has been domestic upgrades for 650 points. The catch is that there’s a fare minimum and they’re only valid for one segment, though American’s confirmable upgrade space has long been excellent. So it has been a great way to lock in an upgrade when it looked like a complimentary upgrade wouldn’t clear.

However, with American confirmable upgrade space not being what it once was, I’m not sure how valuable that will prove in the future.

To Business Extra members: are you sad to see the cost of an AAdvantage Gold status nomination increase?

(Tip of the hat to The Winglet)

Comments

  1. BE points are essentially valueless now. Domestic upgrades were a decent value, but now you can’t use the certs at all given no confirmable domestic upgrade space.

  2. I have been Business Extra member for 5 years, and this is the first time i see a raise like this, lets hope there are not many more increses. This Boost is one of the primary reasons we got to the program, most upgrades are paper upgrades so it is inconvinient por Companys outside the US

  3. I feel like this is probably only the beginning. If we order a BXP1 cert today…what is the expiriation date? I only have enough points left for maybe 2 certs….but would rather order them now….then when they jump the price to 1,000 o/w

  4. AA is starting to look more and more like US Air. And that was sure fun to fly!

    AA miles used to be fairly easy to use for upgrades or flights, but no longer. Can’t get confirmed SFO-JFK and they completely mislead you when booking codeshare on BA from SFO-LHR or OAK-LGW. Says it is booked in Code W, which is supposed to be upgradeable, but then they come back and tell you it isn’t really Code W. What a bunch of baloney. So why use my Aadvantage cards anymore at all? I’m switching to other cards.

  5. Ive had BE for 4 years now and never really used any of the perks. They are very nice to extend points that would normally expire. Still, never have used any of those 20K points or so.
    I can say that all of this makes total sense. Travel is so competitive now with the internet.
    I age myself when I can say that “back in the day” (before the internet, I think…. pre 1995) I would fly from JFK or MIA to CDG for long weekends, paying ~ $350 r/t…. and use miles to upgrade. Always upgraded. Its kinda funny, though, because its still the same 767 angled biz seats equipment.

  6. Nothing should make us sad anymore with american.

    They made a decision to disregard loyalty and fewer loyal customers is what they will get in return.

    From concierge key for the last three years to exec plat this year to likely lifetime plat next (if they still honor it).

    Let’s not forget, in good times any chimp can be a successful ceo, and when things hit the fan the CEO will still get his $100M golden parachute.

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