Why do cards give hotel status so easily so but not airline status?

[mkhan1093]

This is more of a philosophical question I was just wondering about earlier today. You constantly hear of hotel-branded credit cards (and some non-co-branded cards) which offer some elevated status for cardholders without having to meet the usual dollars/nights requirement. Two of my own cards come to mind: Amex Platinum (gives Hilton Gold and SPG Gold) and the Citi Hilton HHonors Reserve (gives Hilton gold). Yet I can't think of any airline-branded cards which just straight up offer elevated passenger status. Even the highest-tier ones like the Delta Reserve will only offer you "help" reaching the status in the form of a signup bonus rather than giving it. Is airline status simply more valuable? I think hotel status and airline status go hand-in-hand for travelers.

Thoughts from others though?

[Schwartzinator]

Centurion gives automatic elevated status with Delta, but no other cards come to mind that offer a similar benefit. Let's break it down. What do we get out of hotel elite status? Suite upgrades, complimentary inroom wifi/beverages from the fridge*, comped breakfast, perhaps a gift certificate to the SPA, bar, or gift shop, late checkout, etc. How much of this is likely to be redeemed, and what is the actual cost of doing so or the opportunity cost for lost revenue.? Suite upgrades? Nothing if they were'nt already booked/requested by others which the upgrade is contigent upon anyway. Free WiFi really can't be considered a benefit anymore or at the very least should not be. Continental breakfasts might lose $10-15 if you're a gluten otherwise the standard bagle a cup of joe and maybe a danish aren't really worth mentioning. SPA's and other large ticket reimbursements are going to be worked out with the credit card company in some fashion either through annual fees or other arangements and drive repeat business. Worst case scenario these debits most likely can be written off and the transaction will still remain in the black.

As far as airline elite status goes, you tend to get less but gain more. Convience of free checked luggage, priority boarding, waived fees for itinerary changes, seat upgrades, complimentary beverages or food/snacks, etc. Now, this is guestimations, but I imagine the cost of a coach class ticket in whole is far less than the profit margins on a first or business class seat. This opportunity cost is similar to a suite upgrade from a hotel, but I would speclate that the likelyhood of a plane filling up far exceeds the likelyhood of a hotel filling up; and in the few circumstances in which that is not the case, hotel's complimentary status through a credit card either is not eligible for room upgrades/free nights at that property or is heavily heavily subject to specific dates or other circumstances. Additionally a hotel can be avoided in a way an airline cannot as there are generally only specific routes or flights that can accomodate the traveler that meets their timetable/needs. Need that bag checked? You've got two options. Hope your ride didn't leave and is availible to send it home or pay the fee. Sick? Hope you have trip protection. $125 is pretty standard for changing an already booked flight otherwise you tend to forefit the ticket.

[Noctilum]

It's all about the Benjamin's. Why give it away when it's proven that people will buy it? Between my Delta Amex Platinum and Reserve I buy my way to Gold Medallion each year, then my flights take me to Platinum.

While airline and hotels are both travel related, they are apples and oranges. Both are fruit but very different. It's about cost of the reward. I look at Hilton Gold and see a 5th night free as it's main perk. I can't remember the last time I spent 5 nights at a hotel ina single stay. So their most costly perk is probably one that I will never use.

Meanwhile with flights, time and space are so much more finite. There are so many more customers, so much limited space. If everyone got status by simply paying an annual fee on a card then how does the airline benefit? How does the traveler benefit if everyone on the flight has status and there are 300 people in a lottery for seat upgrades? They'd have to remove perks because everyone would easily have them then and status would be meaningless.

[SkyCommander]

The basic hotel statuses that the co-branded cards give you shouldn't even be considered a status. I've stayed at Marriott, Starwood, Hyatt properties (have their cards) and I was never treated any different than when I didn't have the card. The benefit is getting those extra points and helping get a jump on an actual status level with the hotel because of stay/night credits. It doesn't cost the hotel anything to give out junk statuses that will let you check out a couple hours later but it would cost the airline to give out their best seats to someone who has a credit card.