United Airlines is planning structural changes to the MileagePlus program.
The move, chief commercial officer Andrew Nocella said Wednesday, will orient the program more toward rewarding loyalty rather than offering quick enticements to attract new members.
The carrier has yet to offer details on how MileagePlus will change. Those can be expected in the next 10 weeks to three months, Nocella said during the airline's earnings call.
But the overhaul is in the works. United last week announced the departure of MileagePlus president Luc Bondar, effective Feb. 2, as well as the appointment of a new MileagePlus president, Jarad Fisher, who has previously been director of the Delta SkyMiles program as well as the product lead for Apple Card.
"At United, Jarad will focus on maximizing customer loyalty and our credit card portfolio," Nocella wrote in a memo to United staff.
During the earnings call, Nocella said that United wants to enhance the growth potential of MileagePlus by drawing a larger distinction between what he considers United's true loyalty program and the rewards programs offered by others.
Asked to clarify the difference, Nocella said a key metric is the rate of member turnover. People who get a United co-branded credit card tend to hold if for a long time, he said. And MileagePlus members also tend to stay members for long durations.
"And therefore, we don't need to do extraordinary things to attract people to United. We've already done it with a great product, a great network and rewards that they really want, which is travel," Nocella said. "People really want a first-class seat or a Polaris seat to Tahiti as a reward."
Many brands in and out of the travel industry routinely use bonus points and other enticements to attract co-branded credit card customers. For example, United is currently offering 90,000 bonus miles for new holders of its United Club card.
But Nocella said consumers often game the co-branded credit card system, switching credit cards frequently in order to grab sign-up bonuses.
"I just think an airline program, and particularly the United program, is different," he said. "As we approach the future, we should harness the power of that to figure out how we can make it even stickier and grow it faster."