Pushing to improve the airport experience for travelers and offer more than mileage rewards, JPMorgan Chase & Co.’s Chase Card Services unit and United Airlines on July 19 launched the United MileagePlus Explorer Card.
The card features benefits designed to reduce stress and save cardholders hundreds of dollars per year at the airport.
“Before, these cards were all miles-based, but for United customers this card is designed to transform the travel experience,” says David Gold, general manager of Chase Card Services in Wilmington, Del.
The United Mileage Plus Explorer Card has similar concepts to that of Chase’s Continental Airlines OnePass Plus Card, Gold says, calling them “twin cards. United and Continental recently merged.
But the new United card offers free bag checking on the first bag for cardholders and one traveling companion, priority boarding after elite customers (based on miles) and before general boarding, two passes received on the anniversary date of the cardholder for use in any of the United airport clubs, and a program to redeem MileagePlus miles for “any seat, any time on any United flight.”
United offers ticket availability at two levels–at 25,000 miles earned and at 50,000 miles earned–but seat inventory is limited in both cases. Elite-level frequent fliers or MileagePlus card members may purchase a seat at the 50,000-miles level under the Last Seat Availability setup, meaning a seat is available for sale even if awards-seat inventory has sold out.
“It was our hope that we addressed the benefits most valuable to United fliers with this card,” Gold says. “They are not just earning miles with this card, there is a lot of value added.”
Other benefits include double miles on United tickets purchased with the card, an additional 10,000 miles with $25,000 or more spent with the card each calendar year, and no expiration on the miles earned for as long as the customer has a MileagePlus Explorer Card.
The card is free the first year. Thereafter it will cost $95 annually.
“At that price point, we believe the card has more value delivered than anything out there,” Gold says. “We offer that first year free because we don’t want an impediment of any kind in the customer’s mind.”
The benefits outside of the airport include amenities such as a dedicated concierge service at The Luxury Hotel and Resorts Collection, and travel protection for trip cancellations or trip delays, and auto rental roadside emergency assistance.
The magnetic stripe card will carry the Chase, United and Visa logos. The Continental OnePass Plus carries the MasterCard logo.
For the first few months of the marketing campaign, travelers can expect to see a variety of newspaper ads, signs in airport terminals, videos on flights and printed inserts in seat-back pouches, Gold says. “In the future, we’ll be using TV, radio and other media outlets,” he says.
Gold did not elaborate on how the campaign fits into the overall promotion budget for Chase Card Services, but notes that “the (Continental) merger with United created this opportunity, and we’ll be fully supporting this launch. It is a large cobrand program, so we’re not going to underinvest.”
Scott Strumello, an associate with Auriemma Consulting Group, views the new card as Chase Card Services continuing its trend toward investing more in rewards cards and taking advantage of its strong cobranding deal with United Airlines.
“It is one of the biggest cobrand programs, and they want to invest in that and continue to be relevant,” Strumello says.
The travel market has changed with a bevy of new airline fees, much to consumers’ dismay, he says. So “it is a good idea for a nice benefit to be offered at relatively little cost,” Strumello adds. “This is an enhanced version of their card, and others are doing it.”
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