What is Alaska Airlines Elite Status Worth in 2017?

Airline elite status carries with it an array of benefits, but just how much is that status worth? If you’re starting 2017 with Alaska Airlines MVP status (or are planning to qualify this year), you’d probably love to know the answer to that question. Today I’ll continuing my update to last year’s series that tries to quantify just how much value you can get out of each tier of elite status. After starting with the three major legacy programs (American AAdvantage, Delta SkyMiles and United MileagePlus), I’ll now shift gears and look at some of the smaller carriers. Our next target is the Alaska Airlines Mileage Plan program.

As always, this analysis represents my personal method for valuing the perks of elite status, so feel free to modify the numbers to fit with your own methodology. In addition, I’m basing my calculations on the assumption that you have already qualified for Alaska elite status. However, I have included an Excel spreadsheet toward the end of the post that uses these numbers to estimate the value you’d get from the program if you’re starting from scratch.

I’ve also made some underlying assumptions when looking at these numbers:

• You qualify for elite status with a combination of Alaska and partner airlines, with travel split evenly between the two.
• You earn 20% more elite-qualifying miles than the minimum required for the given status level.
• You spend an average of 15 cents per elite-qualifying mile.

As always, feel free to adjust these assumptions based on your given travel patterns.

Two final details before getting into the valuation. For the sake of this analysis, the value of any bonus miles earned are based on TPG’s most recent valuations, which peg Alaska miles at 1.9 cents apiece. In addition, this analysis is based on what we currently know about the Mileage Plan program in 2017. There’s a ton of uncertainty around the merger with Virgin America, so instead of speculating, I’ll stick with the current state of the program, which includes the carrier’s April 30 split with Delta (after which point all listed perks on Delta will not longer apply).

Now that you understand how I have approached this analysis, what are the three elite levels of Alaska Airlines Mileage Plan program worth? Here’s where I landed:

Alaska MVP ($985)

The lowest tier in Alaska’s program is MVP status, which normally requires 25,000 elite-qualifying miles or 30 elite-qualifying segments (note that the requirement drops to 20,000 elite-qualifying miles if you travel solely on Alaska). For this analysis, I’ll base my numbers on earning 30,000 elite-qualifying miles at a cost of 15 cents per mile (so a total spend of $4,500), with flying split evenly between Alaska and partner airlines.

Alaska MVP Gold ($3,465)

The middle tier in Alaska’s program is MVP Gold status, which normally requires 50,000 elite-qualifying miles or 60 elite-qualifying segments (40,000 elite-qualifying miles if you travel solely on Alaska). For this analysis, I’ll base my numbers on earning 60,000 elite-qualifying miles at a cost of 15 cents per mile (so a total spend of $9,000), with flying split evenly between Alaska and partner airlines.

Alaska MVP Gold 75K ($7,390)

The top tier in Alaska’s program is MVP Gold 75K status, which normally requires 90,000 elite-qualifying miles or 90 elite-qualifying segments (75,000 elite-qualifying miles if you travel solely on Alaska). For this analysis, I’ll base my numbers on earning 108,000 elite-qualifying miles at a cost of 15 cents per mile (so a total spend of $16,200), with flying split evenly between Alaska and partner airlines.

What if I’m starting from scratch?

As I mentioned at the outset, these numbers are based on the benefits you’d enjoy by spending a full year with the given status. However, if you are starting from scratch, the calculations become a bit more complicated, since you won’t start to enjoy any benefits until you hit the 25,000-mile mark and earn MVP status. To help modify the analysis for those individuals, I’ve taken the above valuations and converted them to a value per elite-qualifying mile, as follows:

• MVP: $985 / 30,000 elite-qualifying miles = 3.28 cents per elite-qualifying mile
• MVP Gold: $3,465 / 60,000 elite-qualifying miles = 5.8 cents per elite-qualifying mile
• MVP Gold 75K: $7,390 / 108,000 elite-qualifying miles = 6.84 cents per elite-qualifying mile

I then created an Excel spreadsheet that uses these numbers to calculate how much value you’d get from the different levels of Alaska elite status given a certain amount of flying. All you need to do is change the number in cell A2 to represent the number of PQMs you expect to fly in 2017, and the spreadsheet will update with the corresponding value.

For example, you’ll see that I have pre-loaded 70,000 elite-qualifying miles. At this rate, you’d get no benefits from the first 25,000 miles, then enjoy MVP benefits for the next 25,000 miles (at a rate of 3.28 cents per mile) and then enjoy MVP Gold benefits for the final 20,000 miles (at a rate of 5.8 cents per mile). This means that if you’re starting from scratch and estimate that you’ll earn 70,000 elite-qualifying miles in 2017, you’d be able to get $1,975.83 worth of perks from the Mileage Plan program.

As always, feel free to adjust the numbers above for each tier (loaded into the “Base Data” tab of the spreadsheet) based on your own personal valuation.

Is it worth it?

So given these values, is it worth pursuing elite status (or the next tier of elite status) with Alaska? Just like with any analysis we undertake here at TPG, there isn’t an easy answer to this, as it depends entirely on your individual situation. However, here are a few over-arching questions that can help you arrive at a decision:

1. How much will you travel in the future? If you earned Alaska elite status in 2016, it’s valid through December 31, 2017, and if you qualify in 2017, your status will last until December 31, 2018. It’s critical to think about how much you’ll be traveling in the future. If you push hard to earn MVP Gold 75K, for example, the valuable perks outlined above only apply when you actually travel.
2. What’s the incremental value of one tier over another? Many of you may wind up within striking distance of the next tier, so be sure to consider whether the benefits are worth pushing for it. There’s no sense in going out of your way for perks that don’t matter to you.
3. How well does Alaska’s route map (and/or those of its partners) match your typical travel patterns? There’s really no point in pursuing elite status with an airline if you can’t feasibly fly them (or partners) on a regular basis. Be sure to consider Alaska’s service from your home airport(s) and how easy it is to get to your desired destination, and remember to pay careful attention to fare classes that don’t earn full elite-qualifying miles.
4. How sensitive are you to price and convenience? There are many tradeoffs in this hobby, and one of the most common is deciding whether to use your preferred airline or hotel chain when it’s not the most convenient or cheapest. Would you book a one-stop Alaska flight if United had a cheaper nonstop option? If the answer is no, it may not be worth going out of your way to earn status with Alaska (or elite status with any airline, for that matter).

These questions are also not easy to answer, as there are many different factors that come into play with each of them. Nevertheless, it’s a worthwhile exercise to evaluate your own situation as you decide to determine if Alaska elite status is for you!

Bottom Line

Alaska Airlines has typically been very well-regarded in the frequent flyer community, though 2016 saw some unwelcome changes (like the overnight devaluation of Emirates awards). What remains to be seen is how the program will continue to change with the acquisition of Virgin America. It appears that 2017 will include some type of status match opportunity, but until those details are finalized, hopefully this analysis has given you some food for thought as you decide whether to pursue MVP status with Alaska this year!

Source: thepointsguy.com