United Airlines raises annual fees for lounges, rewards credit cards

United Airlines Raises Fees for Airport Lounge Membership and Rewards Credit Cards

United Airlines is increasing the fees for its annual airport lounge membership and rewards credit cards, a test of how much consumers are willing to pay for popular travel perks.

The carrier announced the changes on Monday, alongside sign-up bonuses for its co-branded cards from JPMorgan Chase, as well as new cardholder benefits including rideshare credits and award flight discounts.

"Yes, there are fee increases, but we were very, very cognizant of ensuring that the value increments and the benefits that are delivered outweigh any increase in the cost of those cards," Richard Nunn, chief executive of United’s MileagePlus loyalty program, told reporters. United had been working on the changes to its card portfolio for the past year or so, Nunn said.

Airlines have steadily increased the prices of everything from checked bags to seat assignments and offered perks that used to come for free as part of a package when customers sign up for co-branded credit cards. They have also raised the price and tightened entry requirements to get into popular airport lounges as the number of premium-credit-card holders and travelers with elite status grows and has led to crowding at some facilities.

American, United, and most recently Delta Air Lines operate separate tiers of lounges for customers traveling in long-haul business class, and they’ve all opened larger lounges in recent years.

What’s Changing with Lounges

Starting Monday, United will offer two tiers of memberships to its United Club airport lounge network.

• Individual memberships will go for $750 a year or 94,000 United loyalty points, with access for the passholder only.
• For customers looking to take up to two guests into the lounge, it will cost $1,400 or 175,000 miles, for United Clubs and Star Alliance partner lounges.
• Lounge memberships, including two guests, previously cost $650 a year, though there were discounts for customers with elite frequent flyer status.
• Customers with an existing membership will keep the terms that they signed up for until their membership expires.

Credit Card Fees and Benefits

The new fees go into effect with new sign-ups starting Monday, but benefits will be active for existing card members.

• The United Explorer card goes to $150 a year from $95, and additional benefits include a $60 rideshare credit.
• The United Quest card goes to $350 a year from $250 and includes $100 of rideshare credits, two upgrades to extra legroom seats, and $200 in United travel credits.
• The United Club Infinite Card goes to $695 a year from $525, which also includes an annual lounge membership, $150 in rideshare credits, and the ability to earn Premier 1K elite status through card spending and bonus qualifying points.

Conclusion

United’s decision to raise fees for its airport lounge membership and rewards credit cards is a test of how much consumers are willing to pay for popular travel perks. As the airline industry continues to evolve, it will be interesting to see how consumers respond to these changes.

FAQs

Q: What is changing with United’s lounge membership?
A: United is introducing two tiers of memberships, with individual memberships costing $750 a year or 94,000 United loyalty points, and memberships for up to two guests costing $1,400 or 175,000 miles.

Q: What is changing with United’s credit card fees?
A: The United Explorer card will go to $150 a year from $95, the United Quest card will go to $350 a year from $250, and the United Club Infinite Card will go to $695 a year from $525.

Q: When do the new fees take effect?
A: The new fees will take effect with new sign-ups starting Monday, but benefits will be active for existing card members.

Q: What are the benefits of United’s credit cards?
A: The cards offer a range of benefits, including rideshare credits, award flight discounts, and the ability to earn Premier 1K elite status through card spending and bonus qualifying points.