United Airlines is increasing fees for annual airport lounge membership and its rewards credit cards in an effort to test how much consumers are willing to pay for popular travel perks. The carrier announced the changes, which include sign-up bonuses for co-branded cards from JPMorgan Chase and new cardholder benefits such as rideshare credits and award flight discounts, on Monday.
The changes to the card portfolio have been in the works for about a year, according to Richard Nunn, chief executive of United’s MileagePlus loyalty program. Airlines have been steadily raising prices for checked bags, seat assignments, and other services, as well as tightening entry requirements for airport lounges due to crowding.
United added about 17 million Mileage Plus members in the past couple of years and hopes the new card perks will encourage more United flyers to sign up for co-branded cards. Loyalty revenue, which includes popular rewards credit cards, has been a significant source of income for airlines.
Changes to United’s lounge memberships include individual memberships for $750 a year or 94,000 United loyalty points, with the ability to add up to two guests for $1,400 or 175,000 miles. Credit card fees are also increasing, with the United Explorer card going from $95 to $150 a year and the United Quest card going from $250 to $350 a year, among other changes.
Existing lounge members will keep their current terms until their membership expires, and the new benefits will be active for existing card members with the fee changes affecting new sign-ups.
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