United Airlines recently announced significant changes to its loyalty program and credit card offerings, including increased annual fees for its popular United Club℠ lounges and co-branded credit cards. These changes come as airlines continue to adjust their revenue strategies amid rising operational costs and shifting traveler demands.
For frequent flyers and credit card holders, understanding these updates is crucial to maximizing benefits while minimizing costs. This article explores the key changes, their implications, and how customers can adapt.
1. Overview of United Airlines’ Recent Changes
A. United Club℠ Lounge Membership Fee Increases
United Club℠ lounges offer travelers a comfortable space to relax, work, and enjoy complimentary food and beverages before flights. However, access is becoming more expensive:
- Individual Membership: Increased from 650to700 per year.
- Executive Membership (allows two members): Increased from 1,200to1,450 per year.
- One-Time Passes: Now priced at **59pervisit∗∗(upfrom50).
These hikes follow similar moves by competitors like Delta and American Airlines, reflecting rising costs in premium airport services.
B. United Co-Branded Credit Card Annual Fee Adjustments
United’s credit cards, issued in partnership with Chase, are also seeing fee increases:
| Card | Previous Annual Fee | New Annual Fee |
|---|---|---|
| United℠ Explorer Card | $95 | $120 |
| United Club℠ Infinite Card | $525 | $550 |
| United℠ Business Card | $99 | $125 |
While the fees are rising, some cards are receiving enhanced benefits to offset the higher costs.
2. Why Is United Increasing Fees?
Several factors are driving these changes:
A. Rising Operational Costs
Inflation has impacted everything from labor to food and beverage services in lounges. Airlines must pass some of these costs to consumers to maintain service quality.
B. High Demand for Premium Travel Experiences
Post-pandemic, travelers are prioritizing comfort and convenience, leading to overcrowded lounges. Higher fees may help manage demand and improve the experience for paying members.
C. Competitive Adjustments
Delta and American Airlines have also raised lounge and credit card fees, allowing United to align its pricing with industry trends without losing competitive ground.
3. How Do the Changes Affect Travelers?
A. For Lounge Members
- Higher Costs: Frequent travelers must decide if the increased fees justify the benefits.
- Alternative Access: Credit card holders (e.g., United Club℠ Infinite Card) may find bundled lounge access more cost-effective than standalone memberships.
- Day Pass Value: At $59 per visit, buying multiple passes may no longer be economical compared to a full membership.
B. For Credit Card Holders
- Increased Fees, But More Perks:
- United℠ Explorer Card: Now offers 10,000 bonus miles after $25,000 annual spend (previously 5,000).
- United Club℠ Infinite Card: Adds two one-time United Club passes for additional users.
- Break-Even Analysis: Travelers must assess whether new benefits outweigh the higher annual costs.
C. For Business Travelers
- Corporate Policies: Companies may need to review travel budgets to accommodate higher lounge and credit card fees.
- Productivity Perks: Lounge access remains valuable for business travelers needing workspaces between flights.
4. Are the New Fees Worth It?
A. Who Should Keep Their Membership or Card?
- Frequent United Flyers: Those who fly United 10+ times a year will likely benefit from lounge access and credit card rewards.
- Premium Cabin Travelers: Passengers booking Polaris or first-class may already receive lounge access, reducing the need for a separate membership.
- High-Spenders: Credit card holders who maximize bonus categories (e.g., United purchases, dining) can offset fees with rewards.
B. Who Should Consider Alternatives?
- Infrequent Travelers: Occasional flyers may find day passes or Priority Pass™ (via other cards) more affordable.
- Budget-Conscious Consumers: If the increased fees strain finances, downgrading to a no-annual-fee card might be better.
5. Strategies to Offset Higher Costs
A. Leverage Credit Card Benefits
- United Club℠ Infinite Card: If you spend **550annually∗∗,theincludedloungeaccess(valuedat700) makes it a better deal than a standalone membership.
- Explorer Card: The free checked bag and priority boarding perks can save frequent travelers over $120 per year.
B. Use Partner Lounge Networks
- Star Alliance Gold Members: Eligible for United Club access when flying internationally.
- Amex Platinum or Chase Sapphire Reserve: These cards offer Priority Pass™, an alternative for lounge access.
C. Optimize Travel Spending
- Maximize Mileage Earnings: Use United cards for bonus categories (e.g., flights, dining).
- Combine Memberships: Some corporate travel programs offer discounted lounge access.
6. Comparing United’s Changes to Competitors
| Airline | Lounge Membership (Individual) | Premium Credit Card Annual Fee |
|---|---|---|
| United | $700 | $550 |
| Delta (Sky Club) | $695 | $650 (Delta Reserve) |
| American (Admirals Club) | $650 | $595 (Citi® / AAdvantage® Executive) |
United’s pricing remains competitive, but Delta and American offer slightly different perks (e.g., Delta’s broader Sky Club network, American’s Admirals Club dining options).
7. What’s Next for United Travelers?
- More Dynamic Pricing: Future adjustments may tie lounge access to fare class or loyalty status.
- Enhanced Digital Features: United may integrate lounge bookings via its app to streamline access.
- Possible Elite Status Benefits: Higher-tier MileagePlus® members could receive discounted lounge passes.
8. Final Verdict: Should You Pay More?
The decision depends on your travel habits:
✅ Worth It If: You fly United frequently, value lounge comfort, and can maximize credit card rewards.
❌ Not Worth It If: You rarely fly United or already have lounge access through other means.
Key Takeaways
✔ United Club℠ membership fees have increased by 50–250.
✔ Credit card annual fees are rising but come with enhanced rewards.
✔ Frequent travelers can still justify costs by leveraging perks.
✔ Alternatives like Priority Pass™ or Star Alliance lounges may offer better value for some.
Conclusion
United Airlines’ fee increases reflect broader trends in the aviation industry, where premium travel experiences come at a higher cost. While the changes may frustrate some customers, strategic use of credit card benefits and loyalty programs can help mitigate the impact.
Before renewing a membership or card, travelers should assess their flying patterns, compare alternatives, and ensure the benefits align with their needs. As competition heats up, United may introduce additional perks to retain customers—making it essential to stay updated on future changes.
