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Time Out Dubai
09-05-2025
- Time Out Dubai
How to get a free upgrade with Emirates and 7 other travel tips
When it comes to a holiday, we probably all want the same thing: hassle-free bookings, smooth journeys, and maybe even a sneaky (free) upgrade here and there. So you'll be pleased to hear some top tips on how to achieve your dream trip, from revealing the cheapest day to book your flights to how to lower your chances of a delay. As well as that, there are some deals you need to know about, and some freebies you'd be silly not to pick up along the way. You're welcome. How to get a free upgrade and 7 other travel tips to know about Booking flights (Credit: Dubai International Airport) Pick the best dates According to online travel agency Expedia, there are some stats to follow to find the best flight timings for you. For one, you should aim to book your flights on a Sunday instead of a Friday, which could save you up to 28 per cent on the usual price. But for your actual departure day, make it a Thursday, which is statistically the cheapest day to fly, while it is advised to avoid Sundays, which are typically the priciest. Be smart with your timings Timings matter. Did you know that flights booked to depart at around noon or in the evening are less likely to be cancelled? So, be sure to check when you book. If you're wondering when those golden hours are, try to look at flights that depart from 9am to 3pm or 9pm to 3am. Pick the best location You also want to check out your surrounding airports, and find out which is offering the best price. For those living in Dubai, you could take off from DXB, Sharjah International Airport or even Zayed International Airport in Abu Dhabi pretty easily. Upgrade your seat Trying your luck at the check-in desk probably isn't going to work, but there are some things you can do to make a seat in business or first class more likely. For example, Emirates flyers should all download the Emirates Skywards App, as it will collect your air miles every time you fly and eventually give you an upgrade for free. On the app, you should also set up automatic upgrades so that when they become available, you'll automatically be upgraded to the next cabin class using your Skywards Miles. Other airlines that offer loyalty rewards programmes include British Airways (Executive Club), Air France-KLM (Flying Blue) and Lufthansa (Miles & More). Remember, if there are only a few seats available for upgrades, then you'll need to be on the ball when it comes to checking in at the desk early, or in advance at home. Good luck. Airport tips (Credit: Supplied) Look out for freebies The airport is usually packed with free treats, you just need to know where to find them. Families are able to get their hands on plenty of freebies which will make air travel a doddle. From free strollers to Polaroid photos, there are plenty of useful and cool free things to pick up. Check your credit card benefits It's always worth checking your credit card benefits before you head to the airport, especially when it comes to airport lounges. As well as discounts you can redeem in certain restaurants, there are a host of DXB lounges that you can access for free if you have specific cards. Register for Smart Gates This DXB travel hack can let you swoon through passport control in seconds without getting out a single document. Operational for both departing and arriving passengers, simply register for Smart Gates online, then pass through the electronic gates by looking at the green light. Open to UAE/GCC nationals, UAE residents and visa-on arrival guests with biometric passports, you should register in advance on the GDRFA website. Hotel hacks (Credit: Supplied) Have the best deals come to you You don't need to go searching for the best hotel deals. A lot of the time they'll come straight to you — if you let them. One way to ensure this is signing up to loyalty programmes. You can have discount codes, great rates and even VIP services all emailed directly to your inbox. Signing up to hotel apps can also give you access to new deals, be sure to keep an eye out for those notifications popping up on a rogue Tuesday afternoon. Finally, do your research and don't settle on the first offer you see. If you're looking for a quick stay-cay in Dubai, check out all of the best deals across the UAE . Try for an upgrade The odds won't always be in your favour, but there's a few things you can do to raise your chances. Most hotels host their premium rooms on the higher floors, so requesting a high floor is always a good idea. Asking for a corner room is also likely to get you a larger space, and it never hurts to mention if you're travelling for a special occasion either. Jetting off soon? Everything you need to know about Al Maktoum International Airport A deep dive about the big project When is the next UAE public holiday? Your public holiday questions, answered Dubai flights: When will flydubai start operations in Al Maktoum International Airport? The budget airline will open at Al Maktoum International Airport sooner than you'd think
New York Times
28-02-2025
- Business
- New York Times
Rewards Travel Now: Too Many Points, Not Enough Seats
These days, airlines are happy to shower you with sign-up bonuses and juicy earning multipliers to get you to spend on their credit cards. It's supposed to be a mutually beneficial relationship: You get award travel, and the airlines get record profits. Delta Air Lines, for example, earned nearly $2 billion from its American Express partnership in just the last three months of 2024 — up 14 percent from the previous year. The problem, though, is that the points and miles you earn are buying less travel than they used to. Just look at British Airways, which increased some partner award prices by 60 percent in under a year, or Air France-KLM's Flying Blue, which recently raised the number of points needed for awards between 14 and 25 percent. What's behind this wave of devaluations, and more important, what can you do about it? The answer lies in understanding how dramatically airline loyalty programs have evolved — and knowing where to look for remaining sweet spots before they vanish. Airline miles feel inflation, too The fundamental problem is simple: too many points chasing too few seats. 'What we've seen over time is a lot of miles being printed, and we haven't seen a concomitant increase in the number of unsold airline seats available for redemption,' said Gary Leff, an airline industry expert who writes about airlines and loyalty programs on his blog, View From the Wing. When frequent-flier programs began, planes averaged only about 65 percent full. Once a flight took off, those empty seats could never be sold, so airlines used points and miles to fill them. Today, planes run closer to 85 percent capacity or higher. Simultaneously, credit card partnerships have airlines issuing more points than ever, and most airlines have switched to dynamic award pricing that fluctuates with demand. 'For almost any other business in the world, marketing is an expensive line item. For airlines, it's a massive profit center,' Mr. Leff said. 'They're able to take the currency they've created and lend it to other businesses for a fee because people want it so much,' he added, referring to the way that airlines sell their points to credit card companies and other businesses, which use them as consumer incentives. The result? For most Americans, who hold the bulk of their points in major U.S. airline programs, award prices are soaring. 'When you're booking with domestic airlines — think United, American Airlines or Delta — the points-to-actual-cash value that you find is not that big,' said Tim Qin, co-founder of the award travel search engine Roame. United's MileagePlus program, for instance, now routinely charges up to one million miles for business-class tickets that once cost 150,000 miles. Why traditional sweet spots are vanishing Even when seats are available, the patterns for booking them have shifted significantly. Airlines used to reliably release award seats at two key times: when schedules first opened (usually 330 to 360 days before departure) and one to two weeks before the flight. The time window is now often even shorter. Airlines are also restricting partner bookings. Airline alliances — including OneWorld (where American is a member), SkyTeam (Delta) and Star Alliance (United) — allow you to use one airline's miles to book flights on partner carriers. For example, you can use United miles to book flights on Singapore Airlines, or American miles to book on Qantas Airways. Some carriers now restrict their best awards to their own rewards program members, rather than making them available to alliance partners. That forces travelers to navigate an increasingly complex web of programs and rules. 'Lufthansa used to release their first-class seats to Air Canada Aeroplan within two weeks of departure,' Mr. Qin said. 'They first narrowed it down to one week, and now I believe they're close to three days.' The changes extend beyond timing, too. British Airways, which had long offered some of the best rates for short American Airlines flights within the United States, raised those award prices twice in seven months. A domestic U.S. flight that cost 7,500 Avios (British Airways' points currency) in late 2023 now requires 12,000 Avios — if you can find space at all. Yet value still exists if you know where to look. 'Iberia's program is lesser known,' Mr. Qin said. 'You can fly Iberia from the U.S. to Europe for about 42,000 points in business class.' You can also book on Qatar Airways, a sought-after long-haul carrier, using Iberia's program, he added. 'Most people in the U.S. don't really think about Iberia. It's not one of those talked-about programs like Air France or British Airways.' Your 2025 strategy So how can travelers navigate this shifting landscape? Start by focusing on transferable credit card points rather than airline-specific miles. This allows you to redeem your earned points with multiple frequent-flier programs. 'Rely less on the airline to just offer you a good deal,' Mr. Leff said. 'Often you want two cards: one that earns multiple points in the category where you spend the most, and one that pairs in the same ecosystem from the same bank that earns 1.5 or two points per dollar.' This means using two cards from the same bank — for example, pairing Chase's Sapphire Preferred with its Freedom Unlimited card to pool their earned points. This flexibility proves crucial as sweet spots move between programs. Virgin Atlantic, for instance, charges just 90,000 miles for ANA first-class flights to Japan. That same seat would cost 220,000 United miles. Even Flying Blue, Air France-KLM's program, still offers business class to Europe for 60,000 points — notably less than what many U.S. carriers charge. Premium Amex and Chase credit cards allow points transfers to multiple airline programs — meaning cardholders aren't tethered to one airline's availability. For families seeking multiple premium seats, timing becomes crucial. 'If you're going to Europe, you may be pleasantly surprised with Flying Blue because they offer multiseat availability even at their saver rates,' Mr. Qin said, referring to the lowest-priced award tickets airlines offer. Some carriers, like Japan Airlines, often release blocks of award seats within two weeks of departure. Mr. Leff recommends booking what's available on your primary airline, and then watching for better options. Since most programs now waive change fees on award tickets, you can switch if partner space opens up. Just note that once you transfer flexible points to an airline, you can't transfer them back. Perhaps most important: Don't let the perfect be the enemy of good. 'Remember, the best points are what's best for you. If you need to book an economy-fare flight because that makes sense, do it,' Mr. Qin said. 'Don't always shoot for the perfect or the ideal, because you'll just never use your points and they're going to devalue.'
CNN
22-02-2025
- Business
- CNN
Frequent flyers have spent years staying loyal to airlines. Now airlines are ‘giving them the middle finger'
Imagine you're booking a flight. For most people, it's an easy decision: the cheapest fare or the easiest route will be the one to win out. But for many, it's a different scenario. They're willing to spend more, fly at awkward times or even make multiple connections to reach their destination — all to earn airline loyalty points. This is the dance of the frequent flyer program — often a costly dance, but one that reaps benefits in the form of lounge access, free seat selection, priority security and other things that make flying in the crowded 21st century a little more bearable — as long as you spend or fly enough to earn enough points to reach the 'elite' tiers of airlines' loyalty programs. But with airlines increasingly changing their programs to make it harder to accrue status, has the points bubble burst? 'Earning real value from airline loyalty programs is tougher than ever,' says Kyle Olsen, travel products editor at CNN Underscored. 'Airlines have raised [flight] redemption costs and made rewards less valuable. Higher spending requirements make status harder to achieve. Dynamic pricing means award flights cost more points than before.' This year, three carriers in the Oneworld airline alliance — British Airways, Iberia and Qantas — will change their loyalty schemes. From April, it'll be harder to achieve status on the first two, while from August, spending loyalty points on Qantas will require a higher spend. Rob Burgess, editor of 'avgeek' website Head for Points, calls it a 'downward trend.' 'BA and Iberia are turning their programs into recognition schemes for their biggest spenders rather than loyalty schemes,' he says. Those Oneworld changes come on the heels of Delta Air Lines, whose much criticized toughening up of their own program made it tougher to acquire status last year. CEO Ed Bastian cited crowded lounges as one reason for the changes. Suddenly the 'elites' weren't feeling so … elite. So are loyalty programs worth it anymore? And with suggestions that airlines are no longer interested in rewarding the little guys, are there any that still work for the average Joe? For decades, frequent flyers have taken to the skies in the attempt to win points — and 'prizes.' So coveted are the higher status tiers in airline loyalty programs that people do outwardly illogical things like take out new credit cards, book flights they don't need to take, and even fly across the globe without even leaving the airport — because they want the points. Loyalty programs are a balance of carrot and stick — benefits that make flying a nicer experience in return for spending more (and often unnecessarily) with the airline. That carrot essentially drives 'irrational behavior,' says Benjamin Lipsey, senior vice president for customer loyalty at Air France-KLM (sibling airlines to Delta in the SkyTeam alliance) and president of their loyalty program, Flying Blue, which was named best airline rewards program last year by online platform 'A rational consumer would take the cheapest flight at the best time. From a psychology perspective, [loyalty programs] are about trying to stimulate irrational behavior,' he says. Lipsey of all people should know — he's a self-described 'loyalty nut.' At 16, he started managing his dad's frequent flyer account, ensuring that family vacations had extra perks thanks to his father's on-business flights. 'I wanted to make sure we went to the lounge when we traveled as a family,' he says. 'We were able to have priority security, check-in, checked bags and lounge access. I wanted to make sure we didn't lose that.' The teenage Lipsey discovered FlyerTalk, a website where points fans discussed their preferred programs, including ways to achieve status faster or more cheaply. Today it counts around 900,000 members, with separate forums for every loyalty program out there. 'You start to realize it's a bit of a game — you look for ways to maximize the system, loopholes to optimize,' he says. Of course, as poacher-turned-gamekeeper, Lipsey — still an active member of FlyerTalk —shouldn't appreciate game-players in his new role. And yet he does. 'It's important to let customers feel they can find gamification opportunities,' he says. 'If [on Flying Blue] you do London-Paris-New York, or London-Amsterdam-Tokyo, by connecting you achieve status more easily. Me personally, I'm happy with that.' Burgess says that although frequent flyers often look for loopholes, the majority earn in a 'harder' way. So why do airlines court customers in the first place? Because they need to, says Paula Thomas, founder and CEO of Let's Talk Loyalty, who has previously worked on loyalty programs for Emirates and telecoms company O2. Loyalty programs work best in industries where there's little differentiation between businesses, she says — like energy companies, telecoms industries … and airlines. For these sectors, 'pricing is the only differentiator and that's not a good business model,' she says. Enter the frequent flyer schemes, where customers are given tangible benefits for selecting one company over another. 'A good program makes you feel that the business understands you, values you as a passenger and makes you think you can enjoy the fruits of your labor. 'And travel is the most inspirational thing.' In other words, it's a two-way street, benefitting the airline as much as the client sipping on bubbly in the business-class lounge. Lipsey agrees that a good loyalty program is crucial in aviation. Not only can airlines mine their members' data if they get them engaged, but in an industry of notoriously tight margins — around 5-7% — frequent flyers can swing the pendulum from loss to profit. 'Every little bit counts,' he says. 'We do what we can to incentivize customers to fly.' Yet as airlines refine their programs as they rebound post-pandemic, some passengers warn that that two-way street risks turning into a one-way highway, favoring the airlines. One major trend is pivoting from a miles- or segment-based system — where you rack up status by accruing points with every flight — to a spend-based system that awards loyalty purely to airline high-rollers, making it harder for the average flyer to achieve status. In September 2023, Delta Air Lines announced it was moving to a purely spend-based system, making it more expensive to earn status, while also cutting down on lounge access for credit card holders. The changes were met with such outrage that soon after, CEO Ed Bastian admitted that they 'probably went too far.' Delta then lowered the proposed thresholds required to achieve status by about 16-20% — though the tiers remained significantly higher than previously. This year, all hell broke loose in the Oneworld alliance, when British Airways announced its frequent flyer program was moving from segment-based accrual — where passengers get points per sector flown, depending on the cabin class — to one purely based on spend. Until now, canny flyers had been able to achieve Silver status (where benefits like lounge access kick in — equivalent to Oneworld Sapphire status) for as little as £1,500 ($1,895), or Gold (equivalent to Oneworld's Emerald status) for around £3,000 ($3,790) by judiciously route-hopping and taking advantage of offers that BA itself had launched, such as double airmiles on vacation bookings. Yet although the airline seemed keen to be offering ways to game the system, it has now shut the door — ensuring fewer will retain the key. Reaching the coveted Gold status — where passengers can select prime seats at the time of booking, check an extra bag, and use the semi-private First Wing at Heathrow Terminal 5 — will now require a whopping £20,000 ($25,280) spend. Silver now requires a spend of £7,500 ($9,480). Passengers can also now earn money on entire vacation packages (though split between family members), and by purchasing sustainable aviation fuel (SAF) — essentially gifting the airline up to £1,000. But there's a catch. Flight spends are eligible only on the airplane fare, not taxes or charges, which are notoriously high component of flights leaving the UK. Burgess has crunched the numbers and believes that the actual spend required would be £10,000 ($12,640) on business-class flights for Silver, or £30,000 ($37,920) for Gold. Flying economy makes status even less attainable, since taxes represent a higher proportion of economy fares. Burgess reckons that a passenger would need to spend £40,000 — a staggering $50,560 — on economy flights in one year to achieve Gold status. Colm Lacy, BA's chief commercial officer, said in a statement: 'A large number of our customers will benefit from these changes and we're confident that this is a better way of truly rewarding their loyalty.' Five weeks after announcing the changes, BA tweaked the program, allowing commuters to attain Silver status with a flat 50 flights, and adding bonus tier points for flights in 2025. Those extra points will make little difference to your final tally, though: the extra 75 points per economy shorthaul flight is a boost of just 0.38% towards Gold status. Swift on BA's heels, two more Oneworld airlines have announced changes. Iberia will also move to a largely spend-based system, requiring 7,500 points for 'Oro' status (at which point benefits like lounge access kick in) and 20,000 for 'Platino,' or Oneworld Emerald. Buy a ticket, and Iberia will give you one point per euro spent. Iberia will add bonus points depending on the cabin and route flown, as well as allowing customers to beef up their balance through external offers and credit card usage. Burgess has calculated that Oro status might be achievable with a spend of €2,720 (about $2,850) — appetizing to BA flyers wanting to switch to another Oneworld program, but out of reach for most Spaniards, whose average salary is under 27,000 euros (about $28,000). Meanwhile, Qantas has revealed that obtaining Classic Reward redemptions (which 'cost' the fewest points) will require spending anything from 5-20% more points from August, depending on the class of travel. Upgrades will require up to 20% more points while carrier charges for business class seats will shoot up by around 35%. However it's not all bad — customers will earn more points on flights, too. Americans may not find these changes too outrageous. In the US, you need 125,000 loyalty points to reach the equivalent of Oneworld Emerald status, Platinum Pro, with American Airlines. And Delta requires $5,000 qualifying dollars to reach their entry-level Silver Medallion status. But there's a crucial difference between the US and other countries. 'US programs are heavily tied to credit cards and allow travelers to earn miles without flying,' says Olsen. That's because credit card companies buy the miles from the airlines to reward their customers. Lipsey calls it 'an incredibly lucrative source of revenue for airlines.' In other parts of the world, especially where credit cards are less ubiquitous, it's not possible to rack up status purely with cards. Making status more expensive isn't the only change spreading across the Atlantic. Dynamic pricing for redemptions (buying tickets with points) is another downward trend which started in the US. One former Delta aficionado says that to them, the points they spent years accruing are now 'basically worth nothing.' Meanwhile British Airways devalued its Avios for redemptions last year. But as the airlines tweak their programs, making it harder for customers to achieve status or spend their hard-earned points, flyers are starting to wonder whether it's worth staying loyal. 'Rob,' who wishes to remain anonymous for privacy reasons, is community director of FlyerTalk and member of the British Airways Executive Club forum. He was nearly halfway to 'Lifetime Gold' status — where flyers have accrued so many tier points that they are awarded status for life — when BA announced its changes. 'All my lifetime plans reaching it just before retirement have been blown out of the window,' he says. 'When I read the news I turned to my wife and said, 'We're leaving BA.' It'd probably cost £50,000 between us to maintain Gold. That's not a viable proposition for 99.9% of people in this country.' The British Airways forum was by far the most popular on the website, with nearly 140,000 threads — nearly twice as many as Air Canada's, which had the second highest engagement. But BA's abrupt changes have 'splintered what trust people had with them,' he says. Trust is a key component of a loyalty program, says Paula Thomas. For airlines, she says, that means that the rewards advertised in the program must be widely available — specifically, flight redemptions, which Qantas has been criticized as being parsimonious over. Devaluing the currency, as British Airways did last year, is also a no-go. 'It's extremely disappointing for someone who wants something of value,' she says. 'If you're not allowing [people] to enjoy what you've promised, or if you're moving the carrot further away, you've misrepresented the value of the program. Business is business but it has to be fair.' And as for British Airways' failure, five weeks from launch, to clarify the rules around accruing points on their BA-linked credit cards, Thomas says, 'If you don't have the information, that's where trust is compromised.' In September, the US Department of Transportation launched a federal probe into frequent flyer programs, demanding information from American Airlines, United, Southwest and Delta on how they run their programs. The DOT wanted to 'ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair,' then-Transportation Secretary Pete Buttigieg said in a statement. The DOT did not respond to CNN's questions about whether the probe was ongoing, and when its findings might be released. 'I think a lot of companies forget loyalty is a two-way street,' says Lipsey, though he's at pains to say he's not talking about any airline in particular. 'It's not just a transactional relationship; trust is really crucial… When the program makes a change, it reflects on the airline and vice versa.' And when it's lost, others can jump in. When Delta announced its changes, JetBlue launched a 'status match' campaign and promptly signed up nearly 20,000 disaffected Delta flyers, the airline said at the time, though it declined to confirm final numbers to CNN. Lipsey's Flying Blue program has launched a 'status match' campaign for disaffected BA customers. He says 'several thousand' have already signed up, half of whom are gold-card holders or above. 'We hope to achieve between €20-30m in incremental customer value from these customers who matched,' he says. Virgin Atlantic is also happily status-matching BA elites. And although some airlines are closing the drawbridge to those seeking status, others are keeping them open. Since airlines team up in alliances, status with one airline is valid for its alliance 'siblings,' too — so many flyers who've been priced out by their original program can join another more suited to their flying patterns, and achieve status easier. For instance, disenfranchised Delta customers can see if Flying Blue works better for them, while British Airways exiles can sign up with Iberia and already find it about 17% 'cheaper' to achieve status, thanks to the pound's strength against the euro. Rob, the FlyerTalk community director, plans to switch to a rival Oneworld loyalty program such as Royal Jordanian or Malaysia Airlines — and says most of the BA FlyerTalk members look set to do the same. As the teenage Lipsey discovered, there's a world online where people swap status tips. Airlines are notoriously tight-lipped about the numbers of their frequent flyers, but with Bastian admitting that congested lounges (a phenomenon born during the pandemic, when airlines rolled over customers' status) were a reason for tightening the Delta program, it'd be fair to say a drop in the number of status-holders is a clear aim. (BA's Colm Lacy disputes this, saying in a statement: 'These changes aren't about reducing the number of members in each tier but making sure that we get the level of recognition right for each individual.') But with a global economic crunch, and passengers tightening their belts, some argue that closing the door to all but the highest spenders is a dangerous choice. 'It's sticking the middle finger up to the little people,' says Rob, of BA's changes. Lacy disputes this, saying that by awarding tier points for vacation package spend, 'We now have a way to reward leisure customers that we haven't in the past.' For Lipsey, a spend-based system is a dangerous gamble. 'BA has basically said 'Gold is worth £20,000' so now as a customer you start saying, 'Am I getting £20,000 worth of value?' If it's purely revenue-based, that's the risk. And I think it removes the irrational behavior that is key to loyalty programs. 'It's a bold move they've made. What they've done is basically fired the leisure customer. Whether they need those or not is up to them to decide. I'm sure they've done their homework.' Burgess says that the airline might be in for a shock. 'Many people were only putting up with BA because they got these extra benefits. Take those away and the emperor has no clothes.' Flying Blue is considering a 'revenue component,' admits Lipsey — maybe a minimum spend or a flight requirement. But nothing more. 'You don't put a price on loyalty,' he says. One thing's for sure: other airlines will be watching those who do.
CNN
22-02-2025
- Business
- CNN
Frequent flyers have spent years staying loyal to airlines. Now airlines are ‘giving them the middle finger'
Imagine you're booking a flight. For most people, it's an easy decision: the cheapest fare or the easiest route will be the one to win out. But for many, it's a different scenario. They're willing to spend more, fly at awkward times or even make multiple connections to reach their destination — all to earn airline loyalty points. This is the dance of the frequent flyer program — often a costly dance, but one that reaps benefits in the form of lounge access, free seat selection, priority security and other things that make flying in the crowded 21st century a little more bearable — as long as you spend or fly enough to earn enough points to reach the 'elite' tiers of airlines' loyalty programs. But with airlines increasingly changing their programs to make it harder to accrue status, has the points bubble burst? 'Earning real value from airline loyalty programs is tougher than ever,' says Kyle Olsen, travel products editor at CNN Underscored. 'Airlines have raised [flight] redemption costs and made rewards less valuable. Higher spending requirements make status harder to achieve. Dynamic pricing means award flights cost more points than before.' This year, three carriers in the Oneworld airline alliance — British Airways, Iberia and Qantas — will change their loyalty schemes. From April, it'll be harder to achieve status on the first two, while from August, spending loyalty points on Qantas will require a higher spend. Rob Burgess, editor of 'avgeek' website Head for Points, calls it a 'downward trend.' 'BA and Iberia are turning their programs into recognition schemes for their biggest spenders rather than loyalty schemes,' he says. Those Oneworld changes come on the heels of Delta Air Lines, whose much criticized toughening up of their own program made it tougher to acquire status last year. CEO Ed Bastian cited crowded lounges as one reason for the changes. Suddenly the 'elites' weren't feeling so … elite. So are loyalty programs worth it anymore? And with suggestions that airlines are no longer interested in rewarding the little guys, are there any that still work for the average Joe? For decades, frequent flyers have taken to the skies in the attempt to win points — and 'prizes.' So coveted are the higher status tiers in airline loyalty programs that people do outwardly illogical things like take out new credit cards, book flights they don't need to take, and even fly across the globe without even leaving the airport — because they want the points. Loyalty programs are a balance of carrot and stick — benefits that make flying a nicer experience in return for spending more (and often unnecessarily) with the airline. That carrot essentially drives 'irrational behavior,' says Benjamin Lipsey, senior vice president for customer loyalty at Air France-KLM (sibling airlines to Delta in the SkyTeam alliance) and president of their loyalty program, Flying Blue, which was named best airline rewards program last year by online platform 'A rational consumer would take the cheapest flight at the best time. From a psychology perspective, [loyalty programs] are about trying to stimulate irrational behavior,' he says. Lipsey of all people should know — he's a self-described 'loyalty nut.' At 16, he started managing his dad's frequent flyer account, ensuring that family vacations had extra perks thanks to his father's on-business flights. 'I wanted to make sure we went to the lounge when we traveled as a family,' he says. 'We were able to have priority security, check-in, checked bags and lounge access. I wanted to make sure we didn't lose that.' The teenage Lipsey discovered FlyerTalk, a website where points fans discussed their preferred programs, including ways to achieve status faster or more cheaply. Today it counts around 900,000 members, with separate forums for every loyalty program out there. 'You start to realize it's a bit of a game — you look for ways to maximize the system, loopholes to optimize,' he says. Of course, as poacher-turned-gamekeeper, Lipsey — still an active member of FlyerTalk —shouldn't appreciate game-players in his new role. And yet he does. 'It's important to let customers feel they can find gamification opportunities,' he says. 'If [on Flying Blue] you do London-Paris-New York, or London-Amsterdam-Tokyo, by connecting you achieve status more easily. Me personally, I'm happy with that.' Burgess says that although frequent flyers often look for loopholes, the majority earn in a 'harder' way. So why do airlines court customers in the first place? Because they need to, says Paula Thomas, founder and CEO of Let's Talk Loyalty, who has previously worked on loyalty programs for Emirates and telecoms company O2. Loyalty programs work best in industries where there's little differentiation between businesses, she says — like energy companies, telecoms industries … and airlines. For these sectors, 'pricing is the only differentiator and that's not a good business model,' she says. Enter the frequent flyer schemes, where customers are given tangible benefits for selecting one company over another. 'A good program makes you feel that the business understands you, values you as a passenger and makes you think you can enjoy the fruits of your labor. 'And travel is the most inspirational thing.' In other words, it's a two-way street, benefitting the airline as much as the client sipping on bubbly in the business-class lounge. Lipsey agrees that a good loyalty program is crucial in aviation. Not only can airlines mine their members' data if they get them engaged, but in an industry of notoriously tight margins — around 5-7% — frequent flyers can swing the pendulum from loss to profit. 'Every little bit counts,' he says. 'We do what we can to incentivize customers to fly.' Yet as airlines refine their programs as they rebound post-pandemic, some passengers warn that that two-way street risks turning into a one-way highway, favoring the airlines. One major trend is pivoting from a miles- or segment-based system — where you rack up status by accruing points with every flight — to a spend-based system that awards loyalty purely to airline high-rollers, making it harder for the average flyer to achieve status. In September 2023, Delta Air Lines announced it was moving to a purely spend-based system, making it more expensive to earn status, while also cutting down on lounge access for credit card holders. The changes were met with such outrage that soon after, CEO Ed Bastian admitted that they 'probably went too far.' Delta then lowered the proposed thresholds required to achieve status by about 16-20% — though the tiers remained significantly higher than previously. This year, all hell broke loose in the Oneworld alliance, when British Airways announced its frequent flyer program was moving from segment-based accrual — where passengers get points per sector flown, depending on the cabin class — to one purely based on spend. Until now, canny flyers had been able to achieve Silver status (where benefits like lounge access kick in — equivalent to Oneworld Sapphire status) for as little as £1,500 ($1,895), or Gold (equivalent to Oneworld's Emerald status) for around £3,000 ($3,790) by judiciously route-hopping and taking advantage of offers that BA itself had launched, such as double airmiles on vacation bookings. Yet although the airline seemed keen to be offering ways to game the system, it has now shut the door — ensuring fewer will retain the key. Reaching the coveted Gold status — where passengers can select prime seats at the time of booking, check an extra bag, and use the semi-private First Wing at Heathrow Terminal 5 — will now require a whopping £20,000 ($25,280) spend. Silver now requires a spend of £7,500 ($9,480). Passengers can also now earn money on entire vacation packages (though split between family members), and by purchasing sustainable aviation fuel (SAF) — essentially gifting the airline up to £1,000. But there's a catch. Flight spends are eligible only on the airplane fare, not taxes or charges, which are notoriously high component of flights leaving the UK. Burgess has crunched the numbers and believes that the actual spend required would be £10,000 ($12,640) on business-class flights for Silver, or £30,000 ($37,920) for Gold. Flying economy makes status even less attainable, since taxes represent a higher proportion of economy fares. Burgess reckons that a passenger would need to spend £40,000 — a staggering $50,560 — on economy flights in one year to achieve Gold status. Colm Lacy, BA's chief commercial officer, said in a statement: 'A large number of our customers will benefit from these changes and we're confident that this is a better way of truly rewarding their loyalty.' Five weeks after announcing the changes, BA tweaked the program, allowing commuters to attain Silver status with a flat 50 flights, and adding bonus tier points for flights in 2025. Those extra points will make little difference to your final tally, though: the extra 75 points per economy shorthaul flight is a boost of just 0.38% towards Gold status. Swift on BA's heels, two more Oneworld airlines have announced changes. Iberia will also move to a largely spend-based system, requiring 7,500 points for 'Oro' status (at which point benefits like lounge access kick in) and 20,000 for 'Platino,' or Oneworld Emerald. Buy a ticket, and Iberia will give you one point per euro spent. Iberia will add bonus points depending on the cabin and route flown, as well as allowing customers to beef up their balance through external offers and credit card usage. Burgess has calculated that Oro status might be achievable with a spend of €2,720 (about $2,850) — appetizing to BA flyers wanting to switch to another Oneworld program, but out of reach for most Spaniards, whose average salary is under 27,000 euros (about $28,000). Meanwhile, Qantas has revealed that obtaining Classic Reward redemptions (which 'cost' the fewest points) will require spending anything from 5-20% more points from August, depending on the class of travel. Upgrades will require up to 20% more points while carrier charges for business class seats will shoot up by around 35%. However it's not all bad — customers will earn more points on flights, too. Americans may not find these changes too outrageous. In the US, you need 125,000 loyalty points to reach the equivalent of Oneworld Emerald status, Platinum Pro, with American Airlines. And Delta requires $5,000 qualifying dollars to reach their entry-level Silver Medallion status. But there's a crucial difference between the US and other countries. 'US programs are heavily tied to credit cards and allow travelers to earn miles without flying,' says Olsen. That's because credit card companies buy the miles from the airlines to reward their customers. Lipsey calls it 'an incredibly lucrative source of revenue for airlines.' In other parts of the world, especially where credit cards are less ubiquitous, it's not possible to rack up status purely with cards. Making status more expensive isn't the only change spreading across the Atlantic. Dynamic pricing for redemptions (buying tickets with points) is another downward trend which started in the US. One former Delta aficionado says that to them, the points they spent years accruing are now 'basically worth nothing.' Meanwhile British Airways devalued its Avios for redemptions last year. But as the airlines tweak their programs, making it harder for customers to achieve status or spend their hard-earned points, flyers are starting to wonder whether it's worth staying loyal. 'Rob,' who wishes to remain anonymous for privacy reasons, is community director of FlyerTalk and member of the British Airways Executive Club forum. He was nearly halfway to 'Lifetime Gold' status — where flyers have accrued so many tier points that they are awarded status for life — when BA announced its changes. 'All my lifetime plans reaching it just before retirement have been blown out of the window,' he says. 'When I read the news I turned to my wife and said, 'We're leaving BA.' It'd probably cost £50,000 between us to maintain Gold. That's not a viable proposition for 99.9% of people in this country.' The British Airways forum was by far the most popular on the website, with nearly 140,000 threads — nearly twice as many as Air Canada's, which had the second highest engagement. But BA's abrupt changes have 'splintered what trust people had with them,' he says. Trust is a key component of a loyalty program, says Paula Thomas. For airlines, she says, that means that the rewards advertised in the program must be widely available — specifically, flight redemptions, which Qantas has been criticized as being parsimonious over. Devaluing the currency, as British Airways did last year, is also a no-go. 'It's extremely disappointing for someone who wants something of value,' she says. 'If you're not allowing [people] to enjoy what you've promised, or if you're moving the carrot further away, you've misrepresented the value of the program. Business is business but it has to be fair.' And as for British Airways' failure, five weeks from launch, to clarify the rules around accruing points on their BA-linked credit cards, Thomas says, 'If you don't have the information, that's where trust is compromised.' In September, the US Department of Transportation launched a federal probe into frequent flyer programs, demanding information from American Airlines, United, Southwest and Delta on how they run their programs. The DOT wanted to 'ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair,' then-Transportation Secretary Pete Buttigieg said in a statement. The DOT did not respond to CNN's questions about whether the probe was ongoing, and when its findings might be released. 'I think a lot of companies forget loyalty is a two-way street,' says Lipsey, though he's at pains to say he's not talking about any airline in particular. 'It's not just a transactional relationship; trust is really crucial… When the program makes a change, it reflects on the airline and vice versa.' And when it's lost, others can jump in. When Delta announced its changes, JetBlue launched a 'status match' campaign and promptly signed up nearly 20,000 disaffected Delta flyers, the airline said at the time, though it declined to confirm final numbers to CNN. Lipsey's Flying Blue program has launched a 'status match' campaign for disaffected BA customers. He says 'several thousand' have already signed up, half of whom are gold-card holders or above. 'We hope to achieve between €20-30m in incremental customer value from these customers who matched,' he says. Virgin Atlantic is also happily status-matching BA elites. And although some airlines are closing the drawbridge to those seeking status, others are keeping them open. Since airlines team up in alliances, status with one airline is valid for its alliance 'siblings,' too — so many flyers who've been priced out by their original program can join another more suited to their flying patterns, and achieve status easier. For instance, disenfranchised Delta customers can see if Flying Blue works better for them, while British Airways exiles can sign up with Iberia and already find it about 17% 'cheaper' to achieve status, thanks to the pound's strength against the euro. Rob, the FlyerTalk community director, plans to switch to a rival Oneworld loyalty program such as Royal Jordanian or Malaysia Airlines — and says most of the BA FlyerTalk members look set to do the same. As the teenage Lipsey discovered, there's a world online where people swap status tips. Airlines are notoriously tight-lipped about the numbers of their frequent flyers, but with Bastian admitting that congested lounges (a phenomenon born during the pandemic, when airlines rolled over customers' status) were a reason for tightening the Delta program, it'd be fair to say a drop in the number of status-holders is a clear aim. (BA's Colm Lacy disputes this, saying in a statement: 'These changes aren't about reducing the number of members in each tier but making sure that we get the level of recognition right for each individual.') But with a global economic crunch, and passengers tightening their belts, some argue that closing the door to all but the highest spenders is a dangerous choice. 'It's sticking the middle finger up to the little people,' says Rob, of BA's changes. Lacy disputes this, saying that by awarding tier points for vacation package spend, 'We now have a way to reward leisure customers that we haven't in the past.' For Lipsey, a spend-based system is a dangerous gamble. 'BA has basically said 'Gold is worth £20,000' so now as a customer you start saying, 'Am I getting £20,000 worth of value?' If it's purely revenue-based, that's the risk. And I think it removes the irrational behavior that is key to loyalty programs. 'It's a bold move they've made. What they've done is basically fired the leisure customer. Whether they need those or not is up to them to decide. I'm sure they've done their homework.' Burgess says that the airline might be in for a shock. 'Many people were only putting up with BA because they got these extra benefits. Take those away and the emperor has no clothes.' Flying Blue is considering a 'revenue component,' admits Lipsey — maybe a minimum spend or a flight requirement. But nothing more. 'You don't put a price on loyalty,' he says. One thing's for sure: other airlines will be watching those who do.
CNN
22-02-2025
- Business
- CNN
Frequent flyers have spent years staying loyal to airlines. Now airlines are ‘giving them the middle finger'
Imagine you're booking a flight. For most people, it's an easy decision: the cheapest fare or the easiest route will be the one to win out. But for many, it's a different scenario. They're willing to spend more, fly at awkward times or even make multiple connections to reach their destination — all to earn airline loyalty points. This is the dance of the frequent flyer program — often a costly dance, but one that reaps benefits in the form of lounge access, free seat selection, priority security and other things that make flying in the crowded 21st century a little more bearable — as long as you spend or fly enough to earn enough points to reach the 'elite' tiers of airlines' loyalty programs. But with airlines increasingly changing their programs to make it harder to accrue status, has the points bubble burst? 'Earning real value from airline loyalty programs is tougher than ever,' says Kyle Olsen, travel products editor at CNN Underscored. 'Airlines have raised [flight] redemption costs and made rewards less valuable. Higher spending requirements make status harder to achieve. Dynamic pricing means award flights cost more points than before.' This year, three carriers in the Oneworld airline alliance — British Airways, Iberia and Qantas — will change their loyalty schemes. From April, it'll be harder to achieve status on the first two, while from August, spending loyalty points on Qantas will require a higher spend. Rob Burgess, editor of 'avgeek' website Head for Points, calls it a 'downward trend.' 'BA and Iberia are turning their programs into recognition schemes for their biggest spenders rather than loyalty schemes,' he says. Those Oneworld changes come on the heels of Delta Air Lines, whose much criticized toughening up of their own program made it tougher to acquire status last year. CEO Ed Bastian cited crowded lounges as one reason for the changes. Suddenly the 'elites' weren't feeling so … elite. So are loyalty programs worth it anymore? And with suggestions that airlines are no longer interested in rewarding the little guys, are there any that still work for the average Joe? For decades, frequent flyers have taken to the skies in the attempt to win points — and 'prizes.' So coveted are the higher status tiers in airline loyalty programs that people do outwardly illogical things like take out new credit cards, book flights they don't need to take, and even fly across the globe without even leaving the airport — because they want the points. Loyalty programs are a balance of carrot and stick — benefits that make flying a nicer experience in return for spending more (and often unnecessarily) with the airline. That carrot essentially drives 'irrational behavior,' says Benjamin Lipsey, senior vice president for customer loyalty at Air France-KLM (sibling airlines to Delta in the SkyTeam alliance) and president of their loyalty program, Flying Blue, which was named best airline rewards program last year by online platform 'A rational consumer would take the cheapest flight at the best time. From a psychology perspective, [loyalty programs] are about trying to stimulate irrational behavior,' he says. Lipsey of all people should know — he's a self-described 'loyalty nut.' At 16, he started managing his dad's frequent flyer account, ensuring that family vacations had extra perks thanks to his father's on-business flights. 'I wanted to make sure we went to the lounge when we traveled as a family,' he says. 'We were able to have priority security, check-in, checked bags and lounge access. I wanted to make sure we didn't lose that.' The teenage Lipsey discovered FlyerTalk, a website where points fans discussed their preferred programs, including ways to achieve status faster or more cheaply. Today it counts around 900,000 members, with separate forums for every loyalty program out there. 'You start to realize it's a bit of a game — you look for ways to maximize the system, loopholes to optimize,' he says. Of course, as poacher-turned-gamekeeper, Lipsey — still an active member of FlyerTalk —shouldn't appreciate game-players in his new role. And yet he does. 'It's important to let customers feel they can find gamification opportunities,' he says. 'If [on Flying Blue] you do London-Paris-New York, or London-Amsterdam-Tokyo, by connecting you achieve status more easily. Me personally, I'm happy with that.' Burgess says that although frequent flyers often look for loopholes, the majority earn in a 'harder' way. So why do airlines court customers in the first place? Because they need to, says Paula Thomas, founder and CEO of Let's Talk Loyalty, who has previously worked on loyalty programs for Emirates and telecoms company O2. Loyalty programs work best in industries where there's little differentiation between businesses, she says — like energy companies, telecoms industries … and airlines. For these sectors, 'pricing is the only differentiator and that's not a good business model,' she says. Enter the frequent flyer schemes, where customers are given tangible benefits for selecting one company over another. 'A good program makes you feel that the business understands you, values you as a passenger and makes you think you can enjoy the fruits of your labor. 'And travel is the most inspirational thing.' In other words, it's a two-way street, benefitting the airline as much as the client sipping on bubbly in the business-class lounge. Lipsey agrees that a good loyalty program is crucial in aviation. Not only can airlines mine their members' data if they get them engaged, but in an industry of notoriously tight margins — around 5-7% — frequent flyers can swing the pendulum from loss to profit. 'Every little bit counts,' he says. 'We do what we can to incentivize customers to fly.' Yet as airlines refine their programs as they rebound post-pandemic, some passengers warn that that two-way street risks turning into a one-way highway, favoring the airlines. One major trend is pivoting from a miles- or segment-based system — where you rack up status by accruing points with every flight — to a spend-based system that awards loyalty purely to airline high-rollers, making it harder for the average flyer to achieve status. In September 2023, Delta Air Lines announced it was moving to a purely spend-based system, making it more expensive to earn status, while also cutting down on lounge access for credit card holders. The changes were met with such outrage that soon after, CEO Ed Bastian admitted that they 'probably went too far.' Delta then lowered the proposed thresholds required to achieve status by about 16-20% — though the tiers remained significantly higher than previously. This year, all hell broke loose in the Oneworld alliance, when British Airways announced its frequent flyer program was moving from segment-based accrual — where passengers get points per sector flown, depending on the cabin class — to one purely based on spend. Until now, canny flyers had been able to achieve Silver status (where benefits like lounge access kick in — equivalent to Oneworld Sapphire status) for as little as £1,500 ($1,895), or Gold (equivalent to Oneworld's Emerald status) for around £3,000 ($3,790) by judiciously route-hopping and taking advantage of offers that BA itself had launched, such as double airmiles on vacation bookings. Yet although the airline seemed keen to be offering ways to game the system, it has now shut the door — ensuring fewer will retain the key. Reaching the coveted Gold status — where passengers can select prime seats at the time of booking, check an extra bag, and use the semi-private First Wing at Heathrow Terminal 5 — will now require a whopping £20,000 ($25,280) spend. Silver now requires a spend of £7,500 ($9,480). Passengers can also now earn money on entire vacation packages (though split between family members), and by purchasing sustainable aviation fuel (SAF) — essentially gifting the airline up to £1,000. But there's a catch. Flight spends are eligible only on the airplane fare, not taxes or charges, which are notoriously high component of flights leaving the UK. Burgess has crunched the numbers and believes that the actual spend required would be £10,000 ($12,640) on business-class flights for Silver, or £30,000 ($37,920) for Gold. Flying economy makes status even less attainable, since taxes represent a higher proportion of economy fares. Burgess reckons that a passenger would need to spend £40,000 — a staggering $50,560 — on economy flights in one year to achieve Gold status. Colm Lacy, BA's chief commercial officer, said in a statement: 'A large number of our customers will benefit from these changes and we're confident that this is a better way of truly rewarding their loyalty.' Five weeks after announcing the changes, BA tweaked the program, allowing commuters to attain Silver status with a flat 50 flights, and adding bonus tier points for flights in 2025. Those extra points will make little difference to your final tally, though: the extra 75 points per economy shorthaul flight is a boost of just 0.38% towards Gold status. Swift on BA's heels, two more Oneworld airlines have announced changes. Iberia will also move to a largely spend-based system, requiring 7,500 points for 'Oro' status (at which point benefits like lounge access kick in) and 20,000 for 'Platino,' or Oneworld Emerald. Buy a ticket, and Iberia will give you one point per euro spent. Iberia will add bonus points depending on the cabin and route flown, as well as allowing customers to beef up their balance through external offers and credit card usage. Burgess has calculated that Oro status might be achievable with a spend of €2,720 (about $2,850) — appetizing to BA flyers wanting to switch to another Oneworld program, but out of reach for most Spaniards, whose average salary is under 27,000 euros (about $28,000). Meanwhile, Qantas has revealed that obtaining Classic Reward redemptions (which 'cost' the fewest points) will require spending anything from 5-20% more points from August, depending on the class of travel. Upgrades will require up to 20% more points while carrier charges for business class seats will shoot up by around 35%. However it's not all bad — customers will earn more points on flights, too. Americans may not find these changes too outrageous. In the US, you need 125,000 loyalty points to reach the equivalent of Oneworld Emerald status, Platinum Pro, with American Airlines. And Delta requires $5,000 qualifying dollars to reach their entry-level Silver Medallion status. But there's a crucial difference between the US and other countries. 'US programs are heavily tied to credit cards and allow travelers to earn miles without flying,' says Olsen. That's because credit card companies buy the miles from the airlines to reward their customers. Lipsey calls it 'an incredibly lucrative source of revenue for airlines.' In other parts of the world, especially where credit cards are less ubiquitous, it's not possible to rack up status purely with cards. Making status more expensive isn't the only change spreading across the Atlantic. Dynamic pricing for redemptions (buying tickets with points) is another downward trend which started in the US. One former Delta aficionado says that to them, the points they spent years accruing are now 'basically worth nothing.' Meanwhile British Airways devalued its Avios for redemptions last year. But as the airlines tweak their programs, making it harder for customers to achieve status or spend their hard-earned points, flyers are starting to wonder whether it's worth staying loyal. 'Rob,' who wishes to remain anonymous for privacy reasons, is community director of FlyerTalk and member of the British Airways Executive Club forum. He was nearly halfway to 'Lifetime Gold' status — where flyers have accrued so many tier points that they are awarded status for life — when BA announced its changes. 'All my lifetime plans reaching it just before retirement have been blown out of the window,' he says. 'When I read the news I turned to my wife and said, 'We're leaving BA.' It'd probably cost £50,000 between us to maintain Gold. That's not a viable proposition for 99.9% of people in this country.' The British Airways forum was by far the most popular on the website, with nearly 140,000 threads — nearly twice as many as Air Canada's, which had the second highest engagement. But BA's abrupt changes have 'splintered what trust people had with them,' he says. Trust is a key component of a loyalty program, says Paula Thomas. For airlines, she says, that means that the rewards advertised in the program must be widely available — specifically, flight redemptions, which Qantas has been criticized as being parsimonious over. Devaluing the currency, as British Airways did last year, is also a no-go. 'It's extremely disappointing for someone who wants something of value,' she says. 'If you're not allowing [people] to enjoy what you've promised, or if you're moving the carrot further away, you've misrepresented the value of the program. Business is business but it has to be fair.' And as for British Airways' failure, five weeks from launch, to clarify the rules around accruing points on their BA-linked credit cards, Thomas says, 'If you don't have the information, that's where trust is compromised.' In September, the US Department of Transportation launched a federal probe into frequent flyer programs, demanding information from American Airlines, United, Southwest and Delta on how they run their programs. The DOT wanted to 'ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair,' then-Transportation Secretary Pete Buttigieg said in a statement. The DOT did not respond to CNN's questions about whether the probe was ongoing, and when its findings might be released. 'I think a lot of companies forget loyalty is a two-way street,' says Lipsey, though he's at pains to say he's not talking about any airline in particular. 'It's not just a transactional relationship; trust is really crucial… When the program makes a change, it reflects on the airline and vice versa.' And when it's lost, others can jump in. When Delta announced its changes, JetBlue launched a 'status match' campaign and promptly signed up nearly 20,000 disaffected Delta flyers, the airline said at the time, though it declined to confirm final numbers to CNN. Lipsey's Flying Blue program has launched a 'status match' campaign for disaffected BA customers. He says 'several thousand' have already signed up, half of whom are gold-card holders or above. 'We hope to achieve between €20-30m in incremental customer value from these customers who matched,' he says. Virgin Atlantic is also happily status-matching BA elites. And although some airlines are closing the drawbridge to those seeking status, others are keeping them open. Since airlines team up in alliances, status with one airline is valid for its alliance 'siblings,' too — so many flyers who've been priced out by their original program can join another more suited to their flying patterns, and achieve status easier. For instance, disenfranchised Delta customers can see if Flying Blue works better for them, while British Airways exiles can sign up with Iberia and already find it about 17% 'cheaper' to achieve status, thanks to the pound's strength against the euro. Rob, the FlyerTalk community director, plans to switch to a rival Oneworld loyalty program such as Royal Jordanian or Malaysia Airlines — and says most of the BA FlyerTalk members look set to do the same. As the teenage Lipsey discovered, there's a world online where people swap status tips. Airlines are notoriously tight-lipped about the numbers of their frequent flyers, but with Bastian admitting that congested lounges (a phenomenon born during the pandemic, when airlines rolled over customers' status) were a reason for tightening the Delta program, it'd be fair to say a drop in the number of status-holders is a clear aim. (BA's Colm Lacy disputes this, saying in a statement: 'These changes aren't about reducing the number of members in each tier but making sure that we get the level of recognition right for each individual.') But with a global economic crunch, and passengers tightening their belts, some argue that closing the door to all but the highest spenders is a dangerous choice. 'It's sticking the middle finger up to the little people,' says Rob, of BA's changes. Lacy disputes this, saying that by awarding tier points for vacation package spend, 'We now have a way to reward leisure customers that we haven't in the past.' For Lipsey, a spend-based system is a dangerous gamble. 'BA has basically said 'Gold is worth £20,000' so now as a customer you start saying, 'Am I getting £20,000 worth of value?' If it's purely revenue-based, that's the risk. And I think it removes the irrational behavior that is key to loyalty programs. 'It's a bold move they've made. What they've done is basically fired the leisure customer. Whether they need those or not is up to them to decide. I'm sure they've done their homework.' Burgess says that the airline might be in for a shock. 'Many people were only putting up with BA because they got these extra benefits. Take those away and the emperor has no clothes.' Flying Blue is considering a 'revenue component,' admits Lipsey — maybe a minimum spend or a flight requirement. But nothing more. 'You don't put a price on loyalty,' he says. One thing's for sure: other airlines will be watching those who do.
