Latest news with #loyaltyprogram
CTV News
17 hours ago
- Business
- CTV News
How changes to Aeroplan's point system will affect you
Air Canada's loyalty program which allows members to earn and redeem points for travel, is changing how its points are earned next year. Aeroplan, Air Canada's loyalty program that allows members to earn and redeem points for travel, is changing how its points are earned next year, making it easier for the higher paying customers to now earn more. Air Canada said the new changes will let all members earn points on their flights based on the dollars they spend, instead of the distance travelled. 'Our new design aims to provide more for members who are most engaged – regardless of where they fly,' Air Canada's website read. Barry Choi, a personal finance and loyalty points expert says three types of people will benefit the most from this change – those with an existing status, frequent short-haul business travellers and the retired individuals who spend heavily on their travels. The new system aims to encourage higher spending and simplify status levels, according to Choi. 'Instead of earning points or miles or segment hints under the old system based on distance, it's now going to be based on spending,' he told on Thursday. 'So, some people will come out ahead, some people will come out below.' Status Qualifying Credits: What are they? Currently, Aeroplan members earn points based on a combination of elements – all of which can vary due to routes, class and cost, Choi explains. Status qualifying segments, which are the number of flights flown. Status qualifying miles, which is the distance flown. Status qualifying dollars, which is the amount of money spent. From Jan. 1, 2026, Aeroplan members will earn one point on each dollar spent on an Air Canada flight , excluding taxes and third-party fees. Elite members will be awarded more points based on their status tier. In the coming year, Status Qualifying Credits (SQC) will replacement all older requirements. To earn status from next year, travellers will require 25,000 SQC for 25K status, 35,000 SQC for 35K status, and so forth. 'While each member's activity will determine their new status level, we expect many of our current Elite Members will benefit from the expanded ways to accumulate Status Qualifying Credits,' Air Canada said. However, the basic economy ticket fares will not be eligible for SQC. 'If you want higher status with Air Canada, you're going to have to spend a lot more, also because the status qualifying credits are now capped on spending on the premium credit cards,' Choi said. 'It's not necessarily beneficial for you to keep spending on those cards.' 'Reward the people who spend the most' It all comes down to revenue, Choi explains. The new system is designed aiming to encourage more spending from high-value customers using different kinds of incentives. 'People who have figured out this the old system and gamed it, those tricks have been eliminated,' Choi said. 'People will have to kind of figure out new ways (to get benefits), and it's going to be a lot harder when it's mostly based on spending.' According to him, all major airline loyalty programs are using this kind of a revenue-based system to increase their profits and reduce the number of people with status, so those who have the benefits get an opportunity to use them. 'One argument may be made that there's too many people with status, which kind of dilutes the product,' Choi stated. 'They want to reward the people who spend the most, give them the most. And strictly from a loyalty standpoint, it makes sense.' Meanwhile, Canadians are not just collecting loyalty points, they want to use them, said Amra Durakovic, head of communications, Flight Centre Travel Group. 'From seamless upgrades to straightforward redemption, they're looking for loyalty programs that make travel feel simple, rewarding and worthwhile,' Durakovic told
Globe and Mail
18 hours ago
- Business
- Globe and Mail
Prediction: This Dividend Stock Will Beat the Market Over the Next 5 Years
Key Points Unfazed by an uncertain environment, Marriott continues to steadily grow. The lodging specialist's Marriott Bonvoy loyalty program is experiencing rapid growth. With a handful of growth drivers, Marriott's growth story looks extremely durable. 10 stocks we like better than Marriott International › As investors all seem to be tripping over each other to buy into the momentum in artificial intelligence (AI) stocks, there are some good investment opportunities sitting in plain sight. One that is out of favor this year, with its shares down almost 7% year to date as of this writing, is hospitality company Marriott International (NASDAQ: MAR). The company's second-quarter results showed growth in both revenue per available room (RevPAR) and total rooms available, leading to robust top and bottom-line growth. A powerful loyalty program and successful co-branded credit cards are driving results and creating an engaged customer base that can continue fueling growth for years to come. Multiple key growth drivers One of the biggest things Marriott has going for it is the breadth of its growth drivers. Sure, the business looks good on the surface. Second-quarter adjusted revenue (total revenue less cost reimbursement revenue) rose about 6% year over year to more than $1.8 billion, and adjusted earnings per share rose by the same amount. But the diversified sources of Marriott's growth strengthen the stock's bull case, capturing the durability of the company's growth story. Consider the different ways the company is growing. First, there's the Marriott's net rooms growth. Management confirmed in its second-quarter update that it expected net rooms growth for the full year to approach 5%. Second, the company benefits from an extremely fast-growing loyalty program. Second-quarter Marriott Bonvoy members totaled 248 million, up 18% year over year. This membership program is translating into tangible loyalty, with a record 69% of rooms booked globally during the quarter coming from Marriott Bonvoy members. The penetration was even more significant in the U.S. and Canada, where 74% of rooms booked were a part of the Marriott Bonvoy loyalty program. Third, Marriott's co-branded credit card fees, another way the company encourages customer engagement and loyalty, continued to rise at a rate of about 10% year over year -- a figure management has said generally reflects strong increases in global card spend. Also helping customer engagement, the company continues to make strategic partnerships with consumer-focused companies like Uber and Starbucks in an effort to deepen relationships with its members and capture a greater share of their wallet. Given Marriott's significant effort invested in engaging its members, it's unsurprising that the company is experiencing not only growth in net rooms but also an increase in revenue per available room. Highlighting the company's pricing power even in an uncertain macroeconomic environment, RevPAR increased 1.5% worldwide in Q2. A good dividend stock Though Marriott isn't growing at a breakneck pace like many of Wall Street's AI darlings, it offers a durable growth story backed by a handful of catalysts with great momentum -- not to mention an iconic and globally known travel brand. In addition, the company is demonstrating its ability to grow even with a shaky macroeconomic backdrop. Of course, investors will have to keep in mind the risks. First and foremost, any decline in global interest in traveling could adversely impact the company. Second, if the company's momentum in its loyalty program tapers off, investors could become convinced that Marriott's strategic efforts to enhance the program may have its highest-impact days in the rearview mirror. But the stock's reasonable price-to-earnings ratio in the high twenties seems fair, even with these risks in mind. Additionally, there's a lot to like about the company's capital return program. Marriott has a practice of returning excess capital to shareholders through a dividend, which has steadily grown over time, and share repurchases. Indeed, Marriott said in its second-quarter update that it was on track to return about $4 billion (about 6% of its current market capitalization) to shareholders via repurchases and dividends during 2025. Considering the company's diversified growth drivers, its dividend yield of more than 1%, a meaningful share repurchase program, and a reasonable valuation, Marriott looks like a good dividend stock for investors to add to their portfolios. Even more, the stock could outperform the market over the long haul -- especially if many of today's hyped-up AI stocks see their valuations come down in the coming years, weighing on the overall market's returns. Should you invest $1,000 in Marriott International right now? Before you buy stock in Marriott International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marriott International wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks and Uber Technologies. The Motley Fool recommends Marriott International. The Motley Fool has a disclosure policy.
Entrepreneur
18 hours ago
- Business
- Entrepreneur
Smiles and Etihad Guest Partnership Offers Better Rewards Across Both Loyalty Programs
The integration is available exclusively through the Smiles app now, with the opportunity for members to transfer via the Etihad website and newly launched mobile app in the near future. You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media. Smiles, e& UAE's everyday rewards Super App that also houses its loyalty program, has launched a partnership with Etihad Guest, the loyalty program of Etihad Airways, the national carrier of the United Arab Emirates. Now offering customers of both programs a fully integrated experience through the Rewards Exchange on the Smiles app, and soon via the Etihad website and mobile app. Customers can now link their loyalty accounts to transfer between the programs and instantly convert Smiles points to Etihad Guest Miles and vice versa. Unlocking greater flexibility, enhanced rewards earning potential, and more ways to spend points and miles across both programs. Masood Mohamed Sharif, Chief Executive Officer, e& UAE, said, "This collaboration brings together two of the UAE's most trusted homegrown brands to deliver even more value to our loyal customers. By enabling seamless Smiles points and Etihad Guest Miles exchange, we're not only growing the rewards ecosystem but also making benefits more accessible. It reflects our focus on creating smarter, more connected experiences that meet the evolving expectations of our customers." Antonoaldo Neves, Chief Executive Officer Etihad Airways, said, "This partnership showcases our commitment to delivering extraordinary customer service for our guests, offering enhanced redemption flexibility and membership benefits. We are delighted to be collaborating as two of the UAE's most successful and international, Emirati brands, offering our loyal Etihad Guest members greater options to collect and redeem Miles, through this collaboration with e&." This partnership allows loyalty members of both brands to maximize the value of their rewards. Via the Smiles App, Etihad Guest members can now transfer their Etihad Guest Miles to Smiles Points and enjoy access to over 55 lifestyle services on the Smiles app, including food and grocery delivery, home services, e& bill payment and recharge, as well as exclusive deals across shopping, dining, entertainment and more. In turn, Smiles customers can transfer their points into Etihad Guest Miles to increase their balance and redeem their miles on flights across the airline's expanding network, upgrades, worldwide hotel stays and holidays, and shop from a huge range of products at the Etihad Guest Reward Shop. To initiate the exchange, customers of both programs must link their accounts through the "Rewards Exchange" section on the Smiles app and will be able to instantly transfer their loyalty currencies from one program to the other. This strategic collaboration between two of the UAE's most prominent homegrown brands offers existing loyal customers more ways to benefit—and invites new customers to explore the best of both worlds: everyday lifestyle rewards through Smiles, and extraordinary travel experiences through Etihad Guest. The integration is available exclusively through the Smiles app now, with the opportunity for members to transfer via the Etihad website and newly launched mobile app in the near future.
CTV News
2 days ago
- Business
- CTV News
‘Disproportionate benefits': Changes coming to the way Canada's 9 million Aeroplan members can earn points
Aeroplan announced starting in the new year members will earn points based on dollars spent rather than distance flown. If you're one of the nine million Aeroplan members in Canada, there are new changes coming for earning awards. This week, Aeroplan announced that members will earn points based on dollars spent rather than distance flown. The overhaul will start on Jan. 1, 2026. 'They're saying your dollars if you're a business traveller are worth more then someone who is flying economy,' said Phil McCully of Ottawa. McCully told CTV News he is frequent flyer and has been an Aeroplan member for the past 20 years. He said he's concerned business travellers buying more expensive tickets will see the greatest benefits. 'It absolutely benefits people who travel on the maximum fare class, so people who fly business everywhere are disproportionately benefitting over those who fly a lower fare class.' Scott O'Leary, vice-president of Loyalty and Product Air Canada, said the changes are meant to benefit its most loyal members and the airline. 'The majority of our members are going to be better off than they were before,' said O' Leary. Air Canada said those who will see the most benefits from the upcoming changes will be members who engage with the airline and its partners the most. The changes mean Aeroplan members will earn one point per dollar spent. In one example on Air Canada's website, it uses a round trip from Montreal to Paris to illustrate how things will work. Under the current plan you would receive 6,856 Aeroplan points — the distance of the round trip flight — but under the new plan you'll receive however much you paid for your ticket. The more you pay for your flight, the more points you'll get. 'It can be seen as a positive or it can be seen as a negative, it really comes down to whether the changes are good for you or not,' said Patrick Sojka, the founder of Rewards Canada. Rewards Canada is a website that studies loyalty programs. Sojka said those who pay more for expensive flights will achieve elite status faster and rack up more points than those who are searching for bargains. 'The more you spend with the airline, the more you are going to be rewarded, whether it's elite status or points earning as well,' he said. Air Canada says the changes are designed to better recognize Aeroplan members who 'spend more' and 'travel more' with the airline. They add that the higher your status level with Aeroplan, the faster your points will add up. 'To me, it doesn't sit super great,' said McCully. 'I think this change is very shortsighted. For your average frequent flyer, this will dissuade a lot of us from continuing to use Air Canada in the future.' 'I will likely use them less and am probably going to switch to a different rewards program.'
Yahoo
2 days ago
- Business
- Yahoo
McDonald's loyalty program is making progress, but executives see work ahead
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Dive Brief: McDonald's is focusing on frequency to drive growth, and its loyalty program will play an important role in that strategy, executives said on a Q2 2025 earnings call Wednesday. Non-loyalty U.S. customers visit a McDonald's location 10.5 times annually on average, President and CEO Chris Kempczinski said. Visit frequency jumps to 26 visits per year when they become MyMcDonald's Rewards members. McDonald's 'opportunity is always around frequency,' Kempczinski said during the call. 'And so getting more and more consumers to be in our loyalty program — that's how we're going to drive this business, because it's going to be frequency-led growth.' Dive Insight: On top of growth, McDonald's sees its loyalty program as an essential part of its CX and technology strategy. 'Running great restaurants is just one component of serving up great customer experience,' Kempczinski said. 'Our fans want greater personalization, convenience and value, and bringing millions more consumers into the McDonald's digital universe is how we're ensuring customers feel seen and satisfied with each and every visit.' In 2023, the fast food company set a goal of growing from 150 million to 250 million active loyalty users by the end of 2027, according to Kempczinski. McDonald's reached 185 million 90-day active users in the second quarter of 2025. While McDonald's is making progress on the size of its loyalty program, 'the short answer is it's just not big enough,' Kempczinski said. 'As I mentioned, in the U.S., roughly around one-fourth of our consumers are in the loyalty program,' he said. 'But when we look to markets like China, when you can get the number to 90% or something along those lines, that's when you would see some really significant benefits attached to that.' McDonald's financial performance was a strong point even if loyalty still has room to grow. The company reversed its earlier same-store sales decline with a global 3.8% year-over-year comparable sales increase in the second quarter of 2025, according to a company earnings report. Comparable sales were up 2.5% year over year in the U.S. Sign in to access your portfolio
