On December 30, British Airways announced major changes to its loyalty program. Put simply, it is transitioning to a revenue-based system for awarding status. The more you pay, the faster you’ll climb the ranks.
Despite echoing an approach taken elsewhere – including at many of the biggest U.S. airlines – the decision proved highly controversial. Critics alleged a lack of transparency, spreadsheet-based decision making, and a misunderstanding of customer behavior.
On Wednesday – more than five weeks after the initial furor – British Airways provided an update on its strategy.
Alongside modest concessions to make achieving status easier, it also launched a new microsite and series of short videos. These are designed to better communicate the changes to customers and offer “relatable scenarios” of how Bronze, Silver, and Gold can be achieved under the new system.
In a statement, Colm Lacy, BA’s Chief Commercial Officer, said the airline is sticking with the revenue-based strategy, but suggested that more could be done to better communicate the upcoming changes to passengers.
“We’re confident that moving to this model is the right thing to do for our customers, but we acknowledge that we need to reassure them that there are now lots more ways to earn status. Moving to a spend-based model is reflective of most loyalty programmes in the UK, so it was a logical step in the evolution of The Executive Club,” said Lacy.
Among the changes announced on Wednesday is a return to earning status based on the number of flights traveled. Passengers taking 25 flights operated by British Airways in one year can qualify for Bronze, while customers taking at least 50 flights will reach Silver status. There is no flight-based option for Gold.
“We crunched our data and it shows that under the new model, Bronze and Silver members can still re-qualify based on around the same number of average-priced standard fare flights as previously,” said Lacy.
Other tweaks include a more generous tier point bonus. This could add hundreds of tier points per flight, but customers will only earn the enhanced rate if they proactively opt-in to the promotion.
British Airways’ New Tier Point Offers:
| Network | Class | Initial Tier Point Offer | New Tier Point Offer |
|---|---|---|---|
| Short-Haul | Euro Traveller (Economy) | 50 | 75 |
| Short-Haul | Club Europe (Business Class) | 100 | 175 |
| Long-Haul | World Traveller (Economy) | 70 | 150 |
| Long-Haul | World Traveller Plus (Premium Economy) | 140 | 275 |
| Long-Haul | Club World (Business Class) | 210 | 400 |
| Long-Haul | First | 330 | 550 |
Source: British Airways
“Our members have a deep emotional connection with our loyalty scheme and their status means a lot to them – we’re confident the changes we’ve made fairly reward members for their travel with us,” Lacey added.
Virgin Spies an Opportunity
The fallout from British Airways’ loyalty changes prompted its UK-based rival Virgin Atlantic to launch a refreshed status swap promotion.
Last month, it invited customers “who are not feeling the love from their existing airline to experience the award-winning hospitality of Virgin Atlantic.”
The carrier’s well-established status match program allows customers in the top tier of 11 airlines – including British Airways – the ability to receive equivalent status. The vast majority of Virgin Atlantic’s network is focused on London Heathrow, placing it in direct competition with BA on many routes.
Virgin is also running a ‘Million Air’ competition with those who make the switch before February 14 entered into a prize draw for one million points.
The concept of status matching is nothing new, but can be a valuable customer-building tool during periods of change or distress at competitors. In September, the Star Alliance offered SAS EuroBonus silver and gold members like-for-like status with many of its biggest airlines. This followed the Scandinavian carrier leaving Star for rival SkyTeam.
Watch Benjamin Lipsey, SVP of Customer Loyalty at Air France-KLM, at the Skift Aviation Forum 2024:
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