Grumbling From Customers. Profits for Airlines.
Stingier loyalty programs are generating more revenue.
Like many Bloomberg Opinion readers, I am an avid collector of airline miles. Being based in the UK, my preferred program is Avios, owned by International Consolidated Airlines Group SA, the parent of British Airways. I’ve been a member of the scheme for 30 years, since taking my first foreign trip as a young banker.
But alongside the points, I also enjoy collecting status. Take enough flights and you ascend through tiers, unlocking perks, including dedicated check in, priority boarding and lounge access. Higher status also proffers bonus reward points, giving more currency to access free flights. For many frequent flyers, the prestige conveyed by a shiny membership card matters as much as the benefits themselves, so when BA changed in April how members achieve status – switching from a system based on miles flown to one based on pounds spent – there was a predictable outcry. Under the new rules, reaching Silver status requires accumulating 7,500 tier points – one point for each pound spent – making the climb to elite status considerably steeper.
