Tag Archives for revenue-based.
Air Canada Aeroplan is making some pretty big changes to their frequent flyer program, going into effect January 1, 2026.
What remains most striking to me here is that in trying to get more card spend, more vacation package bookings, and more ticket spend, they aren’t giving customers any carrot in the process – just a stick.
British Airways is rebranding its Executive Club frequent flyer program, renaming it The British Airways Club. Along with this change, they’re revamping how earning elite status works and adding benefits between tiers, moving to revenue-based status and increasing the number of activities that help you earn status.
Eleven years ago Delta Air Lines prepared to move to a revenue-based frequent flyer program and other airlines took notice.
American Airlines executives used to say that Delta management was who they admired most. The truth is that this was true across the industry. Everyone just assumed Delta was smarter than they were. If Delta did it, it must be the right thing to do. A decade later consultants are still selling it to… everyone.
Iberia moves to revenue-based earning tomorrow and British Airways will follow in 2023. British Airways announces the change with a blatantly untrue claim.
Delta Air Lines announced two changes to the SkyMiles program this morning. SkyMiles award tickets for travel on Delta, which first began counting towards elite status in 2021, will become a permanent feature of the program. And, in an effort to incentivize customers who buy the most expensive tickets, there will no longer be a cap on the miles earn for travel.
Revenue-based frequent flyer programs have always been less generous. These programs were long popular with ultra low cost carriers, with low margins, where awarding customers little made sense.
When planes were full, rewarding customers less made some sense. Airlines didn’t need to spend as much marketing to fill empty seats when there weren’t many empty seats. The problem now is that revenue-based programs reward customers less in a low fare environment precisely when airlines need to invest more in marketing to fill empty seats, and it’s cheaper to offer award inventory than ever.
Today Spirit Airlines announced the new program which goes into effect January 21, 2021. They’re launching a revenue-based program, introducing a new elite program, and allowing co-brand cardmembers to earn elite status from credit card spend alone (or through a combination of travel spend and card spend).
Despite being hobbled by a less aggressive co-brand credit card issuer in Bank of America, Alaska reports in their fourth quarter earnings call that they “saw double-digit percentage growth in our revenues” from Mileage Plan and that comes on top of “incredible years of growth in our loyalty program since the acquisition.”
The financial performance of the program demonstrates that charting their own course – investing more in marketing – drives customer loyalty and revenue to the airline and helps them to compete effectively against less generous airlines
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
