British Airways takes airmiles from normal people to give to First Class passengers
Loyalty schemes are often touted as a good way to retain customers and to keep them choosing your brand over another, and British Airways’ Avios scheme for airmiles is no exception. However, running a successful a loyalty scheme is a lot like trying to please a good woman- always better to keep her happy, as once you start scrimping on what you’re offering, hell hath no fury…
New changes have been announced to the British Airways airmiles (Avios) scheme that will see the scheme ‘gutted’ and ‘devalued’ for normal, economy class users. However, this is not a cost-cutting exercise, as British Airways are, at the same time, making the scheme far more generous for those who, arguably, need the benefits less as they are already forking out first – and business-class prices.
For example,from 28 April a basic economy-class ticket from London to New York will earn just 865 airmiles, down from 3,458. Previously, a Heathrow-Vancouver economy return earned 9,400 points which was more than enough for a round-trip from London to Milan (subject to a £35 payment). Now, some economy passengers face a 75% fall in the number of Avios earned, to just 2,350 meaning the same traveller would now need to make four round trips to earn enough for a journey to Italy and back.
Passengers in Scotland and northern England face even more dramatic increases in the cost of redeeming points for journeys to Europe. At present they are entitled to a free domestic connecting flight, often to London, but this ‘courtesy’ is also being withdrawn “to bring the UK in line with the rest of the world.”
Business and first-class passengers are the big winners from the changes to point-earning. These travellers will see their Avios points rise by as much as two-thirds, with the Heathrow to JFK traveller picking up 8,645 airmiles, up from 5,187, on a one-way flight. However, when business travellers come to redeem their points, the number of Avios they have to spend will rise. For example, a business class flight from London to Sydney currently costs 100,000 Avios points, but this will rise to 125,000 at off-peak times and 150,000 at peak times.
And this peak and off peak pricing for reward flights is across the board, hitting those who travel at Christmas or during the school summer holidays hardest. For example, a single flight to Rome will cost 7,500 points in July but 6,500 points in January. BA said the new structure means that “for two thirds of the year you will require fewer Avios than now to fly on reward seats.”
To attempt to sweeten the deal and head off the inevitable PR storm, BA is promising to make half a million extra seats available for travellers trying to use their accumulated points. “We guarantee that more than 9m reward seats will be available on our flights, with a minimum of two Club World/Club Europe and four World Traveller/Euro Traveller reward seats on all British Airways operated flights that are offered for sale on ba.com,” it said, before going on to excuse the changes to the scheme as being in the name of ‘fairness’, by making more expensive tickets earn higher rewards. “In practice this means that if you pay for a flexible ticket you will earn more Avios than the lowest priced ticket in the same cabin.”
So are you going to be affected by the dramatic changes? Or are you more prosaic, happy that getting something for nothing is always a good thing, even if it’s a lot less something than it used to be…