British Airways defends loyalty scheme changes

February 05, 2025 12:01 AM GMT | By EODHD
 British Airways defends loyalty scheme changes
Image source: Kalkine Media
British Airways has insisted changes to its loyalty programme will create a fairer system and are not designed to reduce the number of people rewarded. The airline is switching from awarding points based on the distance flown or fare class to the amount spent, at a rate of one point for every pound. To qualify for gold status – which features benefits such as access to first-class lounges and enhanced baggage allowance – customers will generally need to earn 20,000 points per year. The announcement of the changes in late December 2024 led to frequent flyer website headforpoints.com to accuse the airline of “effectively washing its hands of the leisure market”, claiming it will be “impossible to earn gold for small business travellers, economy travellers or self-funded leisure travellers”. On Wednesday, British Airways announced a bonus offer enabling customers to earn up to 550 additional points per flight based on their cabin class will be extended for the rest of the year.

It has also introduced a guarantee of bronze status for anyone taking at least 25 flights annually, such as commuters. Benefits for this status include access to business class check-in desks and free seat selection from seven days before departure, even if travelling on an economy ticket. British Airways chief commercial officer Colm Lacy said awarding points for spending is “the best way of recognising our customers’ loyalty and we’re confident it’s the right thing to do”. He told the PA news agency: “This is not about reducing the number of members in each tier. “The focus for this is making sure we have a loyalty scheme that rewards people for the right behaviours.”A British Airways is changing its loyalty scheme (James Manning/PA) Mr Lacy said “one of the benefits” of the changes is they will make it harder for people to use “gamification and loopholes” to earn points, as “that is not really rewarding loyalty”.

In the past, some customers opted to take multiple flights on indirect routes to reach their destination, as often these cheaper, inconvenient fares helped them achieve statuses. Gilbert Ott, founder of the travel website God Save The Points, said people have an “emotional attachment to loyalty”, and the bonus offer creates “a little bit more of that game feeling”. He said many loyalty schemes in the US are already based on spending, and these have often resulted in passengers getting “better benefits because airlines have the economics behind them”. In relation to British Airways, he added: “It’s aggressive because they’re the first in the UK – and one of the first in Europe – to go to a system where money is the main driver. Story Continues “But my gut is, if you look in five years, almost everybody (will have done) the same.” The overhaul, which comes into effect from April 1, includes dropping the word “Executive” from the programme’s name, which will become the British Airways Club.

There are also additions to how points can be earned, such as through the airline’s package holiday division British Airways Holidays. View Comments

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (“Kalkine Media, we or us”) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalized advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.


Sponsored Articles


Investing Ideas

Previous Next