Sierra Mike
03-10-2003, 01:08 AM
From my pal, Mr. Upgrade:
British Airways, one of the few airlines that continue to
post a profit, has overhauled its Executive Club frequent
flyer program, effective July 1. The new program follows
Delta’s model, seeking loyalty from travelers paying the
highest fares.
The new program cuts mileage-earning opportunities for
travelers flying on discounted fares a whopping 75%--
meaning those traveling on the cheaper seats will only
earn 25% of the actual miles flown. (Under the new
program, an economy class traveler will have to fly
29 round-trips between New York and London to get a
free coach ticket.)
My only conclusion: BA’s market studies must tell them
travelers flying on deeply discounted fares are loyal to
the ‘best fares’ -- not a particular airline.
The days of getting quadruple miles and a free upgrade
with a $99 fare are quickly coming to a close.
And, the greater the demand for ‘low-fare carrier fares,' the
more you’re going to see services, options, and frequent
flyer perks match those of the low-fare carriers.
Remember: Don’t shoot the messenger.
But don’t be misled either. Frequent flyer programs are
here to stay--they’re just headed in new direction,
seeking loyalty from travelers paying higher fares;
essentially those that are able to finance such programs.
Upgrade awards aren’t going anywhere soon, either. As long
as airlines depend on revenue from the sale of miles,
you’ll see upgrade awards. They’re receiving too much
revenue from travelers who only use miles for upgrades.
Not a small number. Continued evidence of this is found
in BA’s new Executive Club program too, which offers
expanded mileage upgrade options, for travelers worldwide.
While there are real changes to the new program, there
continue to be many opportunities for the smart traveler
to pay much less than full-fare for a comfortable flight to
Europe and beyond, on arguably the best airline service
crossing the pond.
SM
British Airways, one of the few airlines that continue to
post a profit, has overhauled its Executive Club frequent
flyer program, effective July 1. The new program follows
Delta’s model, seeking loyalty from travelers paying the
highest fares.
The new program cuts mileage-earning opportunities for
travelers flying on discounted fares a whopping 75%--
meaning those traveling on the cheaper seats will only
earn 25% of the actual miles flown. (Under the new
program, an economy class traveler will have to fly
29 round-trips between New York and London to get a
free coach ticket.)
My only conclusion: BA’s market studies must tell them
travelers flying on deeply discounted fares are loyal to
the ‘best fares’ -- not a particular airline.
The days of getting quadruple miles and a free upgrade
with a $99 fare are quickly coming to a close.
And, the greater the demand for ‘low-fare carrier fares,' the
more you’re going to see services, options, and frequent
flyer perks match those of the low-fare carriers.
Remember: Don’t shoot the messenger.
But don’t be misled either. Frequent flyer programs are
here to stay--they’re just headed in new direction,
seeking loyalty from travelers paying higher fares;
essentially those that are able to finance such programs.
Upgrade awards aren’t going anywhere soon, either. As long
as airlines depend on revenue from the sale of miles,
you’ll see upgrade awards. They’re receiving too much
revenue from travelers who only use miles for upgrades.
Not a small number. Continued evidence of this is found
in BA’s new Executive Club program too, which offers
expanded mileage upgrade options, for travelers worldwide.
While there are real changes to the new program, there
continue to be many opportunities for the smart traveler
to pay much less than full-fare for a comfortable flight to
Europe and beyond, on arguably the best airline service
crossing the pond.
SM