Loyalty Wired Podcast 73 - Market Impact of BA Changes
Feb 3, 2025
Rob Burgess, Editor of Head for Points, and Ben Lipsey, SVP at Air France-KLM, share their expertise on recent loyalty program changes. They discuss British Airways' controversial shifts, including higher thresholds for elite statuses, and the potential alienation of its most valuable customers. The conversation dives into how these changes might push frequent flyers to more attractive competing programs. They also examine the evolving landscape of airline loyalty, emphasizing the importance of emotional connections and strategic partnerships in retaining customer loyalty.
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BA's Elite Member Cut Risks
- The new BA Executive Club spend thresholds will reduce the number of gold members by about 80%, drastically shrinking the elite customer base.
- This sharp cut risks serious business and reputational consequences for British Airways by disenfranchising a large portion of loyal customers.
Leisure Customers Most Impacted
- BA's new spend-based status targets mostly hurt leisure customers and those outside London, who may shift to other airlines.
- Business travelers with flexible policies flying direct from London remain less affected, maintaining loyalty despite changes.
Exclusivity May Not Equate Value
- Fewer BA elites mean less crowded lounges and priority boarding, but job changes or retirements could push travelers to earn status again.
- Without BA pledging improved lounge quality or services, the exclusivity offered may not justify the higher spend requirements.