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.
29:40
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Quick takeaways
- British Airways' significant increase in loyalty program spending requirements could alienate loyal customers and drastically reduce elite status memberships.
- The heightened spending thresholds may prompt corporate clients to re-evaluate their loyalty to BA and seek more favorable deals with competitors.
Deep dives
High Spending Requirements and Customer Reactions
British Airways has introduced significantly higher spending requirements for its loyalty program, raising the thresholds for silver and gold status to £7,500 and £20,000 respectively. This change has sparked outrage among many customers, as it is perceived to effectively disenfranchise a large portion of their loyal base, potentially reducing gold card members by as much as 80%. The new structure may push frequent flyers to spend more on fewer flights to maintain status, leading to dissatisfaction among those who relied on lower spending to achieve it. Furthermore, high-spending customers may choose to shift their loyalty to other airlines after quickly meeting the new high thresholds.
