Lifestyle

British Airways switches to Avios based on revenue monetization from October


Following the lead of major U.S. aviation programs, and Iberian sister airlineBritish Airways will switch to revenue-based monetization starting in October.

Currently, British Airways Executive Club members are rewarded Avios based on the distance they fly, not how much they spend on their flights.

Related: The Complete Guide to Earning British Airways Avios

For flights booked on or after October 18, Avios for British Airways operated flights credited to the Executive Club will instead be rewarded as follows (per eligible pound spent — about 1.30 USD):

  • Green status members will receive 6 Avios.
  • Bronze members will receive 7 Avios.
  • Silver members will receive 8 Avios.
  • Gold status members will get 9 Avios.

Eligible spending includes British Airways’ well-known surcharges imposed by the service provider on revenue tickets, but not award tickets. Cash upgrades — pre-booked online or at the airport counter — as well as prepaid seat fees and excess baggage fees will earn Avios at these new rates.

Government fees and taxes will not accrue Avios on any ticket.

Flights operated by partner airlines, including American Airlines and Alaska Airlines, will continue to earn Avios at existing distance-based rates.

Ian Romanis, British Airways’ director of retail and customer relationship management, said the following in a statement:

We continue to listen to our customers’ feedback and ideas to grow our Executive Club. It is a simpler and more transparent system that offers more opportunities to collect Avios than ever before and rewards loyalty based on customer cash spend. This is a tried and tested model that has been used by a number of global airlines, including our sister airline Iberia.

BEN SMITHSON/THE POINT

With British Airways promoting change as a simple, transparent innovation, is this good or bad news for Executive Club members?

Reward your inbox with TPG Daily newsletter

Join over 700,000 readers for breaking news, in-depth guides and exclusive offers from TPG experts.

As noted above, the new revenue-based system will only apply to flights operated by British Airways, so for any member who only flies with partner airlines, nothing change. Nor has there been any change in how elite status is achieved — how much will this continue to be measured rank points earned, no revenue requirement.

If you buy things like seat selection or excess baggage, the good news is that you’ll earn Avios for these costs starting October. Other winners from the change will be those buying expensive, full cash tickets, such as corporate travelers. The more expensive your ticket, the more Avios you earn.

Those most likely to lose out from the changes include:

  • Executive Club elite status members: Previously, Gold members would earn 100% more Avios than beginner level Blue members, while under the new system they would only earn more than 50%.
  • Low-fare members: The shift from a distance-based model to a revenue-based accrual often means that deeply discounted long-haul flights will be hit the most.

For example, during off-peak travel days, you can buy flights from the US West Coast to London in premium economy class for around £800 (about $1,045) round-trip. . Under the current distance-based system, a Blue member would earn around 10,700 Avios. Under the new system, this will only be 4,800 Avios for a Blue member earning 6 Avios per pound.

bottom line

monitor Iberian transition announcement for Avios earnings based on revenue, it is only a matter of time before British Airways follow suit. There are plenty of announcements about the changes, with the Executive Club monetization model unchanged for bookings made before October 18, regardless of travel date.

For anyone who primarily credits flights operated by partner airlines or only flies British Airways on award tickets, there will be little change and no need to worry.

For those who regularly purchase revenue tickets with British Airways, the winners will be the most expensive fare passengers in each class and those who purchase ancillary products such as seat selection and excess baggage.

However, those in elite status can expect fewer bonus miles under the new scheme, while those buying discounted long-haul tickets will likely see fewer Avios land in Executive Club accounts Theirs starts in October.

news7g

News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button