Award Chart Changes Coming 28 April 2015

Discussion in 'British Airways | Executive Club' started by Wandering Aramean, Jan 28, 2015.  |  Print Topic

  1. Wandering Aramean
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    Wandering Aramean Gold Member

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    If you churn credit cards and like flying short hops in coach then you're a "winner" in today's announcement. By which I mean you didn't get completely screwed.

    If you like upgrades, long-haul flights or premium cabin awards the news is much worse. And if you earn by flying on lower fares that's bad news. too.

    A 50% increase in price for long-haul business class sucks. And that carries over to upgrade pricing, too. Yes, there are off-peak awards for BA/IB-operated flights but those are still pricey on longer awards.

    http://www.britishairways.com/en-gb/executive-club/club-changes
    http://blog.wandr.me/2015/01/search...source=FB&utm_medium=WA-FB&utm_campaign=13669

    british-airways-executive-club-avios-redemption-chart.jpg british-airways-executive-club-avios-off-peak-redemption-calendar.jpg british-airways-executive-club-avios-tier-bonus-rates.JPG british-airways-executive-club-avios-earning-rates-tier-bonus.JPG british-airways-executive-club-avios-earning-rates.JPG
     
  2. Kalboz
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    Kalboz Gold Member

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    The sky is not falling, according to The Points of Life! http://thepointsoflife.boardingarea.com/british-avios-devaluation/
     
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  3. Wandering Aramean
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    Wandering Aramean Gold Member

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    Indeed, there are still sweet spots in the chart for short-haul, economy class travel. But earning gets harder unless you churn CCs & like playing the manufactured spending game. But even some of the sweet spot redemptions are dead. No more 25k biz BOS-SNN/DUB, for example.
     
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  4. Globaliser
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    Globaliser Silver Member

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    Overall, it seems like a reasonably sensible set of adjustments to a scheme which couldn't continue indefinitely in its current form.
     
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  5. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Wasn't the current form of the scheme just introduced a couple of years ago?
     
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  6. Wandering Aramean
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    Wandering Aramean Gold Member

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    It was 2011.

    And it is easy to see the changes as reasonable if you like the short-haul Y awards as those have not really changed. But I gather that others who wish to use the points differently, say for business class travel, are unlikely to think that a 50% hike on the rates is reasonable.
     
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  7. newbluesea
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    newbluesea Gold Member

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    One other significant aspect not mentioned above is that awards on partner airlines will now be charged at the peak rate.
    Those using BA miles for (short hop) NA or even SA itineraries haven't "gained" anything.:rolleyes:
     
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  8. newbluesea
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    newbluesea Gold Member

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    Only when flying BA... no partners.
     
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  9. redtailshark

    redtailshark Silver Member

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    Well, it's not just redeeming that will be substantially changed come April, but earning too. At at time when even its strongest critics believed that BA EC offered some competitive value, this change eliminates such advantage. It brings BA EC into line with every other airline. Each of which strives to be, and is becoming.....

    [​IMG]mejor en su clase[​IMG]

    @JEFFROBBOSTYLE!
     
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  10. Wandering Aramean
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    Wandering Aramean Gold Member

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    :confused:

    The Y travel options on partners have not changed. That includes partner travel.

    Yes, they are all "peak" awards but the Y prices on those have not changed. They didn't get any cheaper, but they didn't get jacked.
     
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  11. mattsteg
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    mattsteg Gold Member

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    They are radical changes to a program that made more radical changes barely 3 years ago. I won't comment on whether they are "sensible" or not.
     
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  12. Globaliser
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    Globaliser Silver Member

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    It depends on whether you think that the existing rates are reasonable.

    The crowd that thinks that they should always get something for nothing will never think that the current rates, let alone any increase in rates, are reasonable.

    The crowd that don't earn Avios from flying and will experience a real devaluation in long-haul premium cabins will adopt the position of turkeys vis-a-vis Christmas.

    Those who actually fly and routinely accumulate 7-figure stashes of Avios that are difficult to use, because of the generous earning arrangements when actually flying, and for whom the limiting factor is always availability rather than price, probably won't care that much.

    It isn't hard to work out which of these crowds is likely to be the most profitable to the airline.

    And that's why I think it seems like a reasonably sensible set of adjustments. Things certainly couldn't go on as they have been doing, and that has been clearly apparent for a couple of years now.
     
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  13. Wandering Aramean
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    Wandering Aramean Gold Member

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    This is the part I find challenging. Most people who earn by flying are taking a hit with the new charts, not getting a benefit. If, of course, you mean people flying generally on someone else's dime and paying full fare in premium cabins then they'll earn a bit more but the increased earnings will be offset by much higher redemption rates for comparable awards.

    I have no problem with the programs catering to the higher fare passengers; I do, however, question whether these changes are good for those passengers.
     
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  14. daninstl

    daninstl Gold Member

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    Here is the tax chart for flying partner airlines when mixed with BA Avios:
    Executive Club   About reward flights and upgrades   British Airways.jpeg
     
  15. daninstl

    daninstl Gold Member

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    Interestingly I got an email from my regular Avios account (not BA account) that had this information on this. Shows the devalue on BA and Iberia:
    Changes to Avios   Avios Travel Rewards Programme.jpeg
     
  16. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Did that crowd somehow force BA to offer Avios in a way that is less profitable to them?
     
  17. Globaliser
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    Globaliser Silver Member

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    Are the people who earn by flying and who will take a hit with the new earning charts the people who earn more Avios than they know what to do with? I would think that that's unlikely. You're more likely to get to those 7-figure sums by flying in cabins other than economy, earning higher tier membership and getting the generous tier bonus on top.

    And if you earn hundreds of thousands more Avios than you can use, the fact that the earn/burn ration may have deteriorated a bit is really not going to bother you very much. For this category, the earn/burn ratio really doesn't matter that much even now. The difficulty has been in finding ways of sensibly spending the Avios.

    And it really doesn't matter who's paying for the flights. Whoever that is, the airline gets money for the ticket. The airline always pays out to the passenger. And the more profitable passengers will get the benefit.
    I don't think that matters. Avios were being printed like there was no tomorrow. But there is a tomorrow, and this is just the inevitable arrival of that which has been in the offing for a good couple of years.
     
  18. HaveMilesWillTravel
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    And who is running the Avios printing press? (and collecting the pennies for the printed Avios?)

    Time to get the wife off the BA card.
     
    Last edited: Jan 29, 2015
  19. Wandering Aramean
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    The redemption cost for premium cabin long-haul flights goes up 25-50%. That will quickly eat away at all those spare Avios.
     
  20. redtailshark

    redtailshark Silver Member

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    Hmmmm.....I've just looked at this more closely with my accumulation/redemption data and if I were to repeat my previous-year Avios habits under the new scheme - assuming off-peak travel - I'm no worse off than before, in fact slightly better (Avios flight accumulation on KA/CX J fares; CC spend; redemption for CX sectors and BA Y intra-EU) with the sole exception of the useful intra-UK freebie sectors. I never redeem in J or F or fly BA on TATL except during WT+ Avios sales, so those swingeing redemption increases don't bother me at all. So I say, gouge the Nigels and Nigellas! Muahahaha!

    Actually, these changes signal a new reality. It is not just the decline of legacy airlines in general, and their increasing vulnerability to LCCs with gumption, including MOL's - you readers really believe BA CE is >> FR Biz Select? The net customer revenue philosophy means, I'm becoming one of BA's better customers...the sooner they begin awarding Elite status based solely on co-brand credit card spend, the more of you I'll leapfrog. You would be surprised, or maybe not, at how much of that CC spend I chalk up :) Bring it on. GGL here I come. The next time I check in at LHR I'm going to wear my SHARK T-shirt so you BA apologists can all fulminate. Hopefully I can watch Clint Dempsey sink In-ger-lund in a WC elimination game at the CCR, that will complete the rapture.
     
  21. mattsteg
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    mattsteg Gold Member

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    actually this segment is less affected than many - their earning rate is unaffected, just redemption.
    the majority of this segment, and I would venture the portion that are most influenced by avios earning are facing significantly worse earnings in addition to the more expensive redemptions. They are worse off relative to the "non-flyers", not better.

    And those whose earnings are untouched or improved? Full fare tickets all the time? They probable care a lot more about schedule, reliability, service, and less so the avios.they are rewarded with.
    judging from the math, maybe the CC earners, plus those buying full fare tickets.
    your conclusion does not seem to align with your arguments and how the program structure has changed.
     
  22. Globaliser
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    Globaliser Silver Member

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    Unless availability suddenly improves dramatically, it will take time to run down these spare balances. After all, this is a group that will continue to earn big amounts from normal flying.
    And this is the most profitable group, and probably the biggest earning.

    And in any event, most are likely to suffer in a devaluation. And a devaluation there had to be. It was inevitable and it was obvious. Anyone who didn't realise that had their head firmly in the sand. So given what's happened, it seems like a reasonably sensible way to approach it.
     
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  23. The Saint
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    The Saint Silver Member

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    I am the sort of passenger that Globaliser is citing as an example. I make, perhaps one or two redemptions a year. For those, I tend to throw all my redemption instruments into one booking. Avios + GUF2 + 241 + joker. This makes them very attractive and extremely useful. The rest of the time I fly on paid F/J tickets. I will see my Avios earnings generally increase as a result of the changes, but I already earn more Avios than I use each year and I have a 7-figure balance and have had for years. The increased redemption rates are never welcome, but they were inevitable and widely predicted on numerous forums. If the market behaves in accordance with usual rules, the rise in price will suppress demand. That may make redemptions easier. But I am fortunate that my demand for redemption bookings is accommodated within my joker allowance as a GGL.

    For those of us with long enough memories, the current changes effectively reverse the changes that were made perhaps 4 years ago. We have gone back to the iteration of the EC that is more tiered in terms of benefits and more targeted at the customers that spend the most. Even the redemption levels are simply recovering ground that was given away at that time. LHR-JFK used to be 50k/100k/150k.

    I am not surprised at the closing of some of the loopholes, one of which I know was abused shamelessly by some. I am only surprised that they did not close more. In the scheme of things, the TP changes are mere tinkers. I had expected a more significant overhaul.

    Abuse it; lose it. The lesson learned the hard way with Open Doors.
     
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