British Airways Hints at Disrupting Its Loyalty Program in 2018 | Skift

The blog Ultima Llamada spotted the slide in the presentation that showed that IAG was working towards a “progressive introduction of dynamic pricing from 2018.”

This means that instead of a standard award chart where travelers book a 25,000 mile domestic fare, for example, members of British Airways’ Executive Club would see award tickets priced as a function of how much the revenue ticket cost.

To many, that’s a big, negative change to the way that loyalty programs work.

A single pricing tier yields good and bad deals for a typical frequent flyer. In the U.S., that 25,000 mile domestic award ticket, for example, could be good for a round-trip flight between New York and Detroit or New York and Anchorage. These two tickets would be priced far differently on a cash market.

Others, particularly those inside of the airline industry, argue that a more realistic way to spend miles would be to price awards in line with revenue tickets. A $600 ticket, for example, could cost 60,000 miles while a $100 ticket could cost 10,000.

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British Airways Hints at Disrupting Its Loyalty Program in 2018 – Skift.