British Airways Avios Program Worse Than I Expected
I know many of you were waiting for me to comment on yesterday's launch of British Airways' new Avios program. However, I wanted to give them a day to launch and then respond to any customer concerns before making any judgement.
Unfortunately, they confirmed yesterday that Avios will be more confusing and less valuable than Executive Club - at least for most redemptions beginning in North America.
My main gripes with the new program:
1) The award pricing is now by sector, thus eliminating free connections and stopovers, which used to be a huge perk of Executive Club. For example, if you want to fly Detroit to Chicago to London (stay for a couple days) and then continue onto Rome you would be individually charged for the Detroit to Chicago leg and then Chicago to London and then London to Rome. Basically if you don't live in a major hub city, you will have to use many more miles to fly.
2) The 97% cheaper awards figure was based on London. In fact most award prices for those of us in North America will increase. Sleazy marketing at its finest.
3) There is no award chart. The only way to figure out how many miles you need for an award is to use their calculator.
As I predicted last week, many awards will increase dramatically:
1) JFK-Hong Kong will go from 25,000/50,000/75,000 for one way coach/business/first to 35/70/105- a 40% increase. This also increases greatly if you have any additional legs beyond your Asian gateway city. The recent Bali-Hong Kong- JFK flight I booked for 75,000 miles one way in first class will now cost me 142,500 miles! Almost double the price of what I paid 4 days ago.
2) A multi-city trip to South America on Lan San Francisco-Lima-Santiago-Easter Island used to cost 20,000/40,000 one way in coach/business. With these great new Avios points that trip will cost 47,500/95,000 for coach/business - a 137% increase!
The Good News:
1) Per BA "Reward bookings made before 16 November can be changed under the previous rules with any applicable fees either online or offline. This will apply for the whole validity of the ticket regardless of whether single or multiple changes are made." It still may cost you fees to change itineraries over the phone (like most partner awards require), but at least you won't be repriced in the new ridiculous Avios sector by sector scheme.
2) Some domestic awards decrease/do not change, like JFK-LAX still being 12,500. However, if you don't live in a hub and need to take connecting flights, your flights will increase drastically. For example Boston-Chicago-San Diego would cost 17,500 vs. 12,500 in the old model. JFK-Toronto will only cost 4,500 miles one way - a great deal since many short-haul flights can cost $500+.
To sum it up, I think British Airways really shot themselves in the foot with this launch - especially by withholding these changes until the first day that they went live. To top it all off, their rep on FlyerTalk admitted that they made some bad decisions with respect to the roll-out:
"Why was the partner award chart not announced in advance of the changes? Poor communication ==> poor loyalty
I think this is a fair challenge. On hindsight, I think I would have developed the Avios calculator in advance to ensure that you had access to be able to price all of the individual queries that our members had. Looking at booking behaviour at the time, I thought it would be useful to issue the prices for BA flights in and out of London and indicate that partner parallel routes would be the same price. I now see that more detail may have helped. The only thing I can offer are apologies and the explanation that we were limited in terms of development with the timescale we had."
I had actually exchanged messages with the BA rep and she tersely rejected my claims that Avios would be a devaluation for North American customers. When asked for more information to back it up, she couldn't provide it, so that's when I did my sleuth work and was able to figure out the big shaft we were all about to get with this new program.
As I originally said when we found out about these changes, you should not only communicate your feedback to British Airways (feel free to Tweet them your thoughts on these changes), but also let Chase and American Express know that this devaluation essentially causes their programs to lose value as well (I recommend sending each secure messages so they know you are an actual cardholder and can pass along the information internally).
Chase and American Express buy millions of miles from British Airways and if they now know that these miles are worth a fraction of what they used to be, maybe they can even get a better deal or provide us more transfer bonuses to make up the difference.
So I hope British Airways gets enough negative feedback that they decide to make some friendly changes - at least for those of us in North America. It would not be the first time a loyalty program rolled out customer unfriendly changes and then backpedaled to make it better. Whatever happens, I'll cover it here, so stay tuned!
What are your thoughts on the new Adios Avios program?
[card card-name='Premier Rewards Gold Card from American Express ' card-id='22035076' type='javascript' bullet-id='1']
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
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Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.