British Airways (BA) has unveiled sweeping changes to its loyalty programme, set to take effect on 1 April 2025. Rebranding the Executive Club to The British Airways Club, BA is introducing a spend-based model for earning elite status, replacing the traditional mileage-based criteria. This overhaul marks a significant pivot in how BA rewards its frequent flyers, raising new questions about its commitment to long-time loyal customers.
New Tier Thresholds and Earning Structure
Under the revamped system, members will earn 1 Tier Point per £1 spent on eligible purchases. This includes the base fare and BA-imposed surcharges but excludes taxes and government fees such as Air Passenger Duty. The new status thresholds are as follows:
- Bronze: 3,500 Tier Points
- Silver: 7,500 Tier Points
- Gold: 20,000 Tier Points
- Gold Guest List: 65,000 Tier Points to qualify (52,000 of which must be BA-marketed), with 40,000 required for renewal.
To put this in perspective, a £387 economy ticket to New York would contribute just 189 Tier Points, making the thresholds for even Silver status a steep climb for leisure and budget travellers.
What Is British Airways Really Doing?
The shift to a spend-based model signals a deliberate strategy by BA to prioritise high-value customers—corporate clients, business-class travellers, and those booking luxury holidays. By tying rewards to revenue rather than distance flown, BA is doubling down on the most profitable segments of its customer base. However, the implications of these changes extend beyond financial incentives.
- Erosion of Accessibility: The new model effectively sidelines frequent leisure travellers and small business owners, for whom mileage-based thresholds offered a realistic pathway to elite status. The spend required for even entry-level status undercuts the value proposition for loyal flyers without deep pockets.
- Focus on Ancillaries and Partnerships: BA’s integration of Tier Points with Sustainable Aviation Fuel (SAF) credits, credit card spending, and British Airways Holidays demonstrates its intent to monetise peripheral spending. These options may appeal to affluent customers but do little to bridge the gap for those seeking attainable rewards.
- A Marketing Narrative with Flaws: While BA claims the changes were made based on member feedback, the reality feels starkly different. The programme’s structure disproportionately benefits premium spenders, leaving many long-time members questioning their loyalty to the airline.
Colm Lacy, BA’s Chief Commercial Officer, framed the changes as a reflection of “customers’ changing travel needs,” yet the immediate impact appears to alienate a significant portion of BA’s base. For corporate clients bound by travel contracts, the changes might make sense, but for others, they seem like an uphill battle.
Parallels with Industry Leaders
BA’s loyalty programme overhaul follows a broader trend seen in other airlines, though the scale and focus vary.
Cathay Pacific: From Marco Polo Club to Cathay
In 2021, Cathay Pacific rebranded its Marco Polo Club to Cathay, merging its loyalty and lifestyle programmes. The emphasis shifted towards spend-based earning across flights, hotels, dining, and retail. While this rebrand positioned Cathay as a holistic lifestyle brand, analysts noted it diluted the exclusivity of top-tier memberships.
American Airlines: Simplifying Loyalty
American Airlines’ adoption of a Loyalty Points system in 2022 simplified elite status requirements. Status could now be earned via flights, credit card spending, and even partner activities like shopping. While hailed for its transparency, the programme sparked concerns about inflating elite tiers with spenders who don’t prioritise travel.
These examples highlight how airlines are moving towards revenue-centric programmes to enhance profitability. BA’s approach, however, appears uniquely aggressive in its exclusion of lower-tier loyalists, signalling a sharper focus on high-margin customers.
Why This Matters
The broader question isn’t just about BA adopting a spend-based model—it’s about whether this strategy is sustainable in the long term. While the airline stands to gain in short-term revenue by incentivising high-spending customers, it risks alienating its diverse base of travellers. Key challenges include:
- Competitor Attraction: With rivals like Qatar Airways and American Airlines offering easier paths to elite status within oneworld, disenchanted BA customers may look elsewhere for loyalty rewards.
- Loyalty vs. Profitability: BA is attempting to redefine what loyalty means, focusing on spend rather than frequency. This could deter budget-conscious travellers, who may feel undervalued despite years of patronage.
- Perceived Value of Status: Without substantial enhancements to benefits at each tier, the value of elite status may no longer justify the investment. Critics have argued that BA’s perks—particularly at Gold and Silver levels—lag behind competitors, such as Qatar Airways’ Privilege Club.
Opinion: A Narrowing Funnel of Loyalty
BA’s pivot is a calculated move to secure profitability in an increasingly competitive market. However, it risks creating a loyalty funnel that’s too narrow. The programme now disproportionately rewards those who spend more, often without considering the actual frequency of travel. This approach may alienate loyal customers who built their status through consistent engagement rather than large one-off purchases.
While BA’s focus on holiday packages and SAF contributions introduces new pathways, these options lack the scale to replace traditional mileage-based rewards for most travellers. The airline must demonstrate that its revamped programme delivers sufficient value across all tiers—not just for its wealthiest customers—or face losing its standing as the flagship carrier for British flyers.
Conclusion
British Airways’ loyalty overhaul reflects a broader industry trend but does so with a degree of exclusivity that risks alienating its base. As competitors offer more flexible and accessible models, BA’s gamble on high-value customers could leave a void for leisure travellers. For the strategy to succeed, BA must not only align rewards with spending but also redefine the value proposition of elite status in a way that resonates across its diverse customer demographics.
BA is systematically alienating and eroding its customer base, from top to bottom. It must still (arrogantly) believe that it remains ‘The World’s Favorite Airline’, but those days disappeared over a decade ago. Many frequent travelers, like myself, have remained loyal to BA, exclusively because of the perks the Executive Club delivered. It was golden handcuffs to a degree, but the second these perks are gone, so am I, as I refuse to support bang-average service, last minute flight cancellations, old aircraft, shocking food, cramped seating, and reduced toilet facilities any longer.
BA tries to compete with Emirates and Singapore Airlines at the front, and Ryanair at the back. I feel it is falling short in both areas, and tarnishing a once great brand. Profit before customers has seldom turned out well.
I’m off to American from now on, as it delivers a vastly better flying experience, and I’m sure I’ll not be alone. Let the great migration commence….
I have been looking at Qatar and Royal Jordanian as an option to credit points. QR and RJ look to use a similar distance calculation to now old BAEC, both seem to get to BAEC silver with 2 and a bit long haul flights. RJ has a lower renewal cost which i live so you can get it with 2 long haul flights (each with 4 sectors return). or go QR and collect status with them but avios with Amex and just move them across as both use Avios