Etihad Airways has announced a comprehensive overhaul of its loyalty program, Etihad Guest, as part of its post-pandemic rebuilding and relocation to the new terminal at Zayed International Airport.
While there are several positive changes, some adjustments may not sit well with all members, especially those outside the UAE. Here’s a summary of the main changes.
Changes to Elite Status Tiers
One of the most significant updates is the introduction of a new Diamond status tier, which requires a spend of at least $150,000 on Etihad flights within 12 months. This new tier offers high-spending members a pinnacle of personalized benefits. The benefits structure for all elite statuses has been revamped into Core, Custom, and Beyond categories. Members will now have the flexibility to choose certain perks. For instance, lounge access, which used to be an automatic benefit for Gold members and above, will now be an optional Custom benefit.
Additionally, Etihad Guest is discontinuing the ability to earn status through flight segments, meaning only Tier Miles will count towards status. Both Tier Miles and Etihad Guest Miles will now be awarded at the same rate, and Platinum and Diamond members will have the option to choose a personalized membership number.
Redemption Adjustments and The Residence Upgrades
Effective from 22 February 2024, Etihad has adjusted its award pricing, making many Economy redemptions more affordable, now starting at 5,000 miles instead of 7,500 miles. Some Business Class redemption rates have also been reduced, though flights from the UK remain unchanged. An exciting addition is the ability to use miles to upgrade to The Residence on A380 services, offering members a unique way to experience unparalleled luxury.
Stricter Mileage Expiry Rules
Starting 1 June 2024, a significant change will affect how members retain their miles. Previously, any account activity within 18 months, such as earning or redeeming miles with any program partner, would extend the validity of Etihad Guest miles.
However, under the new rules, only flight activity with Etihad or a partner airline will count. This includes both cash flights and redemption bookings. If members do not have an eligible flight within the previous 18 months by 1 June 2024, their miles will expire.
Increased Award Booking Cancellation Fees
Etihad Guest is also introducing new cancellation penalties for award bookings. Previously, cancelling an award booking incurred a 10% fee. Under the new rules:
- if you cancel more than 21 days before departure, you will forfeit 25% of your miles.
- Cancelling between 8 to 21 days before departure results in a 50% penalty, while
- cancellations within seven days of departure incur a 75% penalty.
- Cancellations within 24 hours of departure will result in the loss of all miles used for the booking.
These high fees are intended to reduce last-minute cancellations and free up award seats for other members, though they may deter members from booking award flights unless they are certain about their travel plans.
Changes to Lounge Access
A major negative change in the Etihad Guest program overhaul is the new policy on lounge access. Previously, Gold and Platinum members enjoyed automatic access to Etihad’s airport lounges. However, this benefit will now be categorized as a Custom benefit, meaning members must choose it from a list of options. This shift means that lounge access is no longer guaranteed for higher-tier members unless they specifically select it as one of their benefits. This change could significantly impact members who relied on lounge access for comfort and convenience during their travels.
‘Pick and Mix’ Benefits for All Tiers
Etihad Guest is also introducing a ‘Pick and Mix’ approach for elite tier benefits, allowing members to personalize their rewards. Silver members can choose two benefits, Gold members can choose four, and Platinum members can choose five from a selection. These benefits range from lounge access to additional baggage allowance, complimentary upgrades, and carbon offset vouchers. This personalization allows members to tailor their benefits to better suit their travel preferences and needs, providing a more customized loyalty experience.
Implications for Members
The changes to the Etihad Guest program reflect a balance between enhancing value for frequent flyers and introducing stricter rules that may not favour occasional travellers. The new mileage expiry rule is particularly harsh, requiring flight activity to extend the life of miles, which could lead many members to see their miles expire. The increased cancellation fees and changes to lounge access further add to the challenges, making it essential for members to plan their travel carefully to avoid significant penalties and to ensure they select the benefits that matter most to them.
Despite these drawbacks, the program’s overhaul introduces innovative features such as the new Diamond tier and customizable benefits, which aim to offer greater personalization and value for loyal Etihad flyers. Members are advised to review these changes in detail and consider how they might impact their travel plans and loyalty strategies.
