British Airways tier points

What’s Happening with British Airways Tier Points? A Comprehensive Analysis of the Executive Club Rebrand

Introduction

British Airways is undergoing a significant revamp of its loyalty program, the Executive Club, with a focus on how members earn Tier Points. This isn't just a cosmetic change; it's a fundamental shift in how frequent flyers can attain and maintain elite status. The changes, set to fully roll out from April 2025 under the new name “The British Airways Club,” promise to offer more avenues for members to accumulate Tier Points, particularly through spending on flights and holiday packages. This article delves into the details of these changes, drawing on official news releases and supplementary research to provide a comprehensive analysis for UK travellers.

Official Coverage

British Airways has officially announced a significant overhaul of its Executive Club program, focusing on Tier Points accrual. According to the British Airways Media Centre, the airline is introducing "more ways to earn Tier Points than ever before" as part of "The British Airways Club" rebrand. This is not a minor adjustment but a strategic move to reshape how members engage with the program.

• Revenue-Based Tier Points: A key change is the introduction of Tier Points being earned based on flight expenditure, moving away from the traditional model that primarily considered flight distance and fare class. As noted by Business Traveller, "The British Airways Club will see Tier Points being earned according flight expenditure." This shift aligns the program more closely with how Avios, the program’s reward currency, have been earned since late 2023. This is a significant change that may favour those who spend more on their tickets.

• Tier Points on Co-Brand Credit Cards: The official announcement also confirms that Tier Points will now be accruable on spend with British Airways’ co-branded American Express cards. While the exact earning rates are not specified in the official release, this inclusion provides a new avenue for members to earn Tier Points without needing to fly.

• Limitless Tier Points on British Airways Holidays: Following the success of previous promotions, British Airways is making the earning of Tier Points on British Airways Holidays a permanent feature. The Media Centre release states that "Members will earn Tier Points based on the price of the entire package, with no limit in place." This is a significant enhancement, making it potentially easier for members to earn elite status by booking holiday packages. The combination of flight and hotel, car hire and other services packaged by BA will see members’ Tier Point earning potential increase significantly.

Background Context

To fully understand the significance of these changes, it's important to look at the existing structure of the British Airways Executive Club and how Tier Points have traditionally been earned.

• Traditional Tier Point System: Historically, Tier Points have primarily been awarded based on the distance flown and the fare class booked. Each flight segment earns a set number of Tier Points, with higher fares generally earning more points. This system favoured frequent flyers who travelled long distances in premium cabins.

• Tier System: The Executive Club has multiple tiers: Blue, Bronze, Silver, and Gold. Each tier unlocks more benefits, including lounge access, priority boarding, and extra baggage allowance. Tier Points are the currency that determines a member's tier status, and maintaining status requires a specific number of Tier Points and eligible flights within a 12-month period. As stated on the British Airways website, "Tier Points are the key to unlocking the benefits of the British Airways Executive Club. Learn how to collect Tier Points when you fly with us and our one world partners, and how to move up the tiers from Blue to Gold."

• Shift Towards Revenue-Based Rewards: The move towards revenue-based Tier Points aligns with the earlier adoption of revenue-based Avios earning. This indicates a broader strategy by British Airways to reward spending rather than distance flown, a trend seen in many other airline loyalty programs.

• British Airways Club Branding: The rebrand to "The British Airways Club" represents a broader effort to refresh the program's image and appeal. The official statement hints at "a fresh look and feel" along with the enhanced earning opportunities.

• Temporary Bonus Offer: Further supporting this transition, British Airways is offering a bonus Tier Points promotion for flights booked by 14 February 2025, as per their website. This offer provides an opportunity for members to boost their Tier Point balance ahead of the full implementation of the new system in April 2025.

Impact Analysis

The changes to the British Airways Executive Club will have a significant impact on members, both positively and potentially negatively.

• Increased Accessibility to Higher Tiers: The introduction of Tier Points accrual based on flight expenditure and through British Airways Holidays packages could make it easier for some members to achieve higher tiers. Those who spend more on flights or book more comprehensive holiday packages will likely benefit from this change. The "limitless" Tier Points on holiday packages, in particular, is a significant offering for holidaymakers who are also BA frequent flyers.

• Potential Impact on Long-Distance Economy Flyers: While the changes provide new avenues to earn Tier Points, those who primarily fly long-distance in economy class might find it more challenging to reach higher tiers. The shift to revenue-based earning means that cheaper economy fares will likely earn fewer Tier Points compared to the previous system.

• Boost to Credit Card Spending: The inclusion of co-branded credit card spending as a way to earn Tier Points will likely incentivize members to use these cards more frequently, benefiting both the card issuers and British Airways. This will also enable members to earn Tier Points on everyday spending, not just travel.

• Enhanced Holiday Package Bookings: The permanent proposition of earning Tier Points on British Airways Holidays will encourage members to book their holidays through the airline, further consolidating their relationship with the brand.

Future Implications

The rebrand and changes to the British Airways Executive Club signal a long-term shift in the airline's loyalty strategy.

• Alignment with Industry Trends: The move towards revenue-based Tier Points aligns with industry trends and could set a new standard for airline loyalty programs in the UK. It will be interesting to see if other airlines follow suit.

• Increased Competition: These changes could intensify competition among airlines and credit card providers to attract and retain loyal customers.

• Potential for Further Refinements: As the program evolves, British Airways might introduce further refinements or adjustments based on member feedback and market conditions.

• Emphasis on Value and Engagement: The overall message appears to be a greater emphasis on rewarding spending and engagement with the airline, which indicates a strategic shift to enhance the value proposition for customers.

Conclusion

The revamp of the British Airways Executive Club, under the new banner of “The British Airways Club,” represents a substantial change in how members earn Tier Points. The move to revenue-based earning on flights and the introduction of Tier Points on co-branded credit card spending and holiday packages offer new opportunities for frequent flyers to achieve and maintain elite status. While some members, particularly those who favour long-distance economy travel, may need to adapt to the new system, the overall changes aim to create a more engaging and rewarding loyalty program. The full roll-out in April 2025 will be closely watched by the travel industry and British Airways’ loyal customer base alike.