[Bath_VIP]

Slotski,

I think we are seeing a general market to spend based rewards rather than mileage based rewards so expect Virgin to follow suit. Most other industries use cashback style rewards and really airlines should be doing the same. Personally I have always favoured a cashback reward scheme which can be part redeemed as necessary. However, it looks airlines still prefer points based schemes primarily because by creating a virtual currency you can devalue it.

Longer term, I suspect we consumers will eventually wise up to this and start to favour cashback schemes. This should favour the likes of Quidco & TopCashBack but if BA hive off Avios, I would be surprised to see some mergers between the likes of Avios, Nectar, QuidCo and TCB.

Edited to add: The other reason why airlines use points instead of cash back is of course they are international businesses dealing with many currencies. Therefore it makes more sense to create a virtual currency. However, if airlines start hiving off their schemes (as LH have done and IAG will do) then again the opportunity to consolidate into a worldwide virtual currency exists e.g. Bitcoins.

[Cwyfan]

There surely is mixed logic on the 241.

Using it before the devaluation, means you will be able to get your flight cheaper overall, but might not be able to find it.

After the devaluation, it will of course technically be worth more, although you will have to spend more to get it, but we are assured that there will be more availability, so that itself is worth something.

I have AA miles too, so it is even more complicated, as I am having to decide which to use when, for the same flights!

I am basing it upon decision of the day, and not factoring in what any other airline may or may not do in the future, as a bird in the hand, or at least a flight, is worth having.

[nissefalk]

Have not really read up on the all changes but managed to secure a return GOT-DEN in F using companion voucher for end April early May return, might be the last F trip I can get using Avios as my Avios income will now be reduced.

[openfly]

@Slotski

Don’t for get that your “friends” at Virgin deduct 25% of the Miles used to make the purchase in the event of cancellation. You will def lose out.

[slotski]

Openfly.

The T&C at Virgin states the 25% points penalty for cancellation. However the website is not up to date apparently there is only now a cancellation fee of £25 but 100% of miles are refunded.

My only slight problem with switching to BA with the AMEX 2-4-1 voucher is I would need to depart a day later or earlier.

[openfly]

@Slotski….hey that’s great info. I hesitated cancelling a VS miles flight because of the penalty. I will check with them and then cancel it.
Thanks again…can’t imagine why we were not informed of this change!

[WillieWelsh]

As far as I can see these changes only affect avios earning on the cheapest economy tickets, you still get the same number of tier points as you always did.

This is far less awful than the LH enhancements to M&M where Y tickets get you almost no status points at all and similar at Flying Blue.

I did laugh at the line about making more seats available while cutting earnings, that was a true ‘enhancement’ line.

I don’t see the lounges emptying at all, the people who slavishly fly BA will continue to do so and all that will happen is that fewer people traveling on cheap economy tickets will be able to afford rewards. BA and most other airlines don’t care whether they retain the business of those people or not and if you’re one of them, do what I’ve already done and look elsewhere. There are better programmes and far better levels of service for the money out there.

[PeterCoultas]

WillieWelsh – would appreciate your suggestions and thoughts re better programmes and service levels, particularly as so many programmes seem to be in flux:

(I’m currently in Melbourne but planning uk return & wondering which main group to go with & which airline – was gold w Utd, silver LH & now UK based but not overenoured with BA or Qantas)

[openfly]

@Williewelsh

I think the changes on redemption have changed considerably. Many Avios flight purchases have increased markedly. Long haul “new” high season fares are up 50% and UK domestics have doubled in Avios and cash. So book before April 28th.

Fuel surcharge as high as ever!

[Carajillo2Sugar]

My man on the inside at BA confirms there is no change to the Tier Points required to move up/retain EC status.

That said, the lowest back of the bus fares (Q/O/G classes) will earn a reduced amount of Tier Points (down from 50% to 25% of those earned for flexible Economy), meaning it will require more travel and/or higher booking classes to retain/move up in status.

Avios tier bonus for Silver card holders will be reduced from 100% to 50%, whilst Bronze and Gold remain unchanged, so it’s Silver members that are the losers here.

Worth noting that any bookings ticketed on or before 27APR15 will come under the current rules.

[mkcol74]

A really good summary of who will be winners & losers in the recent changes on the Head for Points site here http://www.headforpoints.com/2015/02/05/avios-changes-are-you-a-winner-or-a-loser/#comments

[Tony-UK]

BA claim that the changes to the BAEC were in response to customer feedback, really? What is the biggest gripe about the BAEC, I would suggest the level of fees/charges on redemption of Avios. I don’t see this issue addressed? It will be interesting to see what BA do when they (have to) reduce fuel surcharges, how will they then milk their Avios customers…

Another thought, BA could have used the changes to recognise Lifetime Points, not seen much activity here?

[TimFitzgeraldTC]

For those who aren’t aware then for those people travelling from the Regions on BA to connect onto Europe – or longhaul. Using an agent can earn you more Tier Points than booking online. If booking online BA will automatically put the connecting flight in lowest class which may only earn 5 TP’s – or as is the case now they get 10TP’s each way from domestic flight. So on a cheap economy to Europe people could see earning drop from 40Tp’s to 20Tp’s. However if using an agent who knows there stuff – you could earn 60TP’s – and after the change earn 50TP’s (e.g. NCL-LHR-GVA return) on the cheapest fares. This is at no extra cost to the base ticket cost – just the agent fees that one would pay.

[Swissdiver]

Tim,
I am not sure I am following you here. To get more points, one is supposed to select a higher booking class. How come then “This is at no extra cost to the base ticket cost”?

[TimFitzgeraldTC]

Hi Swissdiver

On domestic add ons in conjunction with onwards international flight with BA if you fare quote best buy it will tell you to book the lowest booking class which gives you the lower tier points. However you can book in B class for exactly the same fare which gets you the higher tier point levels. This can’t be done with online bookings.

[Author]

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