Five Positive Trends in Loyalty Programs Thanks to Covid
Why your hard-to-love loyalty program deserves some attention right now.
You know that loyalty program of yours that’s been festering on the couch for years watching TV and eating tater tots?
Complacency can do that to a relationship… All take and no give can happen. For a long time, your loyalty program (“loyalty”—that’s a good one) has slowly devalued itself, offering you less and less value. “Grab me another cold one, will ya?”
Well, that loyalty program, and many others just like it recently got a massive kick in the patootie from a pandemic.
Suddenly, loyalty programs are jumping up off the couch, hitting the gym, and buying flowers for their members (metaphorically, of course). I’d say they’re whispering sweet nothings too, but I’d rather not highlight that sweet nothing is what they’ve been doing for far too long.
I WILL ALWAYS LOVE YOU
(FOR THE TIME BEING ANYWAY)
We saw the first signs of consumer-friendly mileage/loyalty program activity when major airlines like American, Delta, and United started offering unprecedented mileage award space with savings of up to 75%. We detailed it here, here, and here.
Then there were waivers for redepositing miles (see FCF’s widget here), effectively rekindling some of that lost love to help with the times.
Then we saw airlines selling miles cheap and often—a recent United sale had them as low as 1.75¢, and American as low as 1.7¢.
Then we saw the lowering of mileage award taxes by up to 89%.
And now we’re seeing extended expirations on award miles.
Isn’t it nice to hear a bit of good news? Even if it does make you even more cynical about loyalty programs. I’ve been cynical about them for a decade, but hey, let’s make hay while the sun shines.
We’re in a new era all the way around. As a result of covid, loyalty programs have ramped up their benefits. Let’s review the details and take advantage while we can.
HOW DOES MY LOYALTY PROGRAM (NOW) LOVE ME? LET ME COUNT THE WAYS
Rose #1:
Unprecedented mileage award space
“My biggest frustration is the fact that the big three U.S. legacy carriers rarely offer premium seat availability on international flights. Earning miles and points is not the problem. The issue is using them effectively!”
We’ve gotten that comment in one form or another many times throughout a recent FCF membership survey.
Back in April, American Airlines increased their availability of discount miles tickets up to 1,689%, Delta’s went up to 10,800%, and United’s went up to 6,850% of new MileagePlus discount availability. Yes, Covid is the cause and yes, flying is problematic in a pandemic. But the fact remains, opportunities are there if you want to take them, and many do, if only for travel later this year and next year.
In May, there were unprecedented miles (and points) opportunities available for premium cabins with American, Delta, and United. We also found opportunities in First Class with notable airlines such as Singapore Airlines to Tokyo; Emirates to Athens, Milan, and the Middle East; All Nippon and Japan Airlines to Tokyo.
In June, we saw unprecedented mileage award availability for dreaming, booking, and saving now, for travel later with All Nippon, Cathay Pacific, Japan Airlines, Singapore Airlines, and more.
Then in July, FCF found more amazing mileage award availability for dreaming, booking, and saving now, for travel later. See our special report on Emirates, All Nippon, Cathay Pacific, Japan Airlines, and Singapore in First Class here, and our FCF survey of unprecedented mileage availability (aka “Sweet Redeems”) that we published last month. These deals are on major airlines and most are live today. They’re valid for travel later this year and/or into 2021 here.
Rose #2:
Waiver for redepositing your miles
In April, airlines included mileage award tickets in their “change fee waiver” policies due to the virus. The policy does vary by airline (see our widget here), but in general, the policy waives the redeposit fee for mileage award bookings. That takes a lot of pressure off the “to book or not to book” question. Many of the waivers are still in place with the airlines at time of publishing.
Rose # 3:
Airlines are selling miles very cheap
United Airlines sold miles for as low as 1.7¢ each in May. LifeMiles sold for as low as 1.3¢ in June. Alaska Airlines miles were down to 1.7¢ in June and 1.8¢ in July. American Airlines’ April promotion had miles for sale from 1.6¢ and in July for 1.7¢, and Air France/KLM FlyingBlue’ program had miles on sale for 1.6¢ in July. For reference, the normal cost for buying miles is up to 3.5¢ a pop. Who said money can’t buy love?
Rose #4:
New lower award taxes, up to 89% off
We first touched on this in June, when Emirates’ slashed their award taxes by up to a whopping 89%. Since then First Class availability has opened up on many routes. To learn more go here. Let’s break down what that means:
Dubai: On the New York-Dubai route in April, Emirates charged $1,543 for award taxes. In May, those taxes were reduced to $362 round-trip, a drop of 76%.
Europe: On the Newark-Athens route in April, Emirates charged $1,100+ for award taxes in First Class. In May, those taxes were slashed to just $125 round-trip, a Parthenon-sized drop of 89%.
Asia: In July, All Nippon and Japan Airlines reduced their mileage award taxes by up to 83% to Japan. ANA charged $268 for award taxes in First Class. And then in July, taxes were reduced to just $58 round-trip, a drop of 78%, and enough to buy you a drop of very nice champagne. Japan Airlines: charged $357 for award taxes in First Class and then in July they reduced them to just $62 round-trip, a drop of 83%.
Rose #5:
Extended expirations on miles
With some airlines, buying and transferring miles or points to build up a war chest can be risky. That’s because the airlines typically set an expiration date that you need to use them by. If you leave them too long: whoosh. Gone. In July, Air Canada made a change. Their miles now expire after 18 months of account inactivity, instead of 12 months. We’re hoping that signals a change across the board.
WHERE TO NOW, MY LOVE?
What other consumer-friendly mileage program changes will the airlines come up with? How long will this new trend last? Who knows, but now is the time for you to take advantage.
While we’re in the throes of romance, here is my sonnet of other consumer-friendly items that could be added:
- More airlines, such as Lufthansa, British Airways, and SWISS, lowering award taxes
- American Airlines miles never expiring
- Airlines and programs selling miles even lower, at 1.5 cents
- More partner award space availability
Am I dreaming? Time will tell. But six months ago, I never thought we’d be writing a report like this. In the meantime, I’ll see you up front.
