argues. “People who you think are your best customers, aren’t necessarily”, he says. “The people you want staying with you in the long run are the ones you are penalising.” He believes airlines are moving in the
opposite direction to loyalty schemes in other areas, like supermarkets. Burgess uses the Tesco Clubcard as an example, which targets each individual customer, aiming to increase their spend by 5-10 per cent. “Everyone gets that, whether a big or small spender.”
CHANGING HABITS
So what might this shake-up mean for buying patterns and travel habits? On the face of it, the growth of alliances and reciprocal FFPs should be the answer to anyone desperate to build up points – travel programmes that allow a choice of carriers in the same alliance in theory give the traveller a chance to switch to one with a distance-based scheme if they wish. Buying a cheap business class fare on one carrier might then bring you tier status on your preferred airline; but unfortunately,
BUYINGBUSINESSTRAVEL.COM
“The people you want staying with you in the long run are the ones you are penalising”
it doesn’t work like that when it comes to redemption – anyone with American Airlines points gained on transatlantic flights who attempts to cash them in for a European sector will find their currency severely diminished. Then there’s the in- ability to add points using, for example, credit cards, or buying petrol or diesel. The changes make short-haul even
more of an open market to the corporate world. By downgrading the points awarded (in BA’s case, from an over-generous 500 minimum on a domestic sector to 125), the switch to no-frills carriers becomes less of a wrench. The obvious alternative
is Easyjet, which has no intention of giving FFPs to anyone, but which does offer larger companies a managed travel programme via travel management companies. Easyjet Plus membership will bring you fast-track security and seat selection, but no points or lounge access – although the latter can always be bought.
Another factor is that now BA has made Club Europe legroom the same as economy, it is a less attractive upgrade decision, so will attract less redemption point spend. Wayne Lappage, strategic business manager at Chambers Travel Manage- ment, believes the changes have already made a difference to corporate buying habits. “The three US legacy carriers that have changed their programmes this year haven’t really made an impact on buying behaviour as far as we’ve noticed,” he says. “But after BA made changes in April, we did see an increase in business mix with low-cost carriers on short European trips, and a slight increase in long-haul travel toward BA. I don’t think it’s a coincidence, as fewer Avios are now being awarded for
BBT SEPTEMBER/OCTOBER 2015 71
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