Business travelers are likely to fare best under new revenue-based frequent-flyer loyalty programs from United Airlines and Delta Air Lines, while leisure travelers are poised to generally earn fewer reward points, according to a new report from consulting firm PricewaterhouseCoopers.
Examining mainland U.S. domestic routes on the 11 largest U.S. airlines, the PwC report analyzes the winners and losers under new spend-based programs compared to miles-based models. On average, travelers earn approximately 45 fewer reward points per one-way trip under a revenue-based frequent-flyer loyalty program, according to the report.
Approximately 40 percent of the flying public will accrue more points under a spend-based program compared to a mileage-based program, with about half of this category averaging more than 1,000 points per one-way trip. This group includes premium fare passengers, last-minute travelers, business travelers driven more by schedule than price and frequent short-distance travelers.
About 45 percent of travelers will earn less from revenue-based programs, with approximately half of this group earning on average 980 fewer points per one-way trip. This category includes travelers who frequently fly direct routes and those who fly on advanced-purchase, reduced-fare tickets.
The remaining 15 percent break even and see no change in point accrual under the new spend-based program, according to the report.
In a report from Business Travel News, Jonathan Kletzel, PwC transportation and logistics practice leader, notes a revenue-based program could motivate some business travelers to change booking behaviors, but most would not be driven to do so by a small improvement in miles.
“You might see — with those companies that spend a little more money on business travel — people trying to optimize their mileage via last-minute purchase or maybe moving from nonrefundable to fully refundable,” said Kletzel in the Business Travel News article. “But if you look at what the high-end frequent flyers value, it’s typically more about the status and experiential benefits.”
Under the new revenue-based frequent-flyer loyalty programs, will you be disadvantaged by the changes or better off? Will you change your booking behaviors? Email us. Please include your full name and location with your email.
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