Cathay Pacific ‘Carefully Studying’ Revenue-Based Changes to Loyalty Programs

Possible changes coming to Cathay Pacific’s loyalty programs include focusing the Marco Polo Club on high-value flyers and revised mileage earning opportunities

Is Cathay Pacific considering switching around how flyers earn rewards among their loyalty programs? Quoting a report from the South China Morning Post, Business Traveller suggests the flag carrier of Hong Kong is mulling over changes to both of it frequent flyer programs — the Marco Polo Club and Asia Miles.

“Airlines all over the world are recognizing the anomalies created by a mileage or sector-based reward and recognition system,” an unnamed airline representative told the South China Morning Post. “We are carefully studying the impact of this and the possible implications for the Marco Polo Club in terms of how members earn their status and what benefits and recognition they should be receiving based on the value they bring to the airline.”

Although the airline has not announced any official changes, speculation revolves around rewarding elite passengers based on their travel habits. Business Traveller suggests that Cathay Pacific could make a change that would base elite status and mileage on a number of revenue-based milestones, including fare class.

The rumors include changing the Marco Polo Club to an elite program that targets flyers paying full fare for their tickets or purchase tickets for premium cabin travel. If the rumors are true, travelers who choose to fly in economy would not earn miles or status in Marco Polo Club, instead they would earn miles within the Asia Miles program.

The Asia Miles program, in turn, would be targeted toward flyers whom elect to travel primarily in economy. As it exists now, Asia Miles is a unique reward program with 25 airline partners, including Cathay Pacific. Asia Miles members collect miles that are redeemable for award travel, but they do not earn elite status.

If Cathay Pacific moves forward with this plan, the move would mirror the programs of fellow Asian carrier Singapore Airlines, which operates two loyalty programs: KrisFlyer and Preferred Passenger Status. Additionally, the trend of moving loyalty programs from distance-based to revenue-based rewards would continue to gain momentum, as both Delta Air Lines and United Airlines have announced revenue-based changes to their loyalty programs in 2015.

[Photo: Cathay Pacific]