FlyerTalk Forums - View Single Post - BA ANNOUNCEMENT - BA to move to a spend based Tier Point system From 1st April 2025
Old Dec 30, 2024 | 10:30 am
  #473  
ffgap
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Originally Posted by lsquare
100%. I guess time will tell if BA and IAG made the right decisions, by what works in the US won't necessarily work in the UK and Europe. Europe and the UK have largely stagnated over the past decade while the US economy has roared.
It's true that the US is different from the UK and Europe. It's also true they're seen higher economic growth (although the differences get a little less extreme once you move to a per-capita basis; population growth in the US has been considerably higher which logically leads to higher GDP growth rates).

I read the change to revenue-.based elite tiers in the US as a strategy aiming at making more money with non-air business. It's well-known selling miles to the financial sector is more profitable for the US3 than the (direct) money made from flying customers from A to B. But that's not really the case in the UK, credit cards simply aren't as profitable as the UK upholds most of the EU's caps on interchange fees.

Therefore, I must interpret the new paradigm of BA's loyalty program as a faith in the money that can be made with premium business travel. For me, the business opportunity BA is trying to pursue is very much different from the one the US3 were hitting at in the recent loyalty program modifications.
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