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BA ANNOUNCEMENT - BA to move to a spend based Tier Point system From 1st April 2025

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BA ANNOUNCEMENT - BA to move to a spend based Tier Point system From 1st April 2025

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Old Jan 3, 2025 | 4:58 am
  #2656  
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Originally Posted by OGG flyer
Sorry, I do not understand. Why would I not pay my tickets?

If you go on ba.com then you will see that is how much J tickets cost, even the cheapest direct return J to Japan on BA would be 5k, doubt it you will find for 4k. So it is the same as on current system, two times long haul J give you silver.

I now fly AY to Japan via HEL as BA is to expensive for me, but even that is at least about 3.7k.

We are talking only 7.5k to reach silver, that is a rather trivial amount of money, even for personal traveler. And I am not some wealthy dude.
Random dates in June, BA direct:

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Old Jan 3, 2025 | 4:58 am
  #2657  
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Originally Posted by aerolaw
I doubt the credit card spend will be 1:1. DL for example has two cards, one is 10:1 ($650 annual fee) the other is 20:1 ($350 annual fee). So, for the latter card, every $20 charged on the card you gets $1 credit towards status. I can assure you that BA will not give you 2,500 tier points for 2,500 in credit card spend.
They've already trialled this so we have a good idea where the ball park might be. It was 100 tier points for a 15k spend, and additional 50 when you hit 20k.

So those 2500TPs they're offering at the new system seems likely to be for 25k spend.
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Old Jan 3, 2025 | 5:01 am
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Originally Posted by siw
I'm in South East England and my go-to is the SOU-AMS-Asia on KLM, but sometimes still trek all the way up to LHR if starting out on AF/KE/CI/VN etc. and next year I'll have FB PfL. I know many will turn their noses up at the SkyTeam airlines but this has all worked out great for me. In addition, my FB and Accor accounts are linked to top-up each other as I stay at ALL hotels mostly (again many will turn their noses up at Accor).
Nothing wrong with Accor, it has brands like Raffles

Speaking of Accor, you could status match from your Plat to QR for some OW status.
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Old Jan 3, 2025 | 5:03 am
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Originally Posted by bisonrav
That wasn't done - I am guessing because there was internal opposition to the changes (as GGLs we were all being interviewed by the HVC team on improvements to the offer, that was very confusing and misaligned) and deals were difficult to get to with suppliers in the absence of a reason for customers to take them up. Bad News Fairy gave detail in September, very accurately and with what looks like inside information, but there was still no announcement. So we get to the very last date where this can be announced to allow adoption April 1st, someone panicked about their performance bonus and pressed the "do it now or pick up your cards tomorrow" button, and it all happened with comms teams on holiday, no time to fully brief staff, and engendering a massive wave of hostility from customers, many of whom had expensive bookings to get half way to status after April, and who were also on holiday with time to get mad. I suspect a lot of what can be cancelled will be cancelled, and you'd be a bit nuts to book anything new. There aren't even important details like the soft landing (my guess is there was no soft landing in the plan, but that's been suspended while they think about it because they're worried about backlash and don't want to paint themselves into a corner; there's no real other explanation).
This is an excellent reading of the situation. The baffling bit (so far) is that the non-flying upsides aren't nearly generous enough to make up for what they're doing on the flying side. There are two major problems so far with the way IAG Loyalty is building a platform.

1. The insistence that cash equivalent redemption value is ~0.56p, making redeeming for anything outside of flights basically a waste of money.
2. The very haphazard nature of partnerships. Look at AA, I can earn loyalty points via the shopping portal, dining out in some restaurants, hotel stays with Hyatt, cruise bookings, car rentals, credit card spend, buying petrol, paying my electricity bill etc. If BA was offering that level of choice, I'd be able to hit silver, even if they upped the threshold a bit. At the moment my options are paying for BA flights, buying a BA holiday, paying BA's fuel bill for them and something to do with Amex spend that they haven't explained yet. This is the biggest problem.
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Old Jan 3, 2025 | 5:05 am
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So? Even with the rock bottom on potentially days I don't want to travel, it is still circa 6.6k for two J's. Which only leave maybe 1.5k to 2k max to reach silver (not counting TP's from AMEX spend which lower the Silver requirement up to 5k). How is this different to current system? Hardly much.

I can see (most) Golds are XXX but it can be potentially better for Silvers, especially if we take hotel spend and AMEX TP's into account.



Originally Posted by fransknorge
Random dates in June, BA direct:

Last edited by aks120; Jan 3, 2025 at 10:37 am Reason: FT Rule 16 -Using symbols, spaces or other methods to mask vulgarities is not allowed.
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Old Jan 3, 2025 | 5:06 am
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Originally Posted by OGG flyer
We are talking only 7.5k to reach silver, that is a rather trivial amount of money, even for personal traveler. And I am not some wealthy dude.
7.5k spend on flights is not at all a trivial amount of money for all but the wealthiest of self funded travellers. It's slightly more palatable given the BAH system, but even then 7.5k per person is still a lot to spend on holidays for the vast majority of families, and even for couples/individuals without children.

For a family of 4 you'd have to spend 30k a year on holidays to hit that due to the way it's divided up. 20k if you're getting the CC cap (but that would mean only one member of the family gets silver, unless both parents have the card and each spend the expected 25k to hit the cap. If not, the others would be bronze so not everyone can even use the lounges), but even that is a lot of money, and is absolutely not trivial in any sense of the word.

And even that requires all holiday spending to be done through BAH, screw you if you want to collect hotel status, go to a destination not offered by BAH, or stay in a hotel which isn't in their selection.
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Old Jan 3, 2025 | 5:08 am
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Originally Posted by OGG flyer
We are talking only 7.5k to reach silver, that is a rather trivial amount of money, even for personal traveler. And I am not some wealthy dude.
Firstly, its not 7.5k - its more like 9-10k with the extra taxes etc.

Secondly, 7.5k is most assuredly Not a rather trivial amount of money
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Old Jan 3, 2025 | 5:08 am
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Quote:
Originally Posted by bisonrav
PS BA, if you're reading, a great revenue stream would be to sell "fly on the wall" tickets for Waterside over the next few weeks.
With a 20 supplement for a small bucket of popcorn.

Originally Posted by Backofthequeue
With a 20 supplement for a small bucket of popcorn.
From BA, would that not be a thimble full of popcorn?
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Old Jan 3, 2025 | 5:12 am
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Originally Posted by zaphod424
7.5k spend on flights is not at all a trivial amount of money for all but the wealthiest of self funded travellers. It's slightly more palatable given the BAH system, but even then 7.5k per person is still a lot to spend on holidays for the vast majority of families, and even for couples/individuals without children.

For a family of 4 you'd have to spend 30k a year on holidays to hit that due to the way it's divided up. 20k if you're getting the CC cap (but that would mean only one member of the family gets silver, unless both parents have the card and each spend the expected 25k to hit the cap. If not, the others would be bronze so not everyone can even use the lounges), but even that is a lot of money, and is absolutely not trivial in any sense of the word.
You missed my point. Currently it takes about two ultra long haul J's to just about get to silver (perhaps with a few extra flights, which most frequent flyers here would also typically do).

Under new system, it takes about two ultra long haul J's two just about get to silver (perhaps with a few extra flight, which most frequent flyers here would also typically do). Minus TP's that we will be able to get from amex (up to 2500).

Both cases apply equally to everyone.

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Old Jan 3, 2025 | 5:14 am
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Originally Posted by OGG flyer
So? Even with the rock bottom on potentially days I don't want to travel, it is still circa 6.6k for two J's. Which only leave maybe 1.5k to 2k max to reach silver (not counting TP's from AMEX spend which lower the Silver requirement up to 5k). How is this different to current system? Hardly much.

I can see (most) Golds are f**ked but it can be potentially better for Silvers, especially if we take hotel spend and AMEX TP's into account.
If you're paying for two J seats (as a couple for example), the tier points will still be split, so you're no closer to Silver. This is explained in the BA's FAQ on that matter and extensively discussed here. And it's excluding tax, so it's closer to 10k per person spend for Silver.
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Old Jan 3, 2025 | 5:18 am
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Originally Posted by zaphod424
For a family of 4 you'd have to spend 30k a year on holidays to hit that due to the way it's divided up. 20k if you're getting the CC cap (but that would mean only one member of the family gets silver, unless both parents have the card and each spend the expected 25k to hit the cap. If not, the others would be bronze so not everyone can even use the lounges), but even that is a lot of money, and is absolutely not trivial in any sense of the word.

And even that requires all holiday spending to be done through BAH, screw you if you want to collect hotel status, go to a destination not offered by BAH, or stay in a hotel which isn't in their selection.
Totally agree - this is similar to our familys situation - we have a 15k BAH booked for Easter and would probably spend that again each year (plus some smaller trips/domestics) totalling maybe 40k credited to BAEC. Add in a long weekend trip for parents without kids and we would be hitting 2 x Gold and 2 x Silver as a family.

Now we could not be certain any of us would hit Silver and given flying long haul is already in J there is no way I would actively direct the spend BAs way.

Appreciate we are small fry but I dont agree with others that 7.5k is a tiny amount to spend per person - especially in a family. I count myself as very fortunate and relatively affluent but still know the value of our discretionary spend and the opportunity cost!
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Old Jan 3, 2025 | 5:18 am
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Originally Posted by zaphod424
And even that requires all holiday spending to be done through BAH, screw you if you want to collect hotel status, go to a destination not offered by BAH, or stay in a hotel which isn't in their selection.
What's not clear yet is whether the hotel booked through BAH (let's say it was hotel only, rather than a flight & hotel package), is also divided up. It surely wouldn't be too difficult to just book a hotel in one name and avoid that potentially happening.

But the wider point is that BA is clearly targeting extra revenue through BAH so are effectively now competing with the Hotel Loyalty programmes. As a customer we need to decide whether a shiny card/status from a hotel chain or one from BA holds more value.
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Old Jan 3, 2025 | 5:18 am
  #2668  
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OT, but can I just say how much I have enjoyed reading this thread over the last 3 days?

I have read and value every contribution but the views and thoughts of those who obviously work at senior levels in commercial business/finance/marketing/consultancy are insightful and absolutely fascinating.

Obviously no-one knows for sure exactly what has been going on at Waterside, but the explanations and understanding of how things work (or might not work) at big corporate executive and Board level I find extremely interesting.

As a ‘cheap’ Gold, soon to be on my way down the ladder I am not thrilled by the changes, but I would say thank you to all those who have provided their input on this thread and others on the BA board, which have been fun to read the last few days.
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Old Jan 3, 2025 | 5:18 am
  #2669  
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Originally Posted by FlyingSquirrel_
If you're paying for two J seats (as a couple for example), the tier points will still be split, so you're no closer to Silver. This is explained in the BA's FAQ on that matter and extensively discussed here.
TP's are not split. If I buy a J to Japan for say 4000 per pax, I get 4000 TP's (minus taxes). Two people would still spend 4000 each and get 4000 TPs (so I pay 4000 get 4000 TP's, my wife would pay 4000 for hers she gets 4000 TPs - though I would pay for her ticket out of principle).

Perhaps you are referring to BAH deals?
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Old Jan 3, 2025 | 5:20 am
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Originally Posted by Adam London
I am not sure it's fair to say that LH/AF/KL/UA/DL are all better products that BA, although I guess it's subjective. LH especially is a far worse hard product than Club Suites and I don't think any of the others you have mentioned are better than BA's club suites product (imo).
Ah yes, these mythical Club Suites I keep hearing about. Maybe I'm unlucky, but I've only ever had the 8-across, yin-yang, no storage, trip over or be tripped over, wobbly screen, Club seats on BA.

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