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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 | 2:45 pm
  #2851  
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What really confuses me is that I thought the current situation was working for BA as well as ourselves. Otherwise why were they continually extending the Double TP on BAH whilst making record profits? Record profits for BA owner as demand for travel returns
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Old Jan 3, 2025 | 2:48 pm
  #2852  
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Originally Posted by PlungeTEX
Havent read all 3000+ posts. Understand people are disappointed. But the writing on the wall has been there for a while. The US programs all went this way years ago. For the truly high value business traveler, this makes status far easier to obtain. BA Gold was laughably easy to obtain in my view even if the perks arent amazing.

the funny part for me is that these changes will allow me to reach GGL with less flying and given my general disdain for BA, the remaking revenue will actually go elsewhere while I still use the jokers etc.
Yes re US programs, but you can earn much more of the required points via CC spend. The US CC companies will be helping to cover the costs of status perks with their high transaction fees. Not possible in the EU due to capped fees, so you cant just replicate the US model here. Different market, different rules. Im sure this is why the AMEX cap on TPs is so low, the market cant support it.
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Old Jan 3, 2025 | 3:03 pm
  #2853  
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Originally Posted by Cw novice
On further consideration how future proofed is this when the corporates BA are courting have the following:

(a) Sustainability policies that seek to limit travel
(b) Restrictions in class of travel and spend.
(c). The incoming US Administration imposing Tariffs on the UK which limit trade. I know there's the revenue sharing with AA but I would expect there to be encouragement to use the US3 before foreign airlines.
(d) How much business BA can generate from Companies who's main focus is east of Istanbul given the paucity of route options.
(e) Route Reliability due to RR issues and continued delays to 77x. On this I would imagine nervousness around A380 routes if the issues continue into 2025.

Then there's the whole upsetting of the customer base who have put their hand in their pockets post COVID when the corporates weren't travelling.



​​​​​​
One interesting point about (a) is that while the new policy allows earning on SAF contributions, it doesn't really incentivize them. Mind you, BA might do something like that, but I can't figure out why just making the item earning-eligible would prompt folks to go for it (vs what I think AF/KM does, where it triggers a significant bonus).
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Old Jan 3, 2025 | 3:12 pm
  #2854  
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Originally Posted by Cw novice
On further consideration how future proofed is this when the corporates BA are courting have the following:

(a) Sustainability policies that seek to limit travel
(b) Restrictions in class of travel and spend.
(c). The incoming US Administration imposing Tariffs on the UK which limit trade. I know there's the revenue sharing with AA but I would expect there to be encouragement to use the US3 before foreign airlines.
(d) How much business BA can generate from Companies who's main focus is east of Istanbul given the paucity of route options.
(e) Route Reliability due to RR issues and continued delays to 77x. On this I would imagine nervousness around A380 routes if the issues continue into 2025.

Then there's the whole upsetting of the customer base who have put their hand in their pockets post COVID when the corporates weren't travelling.



​​​​​​
re C, above: my organization has to align with the Fly America Act so it is already there. The wording of the Act (from memory) requires us to use US metal (eg., UA, AA) unless there is a Open Skies agreement or there is a codeshare (in which case, you choose the US codeshare). There is also an opt out for when specific routings are not flown by a US operated or marketed too. So it exists, could be tightened, but I doubt it as its in actual US law with fairly limited ambiguity for the exceptions (vs. a government policy).
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Old Jan 3, 2025 | 3:16 pm
  #2855  
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Originally Posted by Cw novice
On further consideration how future proofed is this when the corporates BA are courting have the following:

(a) Sustainability policies that seek to limit travel
(b) Restrictions in class of travel and spend.
(c). The incoming US Administration imposing Tariffs on the UK which limit trade. I know there's the revenue sharing with AA but I would expect there to be encouragement to use the US3 before foreign airlines.
(d) How much business BA can generate from Companies who's main focus is east of Istanbul given the paucity of route options.
(e) Route Reliability due to RR issues and continued delays to 77x. On this I would imagine nervousness around A380 routes if the issues continue into 2025.

Then there's the whole upsetting of the customer base who have put their hand in their pockets post COVID when the corporates weren't travelling.



​​​​​​
I for one would be severely disappointed if BA/IAG's decision to go all out for this ethereal corporate travel at the expense of normal people with autonomy comes back to bite them on the ....
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Old Jan 3, 2025 | 3:22 pm
  #2856  
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Originally Posted by marwah0
I have been reading this thread with interest as a primarily DL and UA flyer from across the pond...and having a conceptual understanding of the (soon to be extinct) BAEC program but no firsthand experience. Many of the comments and perspectives I have read here are very similar to when DL announced wholesale changes to its program in September 2023. While DL did "retract" from its original plan somewhat (there is some speculation this was part of the plan all along), 2024 was the first year of earning under the new criteria and the changes to status and lounge access go into effect in just a few weeks on February 1. We will see what happens in the coming year, but so far, the projections of large customer defections (and associated revenue shortfall for DL) have not materialized.
Yep, in 6 months, people will have posts about maximizing BAs new program
through partner mileage runs, and the same people talking about deflecting will still be with BA.

Im sure there will be less GGL due to the BA marketed flight requirements; Im one of the GGL casualties as it was crazy easy to make GGL organically if you are a frequent flier in the US. Rinse and repeat history with DLs fiasco.no different here
on BA.

Price and schedule will trump almost everything else, unless one is infinite wealthy. BA F still offers a value proposition for people looking for a decent premium product.
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Old Jan 3, 2025 | 3:29 pm
  #2857  
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Originally Posted by HaleiwaFlyer
Price and schedule will trump almost everything else, unless one is infinite wealthy. BA F still offers a value proposition for people looking for a decent premium product.
People in US do have infinite wealth compared to those in Europe 😂 Have you compared wages?

BA is making no secret of trying to lure US flyers on to its flights and flyer programme.
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Old Jan 3, 2025 | 3:30 pm
  #2858  
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Originally Posted by labdoctor
People in US do have infinite wealth compared to those in Europe 😂 Have you compared wages?

BA is making no secret of trying to lure US flyers on to its flights and flyer programme.
the money is true, but how much leave do the get per year?
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Old Jan 3, 2025 | 3:31 pm
  #2859  
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Originally Posted by marwah0
I have been reading this thread with interest as a primarily DL and UA flyer from across the pond...and having a conceptual understanding of the (soon to be extinct) BAEC program but no firsthand experience. Many of the comments and perspectives I have read here are very similar to when DL announced wholesale changes to its program in September 2023. While DL did "retract" from its original plan somewhat (there is some speculation this was part of the plan all along), 2024 was the first year of earning under the new criteria and the changes to status and lounge access go into effect in just a few weeks on February 1. We will see what happens in the coming year, but so far, the projections of large customer defections (and associated revenue shortfall for DL) have not materialized.
Looking at the DL program - it looks like similar status would actually be similar in $ terms as the new BA program, but the economic reality and discretionary spending is very different in the UK.

Additionally, up to 2,500 TPs will be able to generated via CC spend (in the UK and US only). For DL, you can get a card that will give you a $2,500 MQD head start every year just by paying the annual fee. I know plenty of people who could spent enough for the MQDs to be a non-issue if using DL cards but that can only get you so far in this program.

For EU based members these changes are even worse as they will have the full minimum spend but no way to get any TPs from anything else.

This is why I would expect that BA is either going to come out soon with additional ways of earning TPs, or will find that at least a portion of members will find that they are better valued elsewhere.
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Old Jan 3, 2025 | 3:34 pm
  #2860  
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Originally Posted by marwah0
I have been reading this thread with interest as a primarily DL and UA flyer from across the pond...and having a conceptual understanding of the (soon to be extinct) BAEC program but no firsthand experience. Many of the comments and perspectives I have read here are very similar to when DL announced wholesale changes to its program in September 2023. While DL did "retract" from its original plan somewhat (there is some speculation this was part of the plan all along), 2024 was the first year of earning under the new criteria and the changes to status and lounge access go into effect in just a few weeks on February 1. We will see what happens in the coming year, but so far, the projections of large customer defections (and associated revenue shortfall for DL) have not materialized.
Yes BA will have noted this. I think anyone thinking this move will have a large negative impact on BA's bottom line is fooling themselves,
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Old Jan 3, 2025 | 3:35 pm
  #2861  
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Originally Posted by danmushman
the money is true, but how much leave do the get per year?
That's pretty dated info for the US now. Most decent companies offer at least UK standard PTO now, if not unlimited...

Flights from the US in the main cost WAY more than if travelling the other way though to make up for the higher wages, American's are stripped of their wages everywhere they go!
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Old Jan 3, 2025 | 3:44 pm
  #2862  
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Originally Posted by Cap'n Benj
That's pretty dated info for the US now. Most decent companies offer at least UK standard PTO now, if not unlimited...
Lol. They totally mean it, too.
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Old Jan 3, 2025 | 3:47 pm
  #2863  
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Originally Posted by Adam London
Well if someone has spent 65k with BA, they are certainly a lot more deserving of Gold, than people who have spent 5k, and used all sorts of convoluted ways to get status. Ultimately that's the way BA see it.
I understand the sentiment but if you make Gold Card from mainly the hotel stay BA will not be making much money on this. It does seem strange that there is no requirement to fly BA and that you can make status from mainly a hotel spend. Have they thought this through?
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Old Jan 3, 2025 | 3:48 pm
  #2864  
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Originally Posted by Cap'n Benj
That's pretty dated info for the US now. Most decent companies offer at least UK standard PTO now, if not unlimited...

Flights from the US in the main cost WAY more than if travelling the other way though to make up for the higher wages, American's are stripped of their wages everywhere they go!
Flights UK-USA-UK are more expensive than the other way.

According to the Center for Economic and Policy Research (CEPR), almost one in four Americans has no paid vacation. Recent government statistics suggest the average private-sector worker in the US receives only about 10 days of paid annual leave and about six paid public holidays a year.
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Old Jan 3, 2025 | 3:51 pm
  #2865  
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Originally Posted by LondSE1
I understand the sentiment but if you make Gold Card from mainly the hotel stay BA will not be making much money on this. It does seem strange that there is no requirement to fly BA and that you can make status from mainly a hotel spend. Have they thought this through?
The commission on that hotel spend will be quite healthy, though not as healthy as some of the numbers that have been thrown around on this thread.

On this point I don't think the BA plan to incentivise hotel bookings is bad, just that the thresholds are so high that they're unattainable for so many that few will bother trying. [See the maths far upthread about take home earnings for a convincingly 1% earner...].
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