The Evolving World of Loyalty

Written By Dupsy Abiola

British Airways is changing its loyalty scheme

BA Exec Club 2025 Changes

Life is always full of changes.  With the new year being ushered in, large changes to the BA Executive Club have been announced which represent a major overhaul of the BA loyalty scheme.  As a former IAG employee, current shareholder and executive club member, I thought I would do a quick deep dive to attempt to understand the changes and discuss the wonderful world of loyalty in the world of travel. All opinions expressed below are based on public data or my own thoughts.

The History of the BA Loyalty Scheme

The British Airways Executive Club is a loyalty programme established in 1982, designed to reward customers for their travel with British Airways and its partner airlines. In 2023, BA flew an estimated 43 million passengers around that world which represents a return to flying post pandemic. There are over 13 million members worldwide in the BA loyalty programme. It is one of the oldest and most popular frequent flyer programmes globally. The programme uses Avios as its currency, which members can earn through purchasing flights, hotel stays, car rentals, and various partner activities. 

Timeline of BA Executive Club Changes

Historically, members were able to progress through four main tiers - Blue, Bronze, Silver, and Gold - by accumulating Tier Points and taking eligible flights. The recent changes announced have seen the programme shift from a distance-based to a revenue-based model for Avios earnings, potentially impacting lower-fare travellers. For customers, the Executive Club offers a range of benefits including lounge access, priority boarding, and reward flights, with increasing perks at higher tiers.  

Summary of key changes for 2025

Feature Previous Scheme New Scheme (Effective 1 April 2025) Key Difference
Programme Name British Airways Executive Club The British Airways Club Rebranding to reflect a modernised loyalty programme.
Tier Points Calculation Based on distance flown and travel class (e.g., long-haul flights in premium cabins earned more points). Based on spending: £1 = 1 Tier Point (including flights, holidays, and ancillary purchases). Shift from distance/class to a revenue-based model, favouring high-spending travellers over those who fly economy or long-haul on discounted fares
Tier Thresholds Bronze: 300 Tier Points
Silver: 600 Tier Points
Gold: 1,500 Tier Points		 Bronze: 3,500 points
Silver: 7,500 points
Gold: 20,000 points		 Significant increase in Tier thresholds, requiring higher spending to achieve status
Lifetime Gold Status Based on cumulative 35,000 Tier Points over time. Requires 550,000 Tier Points. Lifetime Gold Guest List = 1.5M Tier Points. Transition from points accumulation to a monetary threshold for lifetime elite status
Tier Point Collection Year Rolling 12-month period starting from the first flight or membership date. Fixed annual period from 1 April to 31 March for all members. Simplified and aligned collection year across all members.
Avios Earning Model Already transitioned to a spend-based model (£1 = Avios depending on cabin and ticket type). Unchanged (spend-based model continues). No change; consistent with recent updates in Avios earning.
Bonus Opportunities Limited-time promotions for earning extra Tier Points. Limited-time bonus Tier Points for bookings made before February 14, 2025, for travel after April 2025. Similar promotional approach but tied to the new system launch.
Sustainability Incentives No specific linkage between sustainability and rewards. Ability to earn Avios and Tier Points by contributing to Sustainable Aviation Fuels (SAF). Introduction of sustainability-focused earning opportunities.

  • Branding: The changes have dropped “executive” from the programme name. This is likely to be indicative of a movement away from loyalty being considered to be just for business customers (even though in practice they make up a decent proportion of frequent fliers).

  • BA Holidays: Members can now earn unlimited Tier Points based on the entire price of their holiday package. This removes the previous cap on Tier Points earned from BA Holidays packages. This provides a big incentive to book hotel, car hire, and other extra through BA Holidays as the total spend will be applied towards the tier points for that year. It should however be noted that the points will be divided equally between the club members who have added their British Airways Club number to the booking.

  • Sustainability: The new changes bring in ways for customers to earn tier points and avios when supporting sustainability incentives. Sustainability is an increasingly important part of travel and it is encouraging to see active incorporation of incentives aimed at improving clean travel and flight efficiency. According to the BA update, You’ll be able to earn up to 1,000 Tier Points per Tier Point collection year, starting 1 April 2025. You’ll earn 1 Tier Point and 10 Avios per pound (£) spent. To do this, members need to visit our dedicated platform, powered by Chooose, which will be available from 1 April 2025. Chooose is one of the sustainability teams I worked with on Hangar 51 Programme when I worked for IAG.

  • Impact on Tier Point Runs: "Tier point runs" are trips specifically designed to earn a large number of tier points in a short time, often involving complex itineraries with multiple flights. The 2025 changes to the British Airways loyalty programme will significantly impact these strategies. With the shift to a spend-based system (£1 = 1 Tier Point) and increased tier thresholds, traditional tier point runs will likely become less effective. I have never personally been a person to travel through five countries to chase status. I imagine that complex tier runs aimed at maximising distance flown over trip spend will now be much less attractive for many including time rich travellers who do not routing for tier points.

Charles on Travel has done a good summary on the changes (see below).

The impact for members

The changes to the BA Exec Club programme towards a reward based system will benefit premium cabin travellers who spend more in aggregate on an annual basis and fly frequently.

  • Tier thresholds have increased, making it harder for leisure or economy travellers to achieve elite status. This will mean that higher tier loyalty points like lounge access and boarding will likely be used by less people over time. This will likely reduce overcrowding in lounges.

  • Lifetime Gold status now requires cumulative collection of 550,000 Tier Points (i.e. £550,000), replacing the previous system based on total Tier Points accumulated over years.

  • The collection year is now standardised across all members, simplifying membership management but potentially disrupting individual timelines during the transition period.

  • There has also been an introduction of sustainability incentives for those who contribute points to SAF programmes.

The evolving business of loyalty

Loyalty programmes are a critical part of major airline business model. Competition within the aviation industry is fierce and encourage customer loyalty has become increasing important.

Global Loyalty Programmes

Most airline loyalty schemes are based on distance flown or revenue spent by the member. The main differences between the two types of schemes are:

Distance-based schemes:

  • Award points/miles based on the actual distance flown

  • Typically benefit budget-conscious travelers and those flying long distances

  • Often provide better value for economy class tickets on long-haul routes. Also as more airlines transition to revenue based schemes it can be a good way to attract and retain loyalty members looking to switch.

  • This encourages customers to use the airline for long haul travel and can be a good way to encourage short haul business travellers to remain loyal for long haul leisure travel.

Revenue-based schemes:

  • Award points/miles based on the amount spent on tickets. This is often simple and easy to understand from a rewards perspective.

  • Favours high-spending customers and those purchasing premium cabin tickets.

  • Allows less frequent flyers to gain rewards and has the potential to incentivise purchasing additional products via the airline like hotel and car hire.

Revenue-based programs aim to align rewards more closely with customer spending, while distance-based programs reward frequency and distance of travel regardless of fare paid. There has been a shift to revenue-based models over recent years which reflects airlines' focus on rewarding their most profitable customers rather than just the most frequent flyers.

Most major airlines have a loyalty programmes. I have gathered a list of a number of the most popular schemes.

Airline Program Name Earning Model Alliance Key Features
Qatar Airways Privilege Club Distance-Based Oneworld Members earn Avios based on flight class and distance, enjoy tier levels with elite status benefits, and can redeem Avios for flights, upgrades, and other rewards.
Singapore Airlines KrisFlyer Distance-Based Star Alliance KrisFlyer allows members to earn and redeem miles for flights, hotel stays, and shopping with over 200 partners. Members enjoy benefits like priority check-in, complimentary Wi-Fi, and additional baggage allowance.
Emirates Emirates Skywards Distance-Based None Earn both Skywards Miles and Tier Miles on Emirates and flydubai flights; earn miles with partners; tier benefits include bonus miles and additional baggage allowance.
Alaska Airlines Mileage Plan Distance-Based Oneworld Distance-based earning, elite status benefits, earning bonuses based on distance flown, and a wide network of airline partners.
Qantas Qantas Frequent Flyer Distance-Based Oneworld Members earn points on eligible flights, access to lounges, priority boarding, and additional baggage allowance. Elite status benefits include bonus points and preferential seating.
ANA ANA Mileage Club Distance-Based Star Alliance Earn miles on ANA and partner flights, fixed award chart, round-trip redemptions only, fuel surcharges apply, miles expire after a set period.
British Airways Executive Club Revenue-Based Oneworld Members earn Avios points for flights and spending with partners, can redeem points for flights and upgrades, and have tier levels (Blue, Bronze, Silver, Gold) with associated benefits. The program will be rebranded as the British Airways Club in 2025.
American Airlines AAdvantage Revenue-Based Oneworld Members earn miles by flying, using credit cards, and through various partners. Elite status offers benefits like free checked bags and upgrades. The program includes four elite tiers: Gold, Platinum, Platinum Pro, and Executive Platinum.
Delta Air Lines SkyMiles Revenue-Based SkyTeam Members earn miles based on spending, miles do not expire, various earning opportunities through partners, elite status benefits including upgrades and priority boarding.
United Airlines MileagePlus Revenue-Based Star Alliance MileagePlus allows members to earn miles on flights and partner services, offers elite status benefits, and provides options for redeeming miles for flights and upgrades.
Air France-KLM Flying Blue Revenue-Based SkyTeam Members earn miles based on spending, with tiered earning rates (4 miles per euro for Explorers, up to 8 miles for Platinum). Benefits include priority check-in and baggage handling for higher tiers, and miles can be earned through various partners. Miles are valid for life as long as there is activity every two years.
Lufthansa Miles & More Revenue-Based Star Alliance Earn Award Points, Qualifying Points, and HON Circle Points; elite status levels (Frequent Traveller, Senator, HON Circle); benefits include lounge access, higher baggage allowance, and lifetime status options.
Cathay Pacific Cathay Revenue-Based Oneworld The program has four elite tiers (Green, Silver, Gold, Diamond), offers priority benefits, and allows earning and redeeming Asia Miles with Oneworld partners.
Southwest Airlines Rapid Rewards Revenue-Based None Earn points by flying or spending with partners, points never expire, Companion Pass benefit, no blackout dates for award flights.
Turkish Airlines Miles&Smiles Revenue-Based Star Alliance Earn miles on flights, redeem for upgrades, four membership tiers (Classic, Classic Plus, Elite, Elite Plus) with additional benefits like free upgrades and bonus miles.

Some key observations from the table:

  • Some programs use a combination of miles/points earned based on distance flown and fare class, though many like British Airways are transitioning to purely spend-based models.

  • Tier levels typically range from 3-5 status tiers, with names like Silver, Gold, Platinum being common.

  • Common benefits across programs include lounge access, priority boarding, extra baggage allowance, and bonus miles for higher tiers.

  • Some unique features include Qatar Airways' Avios currency, Singapore Airlines' complimentary Wi-Fi for elite members, and British Airways' upcoming sustainability-linked earning.

Useful Resources on Loyalty

Dupsy Abiola
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