The landscape of airline miles and points has seen considerable shifts over the years. Like any sector, this evolution carries both beneficial and detrimental outcomes. A prominent pattern in the area of redeeming points for airline award tickets, especially in premium classes, is the increasingly strategic approach airlines are adopting towards the release of award seats. This trend is anticipated to keep progressing.
The Increasing Savviness of Airlines in Award Seat Releases
Fifteen years back, airlines generally provided the same saver level award seats to the members of their frequent flyer programs alongside members of partner programs. This made it simple to combine multiple airlines on a single award ticket and opened up various arbitrage possibilities. However, this scenario is shifting, leading to the emergence of two key trends:
- Airlines are progressively reserving premium award seats solely for their frequent flyer program members, leaving out those in partner programs.
- A larger share of award space is designated for individuals with elite status or those possessing co-branded airline credit cards.
For example, United Polaris business class award seats are no longer obtainable through partner programs, with the most favorable pricing set aside for MileagePlus elite members or those who hold a co-branded credit card. In a similar vein, Emirates Skywards limits first-class awards to elite members, while Air France-KLM Flying Blue provides enhanced availability to Platinum members.
This trend poses a double-edged sword for consumers:
- Loyal clients benefit from improved access to sought-after award availability.
- Individuals looking for arbitrage possibilities or booking multi-airline award tickets encounter difficulties.
Consequently, individuals may need to reevaluate their points strategy, possibly boosting the motivation to acquire a co-branded credit card or aim for elite status.
This Is Frustrating, Yet I Don’t Hold Airlines Accountable for This Trend
While this trend causes frustration for those keen on optimizing miles and points, it is justifiable from an airline’s standpoint. In the past, competition for award seats was less fierce, and airlines functioned with a reciprocal approach. However, as airlines adopted a more entrepreneurial mindset, selling miles at reduced prices for partner redemptions led to discrepancies in award booking behaviors.
Airlines have become increasingly tactical with their loyalty programs, which have transformed into profit centers instead of cost centers. The emphasis is on enhancing member involvement by making it more advantageous to belong to the program, hold a credit card, or obtain elite status. Given the substantial demand for premium cabin award seats, airlines favor loyal customers over opportunistic bookers.
Although this trend does not favor some, it is expected to persist, necessitating adjustments in planning and strategy.
The Final Thought
Airlines are becoming increasingly choosy in providing saver level award seats, particularly in premium cabins. The practice of restricting award seats to native program members, elite status holders, or credit card possessors is on the rise. While this trend is gaining commonality, it is predicted to broaden even further in the years ahead.
What are your views on the changing methods used by airlines to release award space?