According to a statement by Air India, the revamped loyalty program, named Flying Returns, departs from the traditional miles-based point collection model, opting instead for a more equitable spend-based system.
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GLOOn Wednesday, Air India, introduced an updated loyalty program featuring a streamlined format, enhanced rewards, and additional perks for its clientele. This marks the program’s first major revision in over ten years. According to a statement by Air India, the revamped loyalty program, named Flying Returns, departs from the traditional miles-based point collection model, opting instead for a more equitable spend-based system. The airline stated that members of the program can now access benefits and accrue points based on this new framework, effective immediately, although the exact number of existing members was not disclosed.
Here are six significant alterations to the process of earning and utilizing reward points:
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Transition to value-based earnings: Previously, points were allocated based on the distance traveled. Air India will now grant points to customers based on the fare they pay, aligning with the approach of many international carriers like JetBlue, Southwest, Delta, and United in the U.S.
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Non-expiring points with conditions: Under the former scheme, unused points expired three years after acquisition. In the updated program, Air India will maintain the longevity of points as long as the member flies with the airline at least once every 24 months.
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Introduction of ‘Cash + Points’ format: This option allows customers with insufficient points to obtain a fully free ticket by partially using miles and paying the remaining amount in cash, reducing the likelihood of points going unused.
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Last-seat availability: To address the common complaint of limited seat availability for point redemptions, Air India is transitioning to a hybrid model. In economy class, every seat will be bookable through points, with the required points increasing as the travel date approaches.
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Enhanced value award chart: Previously, Air India’s redemption points were higher compared to other carriers. Now, the airline is aligning its redemption rates with industry standards. For instance, economy class redemptions for popular routes like Mumbai to Delhi now start from 5,000 points instead of the previous 10,080 points.
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Online redemption of Star Alliance awards: Air India has finally implemented online redemption for awards from Star Alliance partners, a project long overdue since the company’s state ownership.
With easier and often more economical ways to redeem Air India points, the focus shifts to earning them. The airline has been expanding its network of earning partners, currently numbering around 50, including credit card providers and luxury hotel chains, with plans to triple this number in the near future.
In the past, even frequent travelers could struggle to achieve higher tiers despite extensive travel. However, as part of its overhaul, the airline has significantly simplified its status tiers.
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Renaming of Tiers: Air India has moved away from lengthy tier names such as the Maharaja Club, opting for simpler designations like Red, Silver, Gold, and Platinum.
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Easier Status Attainment: The airline has reduced the requirements to attain status by 40% across all tiers. This change is complemented by the transition to value-based earnings and the introduction of a new flight count metric. This adjustment ensures that frequent travelers, regardless of their spending level, can now qualify for status, promoting genuine loyalty.
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Recognition of Star Alliance Membership: Air India now acknowledges flights with other Star Alliance partner airlines for status qualification. Only a minimum of 30% of flights need to be with Air India to achieve status.
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Priority Member Service: Silver, Gold, and Platinum members gain access to a dedicated member service contact center, enabling them to bypass non-status customers when seeking assistance from customer service teams.
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New Perks: Gold and Platinum members now enjoy additional benefits such as free ticket changes, complimentary seat selection, and the opportunity to be accommodated on earlier flights based on availability.
By implementing these changes, Air India aims to attract customers back to its loyalty program. Currently, many frequent flyers opt to credit their flights to other Star Alliance carriers, resulting in significant revenue loss for Air India.
Source: Air India
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