American Airlines has just announced that it is changing the way it looks at passenger loyalty.
Rather, it is redefining the way passenger loyalty is measured for its AAdvantage loyalty program. Beginning the second half of 2016, American Airlines will look into how much dollars have been spent by the passenger, instead of the distance he or she has flown.
According to AAdvantage President Suzanne Rubin, they want to ensure that the AAdvantage program is “rewarding our most loyal customers with the benefits they value the most.” Hence, there will be some adjustments made to award redemption rates with some award levels to be increased and others, to be decreased. Moreover, American Airlines aims to offer best elite-qualifying mile multipliers while simplifying the elite qualification process at the same time.
During the second half of 2016, American loyalty program members shall earn award miles based on the price of the ticket they have purchased as well as their elite status level. This way, AAdvantage members will be awarded five miles for ever U.S. dollar spent on the base fare and carrier-imposed fees. On the other hand, Gold members will be awarded seven miles while Platinum members will receive eight and Executive Platinum member will receive 11 miles.
Meanwhile, award miles for travel done on most flights that are marketed by partner airlines will reportedly be based on a percentage of the flight distance and the booking code purchased. In addition, there will be some award redemption levels which will reduced by as much as 40 percent by 2016. This includes those for travels to Mexico, the Caribbean and Central America. Moreover, the said changes will be made effective for tickets that have been booked on or after March 22 next year. Meanwhile, award redemption levels for a number of flights to Europe and Asia will be increased.
American Airlines says it will provide more information about changes in its loyalty program in 2016.