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Avios bits: Club Iberia Plus renamed, tier points, NatWest BA cashback

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Three bits of BA and Avios related news:

Club Iberia Plus renamed after eight weeks

Of all the things I thought we may see backsliding on after the 1st April IAG loyalty changes, the one I didn’t expect was a rebranding at Iberia.

However, the powers that be have decided that Club Iberia Plus – the new name for Iberia Plus – made no sense.

The scheme has now been rebranded as ‘Iberia Club’.

Given how long rebrandings tend to take, this is quite an impressive turnaround given that its only eight weeks since Club Iberia Plus launched.

It’s goodbye to this:

Club Iberia Plus renamed

and hello to:

Club Iberia Plus renamed

The new British Airways tier point system in action

I saw this image on LinkedIn yesterday and thought it was worth sharing, for anyone who hasn’t taken a British Airways long haul economy flight recently.

This is from a start-up founder who travels between London and New York regularly – but only in discounted economy, because his company is still in start-up mode.

His trips used to get him to Gold, hence the Gold tint to the statement.

This is what he got from his last trip (click to enlarge):

British Airways tier points

Yes, 24 Avios and 3 tier points for this one way flight.

This means that he will need to fly between Heathrow and JFK over 3,300 times, return, this year in order to earn 20,000 tier points to retain his Gold card. That’s tricky.

You can argue whether BA should care if someone taking 12-15 return flights to New York in economy each year is worth keeping as a customer, but this particular one is – unsurprisingly – leaving in search of status elsewhere.

£100 British Airways cashback for NatWest cardholders

£100 British Airways cashback for NatWest cardholders

NatWest has been running a British Airways cashback deal for its Mastercard credit card holders (debit cards seem to be accepted too) for the last few weeks, although we’ve only just seen it.

There are two offers:

  • you will earn £100 cashback on £500 of BA flight spend to ‘a non-UK or EU destination’, booked by 30th June
  • you will receive an additional 5% cashback (up to £100) on ANY OVERSEAS SPEND in ‘a non-UK or EU destination’ by 31st October

There are a couple of quirks here:

  • the website is talking complete nonsense when it says ‘you get £100 cashback on flight bookings to non-EU destinations’. There are PLENTY of non-EU destinations excluded in the small print if you dig deep enough, for example Norway and Switzerland. Mastercard is going to be getting a lot of complaints ….
  • you qualify for the 5% cashback on general foreign spending even if you don’t trigger the British Airways element of the cashback

You can find out more on the Priceless website here.

Thanks to Zakir for this.

Comments (137)

  • Pat says:

    Let’s see if he posts the return segment, or it’s just the usual LinkedIn engagement slop.

    • Barrel for Scraping says:

      Yeah, it’s LinkedIn slop. Disappointing this was published. This is something you’d expect from a Reach ‘journalist’.

      The only way you can tell the awarding is fair is to see the points earned for the whole journey. Sometimes the amounts allocated to a single segment are a bit weird.

      One thing is clear, it is not a one way flight, those are expensive. Although I believe the screenshot is probably real as I’ve heard other people getting small amounts for one of their segments but then balancing out over the whole trip it’s worth mentioning how easy it is to make a fake screenshot to show whatever you want so care should be taken when trusting content like this.

      • Rob says:

        I’ve just got one from another reader which is far worse than this!

        • Barrel for Scraping says:

          But is that for the entire trip? You can’t look these in isolation as the fare is for the entire trip not individual flights. This site is to educate people on maximising the points, not to offer click bait (or it should at least explain you need to look at the trip as a whole).

          It also appears they didn’t register for the bonus points (unless they fly HBO longhaul), again that’s something you should point out. It’s crazy BA make you register for them when on IB it’s automatic but it’s worth reminding people of this.

  • e14 says:

    Not sure if travesty is the correct word. The tier points have posted as per the new earnings methodology, this is not failing to represent the value / quality of said earnings.
    Maybe Donald Ducked would have been better.

    • Pat says:

      It’s probably just a system screw up and the return will post with the correct TP’s and Avios on the return segment.
      How could he have been earning 90 return as in the article? A typo by Rob? The earnings were 20, 35, 70 each way. An O return would have been 40 TP and he’d need 38 returns in O to earn Gold.

      • Nico says:

        Agreed would not be 90 TPs for that price.
        Also £3 seems very low, especially as you get TPs on fuel surcharges, not even in ET, it is that low.

        • Rob says:

          Have taken out that bit because, yes, it does not make sense.

          • Pat says:

            Once the return is posted it likely would show the correct TPs and Avios for the whole journey and post the right amount based on the fare and carrier surcharges.

  • kevin86 says:

    A few good examples in this article of big companies being run by idiots

    • Pat says:

      Or the LinkedIn member is one, which wouldn’t be a first.
      The post is very misleading for many reasons. But focussing on earning “90 TP return” under the old system is only possible by 20 and 70. 70 is Y, B, H. If he’s booking those fares status is easier now because those are the highest. Those paying for Y, B, H are the most rewarded under the new system.

      • John says:

        Was it possible to have a ticket with O class outbound and H class inbound for 90 old TPs?

        Anyone want to calculate how many of these return trips would be needed to get OWE under IB, AY or QR (assuming one 4-segment trip on QR too)?

      • kevin86 says:

        Regardless of this example, the change to the tier points structure is an awful decision (one which I’m not impacted by but it’s still a silly decision)

    • BBbetter says:

      Someone spending peanuts with the business is not given importance, what a tragedy!

      • Londonsteve says:

        I wouldn’t say that someone flying to NY monthly is spending peanuts in the greater scheme of things. Anyone flying long haul with such regularity is an important customer for any airline, even if they’re doing so on discounted economy tickets. The annual revenue might not be high, but there are a LOT of economy seats to fill between London and NY each day and by definition they’re the cheapest seats in the house, but they need filling otherwise the flight is at risk of being loss making if the premium cabins are not completely full. The regular economy traveller’s business is critical, never more so than now with a general downturn in travel to the US which is BA’s key market based on their current route map. It makes no sense to not meaningfully reward such a regular flyer when there’s so much competition on the London to NY route.

        • Rob says:

          … which is the correct answer. This is 100% marginal revenue for the airline, give the number of empty seats down the back.

          • Pat says:

            As the situation becomes clearer BA can easily run a TP promo.

          • John33 says:

            I don’t think you know what 100% marginal revenue means. Every extra ticket sold is 100% marginal revenue. Do you mean 100% marginal profit?

          • Rob says:

            Its marginal revenue because business cabins are generally going out full (so you are just displacing another passenger who would also have paid) whilst economy cabins are not.

            It’s a failure to understand marginal revenue that is the underlying problem with the new BAC set up. If you only reward people who are flying with you anyway, or you attract a paying passenger who displaces another potential paying passenger (because business is full) then there is no net gain. The most valuable passenger to BA is the person on the 2pm Tuesday flight to Frankfurt, because that flight is pretty empty and its 100% additional revenue if BAC persuades you to fly BA and not easyJet.

            You may think paying £5,000 to fly Club to the Maldives on 23rd December makes you valuable to BA, but they can sell that ticket 5x over.

  • Miso says:

    Vietnam airlines did a similar devaluation last year. I fly every 2 weeks and used to earn 1 flight for taking 1 flight, I now earn 0.1 flights for an economy saver ticket. I get zero value out of an economy flex ticket so have switched to bamboo airways where 1 flight is 1 flight and I got gold after 6 flights and diamond at 15…

  • Mark says:

    Our British Airways trying to destroy their own business?

    I think the answer to that is yes as so many of us are already starting to look at other loyalty schemes to put our travelling in to get our status with one world.

    Can I ask, what are the loyalty schemes tpeople are using as I’ve looked at a few and I’m not too sure how to transfer my flights into the schemes. Does anybody have any tips?

    • Rich says:

      Have you seen their results, trading updates and share price Mark? They and their shareholders are doing just fine for now.

      • RC says:

        So far. And hugely helped by falling jet fuel prices.
        The smart money reckons the damage will take 18-24 months for the damage to be visible.

        • LD27 says:

          Use of aircraft has changed. There used to be 2 flights a day to Sofia. When we were looking recently at flights in September, there are now only 3 flights a week!

          • JDB says:

            Yes, it shows the horribly distorting of tier point runs and associated status purchase.

          • Londonsteve says:

            It’s only been daily during the last 15 years, other than on some very busy key dates related to start and end of school holidays. Reduced to 5/6 per week after Covid. Not surprised it’s now 3, Wizz and Ryanair on that route will devastate the yield, for BA it’s now essentially a feeder flight and nothing more. Let’s also not forget that the J cabin used to full to bursting with tier point runners and now zero. I’ve not flown the route with BA for 18 months but I’d imagine around 6 Club passengers per flight these days.

    • BlairWaldorfSalad says:

      Not sure if tpeople was a typo or intentional in Mark’s original post. I like it; tpeople – people who care about, chase and talk about tier points

  • Erico1875 says:

    The eligible spend was £2.63. so must have been a very cheap fare.
    This probably highlights how ludicrous the old system was

    • BA Flyer IHG Stayer says:

      Especially as it would include the BA surcharges element as well.

    • JDB says:

      Yes, all some elements of this story don’t quite seem to add up, it does appear to illustrate the ridiculousness of the old system more than the unreasonableness of the new one. Maybe one day this traveller will be a successful tech entrepreneur sitting in premium cabins, but BA can’t really be in the business of assessing that, so this person is currently rightly of no interest or value to BA.

      I also shouldn’t be of interest to BA, but pre-30 Dec bookings will tide me over.

      • RC says:

        That analysis only holds true if BA is a monopoly.
        On JFK there are cheaper, better economy products with more rewarding schemes.
        So every up coming success will have got used to JetBlue or Delta, which creates long term problems for BA – beyond BA’s own ability to screw up on its own.

        • AJA says:

          Yes you can fly JetBlue but their flight schedule isn’t as comprehensive as BA/AA. And yes you can fly Delta or United. And there are others who are prepared to fly initially fly in the wrong direction to get a cheap fare on Air France or KLM or Lufthansa. But whichever route you fly has its downsides and potential perks. That’s the choice we all make every time we buy a ticket.

          The reality is that BA has decided that flying very cheaply, even if you do it very often, isn’t profitable for them so they aren’t going to reward you. They are still prepared to sell cheap tickets as it helps fill planes, that hasn’t changed.

          Loyalty really means you being loyal to an airline and not the airline rewarding you for that – they are trying to maximise the profit they make from you. And so BA has decided to reward high spending.

          We may not like it but BA thinks it has found a better way. I think it is still too early to judge if they are right or wrong.

  • Qrfan says:

    “I lost my BA gold status and this is what I learned about B2B sales…”

  • Nick says:

    Welcome to a breath of fresh air Mr SME, along with many others, who’ve moved their business which they’ve done with BA, often for many decades, to a company which actually values it.

    • BA Flyer IHG Stayer says:

      He hasn’t moved it though.

      Whilst operated by AA the flight was booked via BA indicated by the BA 1516 which is a codeshare).

      Plus even if booked via AA the fare goes into the joint venture pot so BA would still get a cut.

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