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So this might not resonate with others but stick with me. I see so many parallels between the waitrose reward scheme and BA club right now, with waitrose being about 4 years ahead of BA.
In 2014 Waitrose were the first supermarket in the UK to introduce free coffee, for everyone.
The first ammendment to this was the removal of free cups, lorded as a sustainability initiative, a thin vail to cut their spending on single use takeaway cups.In 2017 this changed, after it was seen to be attracting “freeloaders”, creating long queues at coffee machines and attracting the wrong type of customer, to free coffee now requiring a purchase.
During Covid the free coffee scheme was suspended. And in 2022 free coffee reintroduced with purchase. Then in January they rolled it back to its initial offering of free coffee for all members.
If you’ve got this far you might see where I’m going with this. It feels like there are a lot of parallels with BA club and the membership benefits.
Waitrose grew their mywaitrose to encourage members, to drive engagement, spending, loyalty etc. And it worked.
If you review their market share, etc. It trends in line with their mywaitrose membership, but this is hard to pin to causation.
Then when the club gets too large the costs, prestige etc. are watered down and they cut.Does anyone know if BA have analysed the potential losed revenue if all club members that were buying BA through work, or spending the extra few hundred £ per ticket, because of getting silver lounge access now decide to opt for the cheaper flights and leave BA?
There will be a cost reduction in lounge running services, potentially club staffing costs / support staff etc.
Waitrose have reintroduced their coffee offer for a range of reasons, but primarily it’s to attempt to stop the erosion of their market share by other operators that are more agile, acting on customer engagement, targeting the “premium” market, which was once the stronghold of BA.
I can’t help but feel that BA are shining to hard in an attempt to bring back luxury. Unless they are happier being a smaller more premium airline, sacrificing the holy grail of growth, I don’t understand how there wouldn’t have been better tier changes instead of the £ requirements.
Even as a coffee drinker and holder of a My Waitrose account, I never use it as I never want a coffee when I am shopping, and when I am asked to present the card at checkout I can’t be bothered even though it’s in my Apple Wallet. The same virtual wallet I use to pay.
So the answer to “Do you have a My Waitrose card?” Is “No.” as that’s easier than saying “Your IT systems could just use my hashed credit card number to track my purchase history for little or no benefit to me.”
My conclusion is the scheme is not for me. And if you don’t like the BA Club, then it’s deliberately not for you. I am fine with that like I am fine without My Waitrose. But I will still likely shop at Waitrose much like I will fly BA: when it is the right choice for me based on product.
Does anyone know if BA have analysed the potential losed revenue if all club members that were buying BA through work, or spending the extra few hundred £ per ticket, because of getting silver lounge access now decide to opt for the cheaper flights and leave BA?
Whilst BAC members form a large numbers of passengers there are equally large numbers who aren’t members and a group of people who fly BA but collect points via another scheme (this latter group does appear to be growing but in the scheme of things is likely insignificant and whilst they may colelctin another scheme they are still flying on BA flights)
The people flying BA because of work are likely doing so because BA is the preferred option of the company or their corporate agent so are required to fly BA over there personal preferences.
People fly BA because of it’s extensive route network and some times the alternatives simply aren’t there or are too expensive.
My two main european destinations are AMS and BER. KL is simply too expensive for AMS and with LH it requires a change at either FRA or MUC (plus also more expensive).
The LCCs don’t appeal either and whenever I’ve checked aren’t that low cost at all and often times their schedules don’t work for me.
Despite all the keening and wailing most people will still be flying BA and overall there will be little revenue effect on BA
Like @masaccio I have never availed myself of the free coffee. It makes no difference whether they offer it or not. But I do actually have a My Waitrose card as it does offer some genuine discounts at the fish and meat counters and other products too. I never use the vouchers for xxp off though as it’s too fiddly to access them before shopping and I never have a phone/data signal in store so I can’t access the app instore. I got so fed up with it I deleted the app.
Sainsbury’s and Tesco are far better for this. Sainsbury’s even has free WiFi in the store I visit most often so I check the app even while shopping. It also helps me decide whether I should buy a product in Sainsbury’s or Tesco while on the go. I am fortunate that there is a Tesco on the way home from Sainsbury’s so I can stop en-route.
I am not yet at the same level of frustration with BA despite their woeful IT but I have basically given up on ever having status again with them unless it comes from a combination of accidentally via a BAH booking or I spend enough on a longhaul business class fare or they ever get around to offering the 2500TP on the BAPP card. I will still fly with BA but I won’t actively chase status.
I don’t really see any parallels. As waitrose doesn’t have points, I also can never be bothered to scan the card and I don’t really want a drink if I’m going shopping. I did big shops at waitrose instead of sainsburys when they sent me 20% off coupons, otherwise paid little attention to the scheme. I have used the free drink as an alternative to paying in a real cafe when I happen to be waiting in the vicinity of a big waitrose. When a purchase was required, I bought a pastry from the bakery if I really wanted the drink.
With BA, I have been taking a break from airline status since 2023 (while I didn’t predict how bad the changes would be, it was obvious something was coming), so am unaffected by all the angst over TPs. But avios is still a good scheme for me and I don’t see my flying patterns on BA changing that much unless (until) redemptions become Virgin-ised. I will never credit a paid BA or other oneworld flight to BA again but that will not change the revenue I give to BA.
I’m not sure of the parallels between Waitrose with its tiny market share trying to stabilise its position vs a mammoth airline.
It also fails to distinguish between the earning of TPs/status and the earning/redemption of Avios. I couldn’t care less about status, but Avios remains a great scheme for our purposes, so BA isn’t going to lose any of our business. These are very different considerations. Many seem to be jumping with status matches to non OW schemes where they might retain status but probably won’t earn so many many points for redemptions. They will often then have more inconvenient journeys to earn while still have fewer options to redeem.
Waitrose is the dearest supermarket. It can afford to offer perks, which used to include a free newspaper on a certain spend. Now the coffee’s back, but the paper is not.
Rather than any particular club benefit, I find the perk in BA is one suitcase included in ticket (or two if flying Club World – I can’t carry them anyway). As a short haul flier, I attach less value to other comforts.
I normally go to Waitrose just for the coffee, an acceptable brew off a Swiss machine; one visit out of three, I may spend up to £50 there. The system flags me as a low spender: I no longer get the vouchers as well (£1 – £2 per week).
Sainsbury’s offer a free ‘day pass’ for their WiFi; you have to log on each time. Waitrose log you on automatically to BT WiFi – a dearer store, less hassle. Points, by nature, are fiddly: in Waitrose, there are no actual points …
In Waitrose, I have found dry cleaning items added to my groceries, which I never bought, apparently ‘transmitted’ from the Johnson’s stand in the store: Waitrose refunded the extra £30.
The problem of inflation at the till not yet reflected in the price tag on the shelf is common to both Waitrose and Sainsbury’s. Tesco, I find more reliable: you do normally pay what it says on the shelf. Not to be taken for granted.You also don’t need to spend in a Waitrose to avail yourself of the free coffee. Just scan your My Waitrose card and that’s it.
On BAC , it’s a bit like Virgin and I sense that it’s a general direction we are seeing. It’s relatively easy to earn Avios etc but it seems to be getting more difficult to actually spend the points, particularly in long haul, unless you want to go to the USA.You also don’t need to spend in a Waitrose to avail yourself of the free coffee. Just scan your My Waitrose card and that’s it.
On BAC , it’s a bit like Virgin and I sense that it’s a general direction we are seeing. It’s relatively easy to earn Avios etc but it seems to be getting more difficult to actually spend the points, particularly in long haul, unless you want to go to the USA.Only if you’re sticking with BA. You get great value on Iberia and Qatar for long haul, although I suppose that’s more relevant for us in the regions where you’re going to be connecting anyway.
I don’t think this is a great analogy.
Why asssume BA will cut lounge access/services if silver status holders decline?
In reality the North and South Galleries lounges at Heathrow are almost always full / near full, crowded and in my opinion not especially pleasant.
Why assume BA is less profitable if status is spend based?
Will be interesting to see what happens at LGW. I recently flew early morning (after 8am) and I had not seen the galleries lounge so empty since it re-opened post Covid. The plane was full with about 6 rows of CE. Just looked at return flight towards end of July and it has now been allocated a larger plane.
I’m a Waitrose shopper. Times change. I visit less frequently as I do most of my food shop in local shops or M&S. My ‘loyalty’ has declined and I’ve never gone back to taking my ‘free’ coffee!
I never use the vouchers for xxp off though as it’s too fiddly to access them before shopping and I never have a phone/data signal in store so I can’t access the app instore.
Once a week, log in, select all the vouchers, forget about it. You no longer have to select only a few vouchers. You get to select them all and they stay selected until the next refresh, every Wednesday.
BA has, in American and Buffet terminology, a bigger moat. They offer the most direct routes out of London and will always be the preferred choice of corporates where time is the most precious commodity. Sure, some corporates and small businesses could move but (1) they’ll come back once they realise how much of a hassle a layover is and (2) I highly doubt they’ll put their families through the ordeal. Some of the pensioners for whom time is not a problem can change planes as they want, but will be offset by those who actually value the J benefits and pay for it. Plus BA will be unbundling even more as the next step.
Secondly, public memory is short. Most of those complaining are those who got status through BAH bookings and in a few cases TP runs. These people have flown without status before, but have forgotten it and are now disappointed they’re down the pecking order of the airline’s preferred customers. In a couple of years from April 2026, once the sense of entitlement has faded away, the complaints will stop.
Secondly, public memory is short. Most of those complaining are those who got status through BAH bookings and in a few cases TP runs. These people have flown without status before, but have forgotten it and are now disappointed they’re down the pecking order of the airline’s preferred customers. In a couple of years from April 2026, once the sense of entitlement has faded away, the complaints will stop.
I only care about status because BA ‘nickel and dimes’ people for seat selection on tickets that cost thousands of pounds.
Given the mess they’ve made of the Exec Club and it’s benefits I decided to solve the problem by spending those thousands of pounds with other airlines
My thoughts:
Waitrose – Small stores, generally not enough parking. Small selection, own brand is mid-range marketed as high end. Branded products are obviously the same everywhere. Does anyone know how to ‘game’ the loyalty system? I used to receive generous discount vouchers (spend £60 get £20 off etc), when I stopped scanning the loyalty card. I haven’t had any discount vouchers for over a year so rarely shop there.
Free coffee – frankly, who cares. No one is drinking coffee whilst shopping, I’m not desperate enough to make a visit for a crap free coffee whilst taking my own cup.BA – I’m no longer chasing loyalty.
Waitrose – predominantly southern based so doesn’t get my custom. BA ditto but the regional connections and status meant it got my custom, despite MAN airport and BA experience there awful. I won’t be chasing Silver now and no longer will be paying a premium to fly MAN via LHR when other (cheaper) options via Dublin, Paris, Helsinki etc with other carriers exist. Status tinkering means less BA custom from me!
I’m not sure of the parallels between Waitrose with its tiny market share trying to stabilise its position vs a mammoth airline.
Sorry but my understanding of the scale of BA, in 2024 they were the Largest carrier in the UK… but only hold 20% of the total market share.
Globally they were 12th largest… with less than 2% of total market share.
Their largest markets are Europe ans USA. The new tier point changes will bake it incredibly hard to gain silver if you are a regular PE flier between EU and UK. And even into NY will be difficult.
I don’t think this is a great analogy.
Why asssume BA will cut lounge access/services if silver status holders decline?
In reality the North and South Galleries lounges at Heathrow are almost always full / near full, crowded and in my opinion not especially pleasant.
Why assume BA is less profitable if status is spend based?
No, I mean, the new changes WILL ultimately result in less people in lounges and less people receiving silver, that’s the intension.
I am assuming it based on two facts…
If we assume all people that caught the £8k silver spend requirement remain with BA, they already spend that money, they do not need to increase their spend or anything to continue to get silver, so there is no “more” income generated for BA
There is only the reduction in cost, from reduced people using lounges and the free services.Those that no longer catch the £8k silver spend requirement have three options.
1 – To remain with BA and increase their spend to chase silver,
2 – Remain with BA and accept no silver, likely due to BA having better routes, better service, or not being too much more expensive etc, vs alternative carriers.
3 – To go elsewhere as they aren’t going to gain points1 out of 3 of these options brings in more income for BA..
1 of them results in no change
And 1 results in a loss.I am asking if anyone knows whether that analysis has been done. People here are far more engaged with BA than I. But it seems as though the cost cutting, to reduce number of people accessing felree services in BA lounges, will result in MANY people that used to catch silver, now moving to cheaper airlines alternatives.
Hope that makes sense.
@Makazi BA conceded and re-introduced 50 sectors of BA flights to get silver with no minimum spend, let alone £8k.
Lounges are also not off limits to the avios rich who redeem for business and first class cabins.
Those that no longer catch the £8k silver spend requirement have three options.
1 – To remain with BA and increase their spend to chase silver,
2 – Remain with BA and accept no silver, likely due to BA having better routes, better service, or not being too much more expensive etc, vs alternative carriers.
3 – To go elsewhere as they aren’t going to gain points1 out of 3 of these options brings in more income for BA..
1 of them results in no change
And 1 results in a loss.I am asking if anyone knows whether that analysis has been done. People here are far more engaged with BA than I. But it seems as though the cost cutting, to reduce number of people accessing felree services in BA lounges, will result in MANY people that used to catch silver, now moving to cheaper airlines alternatives.
Or you can continue to achieve oneworld sapphire with another FFP while still flying BA
Waitrose – predominantly southern based so doesn’t get my custom.
Whilst not part of JLP and still family owned, Booths is pretty much the Waitrose of the north, they have a ‘buying alliance’ which means much of the own brand stuff is made by the same manufacturers. And you can click and collect JL orders from Booths.
Not the main point of your post, I know!
Thanks for that @SteveJ. I really like Booths when I’m in the Northern UK which sadly isn’t often enough. I like them because they’re similar to Waitrose but I didn’t know there was an actual connection. Good to know, thank you.
@Makazi the one thing we can be sure of is that BA has done the analysis. As @pbcold said, BA have told us what [who] they want So Listen To Them.Personally what they’re doing seems to make sense for a capacity constrained airline. Can’t expand all over the place for various reasons, and can’t increase several key asset types in the business looking at the next window (say 5 years) going forward. So they have made a decision to sweat the assets (even more), and focus. They have decided who they can carry with them, and who they can no longer carry. Believe them.
In amongst all that like the smartest client I ever had they are focusing (even more) on Cash, getting as much as they can in and keeping the cashflow going. It’s amazing how many businesses fail to do this.
The only big bet barring world events that could bring them down IMV, is they’re so focused on the US. But I have a funny feeling this will turn out for them too.
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