With United moving away from transparency as it introduces changes to the MileagePlus program this autumn, one carrier has the golden opportunity to differentiate itself from a mediocre field: Air Canada.
Air Canada acquired Aeroplan and is in the process of creating a new loyalty program, set to debut in 2020. We don’t know any details yet. Will earnings be revenue-based or mileage-based? Will there be award charts or fixed-price awards? How about routing rules and fuel surcharges? Will last-minute awards cost more?
So many unknowns, but so many opportunities…
Air Canada has been working for two years on its loyalty program and has a great team building it.
Imagine if Air Canada decided to avoid the bandwagon effect and offered a good, old-fashioned program that offers a meaningful choice to North American customers.
Asking Air Canada to create a totally customer-friendly program is a pipe dream. I’m not wasting my breath with that. But what about something like this?
- Two award types: fixed and variable
- Clearly-defined routing rules and award charts
- Generous stopover rules
- Attractive pricing
- No fuel surcharges
- No close-in fees
- Easy and instant transferability from American Express
Minus the fuel surcharges, what I am proposing sounds much like the Aeroplan program as it exists now. Imagine if Air Canada eliminated fuel surcharges but raised prices, slightly, not dramatically. A current sweet spot is 55K one-way in business or 70K one-way in first class to Western Europe from the USA or Canada. Imagine if that went to 75K for business and 100K for first class but fuel surcharges were eliminated.
A Fair Program
I think there is room for Air Canada to raise prices on fixed-price awards and also offer a more dynamic award chart with last-seat access, no matter how many miles are required, on every Air Canada flight. Anytime the status quo presents an outsized value proposition, it is not safe.
But don’t underestimate the loyalty Air Canada could earn by actually offering a transparent, reliable, valuable loyalty program. And imagine if it offered a website that actually made complex award bookings and changes possible…something United.com once did but no longer does.
CONCLUSION
My hopes are never up, but I sure would love to see Air Canada do something different. Let’s see what they come up with…
How do you think Air Canada could create a truly compelling, yet realistic, loyalty program?
image: Air Canada
Funny how you are hoping for Aeroplan Miles to devalue as a wish.
My wish is that they just stay the same. Keep the low rates and high fuel surcharges. It is really sad what United is doing, and what Delta has done in just a few short years going from 100K miles for a return business class ticket to Europe to over 200K miles.
I still can’t believe how people value miles at the prices they do.
A devaluation is inevitable. I’d prefer status quo as well, but since Air Canada has indicated it will change, I am trying to offer the least-painful alternative.
That’s a pretty major devaluation.
As Matthew said, it is inevitable that they will devalue. Those paying for tickets with miles often have high fuel surcharges so I personally would rather pay 100000 miles and taxes than 70000 miles, taxes and a 3 digit + fuel surcharge. I’m paying miles for a reason, thank you very much
Any thoughts on Chase pursuing Aeroplan as a partner as a de facto replacement for United as their preferred “North American” partner program? No rumors, just a recommendation.
I doubt it, but let’s see. At least we know AMEX will remain.
I’d rather have the ridiculous fuel surcharges, since the only travel I’m interested in are with EVA, Turkish and Swiss.
75k for European business class? I’d burn my miles and get a cash back credit card instead. Good buy Aeroplan.
Good bye, that is*
Just give me a simple predictable program. No things like waitlisting flights even a few hours out and no sudden devaluations. Miles to be earned butt in seat so no inflationary CC hocus pocus.
Apply earning multiples for EC/BC/FC and status within the program. Preferably a revenue based program so the airline earns from me, I eaen from the airline based on our commercial relationship.
If you want a good loyalty program, maybe you should stop “gaming” the system and use such program for its intended purposes.
Just remember, trying to be “smart” and “gaming” goes both ways.
Why don’t we get back to trip reviews?
Define “gaming”
Fuel surcharges just kill Aeroplan on Air Canada for me. Better to pay cash or redeem on UA. And if you’re paying cash, much better options. AC sucks for domestic and transborder.
Nope. Its industry standard vocab. You should understood already.
I don’t, so please help. I don’t see any ways to “game” United any longer…
Lol. Your sentence clearly shows you know “gaming”. Otherwise you wouldn’t use “any longer”. Hahaha….
Get back to trip reviews….
You have no answer. I thought so.