For the optimists out there, consider that the Air France Flying Blue program may offer a positive example for U.S. airline loyalty programs moving to a dynamic pricing model.
Last year, Flying Blue, the loyalty program of Air France-KLM, made a transition, from fixed-price awards to variable pricing.
We’ve seen some weird phenomenon, like a trip from New York to Paris costing more miles than a ticket from New York to Singapore via Paris on the same flight.
> Read More: Pros and Cons of the Illogical New Flying Blue Program
But putting aside married segments, I have to admit that I am rather pleased with the current state of affairs at Flying Blue.
Yes, Flying Blue is still zealous about fraud…you should be careful not to engage in any and take steps to prevent against being accused of it.
But that’s not what I meant. I’m talking about pricing. Sure, there are some days with horrible pricing…on the level with Delta. But I routinely see (and book for Award Expert clients) many exceptional deals using this program.
You can still score one-way business class tickets to Europe, Israel, or Northern Africa for under 60K miles. I’ve booked many last-minute economy class trips on the same routes for 25K miles each way. Furthermore, fuel surcharges are not nearly as bad as British Airways.
But that’s not even the best value. Last-minute shorthaul trips are often priced at extremely compelling rates. I wrote about a last-minute trip I took from Bilbao to Amsterdam. Revenue tickets were over $450 but I paid only 7,500 miles and less than $12 in taxes.
> Read More: The Best Award Redemptions Are Often The Most Boring
Thus, unlike on British Airways, I see value on both shorthaul and longhaul awards.
Of course, there are regions in which redemptions don’t make sense. Africa and Asia are two examples…the value isn’t there.
Thus, Flying Blue is not the model, but it is an acceptable model. It is still a loyalty program that has value, even though there are no more award charts and that accountability that accompany them.
CONCLUSION
I’m not enthusiastic about what American, Delta, or United will do as all move toward a more dynamic pricing model. But at least in the case of Flying Blue we see a model that is no so devoid of value that is not worth even thinking about. While I may be setting my expectations too low, I’ll take a program like Flying Blue over no program at all…or even a 2% cashback credit card.
“I’ll take a program like Flying Blue over no program at all…or even a 2% cashback credit card.”
Interesting to think about: How high would you say cashback needs to go before it supersedes the value of most airlines’ loyalty programs? (Although, of course, one can doubly benefit by combining the program miles with the cashback.)
four cents.
No need to choose between a cash back card and frequent flier programs…
1) Cashback cards are no fee, so no reason not to have a few even if you have airline credit cards (I have a couple)
2) Capital One Venture transfers to Flying Blue and others, so you have a 2% cashback card and a 1.5 miles per dollar airline card embedded in the same card
3) Chase Sapphire Preferred / Reserve work like cashback cards for travel when booking through their platform
While you have a point that fuel surcharges are not as insane as they are on British Airways, that’s not exactly high praise. Rather a “you don’t smell bad for a fat guy” compliment.
In my experience (which is mainly looking for business class TATL), post-change, AF awards are usually much more than before, never better than before, but sometimes the same as before.
For Delta’s reward program, about 1.25 cents for general spending and 2.5 for travel.
That’s why I’ll be cancelling when the annual fee comes up.
I agree with you, Matthew. Flying Blue is surprising at times and I have often scored 60K miles to Paris in business AND was given the opportunity to pay to upgrade to Le Premiere.
Not being retired, I find very little value in a surprising at times program, that is no use. I am looking for something reasonably dependable. TNow AF business is going to LH and BA in Europe. Perhaps the point of a Frequent flyer program is no longer to encourage custom. We are becoming kayakers and then use the points if it works out, surprisingly.