As a shareholder as well as a frequent flyer, though, I'm very concerned that they have totally misjudged the elasticity of the market. Few of us fly BA simply because we love BA, and they should appreciate that BAEC stalwarts like me do elect to fly them with the FFP as a main or the main decider.
BA Silver was one of the easiest mid status elite levels of any major airline, we all knew that, and the more pragmatic commenters knew spend-based was coming, but the haste and the very high bar is, I think, misjudged and leaves a bad taste.
My opinion is in two parts really: I think moving to a revenue-based model makes much more sense, but I also think that BA have overshot with the thresholds they have chosen.
I know I'm an edge case: I choose BA because they offer through tickets from IOM connecting through Heathrow and City to a wide range of destinations. The extra cost on BA is offset by not having to travel the night before and get a hotel when booking my off-island flight separately. I would benefit from a revenue-based model here as the Loganair flights are economy-only and so, even when I'm paying £150+ each way for the Loganair element, only offer 5 or 10 TP each way. With Mrs Tetchy we've spent the thick end of £7000 on BA Holidays this year and yet we only have 150 TP each, even with the double TP. Under the new scheme we'd be about 85-90% to Bronze.
But the thresholds for Silver and Gold are insane, Gold especially. Yes I know two return flexible business returns to New York will get you Gold- and there are business people who will buy those- but most people aren't in that position, even business customers increasingly have an economy-only travel policy.
I strongly suspect that they will need to do something about those thresholds, perhaps by applying a small multiplier to the TPs once someone hits Bronze.
True, but I suspect someone at BA was enraged at the article.
Rumours on ExpertFlyer suggests that McKinsey consultants were behind the change. I sincerely doubt anyone at BA was really enraged by the skipleggers or the TP tourists, although I'm sure some managers would rather they weren't a thing. I suspect it is morer that the consultants have persuaded BA that moving to a revenue-based model will work better for them overall.
I think they've got the thresholds wrong because credit cards, etc, don't and won't generate the ancillary revenue that they do in the US, and so the spend will need to mainly be on airfares. US consultants often don't understand that our laws on merchant fees and hidden commissions are a lot more strict. You can get 2,500 TP from credit card spend under the new scheme and I suspect you'll need to put at least £25,000 on your American Express to get the maximum.