From the magazine Rory Sutherland

In defence of BA’s new loyalty scheme

Rory Sutherland Rory Sutherland
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EXPLORE THE ISSUE 11 January 2025
issue 11 January 2025

One of my favourite cartoons shows a couple sitting in luxury at the front of a plane, the wife peeking through the curtains to the cabin behind. ‘I’m so glad we’re in business class, darling,’ she says to her husband. ‘There seems to be some sort of hijacking happening in economy.’

Because we must consort with strangers for several hours, planes and airports amplify the normal human sensitivity to status. And so the media furore created by British Airways in revising the status thresholds for its loyalty programme is valuable fodder for students of psychology.

People who have learned to play a game by one set of rules are bitterly affronted when the rules change

What British Airways has done is to change the criteria it uses to allocate tier status to its frequent fliers (Bronze, Silver, Gold and beyond). Henceforth, your status will be determined by what you have spent in a 12-month period, rather than by where you fly: it is your status which will determine the perks you enjoy when flying on any BA or affiliated airline, whether it’s using business-class check-in desks or the holy grail of lounge access. Many airlines, including the major American carriers, have already changed their programmes to this ‘revenue-based’ approach.

Looked at dispassionately, this is not wholly unreasonable. If I pay £500 to fly to Athens, I am perhaps ten times more profitable to BA than someone paying £200 for the same return flights. Yet previously, if we were both in the same cabin, the number of tier points awarded would usually be the same.

Granted, there is something nakedly transactional about the new system. It does make it blatantly obvious that richer people are going to be treated better than poorer people. On the other hand – and I hate to break this to you, comrades – that’s kind of how money works.

One problem with the old system was that it was vulnerable to arbitrage: people who, finding themselves falling short of Silver Status for the forthcoming year, would hastily book a weekend break in Chernobyl with a six-hour layover in Doha – agratuitous behaviour known as a ‘points run’.

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