CEO Blog

Written by Ravindra Bhagwanani on . Posted in News

Pre-Covid, it was kind of an unwritten exclusivity right for Avianca’s LifeMiles program to offer promotions with a bonus of 100% for the purchase of miles, which sometimes reached even up to 130% in very special situations, such as Black Friday offers. But this has now changed completely and many hotel and airline programs view the purchase of points as the only mean to keep members engaged – by attractive promotions. Offering a bonus of less than 100% is basically not enough anymore to gain the attention of members. TAP Air Portugal has redefined the rules here by offering repetitive promotions with quadruple miles for the purchase of miles in its Miles&Go program. So far, so good and some interesting deals can indeed be made on such a basis, especially when miles are redeemed on long-haul flights in Business or First Class, including on partner airlines. But as programs make it transparent to their members that the margins of such purchases are apparently huge (as they still make money with such offers!), how do programs ever want to come back to their regular premium pricing in the future?