Protect the exclusivity of your top tiers

Over the past 3 months, United Airlines have been offering double and triple elite qualifying miles to all Mileage Plus members. First, business and full-fare economy class flyers can earn up to 3000 bonus miles while all other economy classes can earn up to 2000 bonus miles (source: united.com).

This is a great promotion for Mileage Plus members which should have captured their attention and helped drive short term revenue for United Airlines. However, our view of this type of promotion is that if they are very successful, there could be a risk of creating challenges in the future by eroding the very concept of being an 'elite' member.

This promotion has lowered the barriers for lower tier members to migrate upwards. This is an effective strategy for maintaining their motivation and aspiration to climb to a higher tier but could also lessen the perceived value, recognition and exclusiveness that is associated with being in a higher tier.

Whilst the United Airlines promotion is open to all members, British Airways appear to be focusing on their top tier members by offering them the opportunity to earn tier points on lower ticket types. This promotion is designed to retain their best members, despite any negative changes in their travel behaviour, and help reinforce the value associated with their loyalty proposition.

Both of these promotions highlight the importance of keeping and growing business from your existing customers whilst also understanding and protecting the exclusivity of your top-tier offerings.