Suzanne Rubin, President of American Airlines’ AAdvantage loyalty program, is incredibly excited about the plans to revamp its award-winning rewards program with modifications set to take effect in the second half of 2016.
The loyalty program will shift how customers earn award miles from distance flown to dollars spent. Award redemption rates will be adjusted with some award levels increasing, while others will be decreasing. What’s more, American Airlines will offer the best elite-qualifying mile multipliers in the industry and simplify the elite qualification process to better reward customers.
Loyalty360 caught up with Rubin to learn more about what factors went into the decision to change the AAdvantage loyalty program.
What factors prompted American Airlines to change its loyalty program to award miles based on ticket price instead of miles flown, and what are your goals for the modified program?
The AAdvantage program hasn’t changed much over the last 25 years, so 2016 is our time to lay the foundation for where we want to be in the future while also adjusting to the competitive landscape. Having the opportunity to monitor the competitive landscape, there are some areas we know work well to reward our customers. We are committed to making sure our best customers have the best access and best experience that American has to offer. All of our changes, present and future, are structured around this thought process.
Did customer feedback play a role in these loyalty program changes and, if so, in what way?
We don’t take changes to the AAdvantage program lightly. Months of analysis have gone into this announcement. We’ve had time to monitor the competitive landscape and we see what works for customers and what may not. There are undeniable competitive gaps between the current AAdvantage program and the competition for our best customers. We’ve been able to monitor our own bookings as other carriers have moved to revenue-based programs and have determined that the model announced today will best lay the foundation for helping American accomplish our objectives moving forward.
Do you think members will embrace these changes once they take effect?
Yes. Under the new program, our most valuable customers will earn more EQMs (Elite Qualifying Miles) and more redeemable miles, getting them to status, benefits and rewards even faster. And for our customers who value the benefits of redemption, there are many accessible ways to continue earning toward those benefits. For example, more than half of the miles our customers earn come from sources other than flying, like through our credit card. We haven't changed accrual rates on those products and are focused on continuing to expand non-flight earning opportunities.
What does customer loyalty mean to AA and how will this modified program fit into that definition?
Customer loyalty for American means that we have engaged a customer through our people, network, products, services, and loyalty program to such an extent that he or she would prefer to travel American every time they fly. As the world’s largest airline, we serve a wide variety of customers and each one has different needs. The AAdvantage program has served American and its customers well for nearly 35 years, and these modifications we’re making align well with the various customer segments we have. We remain focused on running a program that complements our network, products and partners, while allowing members to earn and redeem on their terms.