The Loyalty Paradigm Shift

In 2025, British Airways reignited debate across the UK business travel sector by revamping its Avios frequent flyer programme. The airline transitioned from awarding points based on miles flown to a spend-based model, fundamentally altering the travel rewards equation for both travellers and corporate travel programmes. This shift—mirroring a decade-old trend among major US carriers such as Delta, United, and American Airlines—sparked a wave of customer backlash, prompting BA to roll out further adjustments in an effort to mollify its most loyal members.

Industry experts note that this is not an isolated move. European airlines, including Iberia and Lufthansa, as well as Australia’s Qantas, have each restructured their loyalty schemes to prioritise revenue over route miles. According to aviation consultancy Advito, tracing points as a form of airline liability has been a driving force. Frequent flyer miles sit as significant obligations on airline balance sheets, and airlines are keen to manage this risk as they seek consistent profitability amid volatile travel demand.

The Impact on Traveller Behaviour and Corporate Programmes

For corporate travel buyers, the ramifications are immediate and far-reaching. Where frequent travellers once maximised status by booking the most flights, today’s schemes incentivise bigger spend per trip. This can push employees to book higher fare classes, opt for last-minute fares (which are typically more expensive), or even book outside approved corporate channels and policies—all in pursuit of coveted status and rewards. The UK-based Business Travel Association’s chief executive, Clive Wratten, highlights growing frustration: “These changes often favour high-spending travellers over frequent flyers, which has understandably sparked some frustration, particularly among loyal customers who have long relied on mileage-based rewards.”

Recent surveys support this, with an Institute of Travel Management (ITM) poll revealing that nearly 1 in 5 travel professionals have already observed shifts in behaviour attributable to new loyalty structures. “A quarter weren’t sure yet, given the lag in elite status rollovers, but few doubt the changes will bite soon,” says ITM’s Kerry Douglas.

This behaviour has a tangible impact on company bottom lines. Consulting group Advito’s senior director, David Frangeul, points out: “Shifting to a revenue-based approach… should reduce this debt burden. High demand and advanced revenue management systems have also reduced the need to stimulate demand through loyalty schemes.” Yet, for corporate buyers, the immediate issue is not abstract debt—it’s rising air travel costs and the increased risk of policy non-compliance.

Devaluation, Dynamic Pricing, and ‘Reward Fatigue’

Frequent flyer point devaluation, stricter elite requirements, and more unpredictable rewards have generated what Transcom’s global bid manager, Evelyn Hamilton, dubs “reward fatigue.” “Redeeming points has become harder,” Hamilton notes, “and the value of points—like airfares—is now highly dynamic.” Airlines are also curbing lounge access and other premium benefits, adding further complexity and challenging the very concept of loyalty.

Some corporates are seeing the direct fallout: executives seeking to maximise loyalty often disregard corporate policy in favour of their preferred airline, a phenomenon compounded by dynamic loyalty offers only available through direct channels. “This makes price comparisons and compliance significantly harder,” observes Dan Seymour, global partnership manager at Direct ATPI. The outcome is a more complex, less predictable travel management landscape, and potentially escalating costs.

Strategic Loyalty and Policy Tension

With the rise of spend-based schemes and personalised pricing—often delivered via New Distribution Capability (NDC) technology—travellers are making more deliberate, strategic loyalty choices, often funnelling spend into a single airline rather than spreading activity. This shift has provoked renewed tension between business needs and personal gain, particularly as executives push back on rigid booking guidelines or seek more flexible travel options that may push costs higher.

For travel managers, vigilant action is required. Spencer Allen, VP for client solutions at Take2Eton Group, points out: “It can lead to potential budget overspend if not properly managed.” Policy reviews, monthly audits of booking patterns, and early intervention when loyalty-chasing behaviour is detected are now critical tools. Some businesses are even introducing stricter pre-trip approval layers to flag unusually expensive purchases, while a few are revising policies to explicitly prohibit personal loyalty benefits from influencing travel decisions—though enforcement remains a challenge.

Finding the Balance – Corporate Control and Traveller Experience

Corporate travel professionals recognise that some loyalty-driven behaviour is inevitable, especially amid a competitive employment landscape where frequent travel is a burden. “The key is managing it within acceptable boundaries,” says Douglas of ITM. Rather than aiming to stamp out status-chasing altogether, managers are focusing on high-impact behaviours—such as costly fare class upgrades or repeated non-compliance—while retaining some personal benefit as a recognition of time spent away from home.

Meanwhile, the unbundling of airline services (e.g., seat selection, bags, meals), combined with tailored offers and dynamic loyalty points, means one-size-fits-all travel policies rarely work in practice. As a result, travel buyers increasingly rely on technology, data analytics, and predictive modelling—essential not only to safeguard budgets, but also to help travellers optimise both spend and loyalty rewards.

What’s Next for Managed Travel?

With continued digital transformation across aviation and the proliferation of NDC channels, the loyalty landscape is likely to grow more fragmented—potentially favouring direct bookings and complicating compliance even further. For buyers, this presents a moving target that requires engagement and education as well as technical controls.

Ultimately, as the economics of loyalty become less about frequency and more about spend, businesses must continually adapt. The very notion of loyalty is being renegotiated at the intersection of corporate interest, airline profitability, and traveller satisfaction. The battleground is set—not only to control costs and compliance, but to reimagine the entire managed travel relationship in the years ahead.