Loyalty Program Update: Navigating Aeroplan’s Latest Award Chart Overhaul and Devaluation

If you’ve been saving up your Aeroplan points for a first-class ticket to Europe, you may want to book your flights before June 1. That’s when Aeroplan will implement changes to its rewards program.

 

While economy flyers on shorter routes will need to redeem fewer points, those travelling long distances in business and first classes are looking at redemption increases of 5,000 to 40,000 rewards points.

 

“It’s a significant devaluation for some, but we’re probably talking quite a bit below five per cent of all redemptions,” says Patrick Sojka, founder of Calgary-based resource Rewards Canada.

 

“The increases are concentrated in premium cabins, while many economy redemptions are actually dropping,” says Barry Choi, personal finance and travel expert. “Since economy seats make up the bulk of inventory, most consumers stand to benefit overall.”

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The changes include a combination of increases and decreases, and are “designed to better align reward pricing with our redemption costs on certain partner airlines,” Air Canada said in a statement to the Star. “We have specifically targeted increases in certain areas where costs have risen, and reduced pricing in markets where costs have come down.”

 

 

Still, experts suggest long-distance travellers who want a premium experience may want to book their flights now, while some economy flyers should wait until after the changes are implemented on June 1.

What flights will require more points?

“It’s the people that use Aeroplan for long-haul premium travel that are going to notice the differences the most,” says T.J. Dunn, editor in chief of Prince of Travel.

 

Sojka says the worst hit will be for those redeeming Aeroplan points for premium flights to Asia and Australia from Europe. Business class flights with Air Canada and select partners that fly more than 7,000 miles between Atlantic and Pacific zones will now require 100,000 Aeroplan points instead of 60,000. That’s an additional 40,000 points — a 67 per cent increase.

 

Sojka adds that it’s rare to find premium cabinets like first class between North America and Europe. However, some collectors will redeem their points for a first-class ticket with a partner airline, such as Lufthansa, out of Los Angeles to Europe, Sojka says, and those flights will see a significant increase.

 

First-class flights with Aeroplan partners between North America and Atlantic zones that cover more than 8,000 miles will jump to 165,000 points from 140,000, about an 18 per cent increase.

 

Sojka points out that if you want to fly first class with Aeroplan partner Lufthansa, you’ll likely have to book at the last minute. “Lufthansa doesn’t release those seats to Aeroplan until then,” he explains.

 

One of the biggest “sweet spots” in Aeroplan was being able to fly from North America to Asia, Dunn says. “You’d get up to 11,000 miles and it would cost 87,500 points in business class,” he explains. As of June 1, that journey with Aeroplan partners will require 102,500 points. It’s a big increase, Dunn says, but it’s still a competitive price for similar routes compared to other loyalty programs.

 

What flights will require fewer points?

For economy flyers, it’s mostly good news. Economy flights under 4,000 miles across the Atlantic will now require 32,500 Aeroplan points instead of 35,000, which is a seven per cent decrease, Sojka says.

 

The changes also introduce a decrease in the amount of Aeroplan points required to fly up to 4,000 miles in business class within Europe. European business class is “really economy seats with the middle seat locked,” Sojka says, but you do get lounge access, better meals and drinks, and priority boarding.

 

Economy tickets on partner airlines are more frequently available, Choi says. “They usually release more economy seats than business seats. So for someone who’s looking for an economy ticket, it’s still a really good value.”

 

 

However, there’s a caveat: Air Canada and some Aeroplan partners price dynamically, which means the amount of reward points required for flights are just the starting amounts, and they can go up. “If a flight only has two seats left and they’re charging $2,000 a seat, you’re going to pay the equivalent in points,” Sojka explains. On the other hand, he says, if there’s a seat sale or the flight is mostly empty, there’s a good chance you will get the starting-point amounts.

 

Who should book before June 1?

If you’re planning to use your points to fly between the Atlantic and the Pacific, Dunn suggests booking your ticket before June 1. “There’s already a lot of competition for those long-haul premium cabin redemptions, so they’re kind of tricky to find, but keep an eye out for last-minute deals,” he says.

 

Sojka points out that while Air Canada and some Aeroplan partners such as United Airlines and Emirates uses dynamic pricing, others (including Swiss and Nippon) have fixed prices. “If you’re looking to travel with their partners, you may want to look and see if can get in before June 1 so that you save a little bit on points,” he says.

 

As a general rule, Choi says you should always use your rewards points as quickly as you can in case points suddenly devalue.

 

Dunn suggests earning points with a redemption goal in mind (a trip to Paris, for example) and then redeeming your points once you’ve met that goal. That way, “you won’t feel the sting of something that used to cost 60,000 points now costing 100,000 points.”

 

 

 

 

 

 

This article was first reported by The Star