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Are you a factors nerd? In case you’ve been ready eagerly since April for British Airways and American Specific to announce how frequent flyers can earn “tier factors” on bank card spending, then we are able to safely assume the reply is sure.
Even those that don’t compete within the peculiar sport of gaming airline loyalty schemes might recall the furore when BA introduced sweeping changes to its frequent flyer membership.
Because the guidelines modified in April, it has develop into harder to achieve gold, silver or bronze standing and entry perks like lounge entry, seat choice and precedence check-in. However this week, travellers holding the BA American Specific premium-plus card lastly came upon tips on how to earn as much as 2,500 further “tier factors” to assist qualify — and turbulence has hit.
To get the total whack, £25,000 price of spending should be pumped by way of bank cards within the subsequent seven months. At over £3,500 a month, that’s larger than the typical UK gross wage.
Adjustments to this and different airline loyalty schemes mirror a wider erosion of advantages for UK customers — inflicting some to query whether or not there’s a lot level left to the nerdy obsession with amassing factors.
Bank card rewards have been getting steadily worse because the UK capped expenses for processing funds in 2015, limiting a key income stream for card issuers. Because the unwritten rule of factors geekery is clearing your steadiness in full each month to keep away from curiosity expenses, margins are tight so advantages are narrowing. John Lewis has simply introduced it’s going to slash the worth of factors that holders of its widespread Partnership Card can earn on spending in different shops, prompting middle-class umbrage.
However that hasn’t deterred the UK’s most dedicated level collectors who’re doubling down of their quest to get one thing for nothing. “If you wish to get the advantages, you must do the work,” says Tom, one in all 400 frequent flyers attending the journey web site Head for Points summer season celebration in London this week. Dubbed “Glastonbury for factors nerds”, the gang of Metropolis staff and retired {couples} feverishly swapped suggestions and hacks, moaned about airways and card suppliers altering the principles and boasted in regards to the lengths they go to within the hunt for further factors.
One man satisfied his boyfriend that they need to do 5 layover flights on Christmas Day between London, Dublin, Brussels and (ultimately) the US with a purpose to get sufficient tier factors to qualify for BA silver standing. “A enjoyable Christmas,” his companion grinned.
Many partygoers commonly fly lengthy haul for work, and use the rewards for pleasure. Lots had introduced their different halves (“he’s the factors man, I’m simply the beneficiary,” says one). As I learnt, referring your companion for a bank card can internet you each a bonus, and every get their spending factors. “I’ve educated my spouse to at all times pay by card,” one boasted. One other made his spouse return £200 of John Lewis purchasing and re-buy the identical gadgets by way of the portal of a bank card purchasing web site to earn airline factors.
There have been simply as many conversations in regards to the difficulties of spending the factors; those that unlock coveted 2-4-1 companion flight vouchers complain they’re having to e book a lot earlier with a purpose to really use them.
Those that booked a BA vacation or spent massive sums on their BA Amex playing cards after April’s rule change are livid that time assortment won’t be backdated till then (BA has awarded everybody 500 further bonus factors as a substitute). This implies those that spend £25,000 simply to get bronze standing will most likely nonetheless be one flight away from being entitled to free seat choice and precedence boarding, that means their cabin bag won’t ever be put within the maintain on a full flight. Is that actually well worth the effort?
The class of factors nerd referred to as “standing chasers” positively assume so. One man who has solely ever flown enterprise class applauded the BA rule change, believing it’s going to make the first-class lounge much less crowded. Lengthy queues for airport lounges are a standard gripe, however there’s a hack for that — a “digital wait-list” for different lounges for chosen Amex cardholders.
“The underside line is, anybody who pays their bank card payments in full each month and will get nothing again ought to do one thing to get some sort of reward,” says Rob Burgess, the ex-investment banker who based Head for Factors.
On the very least, he advises that cashback playing cards supply higher worth than most retailer schemes (round £70 again a 12 months on £1,000 of month-to-month bank card spending). Even with excessive annual charges, the advantages are price extra, akin to journey insurance coverage and restaurant offers.
Fixed rule adjustments and tweaks to Ts & Cs will definitely give the nerds a lot to speak about, however sadly I worry the purpose of all of it is misplaced on me.
Claer Barrett is the FT’s shopper editor and creator of the FT’s Sort Your Financial Life Out publication sequence; claer.barrett@ft.com; Instagram and TikTok @ClaerB
