westjet tweaks its program -- it's now a bit more competitive

westjet recently announced its latest improvements to its rewards program. i would definitely say its an improvement to its current program in that it rewards users for increased travel. it becomes a frequent flyer program rather than a rebate program.

until october 29. 2014, members earn 1% back in westjet dollars on the first $1,500 spent in a year, and then 2.5% back on everything after that. note that taxes and surcharges are not included.

after october 29, 2014, they are introducing new tiers:

the minimum earn remains the same, but on amounts after $1,500 a year, the earning rate increases from 2.5% to 3%. after $4,000 a year, it increases to 5%. again, taxes and surcharges are not included.

milestone awards

the milestone for getting a bonus $35 westjet dollar voucher remains the same -- it is awarded after $1,500 in spending. however, in the old program, one would get an additional $25 for every $1,500 spent after that. these are gone in the new program. at 5% of each dollar spent, each $1,500 increment would yield $37.50 above what one would have earned if they were to have just gotten 2.5% back under the old program. therefore, this new scheme, even without the milestone bonuses, is a good thing for consumers. and one does not need to actually hit the individual $1,500 thresholds to get the bonus (i.e., it's not all or nothing).

the companion flights remain the same. after spending just $4,000 a year, you can get a free companion flight anywhere westjet flies. this can potentially be quite a value. (in the old program, the first companion flight was awarded after $4,500 a year in spending).

flight benefits

in trying to copy most of the legacy airline frequent flyer programs, westjet introduces flight benefits. now that westjet has started to charge for its first bag, silver and gold status now have extra value. it's like what star gold (and previously, what star silver) does for the star alliance member carriers.

there's no way to get unlimited lounge access, even after having spent $6,000 a year on westjet flights. but you are able to get priority boarding and security at the highest level.

overall analysis
without a doubt, this is a better deal than what they used to offer. i also appreciate that unlike air canada's aeroplan or american airlines' aadvantage (where you could credit your westjet flights to), you get the equivalent of cash. you don't have to hunt for award space. you don't have to take flights at inconvenient times just to use your miles. you can use them whenever you want.

i like that they reward people who fly more with their airline. it shows the frequent flyer that the airline understands how important frequent and repeat flyers are. the little perks such as advanced boarding are helpful so that a frequent flyer will never be forced to gate check their carry-on luggage in an effort to avoid the check-in fee.

i like how all flights count towards "status" in an equal sense. lowest fares will earn lower westjet dollars, but it still counts in a real way when trying to achieve the next tier. unlike air canada, domestic tango fares (which are typically $65 + tax less than their flex fares) will only fetch you 25% of the status miles, and it is only by paying the flex fare will you get all the miles that you've actually flown. it just feels more fair.

i still think there is room for improvement. partner airlines don't count (unless it's a westjet flight number). the flight benefits are not applicable to partners. you're also limited to the few routes that westjet flies, and there is more to this world than canada.

but i don't want to focus on those small details. in reality, i think this is an excellent step that westjet has taken.

links from the web -- US News' rankings of hotel and airline programs, airmiles onyx, united app changes, american frequent flyer non-changes

1) gary from view from the wing breaks analyzes the results of the US News' rankings of hotel and airline points programs. i agreed that they are flawed, and he takes a look at the actual score breakdown. for both, it seems like the majority of the points go directly to domestic travel, how large the domestic network is, and how big their presence is in various american cities. it says little about upgrades and bonus perks, amenities, the ability to earn top tier, etc. i think it's important to look at the finer details of how they come up with these rankings. some people buy into these rankings, and i'd hate for people to be misled.

2) airmiles announces a new level in their earnings program as reported on flyertalk. the official website from airmiles is here. to reach this new level, one requires 6,000 airmiles a year. i find it hard to even get myself excited about reaching airmiles gold. when i was airmiles gold, i didn't really take advantage of the 40-50% off reward miles for flights because they were only between odd destinations (prince george to regina, for example), or were only valid for times in the very near future (e.g., how often does one begin to plan a trip to europe 3-4 weeks before actual expected departure date?). i'll probably do a more thorough review in a bit.

3) despite delta and united transitioning to a revenue based frequent flyer program, american airlines has noted that it will not make that transition yet. they still have to merge their programs first, which is expected to start sometime in 2015.

4) united is set to start allowing passengers to check in and scan their travel documents using their mobile app. i've downloaded the latest update but haven't had time to try this out. as someone who definitely flies internationally on united, this is something that would help me to avoid the kiosks at airports.