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Aeroplan wants to be more than your rewards program;
The program announced its ambitious plans this week, which include offering charter flights to sun destinations, opportunities to book trips with money while earning points, and the ability to transfer miles to other destinations.
Most of the changes will only take place in 2020 – when Aeroplan loses its brand partner, Air Canada.
The program had no choice but to reinvent itself to make up for the loss, but the questions remain how its transformation will appeal to members, many of whom are still trying to decide if they should stay or take their loyalty elsewhere.
"We will have to wait almost two years now to see what will happen," he says. Robb Engen, financial author of Alberta and member of Aeroplan (Submitted by Robb Engen)
"They say all the good things," said financial writer and member of the Aeroplan Robb Engen in Lethbridge, Alberta
. the proof is in e pudding, and we will have to wait almost two years now to see what will actually happen. "
Come Fly With Me
When Air Canada departs in 2020 to establish its own rewards program, Aeroplan will lose access to heavily discounted seats with the airline.
Thus, it has developed a plan to buy seats on flights with some airlines at a discounted price. "We know where people like to travel and when," says Jeremy Rabe, CEO of Aeroplan's parent company. , Aimia. (Aeroplan) "
" We will enter into contracts with different airlines entirely dedicated to charter operations, which means that the entire aircraft is essentially available to Aeroplan, " said Jeremy Rabe, CEO of the parent company of the program, Aimia. "Most people would not dare to do something like this because it's too risky."
The company's advisor Calgary, Rick Ericks it is estimated that it is risky.
Aeroplan also plans to purchase seat blocks for certain flights. a smart move for a program seeking to increase its offerings. But he says the stakes are raised when buying all seats on the flight of an airline before members have chosen to book them.
"To have to enter the contract with all their costs and be responsible for that?" he said. "It's a risk."
Rabe says that Aeroplan has an advantage because, with five million active members, it will be able to determine which flights will be the most popular.
"We know where people like to travel and when," he said. "That's why we think it's a good strategy for us."
With whom do you fly?
Aeroplan also expects members to pay for their flights, hotels and car rentals in cash rather than in miles, which option
But the big questions for many members are: Who will fill the void Air Canada will get the same value for its miles?
Aeroplan says members will be able to book with any airline Come in 2020, but score better deals (like now with Air Canada) with new airline partners who have not yet been announced
An Aeroplan member and frequent flyer Iftekhar Islam on vacation with his wife Tasnuva Afrin in Singapore ( Submitted by Iftekhar Islam)
Iftekhar Islam, an Aeroplan member and frequent flyer, says that he can not commit to staying with the program until he gets some names.
"I need to see their partnerships, their air partnerships, really important to me," said Islam, who lives in Tor
He sits on about 100,000 miles and he was pleased to see that Aeroplan promises the miles required for most flights with partner airlines.
But Islam fears that the cost will increase if the program fails "
" I still do not know how they will continue to provide these redemption rates if they do not have any contract to support that.
Rabe Aeroplan is committed to maintaining stable rates for nearly 95% of its flight reimbursements.
Potential partners say that this is in progress
"These are conversations that we have somehow actively with a
Fluid Points
By 2020, Aeroplan will also members to transfer their miles as part of nearly 20 airline loyalty programs.This will give members even more flight and hotel options.
The Financial Writer Engen warns that there might be a price for this flexibility
"Will the conversion rates be attractive?" He said. "[an Aeroplan mile] is only half a mile from British Airways ? "
Regardless of what Aeroplan offers, Engen says that retaining members will largely depend on the value they will offer to travelers by 2020.
Islam It is d & # 39; agree and say that it's not yet decided whether Aeroplan will be a rewarding program for Air Canada upon departure.
"It sounds promising," he said. "I still think I need more information."
