Subscribe
Share
Share
Embed
Join us in learning how to use miles & points to travel & save money!
Subscribe to our daily newsletter: https://smartwithpoints.com/
Hello and welcome to Smart With Points, the podcast where we navigate the exciting yet sometimes bewildering world of travel rewards. I'm your host Jack, and I'm here to help you make the most of your miles and points so you can travel smarter, not harder. Now, if you're anything like me, you've probably got a spreadsheet or three tracking various loyalty programmes, and you might have just spat out your morning coffee reading about some recent changes. Don't worry, I'm here to break it all down for you, and I promise to keep it more entertaining than your average terms and conditions update.
Today we're diving into some pretty significant news from the world of business travel rewards. First up, Iberia has thrown us all a curveball with their On Business programme, and frankly, it's the kind of surprise nobody asked for. Then we'll chat about some more positive changes coming from Cathay Pacific that might actually make your life easier.
So let's start with the bombshell from Iberia. Without any warning whatsoever - and I mean literally overnight - Iberia has completely transformed its On Business programme from a points-based system to a revenue-based cash rewards system. If you're thinking 'hang on, what's On Business?', it's essentially the corporate version of Avios that businesses can earn and use for employee travel.
Now here's where it gets interesting, or concerning, depending on how you look at it. All existing On Business points have been converted to cash credit at a rate of five euros for every one hundred points. The new system works out to between five and seven and a half percent cashback on flight spending, excluding taxes. On the surface, that might sound reasonable, especially for economy redemptions. But here's the catch that really stings: you've completely lost the ability to extract outsized value during peak travel periods when cash prices are through the roof.
If you've been in the points game for any length of time, you'll know that the real magic happens when you can book that Christmas flight to New York or that Easter getaway to the Med using points, while everyone else is paying premium cash prices. Well, with this new cash-based system, that advantage is gone. You're essentially getting a corporate credit card with cashback, which isn't necessarily terrible, but it's definitely not the flexible redemption system we've come to love.
Now, here's the million-pound question that's keeping many of us up at night: will British Airways follow suit? The British Airways version of On Business remains completely unchanged for now, and they haven't made any announcements about switching systems. However, it would be quite unusual for sister programmes within the same airline group to operate on completely different models long-term. Iberia and British Airways are both part of the International Airlines Group, and they tend to align their strategies eventually.
If you're currently sitting on a stash of British Airways On Business points, my advice would be to seriously consider using them sooner rather than later. While there's no immediate threat, this Iberia change could very well be a testing ground for a wider rollout across the group. Better safe than sorry, as they say.
Now, let's pivot to some more positive news from the other side of the world. Cathay Pacific is giving their frequent flyer programme a significant makeover, with changes rolling out from January two thousand and twenty-six. The headline change here is actually quite member-friendly: Status Points will no longer reset to zero annually, which should make it considerably easier to maintain your tier level year after year.
For those of you who've ever found yourself frantically booking mileage runs in December just to requalify for status, this change should come as welcome relief. Instead of that annual cliff-edge where you lose everything and start from scratch, you'll now have a more gradual system that recognises your long-term loyalty. The full implementation of these changes won't come until two thousand and twenty-seven, which gives current members plenty of time to understand and adapt to the new system.
This is actually a trend we're seeing across several loyalty programmes globally. Airlines are recognising that the traditional annual reset model can be quite punishing for members and doesn't necessarily encourage the long-term loyalty they're after. By allowing status points to carry over or decay more gradually, programmes can reward consistent travellers more fairly.
So what does all this mean for you as a savvy points collector? Well, first, if you're involved in corporate travel and have been using the Iberia On Business programme, you'll need to adjust your expectations and strategies. The days of stretching those points for maximum value during peak periods are over, at least with Iberia.
For British Airways On Business users, stay alert. While nothing has changed yet, it would be wise to have a redemption strategy ready just in case. Don't panic, but don't ignore the writing on the wall either.
As for Cathay Pacific members, this is genuinely good news. The new system should make status more attainable and sustainable, which is exactly the kind of programme evolution we like to see.
The broader lesson here is that loyalty programmes are constantly evolving, and not always in ways that favour the consumer. It's more important than ever to stay informed about changes and to be flexible with your earning and burning strategies. What worked last year might not work next year, and the most successful points collectors are those who can adapt quickly to programme changes.
That wraps up today's episode of Smart With Points. I hope this breakdown of the latest programme changes has been helpful, and remember, while some changes might seem disappointing on the surface, there are always opportunities to maximise value if you know where to look.
Thanks so much for listening to today's episode. If you found this valuable, please subscribe to Smart With Points on Apple Podcasts, Spotify, Google Podcasts, or wherever you get your podcasts. You can also visit our website at smartwithpoints.co.uk for even more travel rewards content, tips, and strategies to help you travel smarter.
Looking for the best award flights? Use AwardTravelFinder.com to search availability across Qatar Airways, British Airways, Cathay Pacific and more. Try it for free with our link in the shownotes.