Air Miles collectors are upset — yet again — after discovering the company quietly devalued its “dream rewards” category, making vacations more expensive.
The company raised the price on vacation packages last month without any warnings or announcements to collectors — leaving them surprised when they went to redeem their points.
One collector told CBC that the value of her points dropped an estimated $2,000 from the time she found a vacation deal to Mexico to the time she called in to book it. Overall, the value of dream rewards is now 20% less than what it was before the change.
Air Miles told CBC that they adjusted values because dream rewards are a “subsidized category” that require a higher level of customer support. But some believe the real reason behind the move is lost profits. Air Miles suffered after having to reverse its decision on points expiring in December of last year.
Unfortunately, reversing the decision created negative feedback from collectors, who had redeemed points on items they didn’t want in a rush to use them before they expired.
LoyaltyOne, parent company of Air Miles, reported a 32% revenue drop last quarter because of the expiry plan cancellation.
The company is currently exploring ways to make up its revenue shortfall. For now, the only rewards category affected is the vacation packages.
As the recent devaluation shows, however, there is a possibility they will follow suit for other categories soon — and won’t have to announce or warn collectors before they do.