JetPrivilege just got a whole lot better!

These last few months, Jet Privilege seems to have been working overtime to make changes to their program, and I think they've done a real good job of it. First they streamlined earnings and removed fuel surcharges on award tickets, then came the new redemption structure (which was good on the whole), then pooling accounts / kids earning JP miles in full and changes to kids' award tickets, extending JP miles validity to 5 years, and most recently, streamlining miles upgrades and removing cash upgrades on award tickets.

However, I'm almost licking my lips here with the most recent set of changes, which they've announced today. Here's why.

Change to tier points earnings - faster tier upgrade/renewal

Starting Monday, 16 February 2015, flight counts will now be based on the fare class in which the travel is booked. This means, that the higher the fare class is, the more flight counts you'll be entitled to. The upshot of this is you'll be able to retain / upgrade tiers faster than before. It works as follows:

The ones shaded in green are those which are now better. There others have no changes. What this means, in effect, is that if you bought a ticket in a higher fare class, you'll earn more flight counts. In summary, they've linked tier counts to revenue without disadvantaging low-fare flyers. As simple as that.

As a reminder, JP requires the following number of miles / flight counts for tier upgrades and for tier renewals:

Tier upgrade requirements

Tier renewal requirements

The revised Tier Points Earning is applicable only on travel undertaken on 9W's own flights, and those that are code shared as 9W flights but operated by Etihad.

The JP program allows tier retention and upgrades to be based either on miles flown or flight counts. Given how these are structured, unless you had a reasonably large number of international medium or long haul travel on 9W, tier retention / upgrades were difficult based solely on miles, and relatively easier based on flight counts. Until now, each economy class flight added 1 flight count, business class added 2 or 3 (domestic and international), and first class added 5. The problem with this was, all travel in a flight class counted for the same flight count. That will now change, which is a fabulous thing!

You can read more here.

Enhanced tier benefits for JP members

JP Platinum, Gold and Silver members will now enjoy a higher level of tier bonuses. Platinum members will now earn a 50% bonus (earlier 30%), Gold earns 25% (20% earlier) and Silver 15% (10% earlier). The biggest gainers here are Platinum members, since the enhancements to Gold and Silver tiers are relatively small, at only 5%. Still, free miles are free miles!

Also, JP Platinum members will now be allowed to take one guest to the lounge. This used to be the case a few years back, but they scaled this back and restricted it only to the member. The guest facility is now renewed, though the caveat I expect here is that the guest should also be flying on Jet Airways (though not necessarily the same flight as the JP member).

Conclusion

Both of these changes I've written about above are fantastic and positive changes to the JP program. But logic tells me that if they keep their tier upgrade/renewal requirements unchanged, that'll cost them a lot over time (more Platinums and Golds means more upgrade vouchers to hand out, more miles to be given as bonuses, etc). This involves increased book costs (accruals for unused miles) and an element of increased cash costs too (lounges are usually run by third parties and paid for by the airline based on usage). As a finance person, I can tell you that this is not sustainable. So I do expect them to increase the tier points (flight counts) required for tier upgrades and retention, sooner than later.

But for now, enjoy it while it lasts!