United Kingdom
United States
Asia Pacific
Australian regulator raises concerns over airline loyalty schemes
Australia’s competition regulator has taken aim at loyalty programmes, saying customers are getting a raw deal and are not given clear information in how their personal data is being used,
The Australian Competition and Consumer Commission released a draft report covering all areas of the loyalty industry and reserving special criticism for airlines.
The high ‘carrier charges’ imposed by airlines sometimes make free reward flights relatively worthless.
"Many people think they can redeem their points for a free flight, but in some cases, the cost of purchasing an airfare without using points may be similar to the cost of a flight using points once the airline adds on taxes and charges." The ACCC’s chairman Rod Sims said.
"The privacy policies of these schemes are frequently very vague and don’t tell consumers who their data is being shared with or how it is being used, shared or monetised."
"The data that loyalty schemes collect can be used to profile consumers and produce insights about their purchasing behaviour. These insights about consumers may then be shared with or sold to third parties," Simms added referring to programmes across the industry and not only airlines.
Virgin Australia contributed to the draft review and would work with the ACCC to meet any recommendations included in the final report.
Virgin’s Velocity Frequent Flyerhas nearly 10 million members, Virgin said.
Rival Qantas was more combative, insisting it offers ‘significant value’ to members and communicates any changes and updates to loyalty members.
Related News Stories:
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled