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EuroBonus

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EuroBonus is the frequent flyer program of four European airlines of SAS Group. It was launched by Scandinavian Airlines System (SK) in 1992.

Airline partners

SAS Group

Star Alliance partner airlines

Other airline partners

Hotel partners

Other non-air partners

Membership levels

File:EuroBonus-cards.jpg
The three different membership levels of EuroBonus, with their respective card.

EuroBonus has four membership levels. The entry level is "Basic", followed by "Silver", which is attained by earning 20 000 Basic points in a year. Benefits include business class check-in and extra baggage allowance on some flights, as well as 15% extra bonus points on SAS Group flights. Following that is "Gold", which requires 45 000 - 50 000 Basic points depending of your country of residence (45 000 for Norway, 50 000 for rest of the world). Since 2010 it is also possible to achieve Silver and Gold status by taking a certain number of SAS-flights. For residents of Norway, it is 20 and 35 individual flights respectively (excl. Norwegian domestic flights).[1] In Denmark Gold level requires 50 one way flights within 12 months. Gold benefits include all Silver benefits, plus priority security at certain airports, access to SAS and Star Alliance lounges and a 25% bonus on points on SAS Group flights.[2] There is also an exclusive membership tier, called "Pandion", which is awarded personally to 1500 selected customers by the CEO of SAS. Each Pandion membership is reevaluated yearly, and you have to "fly more than the pilots and crew of SAS" in order to be eligible. In practise the membership is awarded according to revenue created for SAS by a single flyer rather than the amount of EuroBonus points earned. Benefits include guaranteed seats on SAS flights, even on fully booked flights, and exclusive service.[3]

Norwegian ban on frequent flyer miles

Frequent flyer mile accrual was banned on Norwegian domestic flights between August 2002 and May 2013. In 2002, SAS bought up the rival airline Braathens, giving the company a near monopoly on major domestic routes within Norway. After a few months, the airline Norwegian Air Shuttle started flying major routes in competition. To remove the edge SAS had over the new airline, the Norwegian Competition Authority then banned the award of EuroBonus points in Norway from August 1 that year.

In 2005, Morten A. Meyer, the Modernization Minister asked the competition authority to consider extending the ban on frequent flyer miles to include all of Scandinavia. Norwegian Air Shuttle and Sterling Airlines had also complained about SAS's bonus program in Scandinavia. It was pointed out that the situation on these routes was different from the monopoly which had been present on the Norwegian domestic market.[4][5]

The authorities indicated in 2007 that the ban against frequent flyer points would continue, arguing that the ban on EuroBonus had reduced the ticket prices by 30% and boosted competition. SAS Norge, the Norwegian affiliate of SAS protested, arguing that the extent of the fare reduction was exaggerated (claiming 18.4% rather than 30%), and were due to more efficient spending, not the ban on EuroBonus.[6]

Following the development of the market, where Norwegian Air Shuttle since its start in 2002 has grown to be equal in size to SAS on most major domestic routes, the Norwegian Competition Authority begun yet another evaluation of the ban on domestic frequent flyer points in December 2010.[7] The government lifted the ban on 16 May 2013, noting that the competition in the Norwegian airline market had improved. The European Free Trade Association Surveillance Authority had previously considered the ban illegal.[8]

Freddie Awards - FT Awards

EuroBonus won the Freddie Awards, the largest award in the travel industry[dubious – discuss], for best frequent flyer program numerous times. They won the six years prior to 2003, and again in 2004. In 2005 they wound up in a disappointing 13th place. The ban on domestic point awards in Norway, which reduced the value of the program, was part of the reason for EuroBonus's decline in the rankings.[9]

EuroBonus received the acclaimed Industry Impact Award at the Freddy Award Ceremony held in Phoenix, Arizona on April 24 - 2008. What in fact was awarded was the Award Seat Prognosis - transparently displaying any available award seats online for the members setting a new standard for Frequent Flyer Programs can display award availability for their members.

EuroBonus reversed auction

EuroBonus offered a bonus-trip for two on SAS Facebook Wall - to selected destinations at fixed dates. The EuroBonus-member who first accept the price given by EuroBonus through commenting on the wall won the offer. The ‘cooler’ you were, the lower the award price, but with the risk of someone else got it. Four auctions so far and the offers was sold for at least 60-80% less than normal. (please note that airport taxes & fees was not included in the point price)

Criticism of the Program

Although EuroBonus has been awarded the Freddie Awards several times, there are still SAS Group passengers who criticize certain elements of the EuroBonus program. One of the most criticised features (see for example discussions on Eurobonus forum on community site FlyerTalk) that so many booking classes were exempted from full earnings of Eurobonus points. For certain routings this meant that you had to buy an almost full fare Economy ticket to avoid only earning 25% of the Eurobonus points. This is now changed so that all economy tickets gives you 100% miles. On the other hand, Premium Economy fares (dubbed Economy Extra on SAS) earns 150% of the EB-points for the routing in question. Another often criticized part of the EuroBonus program is the fact that points/miles expire after 5 years regardless of activity. This is as opposed to some other airlines where as long as you keep flying once every two years, your miles will never expire. Or even some airlines like Delta Airlines where your miles never expire.

See also

References

  1. ^ http://www.sas.no/no/EuroBonus/Om-EuroBonus/Gull-/
  2. ^ EuroBonus Membership Levels flysas.com, 29th Dec 2008
  3. ^ The Secret SAS Bonus Card Article in Politiken, retrieved Dec 27th 2008
  4. ^ Vurderer bonusforbud i Skandinavia ("Considering bonus ban in Scandinavia") Dagens Næringsliv, April 9, 2005
  5. ^ Pålagt å granske SAS-bonus ("Ordered to investigate SAS bonus") Dagens Næringsliv, April 11, 2005
  6. ^ Vil forlenge Eurobonus-forbud ("Will extend the EuroBonus ban") Dagens Næringsliv, May 23, 2007
  7. ^ http://www.konkurransetilsynet.no/no/Aktuelt/Nyheter/Skal-evaluere-bonusforbudet/
  8. ^ Ighouba, Farid (16 May 2013). "Bonuspoeng blir lovlig igjen" (in Norwegian). NRK. Retrieved 17 May 2013. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  9. ^ SAS slaktes i prisutdeling ("SAS slaughtered in prize awards") Dagens Næringsliv, April 29, 2005

External links

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