Loyalty programs in Canada have seen incredible change and evolution in recent years. After Air Canada acquired Aeroplan back from AIMIA in 2018, the loyalty program saw robust evolution when Aeroplan was officially relaunched in 2020. Scene, a joint venture between Cineplex and Scotiabank saw Empire Company, the parent of Sobeys, enter the partnership with their program relaunching at Scene+.
Almost every loyalty program has had to evolve strategies to be more competitive and adapt to flexible consumer trends after the pandemic.
What happened to AIR MILES in Canada?
The value proposition at AIR MILES’s peak was the program’s flexibility. Shop at dozens of everyday retailers and collect rewards in one pool. The more points you rack up in one pool, the faster you can redeem for a higher-value reward like a flight or vacation. The other unique selling point was the ability to direct where your rewards went with cash and Dream Miles. Whereas some would value a cash-back reward at the grocery store instead of a flight, the ability to direct points in different pools meant consumers had the flexibility they wanted.
When it had retail partners that included Metro, Sobeys, LCBO, Shell, Staples and many others, AIR MILES was a true competitor to the likes of Aeroplan.
In recent years, the program made it harder to redeem miles with limited seat availabilities or too many points to be a valuable redemption. Controversial policies saw miles expire after some time of inactivity. Other times, the difficulty left Canadians with large pools of unused miles. Add on top of that a pandemic that saw less travel for a couple of years and an exodus of partners including Metro, Sobeys and Ontario’s LCBO opting for alternate loyalty solutions, and the flexibility that once existed was no longer.
Today, the program is owned by the Bank of Montreal, a long-time program partner, which continues to issue co-branded AIR MILES credit cards.
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Are AIR MILES dead?
Short answer: No.
Long answer: Your AIR MILES are still valid, and core ability to earn and redeem for travel and cash back at partner retailers remains, albeit with a more refined selection of partners. In many parts of Canada, Shell and Pharmasave are the main two earning partners.
The program is also frequently updating its partners and has launched other initiatives to earn and burn miles, like AirMilesShops.ca where you can earn miles based on affiliate marketing (like Rakuten), earning miles by purchasing offers and uploading a photo of the receipt to get credit, card offers and a travel portal.
The program also has a wide range of redemption partners like Amazon, Dyson, Sephora, Hilton, Expedia and more, while co-branded credit cards from BMO allow you to earn on everyday purchases. Plus, AIR MILES Gold and Onyx status is a frequent shopper recognition of sorts that increases the earn rate, discounts on merchandise and better flexibility on redemptions.
Ultimately, with all loyalty programs, it’s important to burn your points when you can. Don’t leave it to when you have too many points in your account because you never know when the valuation of a point might suddenly change, or when redemptions might get more difficult. Just as programs improve, they can get worse, too.
What to do with your AIR MILES
On top of the regular redemption channels through physical partners and their travel portal, you can earn $10 eVouchers in exchange for 95 AIR MILES, which can be used for online purchases outside of their physical partner network. This strategy doesn’t always favour value, so your hard-earned AIR MILES are often better used for straight-up travel bookings.
You can also use AIR MILES to redeem for merchandise like household appliances, electronics and high-value products, or you can even donate your miles to a variety of Canadian charities. As with the eVouchers, you’ll need to compare to make sure it’s the best use of your miles. In many cases, you’ll have to exchange in many more miles than it is worth, and it may be best to just purchase the item outright.
Many people also don’t know that you can use AIR MILES to redeem for concerts and even tickets to popular tourist attractions.
Your best and most valuable redemption value remains for travel, which includes flights, car rentals, hotels and vacations.
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How to switch from AIR MILES
Once you use up your AIR MILES, you may want to decide the pros and cons of other major loyalty programs and why you may choose one over another:
Aeroplan: The loyalty program now owned in-house by Air Canada has a slew of bank partners including TD, CIBC and American Express with entry, core and premium credit cards offered by all three financial institutions. You can earn and redeem on travel marketed and operated by Air Canada, and you have access to a wide range of partners. Aeroplan also has a robust online eStore, plus partners like LCBO, Starbucks, Journie Rewards and Uber enhance flexibility.
Scene+: Once started by Cineplex Entertainment, the program has expanded to include Recipe Unlimited restaurants including Swiss Chalet and Harvey’s, Home Hardware, Sobeys, Safeway, and Cineplex theatres.
PC Optimum: Owned and operated by Loblaws, these include all Loblaws-banner grocery stores, Shoppers Drug Mart pharmacies and gas stations under the Esso umbrella including Mobil.
Bottom line
Many Canadians are indeed asking whether AIR MILES are still worth it. The good news is that there remains a lot of value if you have an existing pool of miles.
AIR MILES are still valid and aren’t being discontinued, and if you’re a BMO customer, it may still be attractive to stack the points earned through credit card spend. Other loyalty programs offer improved flexibility and access to more partners (even some like LCBO who left AIR MILES and became Aeroplan’s partner).
At the end of the day, you never know when a loyalty program might hit some turbulent skies, so it’s best to use the points while you have them.
