The Montreal Gazette published the following story by Nicolas Van Praet on its website on July 30.)
MONTREAL — Via Rail Canada is overhauling its loyalty program so travelers have to pony up more points in some cases to get Via goodies.
In a letter sent to its Via Preference members this week, the passenger rail service said it will implement a new rewards system starting Sept. 15 that “more closely reflects the true value of today’s train travel.”
Cardholders will need more points to redeem rewards on many routes.
Via defended the move, saying it’s the first such change in seven years. The company added that on some routes, it has reduced the number of points required for travel.
“Our attempt here was to be fair,” said Via official Malcolm Andrews. “It’s an adjustment in both directions.”
The letter sent to reward members included new luggage tags and new client-identification numbers and said clients will benefit from “an even greater level of customer service in the future.”
“It’s pretty sad when you try to woo your best customers with a luggage tag,” said one Via customer, who asked that her name not be used.
Borrowing a page from other loyalty programs, Via Preference is expanding its redemption options, allowing its 300,000 Preference members to book one-way trips and children’s tickets and get cash upgrades.
But Via is moving away from permanent partner companies through which consumers can earn points. Existing relationships with Best Western Hotels, Novotel and Hertz will end starting Friday, Andrews said. They’ll be replaced by short-term partnerships.
Unlike many other loyalty programs, Via does not charge a fee for redeeming reward travel and doesn’t impose any limits on what percentage of a train can be occupied by its Preference clients travelling on points.
Via has boosted its revenues steadily over the past decade. But over that time, its trains have never been more than 59 per cent full on average in any one year. The service continues to be subsidized by Canadian taxpayers. Last year, Ottawa spent about 16 cents to carry each passenger one mile.
In the U.S., the administration of President George W. Bush proposed Monday that Amtrak, America’s Via Rail equivalent, be turned over to private operators. Amtrak lost a record $1.2 billion U.S. in fiscal 2002. It’s been handed more than $25 billion U.S. worth of subsidies since its inception in 1971.