Aeroplan moving to TD; What happens to your points?

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VANCOUVER (NEWS1130) – After 22 years, Aeroplan is switching banks. The air mileage reward program has reached a deal with TD Bank and will end its relationship with CIBC in January.

“We are thrilled to have this opportunity to work with Aeroplan to offer even more choice to our customers, and to grow the premium travel segment of our credit card portfolio,” says Michael Rhodes, an Executive Vice President with TD Bank Group.

“The co-branded Aeroplan credit cards will complement TD’s already strong line-up of cards, and allow our customers to select from an even wider range of options for earning great travel rewards.”

If you have been avidly collecting points, you might be wondering what happens to them. The short answer is that you will be able to keep them, even if you choose not to do business with TD.

“You’ll have a couple of options,” explains Patrick Sojka with Rewards Canada, a company that analyzes incentive programs offered by banks, retailers, and others.

“Those who are loyal to CIBC will be able to go with a different CIBC card,” he explains. “I know that right now they are investing heavily in a new product that will probably come out around the same time as the whole TD-Aeroplan deal, as a competitor to it.”

Soyka says the question is whether CIBC’s new program will be strong enough to keep its customers loyal.

Those who want to stick with Aeroplan will “have to go over to TD and apply for a new [credit] card as soon as those are available.”

CIBC is in negotiations to retain what it calls ‘franchise’ customers enrolled in the Aeroplan program. These people account for approximately half of Aeroplan’s customer base.

In either case, the points you have now should not disappear, but should simply role into your new air mileage program.

Efforts by Aeroplan and the banks to keep customers happy seem to echo moves that have been made in the US, where similar mileage programs have already undergone major changes.

“If you take a look at the States, there’s been a number of changes between banks and airline mileage programs,” explains Sean Collins with Partner Advisors, a US-based consultant that helps companies set up reward programs.

“The first thing to realize — the major thing that everyone wants to protect — is the Aeroplan customer experience and the value they receive,” he says. “Because if they upset the customer in any way, then the entire move is put at risk.”

Collins expects a “fantastic effort” to be made to reassure Aeroplan customers.

“Usually these transitions end up with even some benefits being given to the customer, as part of the transition,” he adds.

TD Bank is not offering any comment on the ongoing talks involving itself, CIBC, and Aeroplan, except to say a deal is expected to be reached by August 26th. More details of TD’s Aeroplan program should be available shortly after that.

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