Back to the archive

The encyclopedia · Sales & Retail · Marketing decision · 2023–2024

Starlux sold miles with a new credit card — then raised the redemption price months later

September 2023: award charts raised up to 43% overnight, two weeks to redeem. The backlash said 'harvesting leeks'. The next day, the date moved to March.

Starlux Airlines · 2023-09-19

What happened

Starlux, the Taiwanese carrier founded by EVA Air's heir, built its COSMILE loyalty program aggressively — in March 2023 it launched a co-branded credit card with E.SUN Bank that let members accumulate miles fast. Six months later, on 19 September 2023, it posted a notice: award ticket rules were changing, effective 3 October — two weeks away.

The new chart raised the price of redemption across the board: Asia first class from 80,000 miles to 100,000, economy from 30,000 to 35,000, and Asia-to-Americas economy from 70,000 to 100,000 — a 43% increase on the program's marquee long-haul award. New routing restrictions banned stopovers on round-trip awards. Members who had spent months accumulating miles on the new card had two weeks to use them at the old prices.

The reaction was immediate and merciless: members accused the airline of '割韭菜' — cutting leeks, harvesting the loyal customers it had just recruited. The timing was the wound: the card had sold miles as an asset, and the chart change taxed the asset before most holders could spend it. On 20 September, one day later, Starlux delayed the implementation to 1 March 2024, saying the original date was too close. The increase itself stood; the retreat was on the calendar, not the price.

Why it happened

  • Selling miles through a credit card creates holders who have not yet redeemed — raising redemption prices months later reprices a promise those holders bought in good faith.
  • A two-week implementation window converts a policy change into a bank run on awards; the new stopover restrictions made the rush worse, not better.
  • The one-day delay conceded the optics without changing the economics — members read it correctly as a PR retreat, which is why the dissatisfaction continued.
What it costa loyalty base taught the rules moveembarrassing

The lesson

If a credit card sells miles as an asset, the redemption chart is the exchange rate — changing it without notice weeks after recruiting the holders is a default paid for in every future sign-up.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →