The Massive Devaluation of Club Vistara Points Post-Merger with Air India: A Blow to Loyal Customers

For years, Club Vistara stood out as a reliable and rewarding loyalty program for travellers. Its members enjoyed seamless experiences and meaningful rewards, making it a favourite among frequent flyers. However, the recent merger between Vistara and Air India has left many loyal customers feeling let down. The value of their hard-earned Club Vistara points has plummeted, sparking frustration and disappointment.

Before the merger, redeeming Club Vistara points was a breeze. The program operated on a distance-based system, and for popular routes like Delhi to Goa—falling within the 501 to 700 miles category—the redemption rates for a one-way flight were straightforward:

• Economy Class: 6,000 CV Points
• Premium Economy: 10,000 CV Points
• Business Class: 23,000 CV Points

These rates made the program attractive, especially since 1 Club Vistara point was roughly equivalent to INR 1. For travellers, this meant their loyalty was genuinely rewarded.

After the merger, things took a turn for the worse. Air India, now overseeing the Club Vistara program, has significantly hiked the number of points required for redemptions. For the same Delhi to Goa route, the new rates for a one-way flight are:

• Economy Class: 9,000 CV Points (up from 6,000)
• Premium Economy: 15,000 CV Points (up from 10,000)
• Business Class: 29,000 CV Points (up from 23,000)

This translates to a 50% increase for Economy and Premium Economy classes and a 26% increase for Business Class. For travellers, this means shelling out more points for the same flights, making redemptions far less appealing.

Let’s break it down with an example. For a one-way flight from Delhi to Goa:

• Economy Class:
  • Pre-Merger: 6,000 CV Points
  • Post-Merger: 9,000 CV Points
• Premium Economy:
  • Pre-Merger: 10,000 CV Points
  • Post-Merger: 15,000 CV Points
• Business Class:
  • Pre-Merger: 23,000 CV Points
  • Post-Merger: 29,000 CV Points

The difference is stark. Travellers now need to accumulate significantly more points to book the same flights, which feels like a slap in the face to loyal customers.

To understand the impact better, consider this scenario. For a one-way Economy Class flight from Delhi to Goa on Wednesday, 23 April 2025, the original ticket price is INR 6,941. If you opt for a cash + points redemption, the airline asks for:

• 6,243 CV Points
• INR 4,756

Here’s how the math works out:

1. Cash Saved: INR 6,941 – INR 4,756 = INR 2,185
2. Points Used: 6,243 CV Points
3. Value per Point: INR 2,185 ÷ 6,243 = INR 0.35 per point

In this case, 1 Club Vistara point is worth just INR 0.35—a far cry from the pre-merger value of INR 1 per point.

What makes this devaluation even harder to swallow is that the rate at which members earn points hasn’t changed. Customers are still earning points at the same pace, but the value of those points has been slashed. This imbalance has left many feeling cheated. After all, the whole point of a loyalty program is to reward customers for their continued support. When that reward shrinks overnight, it’s hard not to feel undervalued.

The Vistara Air India merger was supposed to create a stronger, more competitive airline. Instead, it has left many loyal customers feeling betrayed. While mergers are often necessary for growth, they shouldn’t come at the expense of customer trust. The devaluation of Club Vistara points feels like a breach of that trust, leaving members questioning whether their loyalty is still worth it.

For many travellers, loyalty programs are more than just a way to save money—they’re a relationship built on trust and mutual respect. The sudden devaluation of Club Vistara points has shattered that relationship, leaving customers disillusioned. In an industry as competitive as aviation, airlines can’t afford to alienate their most dedicated passengers.

As of October 2024, Vistara held a 9.1% share of India’s domestic air travel market. Despite being a relatively new player, the airline had carved out a niche for itself by focusing on premium services and punctuality. Its loyalty program, Club Vistara, played a key role in retaining customers, especially business travellers and frequent flyers.

Air India, on the other hand, has been working to rebuild its reputation after years of financial struggles. The merger with Vistara was seen as a strategic move to strengthen its position and compete with market leaders like IndiGo, which dominates over 60% of the domestic market. However, the devaluation of Club Vistara points to risks driving away a significant portion of Vistara’s loyal customer base, which could hurt the merged entity in the long run.

While Vistara’s market share stood at 9.1%, its customer loyalty was impressive, with around 30% of its passengers actively using the Club Vistara program. This loyalty was built on fair redemption rates, transparent policies, and a customer-first approach. The recent devaluation, however, has sparked widespread dissatisfaction.

The devaluation of Club Vistara points raises important questions about the future of loyalty programs in the aviation sector. If a well-regarded program like Club Vistara can undergo such drastic changes, what does it mean for others, including Air India’s Maharaja Club? Will this set a trend where mergers lead to diminished rewards for customers? Only time will tell, but one thing is certain: trust between airlines and their loyal customers is fragile, and once broken, it’s not easily repaired.

As Mark Twain once said, “But all good things must come to an end.” For loyal Club Vistara members, the merger with Air India has marked the end of an era of fair and rewarding redemptions. While the future of loyalty programs remains uncertain, the importance of trust and loyalty cannot be overstated.