Explained: Airline Rewards Programs, Their Benefits And How To Choose Between Them

If you’re a globetrotter, chances are you have racked up a few frequent-flyer programs (FFP) along the way. These are membership programs offered by an airline to encourage customers to accumulate “points” which can then be redeemed for air travel or other rewards.

India’s two most prominent airlines run their own rewards programs: Air India runs Maharaja Club while IndiGo launched its BluChip loyalty program in 2024.

But how do airline rewards work and what are their benefits? This explainer will break down everything you need to know about airline loyalty programs, how you should choose them and what you need to steer clear of.

How Do Frequent-Flyer Programs Work?

If you enrol in a loyalty program, you rack up “points” or “miles” by how often you fly, the distance you fly with the airline or its partners, and the amount you pay for a flight. Another way to earn points is by spending money at associated retail outlets, using bank cards co‑branded with airlines, using car hire companies, and checking into hotels or other linked businesses.

When you build up enough “points” or “miles,” you can redeem them for air travel, other goods or services, or increased benefits, such as travel class upgrades, airport lounge access, fast-track access, or priority bookings.

While airlines have their own FFPs, several of them can band together to create a global coalition wherein flying on any of the member airlines contributes to your “points.” Star Alliance is the world’s biggest airline coalition with 25 member airlines, followed by Skyteam (18 active carriers) and Oneworld (15 members).

According to Madhuri Jain Grover, an entrepreneur and international globetrotter who has been enrolled in FFPs since 2006, there is never any harm in enrolling for an airline rewards program. But, she says airlines need to clean up their act when it comes to awarding travel vouchers for their customers.

“These vouchers for flight upgrades are hardly used and go to waste because airlines don’t give upgrades by calling them in advance; they only do so at the airport, one or two hours before the flight,” she says.

“That system is broken. I say that if an airline’s business or premium economy seats are empty, and if someone is a higher-tier member, they should honour it at all points of time while boarding the flight or even inside the plane.”

How Big Is The Indian FFP Market?

According to Aadil Bandukwala, vice president of content at HackerRank and the founder and host of “The Great Indian Points & Miles Show,” India’s FFP market is booming due to increased travel within and outside the country.

“India saw around 174 million origin and destination (O&D) air passengers in 2024, making it the world’s third biggest market by departing passenger journeys. Out of that number, approximately 136 million were domestic O&D passengers. That’s the pool that airline programs can enrol and activate,” he says.

The IndiGo BluChip program received two million members just six months after launch, while the Emirates Skywards program, which counted 35 million members worldwide for 2024-2025, is a popular choice with Indians due to the India–UAE travel corridor. Similarly, Singapore Airlines’ KrisFlyer program is popular among Indians travelling to Southeast Asia.

“The bottom line is that even without a precise ‘India‑only membership count,’ the combination of 174 million passengers, rapid IndiGo BluChip uptake, tens of millions in global programs relevant to Indians, and mature earn partnerships confirms that India’s airline‑rewards market is already large and growing quickly,” Bandukwala says.

Despite this, he says that the industry needs to improve across many fronts, such as by introducing transparent pricing tools, keeping fees modest, exploring deeper partnerships with both airlines and other businesses to unlock value across brands, and advancing the app user interface and operational data so that earning and redeeming “points” feels seamless.

What Is The Difference Between The Maharaja Club And IndiGo BluChip?

Air India’s Maharaja Club is a member of Star Alliance, the world’s biggest airline coalition.

If you enrol in its loyalty program, you can expect to earn “Tier Points” and “Maharaja Points.” The former helps passengers to climb tiers (Red, Silver, Gold and Platinum), unlocking benefits like priority check-in and lounge access.

“Maharaja Points” can be redeemed on booking flights, cabin upgrades and more. The family pool function enables groups of people to combine their points.

A point to note is that Air India and Air India Express run different FFPs.  The former has the Maharaja Club, while the latter is aligned to the Tata NeuPass. In this program, passengers earn “NeuCoins” and slot into badge‑based tiers.

Meanwhile, the IndiGo BluChip loyalty program is built for frequency and simplicity, Bandukwala says. In it, passengers earn up to 16 BluChips (equivalent to INR 100) on flights and climb up from tier Blu 3 to Blu 1. Unlike most FFPs, the “points” you accumulate in this program do not expire after a specific period of time; instead, they have lifetime validity as long as your account is active.

Furthermore, IndiGo BluChip members do not experience blackout dates. This refers to specific periods when airlines charge higher prices due to increased demand, coinciding with peak travel times like holidays.

Which Indian FFP Program Is Most Beneficial For Travellers?

For Grover, the Maharaja Club is the most beneficial loyalty program because of its easy-to-use and transparent nature.

“I am a hardcore loyal Platinum member of the Air India Maharaja Club. For overseas-based airlines, I try to fly with a Star Alliance member so that I can use my Air India Maharaja Club membership and accumulate the maximum points in one place. I also use Emirates Skywards and am enrolled in the IndiGo BluChip loyalty program, which I use for all my Indigo flights,” she says.

Bandukwala agrees with Grover about the Maharaja Club being “the most- well‑rounded for Indian flyers who split time between domestic and international travel.”

“The Maharaja Club offers domestic value with its ‘value fare’ prices that are attractive for early bookers and periodic 25 per cent redemption promos improving its value further; its global reach thanks to its membership of Star Alliance and upgrades for long-haul flights; and ease of earning, where you receive six to 10 points for every INR 100 you spend for direct bookings based on your tier and family pool,” he says.

What Should Travellers Keep In Mind When Choosing An Airline Rewards Program?

• Map your routes to alliances/currencies: If you’re travelling to the Middle East or Europe, consider the Avios program, which counts members like Qatar Airways and British Airways. If you’re primarily flying to the United Arab Emirates, consider Emirates Skywards. For Southeast Asia and the United States of America, Singapore Airlines’ KrisFlyer works well. For the US specifically, both Oneworld and Star Alliance can be great options.

• Price out “miles” and taxes and surcharges before committing. Emirates and the British Airways family can have higher fees on some routes than Singapore Airlines’ KrisFlyer program.

• Look at the app and service quality as day‑to‑day usability matters.

• Check the surcharges on “free” tickets, as carriers can add hefty carrier‑imposed fees. Find out the total “miles” and fees before transferring or booking.

• Make sure that the program has liquidity. Avios can be moved instantly across British Airways, Qatar Airways, Iberia, Aer Lingus and Finnair. Remember that your name, birthday, address and profile particulars must be exactly the same across programs, or it can lead to multiple hiccups.

• Try to use one airline rewards program most frequently and quote the same membership number while booking other flights if you get that option. Even if you miss quoting your membership at the time of check-in or booking, you can do it later and claim the missing points.

• Make a family pool account where all the points accumulation of your family members happen at one main account. This makes redemption “points” easier.