On November 18, 2023, VIA Rail is making some changes to its Préférence loyalty program. The changes were initially set to take effect earlier this year; however, the date has been pushed back twice.

On the same date, VIA Rail is amending its baggage policies, which includes changing fees for some carry-on and checked bags.

Let’s take stock of what’s about to change, as there’s still a bit of time to redeem under the existing program if you stand to benefit from lower redemption costs.

Upcoming Changes to VIA Préférence

As of November 18, 2023, VIA Rail is making a number of changes to the VIA Préférence loyalty program. A full list of the changes, as well as the corresponding terms and conditions, can be found on the VIA Rail website.

As it pertains to earning, you’ll accrue points for every dollar spent on eligible fees paid for tickets and travel passes, as well as for optional products and services. 

Currently, you earn points for tickets, upgrades to business class, and travel passes, but you don’t earn points on service charges, food and beverage purchases, baggage fees, and other categories. With the revamped program, you’ll earn points on charges that you used to not earn points on, which can be seen as a positive change.

The rate at which you earn points is based on your status tier, and the fare you purchase. Base-level Préférence members earn 1 point per dollar spent, Privilège members earn 2 points per dollar spent, and Premier members earn 3 points per dollar spent, as well as points based on the fare you purchase.

The earning rates under the new program will remain the same, including the bonus points per dollar spent for Privilège and Premier members.

On the redemption side, VIA Préférence is switching to a dynamic pricing model, which is a change from the fixed pricing model it currently uses.

As is the case with all programs that use dynamic pricing, you could potentially pay less than what’s currently charged with fixed pricing as long as the cash price is low; however, you’ll also pay more points if the cash fare is high.

We don’t quite yet know what the redemption rates will be with VIA Préférence’s dynamic pricing, in terms of a value in cents per point. 

You’ll be able to redeem points for tickets and travel passes, as well as optional products and services, such as baggage and pet fees, with the revised program. Currently, points may only be used for tickets. 

On the other hand, taxes and fees will now apply to redemptions, which historically haven’t been levied. For example, for a one-way trip from Ottawa to Montreal in economy, you’d pay 550 points, and that’s it.

However, you’ll soon have to pay taxes and fees on redemptions, although the amounts aren’t yet known.

The taxes will be calculated based on the dollar amount of the products purchased with points, which means that you’ll pay more in taxes if you redeem points for a ticket that’d have cost $1,000, than you would for one that’d have cost $100.

At the outset, VIA will temporarily reduce by 30% the number of points required for all redemptions until further adjustments are made to the program. VIA will communicate to members when further adjustments are made to the program, at which point the 30% reduction in redemptions will likely be removed.

With the revamped VIA Préférence program, your ticket will subject to the refund and exchange conditions of the purchased fare. This is a change from the current state of affairs, which has free refunds and exchanges for reward bookings.

Note that the refund and exchange conditions in effect at the time of booking apply if you need to make any changes. Therefore, you may wish to speculatively book before November 18, 2023, as you’ll be able to cancel or change your booking under the current rules.

When it comes to status, you’ll no longer have to wait until the end of the qualification period to enjoy Privilège and Premier benefits.

Therefore, if you move up a status tier during the qualification period, which runs from May 1–April 30, your new status takes effect the next day, giving you access to tier benefits for the remainder of the current benefit period, as well as the following one.

The qualifying spending thresholds for Privilège and Premier remain the same under the new program; however, the segment criterion for reaching Premier status is being eliminated.

Lastly, you’ll soon be able transfer points to another VIA Préférence account online for free, up to five times per year.

Upcoming Changes to VIA Rail Baggage Policy

VIA Rail is also making some changes to its baggage policies on November 18, 2023.

Depending on your fare and routing, you may be limited in what you can bring on board without incurring any extra fees.

Carry-on Baggage

On the Québec–Windsor corridor, if you’re travelling on an Escape, Economy, or Economy plus fare, the following carry-on baggage allowances apply:

• One personal item (purse, laptop, small backpack), with a maximum size of 43 x 33 x 15cm and a maximum weight of 11.5kg
• One medium carry-on item, with a maximum size of 64 x 41 x 30cm and a maximum weight of 23kg

Any additional large carry-on luggage will incur a fee of $25 (all figures in CAD) per direction, with a maximum size of 76 x 48 x 30cm, and a maximum weight of 23kg.

Currently, passengers may bring with them one personal item and one large item, or two small items at no cost. One additional carry-on item may be brought on board for a fee of $40, inclusive of tax, per direction.

Passengers travelling on a Business or Business plus fare may bring one personal item with the same dimensions listed above, as well as up to two large carry-on items, with the same dimensions listed above. This is the same as what’s currently offered for these fares on routes in the Québec–Windsor corridor.

For all long-distance trains, you can bring the following at no cost when travelling on an Escape, Economy, or Economy plus fare:

• One personal item (purse, laptop, small backpack), with a maximum size of 43 x 33 x 15cm and a maximum weight of 11.5kg
• One medium carry-on item, with a maximum size of 64 x 41 x 30cm and a maximum weight of 23kg

For Touring, Sleeper plus, and Prestige fares, passengers may bring the following carry-on bags on long-distance trains:

• One personal item (purse, laptop, small backpack), with a maximum size of 43 x 33 x 15cm and a maximum weight of 11.5kg
• One small carry-on item, with a maximum size of 53 x 41 x 25cm and a maximum weight of 23kg

No additional carry-on bags are accepted on long-distance routes; however, passengers are entitled to checked baggage, as outlined below.

Checked Baggage

Checked baggage is only available on select long-haul and regional routes.

The following checked baggage allowance applies for long-distance trains with a connection in the Québec–Windsor corridor on Escape, Economy, and Economy plus fares:

• A maximum of two large checked bags, with a maximum size of 76 x 48 x 30cm and a maximum weight of 23kg each
• A $25 + tax fee will apply per item per direction

The following checked baggage allowance applies for long-distance trains with a connection in the Québec–Windsor corridor on Touring, Sleeper plus, and Prestige fares:

• A maximum of two large checked bags, with a maximum size of 76 x 48 x 30cm and a maximum weight of 23kg each
• No fees apply for the above

For long-distance trains with no connections, the following checked baggage allowances and fees apply for Escape, Economy, and Economy plus fares:

• A maximum of three large checked bags, with a maximum size of 76 x 48 x 30cm and a maximum weight of 23kg each
• A $25 + tax fee will apply per item per direction

For long-distance trains with no connections, the following checked baggage allowances and fees apply for Touring, Sleeper plus, and Prestige plus fares:

• A maximum of two large checked bags, with a maximum size of 76 x 48 x 30cm and a maximum weight of 23kg each
• There is no fee for the first two checked bags
• Up to two additional checked bags will incur a $25 + tax fee per item per direction

Oversized or overweight items will incur an extra fee of $25 + tax per item and per direction.

Currently, on trains that offer a checked baggage service, passengers are entitled to two large checked items, with a maximum weight of 23kg and maximum linear dimensions of 158cm per item.

Another Loyalty Program Moves to Dynamic Pricing

In the marketing material for the upcoming changes to VIA Préférence, the usual buzzwords around changes to loyalty programs can be found: more value, exciting new features, etc.

In fact, VIA Préférence is quick to point out that you may use fewer points than what’s currently required on the fixed award chart when the fares are lower.

However, what’s missing here is the fact that you may also have to redeem more points than before, which will be the case when the fares are higher. 

The move from fixed to dynamic pricing reduces opportunities to score outsized value from your points, especially for last-minute bookings or during periods of high demand.

Previously, you’d pay the same amount of points for a ticket that might cost $100 during a sale, as you would if it cost $1,000 at the last minute or during peak periods.

However, with the upcoming switch to dynamic pricing, you’ll pay more in points as the cost increases, and less as it decreases. Therefore, your best bet is to book early or during sales, when cash prices are low, to ensure you’re getting the best deal for your points going forward.

On the other hand, as you’ll also soon have to pay taxes and fees on redemptions, which you previously didn’t have to do, you’ll wind up paying more out-of-pocket no matter how you cut it.

And since the amount of taxes you pay is calculated based on the base fare that you’re covering with points, you’ll have to pay more in taxes for more expensive fares or products, rather than paying the same blanket amount for any given redemption.

Since we don’t yet know how much train routes will cost, we’ll have to reserve judgment on the extent of these changes until later.

If you have any points in your account, you may want to lock in a redemption before November 18, 2023, just in case the same booking costs more once the switch to dynamic pricing happens.

As for baggage fees, VIA’s approach looks an awful lot like airline baggage policies, whereby you have to pay for baggage with lower fares, while it’s included with more expensive tickets. VIA is also moving away from baggage allowance by cabin class, and towards baggage allowance by fare paid, which again is similar to how most airlines operate.

However, unlike airlines, which often have co-branded credit cards with perks such as complimentary baggage, there’s no way to score a similar benefit with VIA Rail, since there aren’t any co-branded credit cards.

If you plan on checking bags, or if you plan on bringing a lot of carry-on luggage on the train, be sure to weigh out the difference in cost between different fares and what’s included. This way, you may pay more at the outset for a higher fare, but it may come at a discount compared to buying the lower fare and then paying for baggage separately.

Conclusion

VIA Rail is undergoing a host of changes on November 18, 2023. Aside from implementing a new reservation system, it’s also giving its Préférence loyalty program a makeover, and adjusting its baggage fees.

The loyalty program is switching to a dynamic pricing model, and the cost of award tickets will fluctuate, depending on the cash price. Taxes and fees on award bookings are also being implemented.

On the plus side, you’ll also earn points on more products and services than before, and if you cross a new status tier, you’ll enjoy the benefits right away.

If you have a balance of VIA Rail points in your account, be sure to consider making a redemption before November 18, 2023, to lock in value under the fixed-award chart.