There’s big news on rail this week: Amtrak has reached 20 million members of its Guest Rewards program.

Launched in 2000, the Guest Rewards program was originally introduced to coincide with the launch of the Acela trainset traveling along the I-95 corridor from Boston to Washington, DC.

And what was once a program focused on road warriors based in the Northeast has since expanded its appeal to cover the entire country.

To celebrate this milestone, Amtrak’s Loyalty Chief, Lisa Copeland, spoke exclusively with TPG about where the program is headed. Read on for details.

The smell of a new train: Amtrak’s brand new high-speed Acela trains are finally ready to enter service next spring

Points and cash are well received

Amtrak’s newest redemption option, Points & Cash, was launched earlier this year and has since been well received.

In fact, it’s quickly “become one of our most popular redemptions,” said Copeland, who said the new option is so popular “because it gives members the opportunity to take advantage of the different point values ​​they have.”

While the redemption rate for completely free travel is still better than points and cash, the ability to redeem a small subset of points toward a trip is understandably attractive. (Many airlines also offer a similar redemption option that combines cash with miles.)

The state with the largest number of members…

… surprisingly not New York.

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Given Amtrak’s penetration along the Northeast Corridor, one might have expected New York, Massachusetts or Pennsylvania to be the state with the most Guest Rewards members.

It turns out, that’s not the case. “You might be surprised to know that we have the most Amtrak Guest Rewards members outside of the Northeast; that’s California,” Copeland said. Don’t worry though. According to Copeland, New York is second.

While the program was launched with a focus on frequent travelers in the Northeast Corridor, it has since expanded its reach across the country.

And with that, Copeland said that as the program scales, “our role is to really make sure that we’re designing a loyalty program that meets different customer profiles and different customer needs. Obviously, the business traveler is important to us, but , is an opportunity for us to connect with all our passengers.”

Amtrak Guest Awards: How to earn and redeem points with train travel

More partners are coming

One area where airline and hotel loyalty programs have excelled is in building a comprehensive suite of partners that touch all aspects of the travel journey.

Amtrak sees value in the partnership and wants to build more for its Guest Rewards program in the coming years. “A top priority for us, we’re focused on partnership development. And without giving too much away, I think you should expect to hear from us.”

Copeland was tight-lipped about what kind of partnership we might see first, but she emphasized that the partnership is being designed to “get more value and be top of mind for our members.”

Don’t expect points to transfer

Another area where airlines and hotels have made (huge) money is by selling their points to credit card companies, which, in turn, allow cardmembers to transfer their credit card points to partner loyalty programs.

However, Copeland wasn’t bullish on bringing back point transfers to the guest rewards program. “Our loyalty program is a great way to enjoy Amtrak because you’re earning and redeeming on all your journeys.”

Aside from two cobranded credit cards issued by First National Bank of Omaha, Amtrak currently does not entertain other ways to boost your points-earning potential. (Note that Amtrak was a Chase Ultimate Rewards transfer partner until 2015.)

Upgrade ‘Hack’

Speaking of the most compelling redemptions, Copeland shared one of my tried-and-true “hacks” to the guest rewards program.

“One of the best ways to truly upgrade for Amtrak is to book an Acela business-class ticket and upgrade to our first-class experience,” said Copeland.

That upgrade costs just 2,500 points, and according to Copeland, this is “probably the best way to experience an upgrade on Amtrak.” I completely agree.

Attractive redemption rates

Check out the $213 train from Washington, DC to New York. With Amtrak points, it will reliably cost around 8,000 points.

Meanwhile, if you’re booking a flight, there’s no telling what Delta or United would charge for the same route because those programs offer dynamic price redemptions.

Amtrak’s redemption rates are mostly set at around 2.67 cents per point, which means that some of the cheapest trains are quite reasonably priced. (A $10 one-way from Philly to New York only requires 375 points.)

And Copeland likes Amtrak’s redemption rate strategy because it can provide immediate, measurable value. “If you’re comparing this loyalty program to others in hospitality, don’t be fooled. A thousand points for Amtrak will get you a lot more and unlock far more travel value than 5,000 points with some of our competitors.” she said, referring to airlines competing for an overlapping slice of the intra-Northeast market.

IT reforms are coming

The biggest pain point with a guest rewards program is the IT interface. (For example, it can sometimes take weeks for train activity to post to your account.)

Amtrak is well aware of its technical shortcomings, and Copeland emphasized that “we’re 100% working on IT. We have a very strong roadmap. We know we have a lot of opportunity, and we’re working diligently on it.” doing.”

Expiration dates may not change

In recent years, we’ve seen more loyalty programs drop expiration dates for their currencies. Amtrak’s policy is that points expire after 24 months of inactivity, and according to Copeland, that policy isn’t likely to change anytime soon.

“I think we have a very profitable expiration program today. As long as you’re an active member with Amtrak, your points don’t expire. So, there’s a lot of opportunity to keep those points within a 24-month period.” she said.

Asked what portion of the 20 million members are active members, Copeland declined to share specifics.

Offers are becoming more personalized

Some travelers know Amtrak Guest Rewards for its promotions, such as the annual “Buy Three, Get One Free” campaign, which offers free train tickets after taking three round-trips.

This promotion usually requires travel in the winter, and free tickets are available for use in the summer. This is a popular promotion model.

But that’s not necessarily the kind of promotion investment Amtrak will make in the future. “We’re also looking to be more personal with our offers,” shared Copeland.

In September, Amtrak launched a mystery offer that gave different offers to different passengers. Copeland said to expect more such offerings in the coming years.

There is no invite-only tier

Concierge Key, Delta 360, and Global Services are the names of the invitation-only membership levels offered by the Big 3 US airlines.

It typically costs more than $50,000 a year to be invited into one of these levels, but the perks they offer are often the envy of lower-level elite members.

For Amtrak, its highest published status level is Select Executive, which requires $10,000 in annual Amtrak expenses.

But does Amtrak offer an invite-only tier? Executives at American Airlines, Delta Air Lines and United Airlines usually answer any questions about their invitation-only tiers because they try to keep those tiers under wraps.

Copeland felt no such compunction when asked whether Amtrak had a special invitation-only tier. “We’re not,” she insisted.

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