In another sign that Frontier Airlines has shifted from full-service airline to an ultra low-cost carrier (LCC), the Denver-based airline has revamped its frequent-flier program, moving from two elite tiers to one and cutting many benefits.

The changes will go into effect next year and will allow Frontier to earn ancillary revenue even from its more lucrative customers, who will now have to pay even for checked baggage. Passengers who fly at least 20,000 miles or 25 segments annually will earn free membership in the airline’s “Discount Den,” which offers $5 off checked-baggage fees. Elite members will still be able to choose seats in advance and will be given one free carry-on bag, though companions will not receive the perks.

Frontier has essentially shifted to a model in which it seeks business not by offering perks but by offering the lowest fares, especially in markets that network airlines have shunned, like Cleveland and St. Louis. “The market for airlines like Frontier is not people who are going to fly 100,000 miles per year,” industry consultant Hubert Horan said. “They don’t even have a network to support that.”

While the changes could push away long-time Frontier loyalists in cities like Denver, it is likely a good business decision. The network carrier loyalty program model, created in the 1980s, is not particularly effective for today’s ultra low-cost airlines. To make its business model work, Frontier will need to charge even its best customers for items like change fees. “The concept of the traditional United, America, Delta frequent-flier program doesn’t apply to the markets that they are in,” Horan said. “So they have to come up with something different.”

There is some question about whether it makes sense for Frontier to have any frequent-flier program. The carrier could benefit more from its fares, generally cheaper than the competition’s, showing up first on a GDS. “What is the logic of a truly ultra low cost carrier having a frequent flier program?” consultant George Hamlin asked. “They are not free. Frequent-flier programs cost money to run. There are expenses associated with it.”

Under Frontier’s current program, which ends in February, there are two elite levels—one for 15,000-mile fliers, and one for 25,000-mile fliers. Previously, Frontier took away other perks, such as free DirectTV and complimentary alcoholic beverages, from many frequent-fliers.