johan rebel

Highlights from an interview with Harm Kreulen, Managing Director KLM Netherlands in the July/August issue of Zakenreis magazine.

Membership numbers in the Netherlands

Ivory : 1.4m
Silver: 45k
Gold: 28k
Plat: 23k
LTPE: 8k

186 new LTPEs in 2015.

LTPEs who reach 1m lifetime level miles get a Delft Blue "Paleis Het Loo", a collectors item valued at € 2,500.--

These FB members account for 70% of KLM NL's turnover.

Product developments

- the "improvements" for Ivory have already been mentioned in another thread.

- Paid advance seat assignments on all flights worldwide from August 24th, elites excepted.

- Dynamic pricing for all award tickets.

- FB to become spend-based.

- Miles & Cash awards to be introduced.

- Pre-sales – members will get first shot at special deals, a day or to before everyone else.

- Private Sales will become a regular feature.

- Better targeting of e-mails. They currently send out 1m a week, with up to 2,000 slightly different versions of one and the same e-mail for each and every promotion. That, apparently is not enough, they want to switch to personalized communications. For example, those just one flight short of achieving Silver will get an e-mail encouraging them to get their bum in a seat forthwith.

Johan

troje

I'm somewhat surprised by those numbers.

Xandrios

That is going to cost them a lot of elite members. Myself included. Which is probably what they are aiming for...getting rid of the 'freeloaders' on discounted fares.

Naomasa298

But it already is spend based - the cheaper fares get far fewer miles.

nldogbert

Indeed, for both status and award miles. Or unless they are planning to add the dreaded $$$ (Equivalent Spend Qualification) criteria like what their partner Delta ( and all major US-based FF program) has done above the Status Miles requirement.

Cheers!

johan rebel

To quote:

Eveneens in navolging van Amerikaanse luchtvaartmaatschappijen wil KLM een koppeling tussen de prijs van het ticket en het aantal mijlen. "Nu bepaalt de gevolgen afstand in combinatie met de boekingsklasse het aantal mijlen dat je verdient", zegt Kreulen. "Wij denken dat het voor de klant relevanter is om naar een systeem te gaan waarbij de beloning in mijlen is gerelateerd aan de prijs die voor het ticket betaald is"

Accrual to be based on price, not distance or booking class.

Johan

irishguy28

So, there isn't much between Gold and Plat after all!!!

By the way, I'm loving the new Ivory improvements. Yesterday, for the second trip in a row, my non-priority-tagged bag was the very first on the belt. This appears to be a non-published Ivory benefit, though.

johan rebel

Add the LTPEs and the Golds are even outnumbered.



Johan

nldogbert

wow... so this looks like the start of the EU carriers to follow their US counterparts if this comes true. Wonder how true this will be and when they will start...and if other EU based programs will move towards this

Zembla

Fascinating info Johan, thanks! Always wanted to know those numbers.

That's a nice one! 1m lifetime level miles? I reach LPTE next year in March, and although I don't know the exact numbers I think I'm not that for from 1m lifetime level miles, or possibly have already crossed that line. Could anyone report having received this?

So there are obviously not that many who account for this 70% turnover. Which is, why we could argue that the current platinum benefits + the special edition house may not be enough reward for "These FB members".

irishguy28

Which are "these"

The LTPEs who reach 1m lifetime miles; the 186 new LTPEs of 2015; or the 1.4m+45k+28k+23k+8k FB members?

johan rebel

All of 'm!

"Deze bijna anderhalf miljoen FB-leden zijn verantwoordelijk voor 70 procent van de omzet van KLM in Nederland."

Johan

Goldorak

Very interesting info and figures. Thanks Johan Rebel.
It would be nice to have the same figures for France-based members.
For the spend-base program, unfortunately no surprise here. We have seen this coming for months via different posters here, rumors and a few more or less hidden Infos in press announcements. This is clearly the end of the current segment qualification scheme. If they keep this possibility, they will add a minimum spending requirement. And when we talk about spending, I wonder if the number of miles earned will be based on the amount before or after taxes ? Because if it is before taxes, it means the cheap domestic/European tickets will likely earn even less than the today's misery.

And for the special gift for those who have earned more than 1m lifetime level miles, I wonder what AF will do for the French members

Xandrios

Only if you qualify based on miles.
And let's be honest, when flying primarily within Europe - this is pretty much impossible. 180-360 miles per flight is not going to get you anywhere but Ivory unless you fly multiple times per week. So in order to gain status one would need to fly long haul at least multiple times per year. Which eliminates a huge part of their current European frequent flyer base.

irishguy28

I hope you are not suggesting that FB is going to ditch its level-segments and qualifying via this mechanism!

If so, it will once more drop below Miles & More as Europe's worst Frequent Flyer Programme - regardless of what "Freddie" thinks.