MilesBuzz! - Loyalty = Miles or Revenue?




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PremEx
Nov 6, 98, 12:09 am
There have been some interesting posts going on lately on various threads, the most recent being a post today (10/5/98) by Msg53 on the Delta board (see L Fare), that makes me want to bring up this old question...just what is a Frequent Traveler Program and who should it benefit most?

By their own marketing, the airlines consider these "loyalty programs." But what is "loyalty?" Should the priority go to the Full Fare customer who flys just a few times a year, or to say, another customer who flys a tremendous amount, but on low fares?

I'll start with my own personal view. If these truly are loyalty programs...that is whose goal is to get you to call and fly with them as a prefered airline...then I don't understand why and how the airlines seem to be shifting towards a "revenue" status rather than a "frequency" status. The way I see it is that (in my case) United, for a variety of reasons, has become my airline of choice. I call them first and fly with them almost exclusively now days...even when the routing and price may not always be the best. They have earned my loyalty.

The reason I would be very upset if they (or any other frequent flyer program) started to give preference to the occasional customer who, on those few trips, payed a higher rate, is that it seems to me to fly in the face of the "frequent" in Frequent Flyer. The airlines THEMSELVES set the fares. I have no control over that. The best that they can expect from me is that I call them first and fly with them often. I do not control the fares...THEY DO! I simply call them and, OF COURSE, ask for the lowest fare. Which, I might add, they themselves are promoting and want you to buy. I don't think it would build loyalty or be very wise to expect a customer to activly seek out and pay a HIGHER fare when a lower one is available!

My point is that these programs are, by the airlines own design, built to reward the "frequent" flyer. I don't think it's right to start to mix in a "revenue" wild card into these programs. Especially since I can't control the price I pay...only the airline I chose to fly. If the airlines want to stroke a full fare passenger who is miffed that he is sitting next to a FF'er who paid alot less, then they should come up with separate perks of some sort (full fare lounge, free limo, peanuts instead of mustard pretzels)....something that does not conflict with the priviledges and perks already earned by the Frequent Flyers.

And in a related way, for this reason I also don't think it's fair to restrict upgrades to "certain fares". If the airline is promoting it and selling it, it should be good enough for their best customers! And therefore upgradable using miles/certs.

Thankfully United for one, has recently removed the fare restriction on upgrading Domestic flights. Now I would like to see them do this across the board on International routes as well.

I know all the arguments about how the airlines are a business and how they are entitled to make money and how it only makes sense to give something to the poor schmoe who has paid more. But the airlines are big boys. They set up these programs because it benefits them. They just want to have it both ways within only one program. And that's not right, IMHO.

Whada you think?


pgupta011
Nov 6, 98, 1:17 am
PremEx, I agree with your views. Of late there have been a whole slew of promotions by the airlines offering various bonuses for full fare coach/business/first. I think that the airlines are not yet ready to ditch "loyalty", but will continue to come up with various ways to reward "astronomical ticket prices".

msg53
Nov 6, 98, 8:34 am
Thanks for your positive comments.Being an old baby boomer my dad always taught me loyalty.Premex as you red on delta's thread on l fares Joan H and Jeyna were very much defending delta which is their choice.But living in Atlanta it's Delta and Delta.You and i have more choices in So. CA.Also all these people complaining about you shouldn't upgrade on cheap fares is hogwash.If that was your own money instead of someone elses you wouldn't be saying those comments.
By the way we have a family business so I pay out of my own pocket and have the right to say I would like to upgrade on any fare.
Any normal human being would choose UA over Delta for that reason.
If I was in charge of expenses for a company and found out Joan h and Jeyna were paying more for an upgrade I would fire them on the spot,unless they paid the difference out of their pocket or chose another airline where you can upgrade on a cheaper fare.
I agree with Premex loyalty is very important to me but in this country its revenue.Is the world coming to an end?


dansil
Nov 6, 98, 9:11 am
Msg 53

We should not forget to give Brutus some credit for defending Delta's no-upgrade policy on L class fares.
He pointed out how the policy has forced passengers to buy higher fares, thus increasing Delta's revenue. This clearly, has been their strategy.
I still buy the lowest available fare, and will continue to do so.

Catman
Nov 6, 98, 1:06 pm
PremEx... you are right on the money.

Frequent is defined as doing something a number of times a week, month, year. I don't think someone who buys a first class ticket
twice a year for thousands of dollars would
qualify as "frequent."

And frequent flyers should get their rewards,
like higher ranking on the upgrade list!
We are giving these airlines our hard earned
money so we should get some compensation, like the occassional upgrade.

I would be disappointed if airlines went on a revenue basis. My company does not like to spend a lot of money on ANYTHING so the business office is told to look for the best deal (or ask the Travel show host or me
how to get the best fares and hotel rates!)
CATMAN

Rudi
Nov 6, 98, 1:26 pm
if we play with the words I would argue with the airline-own-words:

UA: MILEAGE plus (not PRICE plus)
LH: MILES&more (not MONEY/PRICE and more)
etc. etc.

Catman
Nov 6, 98, 2:14 pm
Thank you Rudi. And for the record, a supermarket chain in Jersey already has the
copyright for "price Plus" for its frequent shopper card (that I carry all the time!)
So the airlines will have to stick to loyality over money. CATMAN

Matt Wald
Nov 6, 98, 2:16 pm
AMEN, Premex. BTW, is it just me, or does it seem like while ff programs reward loyalty and intelligence (to figure the system out), the price-based rewards are actually rewarding disloyalty (if I can get upgraded w/o elite status, then who cares if I achieve elite) and stupidity (anyone who pays $1900 for a coach fare IAD-SFO!!!!!!)??????



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