Other European Frequent Flyer Programs - Icelandair to change fare structure




Donna49
Jun 20, 07, 4:51 pm
I ran acrosss this release from Icelandair today:

Icelandair Introduces Flexible Fare Structure

COLUMBIA, Md., June 19 /CNW/ -- Effective June 21, Icelandair will
implement a simplified pricing structure for travel to and from Iceland. The
new structure is more passenger friendly with increased flexibility and
convenience, based on the air fare travelers are willing to pay, their
particular needs and service requirements. There will be four airfare
categories: "Saga," "Economy Flex," "Economy" and "Best Price,"
which includes "Special Offers."

All air fares will be combinable, allowing passengers to fly one way in
one category and return in another, enabling them to take full advantage of
the best air fares available at the time of booking and their personal
preferences.

Icelandair "Saga" passengers will retain the most flexibility and the
highest service levels with priority check-in and seat selection, airport
lounge facilities, extra baggage allowance and easier cancellation and
itinerary change rules as well as one-way fares, combinable fares, and
additional Frequent Flyer points (four times more than lowest economy fare).

"Economy Flex" passengers will receive similar benefits with flexible
cancellation, itinerary change and seat selection options as well as one-way
and combinable fares and additional Frequent Flyer points (50% more than
lowest economy fare).

"Economy" passengers will enjoy one-way and combinable fares, choice of
seating and minimal charges for itinerary changes and cancellations. They also
will receive additional Frequent Flyer points (25% more than lowest economy
fare).

Price sensitive passengers will find the new one-way and combinable fares
particularly advantageous to their needs under the "Best Price" category,
which will still qualify for Frequent Flyer points. Occasional "Special
Offers" will be less flexible and will provide the absolute lowest airfares.

The new fare structure to and from Iceland will be uniform in all
Icelandair offices in the United States, Canada, Iceland, Scandinavia, Great
Britain and Continental Europe.

Additional details will be available from Travel Agents, Icelandair
representatives at (800) 223-5500 and online at http://www.icelandair.com.




For further information: Debbie Scott, manager, Communications & Media
Relations-The Americas, Icelandair, +1-410-715 5153, or fax, +1-410-715-5137
Web Site: http://www.icelandair.com


This is interesting for the Icelandair FF'ers.

Prior to this change, FF points accrued based upon class of service; business or coach. Now it seems, points will depend upon fare paid: Business earns the most (as before), but more expensive coach will earn more than coach, which earns more than cheap coach.

Under the old system, business (Saga class) earned 2.5 times more points than any/every coach fare. Now the difference will be 4X from cheap coach, so I imagine cheap coach will earn less.


Donna49
Jun 21, 07, 10:06 am
The FF points earned with this new fare structure have been posted on the FI web site, and all coach fares have taken a hit.

For a RT, MSP-KEF-ARN, which is what I usually fly, the points work out like this:
special discount coach: 1000 pts
discount coach: 5200 pts
coach: 6500 pts
coach-flex: 7800 pts

In the past, you earned 8000 pts for any coach fare on this RT.

As it takes 80,000 pts for a FF gold card, which permits s/a upgrades from coach, reaching that level with coach fares has just become much more difficult.

Does any other airline have a FF program where rate of accrual of points is fare based?

MACH81
Jun 21, 07, 10:38 am
Does any other airline have a FF program where rate of accrual of points is fare based?

Most of EU FFPs are fare based. The cheaper the fare, the fewer miles/points you get. Some FFP do not give any miles at all on the cheapest fares: SQ,NZ...


Donna49
Jun 22, 07, 12:35 pm
Most of EU FFPs are fare based. The cheaper the fare, the fewer miles/points you get. Some FFP do not give any miles at all on the cheapest fares: SQ,NZ...

Thanks. I had no idea that EU FFP's were that way.

That being the case, I would imagine that doing a MR for points/miles to maintain status is not a frequent event.

MACH81
Jun 22, 07, 1:13 pm
Thanks. I had no idea that EU FFP's were that way.

That being the case, I would imagine that doing a MR for points/miles to maintain status is not a frequent event.

Not really. But most of FFPs in Europe are more generous with C/F fliers awarding 2x and 3x miles/EQMs.

Fares in Europe are way more expensive to begin with, YQs are very high; competition from LCCs doesn't do much to legacy carriers taxes!



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