Rumor: MPC will go way of PPS
#436
Join Date: May 2009
Posts: 6,978
To an extent the really top fliers are not going to alter their flying pattern. And CX is going to shut out people to appease those top fliers. Those people who get shut out may decide that being loyal to CX is no longer necessary because the bar is too high.
So CX retains the customers that wouldn't move anyway, and the customers with discretionary spend (personal fliers, those who can choose their carrier and not on commercial contract) may decide that loyalty isn't worth it, and choose the lowest fare available.
Is this a net loss for CX in the end?
So CX retains the customers that wouldn't move anyway, and the customers with discretionary spend (personal fliers, those who can choose their carrier and not on commercial contract) may decide that loyalty isn't worth it, and choose the lowest fare available.
Is this a net loss for CX in the end?
Frequent Y fliers on the other hand are the ones that bean counts benefits, compares programs, and aim for highest tier possible with one airline. If I had to choose between AA EXP or CX GO (the highest tier the enhanced MPO will allowed me to make, or some watered down future DM tier that is pretty much the current CX GO), it's a no-brainer.
So in essence, CX forced someone like me to give my $35,000 to $40,000 annual revenue to AA, and of course once I saved up all the AA points guess which airline I'll spend it on, CX.....
As for posters that argues lounge access is a cost, it's a OW benefit, as OWE I will have access to F lounge, so ironically the new enhanced CX DM might bar DMs from going to a lounge that OWE can easily enter. And please don't say CX is making money at $50 a pop, that's the best guess in this group, that number seems high, in reality it's probably around $20 USD a pop.
#437
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,800
TPG recommends going for AAdvantage for Y travellers http://thepointsguy.com/2015/01/brit...+Points+Guy%29
#438
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,800
But to achieve the new requirements these people will have to be J/F fliers.
If they're already in J/F (i.e. qualifying for the next renewal), they don't see a lot more for being MPO.
They have to be back in Y for some reason (e.g. corporate travel in J, business travel in Y or redemption) in order to get any bang for their discretionary buck.
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Why would CX do this I wonder. They won't bother with the trial balloons like the SCMP pieces unless they think it's a win for them at least initially (te trial balloons get us talking and they can fine-tune their models)
Perhaps there really are some split J/Y fliers out there. Or CX is merely trying to cut cost (they can charge AA if Cathay Boy and QRC3288 went over to AA EXP, for instance). Perhaps a bit of both.
#439
Ambassador: Japan Airlines
Join Date: Mar 2008
Location: LAX
Programs: JAL Mileage Bank, JMB Diamond, oneworld Emerald, Bonvoy Platinum
Posts: 16,394
This is exactly what will happen. True F/J fliers don't worry about benefits and program perks the way frequent Y fliers do. Their flying pattern won't change much just because CX kicked out Y-DM from their lounges or make priority boarding more exclusive.
Frequent Y fliers on the other hand are the ones that bean counts benefits, compares programs, and aim for highest tier possible with one airline. If I had to choose between AA EXP or CX GO (the highest tier the enhanced MPO will allowed me to make, or some watered down future DM tier that is pretty much the current CX GO), it's a no-brainer.
So in essence, CX forced someone like me to give my $35,000 to $40,000 annual revenue to AA, and of course once I saved up all the AA points guess which airline I'll spend it on, CX.....
As for posters that argues lounge access is a cost, it's a OW benefit, as OWE I will have access to F lounge, so ironically the new enhanced CX DM might bar DMs from going to a lounge that OWE can easily enter. And please don't say CX is making money at $50 a pop, that's the best guess in this group, that number seems high, in reality it's probably around $20 USD a pop.
Frequent Y fliers on the other hand are the ones that bean counts benefits, compares programs, and aim for highest tier possible with one airline. If I had to choose between AA EXP or CX GO (the highest tier the enhanced MPO will allowed me to make, or some watered down future DM tier that is pretty much the current CX GO), it's a no-brainer.
So in essence, CX forced someone like me to give my $35,000 to $40,000 annual revenue to AA, and of course once I saved up all the AA points guess which airline I'll spend it on, CX.....
As for posters that argues lounge access is a cost, it's a OW benefit, as OWE I will have access to F lounge, so ironically the new enhanced CX DM might bar DMs from going to a lounge that OWE can easily enter. And please don't say CX is making money at $50 a pop, that's the best guess in this group, that number seems high, in reality it's probably around $20 USD a pop.
Please...you are not going to give your revenue to AA. You have already admitted that.
Well, my company is flying me Y+ now (but not J) so I'll probably still stick with CX because Y+ is Y+.... darn you CX, you got me, darn you!
#441
Join Date: Sep 2004
Location: country Western Australia
Programs: QF SG(LTS) - AA LTG(1MM)
Posts: 2,771
And where will the regular PEY fliers find themselves?
Happy wandering
Fred
#443
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong, France
Programs: FB , BA Gold
Posts: 15,555
And cost is becoming increasingly important when pax are increasingly price sensitive. In my experience there is a huge number of DMs in the wing F lounge gorging themselves on the food before their weekly regional flight in cheap Y. It is a business decision for CX to be more price competitive while reducing the lounge cost of all these SL/GO/DM. BA just did the same for the same price-competitiveness motivation (they also greatly reduced the ear/burn rate for most Y flyers, so much more expensive awards, meaning less cost for BA). And CX gets paid for other OW elites using their lounge, so that is not an issue.
#444
Join Date: May 2009
Posts: 6,978
TPG recommends going for AAdvantage for Y travellers http://thepointsguy.com/2015/01/brit...+Points+Guy%29
But of course MPO benefits reduction, I need to reevaluate.
#445
Join Date: Nov 2006
Programs: MPC,CA,MU,AF
Posts: 8,171
Understandable... For economy, you can only get AA miles for CX class H or above. As you are flying PEY these days, you can get 110% AA miles anyway.
#446
Join Date: May 2009
Posts: 6,978
so in essence, with this "enhancement" I'm still going to "clug" the priority line as OWE, use the F lounges, and get more miles to redeem CX F/J cabins more easily and not even paying CX YQ/YR?
Is CX really better off with their top tier Y fliers all going this route?
#447
Ambassador: Japan Airlines
Join Date: Mar 2008
Location: LAX
Programs: JAL Mileage Bank, JMB Diamond, oneworld Emerald, Bonvoy Platinum
Posts: 16,394
Exactly since I don't fly Y anymore, and then I can make AA EXP easy and get more bonus miles, freebie upgrades, etc.
so in essence, with this "enhancement" I'm still going to "clug" the priority line as OWE, use the F lounges, and get more miles to redeem CX F/J cabins more easily and not even paying CX YQ/YR?
Is CX really better off with their top tier Y fliers all going this route?
so in essence, with this "enhancement" I'm still going to "clug" the priority line as OWE, use the F lounges, and get more miles to redeem CX F/J cabins more easily and not even paying CX YQ/YR?
Is CX really better off with their top tier Y fliers all going this route?
#448
Join Date: Nov 2014
Location: KUL/BOS
Programs: AZ FA+, BA & UA Gold
Posts: 342
Absolutely. They get paid even more every time you fly with them and use their lounges. Also don't have to pay others when you enter other lounges. No liability for the miles from your flight once it paid AA to credit your flights. CX got paid when you redeem miles and it could care less whether you pay YQ or not on that redemption as AA pays a pre-negotiated rate.
#449
Ambassador: Japan Airlines
Join Date: Mar 2008
Location: LAX
Programs: JAL Mileage Bank, JMB Diamond, oneworld Emerald, Bonvoy Platinum
Posts: 16,394
#450
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,800
Jalpak: is it likely? Where's this new Titanium/F lounge going to be implemented (in HKG)?