AMA "Closing Keynote: Transforming the MileagePlus Program at United Airlines"
#46
Join Date: Jan 2008
Location: SF Bay Area
Programs: UA 1K MM, Marriott Life Plat, various others of little note
Posts: 2,763
At Munich they are forced to compete with carriers with far better offerings in all categories (including in their own alliance). At IAH and EWR they think they're invulnerable, with a captive audience. Why would a dairy farmer worry about what his cows think? He's got them all penned in.
#47
Join Date: Jun 2005
Posts: 4,645
At Munich they are forced to compete with carriers with far better offerings in all categories (including in their own alliance). At IAH and EWR they think they're invulnerable, with a captive audience. Why would a dairy farmer worry about what his cows think? He's got them all penned in.
#50
Join Date: Jun 2005
Posts: 4,645
Looking at this globally, from the outside, it appears as though all airlines have come to the conclusion that the level of loyalty-driven benefits they have been offering is too high, and as each one takes it down a notch, the others follow.
It seems like the cost of offering these programs at historical benefits is not deemed to justify the return.
#51
Join Date: Oct 2007
Location: USA
Programs: UA (1K, 2MM), AA, Avis, National
Posts: 867
No doubt in my mind this is the direction they're all going.
Looking at this globally, from the outside, it appears as though all airlines have come to the conclusion that the level of loyalty-driven benefits they have been offering is too high, and as each one takes it down a notch, the others follow.
It seems like the cost of offering these programs at historical benefits is not deemed to justify the return.
Looking at this globally, from the outside, it appears as though all airlines have come to the conclusion that the level of loyalty-driven benefits they have been offering is too high, and as each one takes it down a notch, the others follow.
It seems like the cost of offering these programs at historical benefits is not deemed to justify the return.
#52
Join Date: Nov 2006
Posts: 172
Interestingly, I just was offered an online survery through one of the online survey portals on frequent flyer programs. All the questions, though, were about United Mileage Plus. Lots of opportunity to rank different attributes of frequent flyer programs--some actual, some potential. And, since I indicated that I had flown 11 flights not on United in the past 12 months, I was given a menu of possible 'sweeteners' and asked for each, how many of those flights I would have taken on UA if they had been offered.
Also, several questions asked for satisfaction and lack of satisfaction with a variety of specific attributes of the program, and a space to give my general overall opinion.
Not saying that this will make any difference, but clearly they're paying money to get responses from elites. It's the first thing I've seen that suggests that they are trying to figure out what might matter to us.
Also, several questions asked for satisfaction and lack of satisfaction with a variety of specific attributes of the program, and a space to give my general overall opinion.
Not saying that this will make any difference, but clearly they're paying money to get responses from elites. It's the first thing I've seen that suggests that they are trying to figure out what might matter to us.
#53
Join Date: Nov 2010
Location: Midwest
Programs: UA 1K, UA 1MM
Posts: 118
Buying business tomorrow v. selling today
United got a double hit, in my opinion, since they started trying to monetize the FF program at the same time they attempted a very difficult systems integration that disrupted the entire operation for customers and front line staff. Just when they needed their best customers the most, they hobbled the operation AND made the benefits to sticking with that operation less beneficial. Looking back, I think this will be judged as a not particularly bright move. Fundamentally, I wonder whether the metrics the "revenue enhancement" operation are being judged by internally are at odds with the metrics of total revenue generation long term, since the "extra revenue" celebration from a few "upsells" can be seen immediately but the hangover from losing your best customers can take a year to show up as companies review their contracts, and individuals evaluate where they are going to spend their money in the coming year. In other words, I don't think you can take credit for revenue enhancements unless you take as a cost to those revenue wins, the future losses of repeat customers because you did not retain them once they figured out their benefit was illusory. It is just math, that selling to anyone what you used to give away to attract and keep HVFs and VFFs, is going to result in fewer HVFs and VFFs. In my opinion, United badly miscalculated just how many of those folks they were going to lose and what the revenue impact of that would be, relative to what they thought they could gain by trying to sell that free stuff off, especially when those "enhancements" have to be extracted from the part of the customer base that is by definition, loyal to the lowest price, not the airline.
#54
Join Date: May 2006
Location: BOS and ...
Programs: UA 2MM, AA 600k, DL 500k, Hyatt GP 1M, HH Gold, Rad. Gold, CP Gold, Miracle Fruit-su Club
Posts: 9,950
Is it a profitable change for UA, though? I get the junk UA e-mails about every other day and I haven't bought a single ticket in 18 months now. Clearly they know I'm gone and have probably written me off.
However, have I been replaced by millions of dollars in additional credit card revenue and partner marketing promotions (cruises, flowers, credit card benefits that have been added)? Could UA, seeing enhanced revenue for these marketing programs, really be a marketing success story? They certainly know how to use e-mail.
However, have I been replaced by millions of dollars in additional credit card revenue and partner marketing promotions (cruises, flowers, credit card benefits that have been added)? Could UA, seeing enhanced revenue for these marketing programs, really be a marketing success story? They certainly know how to use e-mail.
Mileage Plus and other travel loyalty programs are not retreating in a vacuum. First, it's obscure in plain sight, lights. The card has the loyalty program's brand. People want, demand - supported by word-of-mouth-marketing - the card. "Other programs have one. Why not mine?" "US members get one. Why not international members?!" The bloggers show how to master the credit card program. Then it begins to compete with loyalty as the loyalty program managers reap the revenue from the credit card. They, before we, see the zero-sum between card loyalty and airline/hotel/etc. loyalty. By then, probably much earlier, it's fait accompli.
Now comes a transformed loyalty program. Which is, at this point, really just the lipstick.
Last edited by Firewind; Feb 10, 2013 at 8:40 pm
#55
Join Date: Oct 2004
Location: NYC
Programs: UA 1K, SPG Platinum, UA Million Miler
Posts: 2,596
As people from the old CO board can attest, I'm far from a UA/CO apologist. I like to think I'm objective but as far as I'm concerned:
- I've yet to miss a GPU, including EWR-TLV 2x
- I've been able to redeem Saver Class BF rewards 2x
- I haven't had a single IRROP that lasted more than 1 hour
- EWR is my home base and it's neither good nor bad (ie, same as it ever was)
- My biggest frustration has been over pilot's not turning on Ch9 out of spite
- I'm generally pleased with the service I receive on the phone as a 1K
- AA DEFINITELY treats their EXP's better than CO's treat 1K's. In my short time as an EXP I was blown away
- Was not at all impressed with AA's hard C/F hard prodict
- Was blown away on my most recent DL flight by how far they've come. Probably better than UA, at least until wi-fi is installed fleet-wide
I flew 125K+ miles in 2012, mostly on M-class or higher. Conclusion: UA is extraordinarily mediocre. Good enough for me as long as I sit up front >80% of the time and I can redeem my GPU's & miles.
- I've yet to miss a GPU, including EWR-TLV 2x
- I've been able to redeem Saver Class BF rewards 2x
- I haven't had a single IRROP that lasted more than 1 hour
- EWR is my home base and it's neither good nor bad (ie, same as it ever was)
- My biggest frustration has been over pilot's not turning on Ch9 out of spite
- I'm generally pleased with the service I receive on the phone as a 1K
- AA DEFINITELY treats their EXP's better than CO's treat 1K's. In my short time as an EXP I was blown away
- Was not at all impressed with AA's hard C/F hard prodict
- Was blown away on my most recent DL flight by how far they've come. Probably better than UA, at least until wi-fi is installed fleet-wide
I flew 125K+ miles in 2012, mostly on M-class or higher. Conclusion: UA is extraordinarily mediocre. Good enough for me as long as I sit up front >80% of the time and I can redeem my GPU's & miles.
Last edited by BigPoppaCO; Feb 10, 2013 at 8:57 pm
#56
Join Date: Sep 2009
Programs: UA GS>1K>Nothing; DL DM 2MM; AS 75K>Nothing>MVP
Posts: 9,341
+1. But for me it's 100% up front. IMHO, UA still remains the best available choice for US based VFIFs, but if they deprecate the ability to redeem GPUs and miles, I'm gone in an instant.
#57
Join Date: May 2006
Location: BOS and ...
Programs: UA 2MM, AA 600k, DL 500k, Hyatt GP 1M, HH Gold, Rad. Gold, CP Gold, Miracle Fruit-su Club
Posts: 9,950
Does power of suggestion work if I suggest that Helena Bonham Carter's character in a very popular current musical movie comes to mind?
[Mrs. Thenardier]
[Mrs. Thenardier]
Last edited by Firewind; Feb 11, 2013 at 1:20 am
#59
Join Date: Mar 2002
Location: Now MFE... formerly SEA and DCA
Programs: Now UA free!, AA Ex Plat, AS MVP, Marriott Titanium for life
Posts: 664
That ONE exec was the CFO- therefore representing a clear philosophy of the senior management. The corporach philosophy was further bolstered by a multitude of decisions, that I won't re-hash here. But in the end, they had no desire to hear what the customer was saying.
#60
A FlyerTalk Posting Legend
Join Date: Jun 2005
Posts: 57,592
- I'm generally pleased with the service I receive on the phone as a 1K
- AA DEFINITELY treats their EXP's better than CO's treat 1K's. In my short time as an EXP I was blown away
- Was blown away on my most recent DL flight by how far they've come. Probably better than UA, at least until wi-fi is installed fleet-wide.
- AA DEFINITELY treats their EXP's better than CO's treat 1K's. In my short time as an EXP I was blown away
- Was blown away on my most recent DL flight by how far they've come. Probably better than UA, at least until wi-fi is installed fleet-wide.
And yes, DL has definitely improved. If AA manages to avoid the problems suffered by UA during their upcoming merger, UA could soon be a distant third to AA and DL if they keep treating customers as single transactions to be fleeced.