Originally Posted by
J.Edward
Loyalty will still play as large a role as it previously has, maybe a greater one, as there's not going to be an abundance of full-fare fliers anytime soon. And that's what an airline will need to compete for such customers assuming there's not a pricing or scheduling advantage.
But isn't the problem that CO (and most US FF programs) has gone out of their way to reward the wrong type of loyalty? A 50% bonus for BF or paid F? No differentiation among the vast majority of fare classes? Full bonus miles on partner airlines? It isn't a program that is exactly designed to drive incremental revenue.
And then they exacerbate the problem by introducing the 50% EQM thing in the exact wrong way. If you were given the choice between privileging corporate accounts or privileging casual fliers, which would you choose? CO chose to chase minor cost savings and created a system that penalizes those customers most likely to give them real revenue premiums.
I don't like the changes, but I disagree that CO is somehow chasing away a pot of gold. If OnePass is meant to drive incremental pax revenue (I'm not convinced it is), then dropping the elite bonuses is the least of their obstacles to accomplishing that goal.
Originally Posted by
kingalien
If AA hosted anything on par with what CO has done at the DOs you would be better informed.
Funny. Did you know, in advance, that this was coming? Did CO whisper this in everyone's ear out in Vegas? They didn't even do that when it was good news (the new BF)!
I'm sure everyone enjoys the DOs and they sound like a great time. But... let's not kid ourselves into thinking that they are letting us all in on some great secret that isn't readily available from their press releases, earnings calls, filings, and the like. If it is important, it is material. If it is material, then they won't be announcing it at a DO.
And, even if the communication is nice (and I respect the hell out of Scott for posting the bad news, not sugar-coating it, taking the heat, and answering questions), it still doesn't make the news any better. Objectively, an AA FFer has endured no more devaluation to their program than a CO FFer. LK may be a genuinely great guy. But, he is not your friend and I doubt/hope he doesn't make business decisions with the feelings of anybody here in mind.