FlyerTalk Forums - View Single Post - Is Virgin America a terrible program for value?
Old Apr 17, 2010 | 11:02 am
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777 global mile hound
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Originally Posted by eponymous_coward
Like I said, I don't expect Elevate to win a lot of fans on FT. It's not a good value compared to legacy programs where your return is based on miles flown instead of spend.

However, as I also said, please note that miles flown is only loosely correlated to spend. It's my firm assertion that in many cases, legacy airlines are rewarding unprofitable or marginally profitable customers with frequent flyer benefits far out of scale to the revenue they return, and that affects the quality of the onboard product and overall experience (and this is part of why we've seen FF programs and the F cabin get watered down over the years). VX has made the decision that when it comes to their elites and their F cabin, you get what you pay for, and their goal is to not reward the marginally profitable/unprofitable customer who can figure out how to do a 1.5 cpm mileage run. I think that's tremendously sensible. It's also my feeling that the number of people who really exploit the value of FF programs to their maximum value (intercontinental F) is actually fairly small, so VX could easily get away with their approach.
Great post well said and worth repeating non cowardly one
Thank You
Have been fortunate for the past number of years to be an invited guest at conferences and watch/listen to the executive minds behind the biggest programs in the industry speak about customer value. It is interesting to note that some select programs are hostile towards some of their customers. You know those awful folks that don’t purchase a full fare ticket.
Those bottom feeders as the industry likes to refer to them..........

Some practice what they preach when it comes time to rewarding less profitable customers.However I would put those folks who strip value from their programs in the minority once they actually implement plans into action.
Most are seeking market share........ Tim Winship a writer who I admire and many here probaly are aware of has written about the fact that today’s frequent flyer has to some degree been replaced or perhaps competing by the new group of elites The Frequent Buyer with credit card spending and online shopping earnings. The frustration grows amongst many with more miles chasing fewer seats and redemption much tougher on the average from years past. There are handful of programs to their credit that truly live up to their promise. Every year I send business and leisure travelers to those programs......I gravitate towards all programs that can find a good balance. Typically what I end up with is exceptional return on my spending. Now mind you I am not complaining here

I have often thought on board with a variety of carriers if they rewarded me a little less and charged me a little more could service and the overall experience be considerably better?
And would folks be willing to except that trade off? My experience tells me regardless of how much I am willing to pay for tickets airlines will typically keep penny pinching adding fees, surcharges and cutting leg room and raising executive salaries. Where does the revolving door end up?

On the international side Ryan Air (where frequently the most frugal policies are invented) is in a war with Boeing trying to cut out as many restrooms onboard out of their new planes and holding back orders till Boeing cries Uncle. Pay toilets have also been floated around as another idea to discourage passengers from in-flight usage and bring in a new revenue channel. In the interim Boeing maintains removing restrooms compromises safety. How far can cost cutting go?
Every time I think we the flying public has reached a limit to what new unbundled charge the carriers can invent they come up with a new one. Spirit raised some ire more recently with charges for onboard carry ons

The unspoken truth is as a customer I find myself frequently highly overly rewarded for my revenue. I fly and stay in hotels far more than I ever imagined as a result somewhat like an addict. Inside Flyer and Flyertalk have fueled my interest for over ten years now in seeing the world on points and miles. That said these programs either throw free nights at me more then I can easily use in a promotional period or more confirmable international upgrades then a normal individual can use in a year. I had 12 systemwide confirmables this year alone after reaching 4 million miles as an Exec Platinum Should I complain? That would certainly be an unpopular thread in the AA forum

Then there is the other extreme the Elevate affect not much to chew on. I’d like a compromise personally. So far if my decade spent participating and researching programs has any merit programs tend to be globally feast or famine. I remain highly grateful to those in our communities that shared the feast or the knowledge which allowed me to travel well and reap enormous returns/benefits from those programs.

Last edited by 777 global mile hound; Apr 17, 2010 at 11:29 pm
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