Originally Posted by
Andrew Yiu
The upgrade credits are designed to be a universal currency. Many feedback tells us that customers can't use the SWUs that are earned throughout the year so our end goal is to make the credits applicable on all T+ fare types if that's how a customer chooses to use them. We had to come up with a balance system that would still permit upgrades from Tango Plus and yet not giving the shop away. If we give all the Elites the equivalent credits vs 2010 using the worst case scenario (which is Asia since that's the furthest and most expensive), then all of a sudden customers would have many credits to upgrade T+ within North America. For example, if we give E say 40 credits to start the year, that would be equivalent to 4 SSWU on NA for a NA customer and that is 2 extra SSWUs for many customers vs 2010. Majority of our customers fly a mix of NA and International itinerary; there are LOTS of NA only customers especially within the Elite tier.
Andrew,
The changes penalize those flyers that fly long haul international a lot more than those flying within NA. One of the key issues is the very small amount of credits given at each threshold. I mean come one you are replacing 2 SSWU at 40k and 2 SSWU at 75k with 15 eupgrade credits at 20k and 15 eupgrade credits at 80k.. in essence going from the equivalent of 40 eupgrade credits at 40k and 40 eupgrade credits at 75k to a combined of 30 eupgrade credits at 40k and 80k. This really is a devaluation of atleast 62.5% of the benefit right in those 2 threshold levels..