Originally Posted by
eightblack
Young Grasshopper, I can tell you that the conversations I have had with Skywards and EK staff - that they are very much concerned and aware of the "no incentive past 50K tier miles"
On the routes I fly, they have high loads in Y (although for the past 3-4 months the loads have been light), moderate loads in J and minimal in F.
Australia is a very mature market when it comes to FFP, as one third of the entire population are members of the Qantas program. There would only be a tiny percentage of business travellers on QF metal now who wouldn't be a member.
And if EK are serious about cracking the US market, then they have no choice but to make Skywards far more competitive and to provide the incentive.
Because if they dont - others will. I was talking to an important member of this forum last night, and he even admitted that he is stopping flying on EK because he has already achieved Gold and doesnt see the point in doing any more.
You're right in that that applies to highly competitive markets. But you and I won't take an 8 hour overnight layover via DOH to save $$$. The same way there are people in the middle east who will pay for premium cabins on EK regardless of the FFP.
But I completely agree that beyond a point, expansion will only be possible by offering incentive to fly. And like they say, in the long run, it is far cheaper to retain an existing customer than to onboard a new one.