FlyerTalk Forums - View Single Post - US/AA merger- MASTER DISCUSSION THREAD/incl 'when will US leave STAR'
Old Nov 17, 2013, 6:39 pm
  #2252  
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Originally Posted by BoeingBoy
You said the same as before - qualify on total annual spend - segments/miles don't matter. Which is precisely my point - miles/segments do matter. A low fare purchaser could have more spend than a premium purchaser who doesn't fly as many segments/miles while costing US more. That isn't the behavior US necessarily wants to reward. They'd prefer the high spend few segments/miles customer - spend as little as possible on that customer (few segments/miles) while taking in the most revenue. And that's where trip spend comes in - how much does the customer spend per trip vs how much is spent on that customer per trip. From US' perspective the flyer with the biggest difference is the best customer.



No losers means ignoring spend per trip - it's just a different twist on what exists now. $15k for 100k miles/120 segments is easy to accomplish - $125/segment is all it takes. It doesn't weed out the low fare/high miles/segments flyer who may be a barely above breakeven customer.

Jim
Barely *above* breakeven means profitable...
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