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Old May 28, 2017, 8:57 pm
  #273  
QRC3288
 
Join Date: Nov 2007
Location: Hong Kong
Programs: CX, UA, Shangri-La, Hyatt, Starwood
Posts: 7,708
Originally Posted by FlyPointyEnd
I heard that was one of the purpose of changing it, members who fly Y and PEY could still easily qualify for Gold but DM would be a challenge unlike under the old system.

OT : I wonder whats gonna happen now to those who moved to AA after they announced their program changes.
(perhaps I shouldn't say DM is "very easy", because it's still way harder on CX than most of the other partner programs. But my point is, it has become far easier to qualify on CX than before if you're a regular cash J or F purchaser, while it has gotten nigh impossible if you're a regular Y or PEY ticket buyer).

End of the day, FF programs are going to need adjusting. The world is just getting a lot more global. You can be in Hong Kong, but it might make sense to be part of the AA partner program that is "based" 7,000 miles away. This dynamic simply didn't exist two decades ago when FF programs took off, and really weren't even prevalent 10+ years ago to the extent they are today.

FF programs were to encourage guys to fly on their own metal and drive revenue. That should still be the purpose. Airlines have alliances which both help, but also make things complicated especially in this hyper global world. I'm not sure what the solution is. But in spirit, I do agree with someone like samuelo in other threads, even if perhaps his message is a bit blunt and not politically correct. IF Cathay is going to own a mileage program, it should exist to drive more revenue. And that's failing now. In fact, Cathay is crushing revenue by other's award programs. Why not just go full outsource mode then?

For example, I have spent at least $25k USD and up to $125k USD/year every single year on CX for a decade now. I'm Diamond and have been virtually that entire time, except for the 9-12 months or so it took me to work up from Green in the beginning. Yes, occasionally I buy Y tickets, and often even I fly J class when I would go F simply because F isn't available to my destination or on the scheduled flight time I want. The idea that there should be an "class of service only" lounge is comedy to me, as proposed elsewhere....no, someone who goes out of their way to book the sole departure to "experience" F a few times a year is not more valuable than my decade of consistent and reliable cash revenue. It would be remarkably short-term thinking to favor that passenger in such an instance, and this is precisely the reason FF programs exist - to ascertain an intrinsic "value" to loyal return passengers despite the inevitable flight-by-flight differences. If I buy Y occasionally regionally, or fly J because I must take the daytime flight to SFO (without F), the idea to chuck us in the J lounge while a bunch of partner award bookers take selfies in the F lounge waiting 12 hours for the nighttime departure (with F) is just bad good business. I am probably closing in on $1mm USD spent in the next 2-5 years on Cathay. It is not a small amount. The idea that Cathay treats all OWEs, award bookers and whatnot the same as me is not lost on me or my peers, and it is driving my revenue elsewhere.

I've been quite loyal, and am still with MPC, but I fly significant less CX than I did before once I found out how the mileage programs and arbitrage really work here. Are guys like me important to CX like we probably were 10-20 years ago? Maybe not anymore, in which case then they're doing the right strategy. CX has gotta do what's right in this brave new world and maybe that means moving away from loyal cash spenders based in the home port. I'm willing to embrace this possibility. In that case I think they should just can their own loyalty program altogether because it has obviously lost the plot (it's causing me to push revenue elsewhere). At least, I can tell you they're not maximizing the wallet share of me and my peers like they were before.

In my mind, the loyalty program should be driving revenue. If it's not, then what's the point? Why doesn't CX just outsource their loyalty program to AA or QF or someone else? I'm not alone in Hong Kong with my sentiments. A number of close friends of mine are all Diamond, all spend varying degrees of big $ on CX, and everyone wishes CX could differentiate Diamond more or just can the program altogether. If CX has a loyalty program like MPC, its highest tier - which in particular is harder than most all the other OW requirements - should have some differentiation, and yes above and beyond OWE. That's how you actually drive incremental revenue spend on your airline. Right or wrong, the loyalty program should exist just to drive revenue. Otherwise, guys like me are just putting money to work in EK, SQ and BR way more than we ever used to or even considered.

Rant over.

Last edited by QRC3288; May 28, 2017 at 9:04 pm
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