Originally Posted by
ermen
People only want that (setting the tier at normal DM instead od DM+ or something else) because they are DM
Ha I will shamelessly admit I am arguing my own corner.
But, this doesn't mean it's the "only" reason why CX wouldn't blatantly discriminate against DM. More specifically, it doesn't make the argument wrong. The
#s are pretty straightforward, you can even ask
other airlines: CX DMs spend far more to reach OWE than the other programs' top tier. The guys at AA I know estimate their EXPs spend about 1/3 the average of a CX DM (they also believe SQ PPS Solitaire has a very high average spend). It's a huge disparity in customer value and discriminate against them at your own risk. The last thing CX needs is to infuriate their hands down highest spending customers. DMs are just a high yielding customer crop. It's 100% due to CX's good fortune being in Hong Kong, I'll add, aka it's not due to any special skill that CX has. It's still heavily financial and legal folks filling DM ranks in a very wealthy, niche, focused city-state. If Hong Kong were to lose its status as the financial hub of Asia, I imagine DM average spend would plummet.
Originally Posted by
ermen
Still, I would argue that opening Pier F and Wing F only for DMs + First is more likely than not a money losing proposition (ie the net profits that these DM contribute will be less than the cost it will take to maintain both lounges open). So why would CX in their right mind do that?
But if they must, by all means open a new smaller dedicated facility (like Concorde Room, TPR for F pax and maybe high value $ status pax - like the SilverKris F lounge...)
To say to open G16 for OWE and keep Wing F and Pier F (for F and maybe DM) lol... thats just insane economics (esp when people complain that there are too mnay OWE, AA/AS redeemers lol).
What will be interesting though is if CX values OW elites who fly their metals (in discount Y)...
yea, I should probably add I don't think the scenario is likely at all. And your point makes perfect sense...I still don't 100% understand the economics of lounges with partners, but it seems to me that it stands where CX makes money accepting partner entries. And on the logistics to your second to last line (open G16 for OWE only, Wing F+ Pier F for DM only), there are also so many OWE passengers in Hong Kong that to stick them in a tiny lounge would be pure insanity. Agreed.
A more likely (but still unlikely, IMO) scenario is to make G16 a DM + F only lounge. However, I think there are too many DMs to entertain this possibility. The problem is there are just too many damn people in Hong Kong who spend larger-than-other-places sums on airline tickets. So I think what you're left with is a situation where CX will just continue to lump everyone together, OWE+F+DM and not make any differentiation.
I personally think CX should just do more to differentiate DM from OWE, as allowed under OW rules, in other ways. I don't think splitting up the lounges will work because a.) there are too many DMs, but b.) DMs spend too much money to discriminate against. (the last thing CX wants is DM passengers jumping ship and just buying Alaska miles and flying in CX F via partner awards....I know I've bought some last-minute Alaska F tickets on CX. So what went from my most-expensive purchase - last minute F - became one of my cheapest tickets. CX cannot want to encourage this dynamic).