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Old Feb 18, 2019, 1:54 pm
  #73  
Tag1987
 
Join Date: Apr 2018
Location: Auckland, New Zealand
Posts: 52
Couple of things I would like to add:
1) CC earn will all come down to what the govt do on interchange fees. The second we see them reduced by law; out they will go the way of buying APD (where there is only one issuer providing this feature now). I tend to think that regardless of opinions on if it's right or wrong, it would be poor strategy for the airline to continue to chase this when essentially a lot of noise points to it becoming a less appealing revenue stream and something that could be removed from them. Let's not pretend that just because the govt. is the largest shareholder they are going to pass an opportunity to do something populist.
2) The airline is in a tough position with a customer base as diverse as its competitors (if not more diverse) but probably not as resourced as QF to deal with it - they are about half the size of QF and not THAT much larger than VA. I think better lounge differentiation in hubs would make a big difference and allow the airline to cater to multiple customer types and needs, but this is expensive and when comparing other airlines of a similar size they can barely afford their own international lounges, so again not a great position for them to be in but probably something they need to start thinking of in at least AKL.
3) There seems to be a real need for them to tailor and differentiate the loyalty experience more than they currently are - the regional NZ v. metro NZ/AKL v. Aus argument comes up time and time again as an issue and needs to be considered. For instance, rather than parking could they offer regionally based flyers airport transfer vouchers etc. Offer a suite of "rewards" at each level and let the flyer choose how they want to be rewarded for their loyalty. Personally 90% of my flying is Domestic and TT (and yes I hit elite off this in around about 5-6months) - so long haul upgrade vouchers are a waste as my work travel policy flies me J on long haul (again - appreciate that this is not the case for everyone). I have no real need for long haul upgrade vouchers - I'd way rather more Short Haul recognition. But with technology they should be more easily allow me to go in and select from a range of options a set of rewards that suit me an my travel preferences, but also cost the airline a set amount. Also, because they are the dominant player - the domestic market is theirs to lose - they should be ensuring that they keep a stranglehold on it.

As an aside - I've never understood why they don't chase Aussie customers harder. I would never have joined AP when living back home. If I needed a *A program it would have hands down been Krisflyer as the earn and burn opportunities are easier and they partner with VA for domestic burn. I can't help but think that the VA breakup was a poor strategic decision.

Last edited by Tag1987; Feb 18, 2019 at 2:07 pm
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