Originally Posted by
RatherBeInYOW
Everything has a hard quantifiable cost. The FF program benefits all have costs and they are amortized across all of us frequent fliers. Every 75K costs Air Canada $X and is and I am going to bet X is a lot less than mailing out some new kits.
Even 50K to 75K costs them another FF in a 35K nominee or free WiFi or more eUps, more Priority Rewards ... probably hundreds of dollars in additional benefits. I doubt it is even close.
Actually, not everything has a hard, quantifiable cost as many costs within the Airline of FF program are fixed or managed. How many 75k's actually nominate a 35k and what is the cost of the 35k for the limited benefits that they get? Free WiFi...we are spitting distance apparently from free WiFi across the network, and again, how many people take that 'benefit' and how often do they use it, which would not be a cost, but lost potential revenue but only if the person would have bought wifi regardless. More eUps, again, that one is a managed cost...the system could be flooded tomorrow by a million eUps but AC meters how and when they can be redeemed through inventory management, and the 35k nominee, or even the 75k who should have been a lower tier, is still behind a ton of others to redeem.
Cow brings up some more tangible hard costs in terms of *G lounge access, baggage fees (a potential cost towards partners, but we're not sure) or lost revenue to AC on their metal...are there others?