Ken hAAmer

It occurs to me that the only reason Air Canada now allows members to transfer upgrades is because they now give so few they think it likely that members will just horde them close instead of doling them out to "nominees." I think they are right. I think there was also some thought given to having members left with stranded, orphan upgrade credits, just a few short of the number of credits they need for the next upgrade. Certainly for regular international travellers, most members will eventually find themselves just short, and frustrated that the trip they can't upgrade will be the one that alots the next batch of threshold upgrade credits.

But what if 5 Super Elites (for example) formed an upgrade cooperative? SEs are allowed to nominate up to 4 people who they then can provide "remote" upgrades to. So if the 5 each selected the other four you'd have this tight little co-op:



That was, if someone was on the cusp of receiving their next batch but was just short for their next trip, they could "borrow" from the "co-op", upgrade their current trip, and in turn earn their next threshold credits. They would then be indebited to the co-op for the number credits borrowed. Then the next time someone else in the co-op needed some top-up credits, they would then borrow from some who "owed" credits.

This presupposes the members trust each other, and they have similar travel patterns, at least with regard to the number and rate of credits being used. It also presumes a significant chance that at the end of a fixed year there might be an imbalance in credit "debits" and "credits."

If the credits simply expire at the end of the following February, then it probably wouldn't matter. On the other hand if credits eventually become valid for one year (or other fixed time period) then the co-op could just perpetuate itself. Members could drop out whenever their balance owing was zero, by just not nominating other co-op members the next year.

The example above presumes a simple 5-way closed co-op, but if someone had good actuarial skills, there's no reason why you couldn't set up a series of interconnected co-ops. It would be riskier and harder to manage though.

jmcintosh

Are you soliciting shareholders?! :-D

Rejuvenated

Nah. It is just another one of his recent trend of analytical threads.

Ken hAAmer

Not really. In our little office of 30-40 permanent full time regulars, we have 6 or 7 Super Elites, and 4 or 5 Elites (not to mention several oneworlders.) So if I do this, it will likely be with my office mates. As well, I'm about 99 and 44/100ths % certain I'm going elsewhere this year. If I do, I'll likely just gift as many of my credits as possible.

It's also possible I'll use some (or all) of them myself, though I'm not certain how that will play out.

arf04

This sounds like a very interesting idea, but frankly the amount of organizing etc needed to make the new order work even marginally for many is surely going to push people elsewhere.

I've been looking at my options for an unexpected LHR trip in Feb. Granted, I can use some of my leftover SWU's, but as I can't find any Lat fares (where did they go for many European cities in Feb?) I'd have to go with a Z fare as I want a guaranteed seat up front. In that case, as the new order doesn't look attractive I might as well look to other options and there do appear to be one or two that would work better for me than, say, setting up a co-op or working the math to not run out of credits etc. Much has been said on this forum about these changes, but it does seem worth repeating that from a marketing perspective (I see a FF program as a marketing tool) you never ever want to give the customers you already own any reason to have a look at what the competition is doing or offering. I think we've actually been invited to have a look around.

I do enjoy these threads of yours, Ken. It is nice to see a good creative mind at work.

acysb87

Great idea.Next year AC will limit nominees to two

As I stated elsewhere,this board is great at giving AC/AE ideas.

Do like the concept

The Lev

When the Z fare is below the Latitude fare, they often remnove the Latitude fare. I believe AC is currently running a Z promotion to Europe with fares below Latitude.

The Lev

This could be an interesting option - keep a nominee spot or two open on your list. If you have surplus eUgrades that are about to expire, you might find another status flyer who needs those upgrades and will upgrade you in the "new" year in exchange.

Arcanum

I do like the pentagram. Turning to the occult may be the only way I manage to get upgrades next year.

laidback71

Hey, why am I Mr Pink?

arf04

I think you are right about this, but the Z fares seem to me to be well above what they were in past years. In general, I think the Lat fares used to be a fair bit cheaper than the Z fares and that they have now crept up (rather than the Z fares creeping down).

It will remain to be seen where things go with the Lat and Z fares. My sense and experience is--and it is too early to see what will happen later in 2011--that these fares went up generally in 2010. If that is the case for 2011, then the lower ecredit redemption rates for Lat. fares are mostly useless for a flyer like me. Without that much else to benefit me, maintaining E isn't worth spending more with AC (I can get lounge access through other means for cheaper for sure).

acysb87

Mrs.acysb87 would be my only nominee for E-upgrade list.

I will leave 3 nominee spots unused

RoninTech

Great posts Ken! Very entertaining. I recommend that each member of the "sect" should receive a cloak and mask upon their joining. Also, since you came up with the idea you should now be referred to as the "Dark Overlord". Any thoughts on initiation rites?

acysb87

May the force be with you

The Lev

I'll keep that in mind.