Is AC's strategy to cut out the frequent flyer?
#1
Original Poster
Join Date: Nov 2006
Location: YEG
Programs: AC SE100K
Posts: 698
Is AC's strategy to cut out the frequent flyer?
With all of the changes in 2013 to the program, fares and now change fee's, I'm starting to really get the feel that AC's strategy is to completely dismantel their frequent flyer benefits ...
Is it possible that it's no longer making business sense for them to have a frequent flyer program? Some of these changes are just so insane (Flex fares to Asia being so insanely ridiculously over-priced) and of course the new $200 change fee for transborder which is more expensive than the Tango fare ..
I just don't get it.. Why would anyone pay significantly more just to be recognized as a frequent flyer by AC? Things just aren't adding up..
Are they bailing and forcing us out this way?
Is it possible that it's no longer making business sense for them to have a frequent flyer program? Some of these changes are just so insane (Flex fares to Asia being so insanely ridiculously over-priced) and of course the new $200 change fee for transborder which is more expensive than the Tango fare ..
I just don't get it.. Why would anyone pay significantly more just to be recognized as a frequent flyer by AC? Things just aren't adding up..
Are they bailing and forcing us out this way?
#2
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,803
Not so much dismantle the program.
Just redefining what "frequent flyer" means.
Back when they started, top tier was elite, at 35k. Compute the spending of a standard elite then, corrected for inflation, in today's value, and look at how many miles you currently would get for that money.
Just redefining what "frequent flyer" means.
Back when they started, top tier was elite, at 35k. Compute the spending of a standard elite then, corrected for inflation, in today's value, and look at how many miles you currently would get for that money.
#3
Original Poster
Join Date: Nov 2006
Location: YEG
Programs: AC SE100K
Posts: 698
Not so much dismantle the program.
Just redefining what "frequent flyer" means.
Back when they started, top tier was elite, at 35k. Compute the spending of a standard elite then, corrected for inflation, in today's value, and look at how many miles you currently would get for that money.
Just redefining what "frequent flyer" means.
Back when they started, top tier was elite, at 35k. Compute the spending of a standard elite then, corrected for inflation, in today's value, and look at how many miles you currently would get for that money.
For a guy like me who does quite a few long hauls to Asia every year, on AC I will now get 50% mileage because no company is willing to spend 2-3x the price on a ticket just so the person can get qualifying miles.... That and if you are PAYING them to get recognized throughout the year, they actually aren't giving you any benefit, you are paying for those benefits in all of the extra fee's..
It's basically Air Canada saying "these people are so dumb, we can charge them twice the price and tell them we are recognizing them and they'll believe it!"
How are we putting up with this non-sense?
#4
Join Date: May 2005
Location: YYZ
Programs: AC Altitude 35K, AA, Marriott Silver Elite, NEXUS
Posts: 357
has been said many times here..many of us who have to take the lowest fares due to company policies (and common sense) are avoiding AC. I agree that they are wanting us to head for the doors and they will fill the planes with last minute SE in J who's company will pay top dollar and the back of the bus with leisure travellers...us middle of the road folks are not really on their radar...
#5
Join Date: Dec 2010
Location: YYZ
Programs: UA 1K
Posts: 112
It seems as it is not just Air Canada/Aeroplan doing this. News articles show the US airlines (and maybe others) all doing it as well.
Yes, I believe they are re-defining what it means to be both a 'frequent flyer' and a miles collector'. (They are two different things.)
There are many different ways to collect miles, other than just by flying. So they are probably trying to differentiate between someone who actually flies (and spends money on the airline) and someone who buys a lot of products (and maybe churns credit cards) to earn miles.
It's a business model. Business models change over time. They want you to spend a certain amount of money with the company before they give you the perks.
Do I understand it? Yes.
Am I happy with it? No (because it affects me).
Do I have choices? Yes. We all have choices as to where to spend our money and to get the best value for it.
Yes, I believe they are re-defining what it means to be both a 'frequent flyer' and a miles collector'. (They are two different things.)
There are many different ways to collect miles, other than just by flying. So they are probably trying to differentiate between someone who actually flies (and spends money on the airline) and someone who buys a lot of products (and maybe churns credit cards) to earn miles.
It's a business model. Business models change over time. They want you to spend a certain amount of money with the company before they give you the perks.
Do I understand it? Yes.
Am I happy with it? No (because it affects me).
Do I have choices? Yes. We all have choices as to where to spend our money and to get the best value for it.
#6
Original Poster
Join Date: Nov 2006
Location: YEG
Programs: AC SE100K
Posts: 698
It's a business model. Business models change over time. They want you to spend a certain amount of money with the company before they give you the perks.
Do I understand it? Yes.
Am I happy with it? No (because it affects me).
Do I have choices? Yes. We all have choices as to where to spend our money and to get the best value for it.
Do I understand it? Yes.
Am I happy with it? No (because it affects me).
Do I have choices? Yes. We all have choices as to where to spend our money and to get the best value for it.
#7
FlyerTalk Evangelist
Join Date: Jun 2007
Location: Toronto
Programs: UA 1K, AC MM E75, Marriott LT Ti, IHG Dia Amb, Hyatt Glob
Posts: 15,520
Cue the guy who likes to come on here and say if your company won't let you fly in paid J to Asia, you should work somewhere else.
#8
Original Poster
Join Date: Nov 2006
Location: YEG
Programs: AC SE100K
Posts: 698
#9
Join Date: Mar 2013
Location: YYZ
Programs: Aeroplan, 50K Altitude, Nexus
Posts: 339
In my industry virtually no company pays for J I know guys at 4 other big firms and no one has it anymore. The old guys all complain because they used to get J for ever up to mid 2000's. Now if client will pay we get it, and that is only the state of China now.
This is my first year as a FF and really don't know how many benefits I will really take advantage once I actually get status. I will get Altitude 50 by end of year and just passed the 25K mark with the China trip. I know a lot of the older guys at work are switching to united and American programs.
#10
A FlyerTalk Posting Legend
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, BA Gold, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,316
It seems as it is not just Air Canada/Aeroplan doing this. News articles show the US airlines (and maybe others) all doing it as well.
Yes, I believe they are re-defining what it means to be both a 'frequent flyer' and a miles collector'. (They are two different things.)
There are many different ways to collect miles, other than just by flying. So they are probably trying to differentiate between someone who actually flies (and spends money on the airline) and someone who buys a lot of products (and maybe churns credit cards) to earn miles.
It's a business model. Business models change over time. They want you to spend a certain amount of money with the company before they give you the perks.
Do I understand it? Yes.
Am I happy with it? No (because it affects me).
Do I have choices? Yes. We all have choices as to where to spend our money and to get the best value for it.
Yes, I believe they are re-defining what it means to be both a 'frequent flyer' and a miles collector'. (They are two different things.)
There are many different ways to collect miles, other than just by flying. So they are probably trying to differentiate between someone who actually flies (and spends money on the airline) and someone who buys a lot of products (and maybe churns credit cards) to earn miles.
It's a business model. Business models change over time. They want you to spend a certain amount of money with the company before they give you the perks.
Do I understand it? Yes.
Am I happy with it? No (because it affects me).
Do I have choices? Yes. We all have choices as to where to spend our money and to get the best value for it.
#11
Join Date: Jul 2012
Posts: 96
True, it's not so much a "Frequent Flyer" program as a "High Spender" program.
Can't say I blame them, there are many frequent flyers who are about as good for AC's business as someone who nurses a single cup of coffee for hours while taking a whole table and using the WiFi all day is to a cafe owner.
Can't say I blame them, there are many frequent flyers who are about as good for AC's business as someone who nurses a single cup of coffee for hours while taking a whole table and using the WiFi all day is to a cafe owner.
#12
Original Poster
Join Date: Nov 2006
Location: YEG
Programs: AC SE100K
Posts: 698
True, it's not so much a "Frequent Flyer" program as a "High Spender" program.
Can't say I blame them, there are many frequent flyers who are about as good for AC's business as someone who nurses a single cup of coffee for hours while taking a whole table and using the WiFi all day is to a cafe owner.
Can't say I blame them, there are many frequent flyers who are about as good for AC's business as someone who nurses a single cup of coffee for hours while taking a whole table and using the WiFi all day is to a cafe owner.
#14
FlyerTalk Evangelist
Join Date: Mar 2005
Location: YYZ
Programs: AC*SE 2MM
Posts: 16,647
I used to pay $299 return YYZ-YVR and flights to Europe were $400-600. Now I'm playing at least double - far bigger increases than inflation.
On the flip side, when I first earned status I had to stay over Saturdays to get those fares which is no longer the case in North America and becoming less common to other global destinations too.
#15
Join Date: Dec 2011
Posts: 151
I think it's pretty clear that they are aiming to only reward the high-rolling "whales" who fly J all the time, and will probably never use most of their benefits because of that.
I've said before that they seem to think that removing eup potential from a raft of fliers will get them to spend 5x more on a J, but as others in this thread have said, the days of companies paying for J are mostly gone. The prices are just absurd and it's almost impossible to justify spending 6-7k for 18 hours on a plane.
Really wish I had any other real options for YEG TATL quick trips, but oh well. Only light at the end of the tunnel is the "reduced business traffic" note in their earnings call. Maybe they will see that they are shooting themselves in the foot.
I've said before that they seem to think that removing eup potential from a raft of fliers will get them to spend 5x more on a J, but as others in this thread have said, the days of companies paying for J are mostly gone. The prices are just absurd and it's almost impossible to justify spending 6-7k for 18 hours on a plane.
Really wish I had any other real options for YEG TATL quick trips, but oh well. Only light at the end of the tunnel is the "reduced business traffic" note in their earnings call. Maybe they will see that they are shooting themselves in the foot.