AC to allow status buy-up
Jan 17, 20, 10:32 am - Wikipost
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Dec 4, 16, 10:50 am
#1
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AC to allow status buy-up
So I hear AC is going to let select 25k and 35k buy up to the next status level (25k-->35k, 35k-->50k), I kind of like this idea!
Dec 4, 16, 10:54 am
#2
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How exactly is this going to work? Do they let you buy missing AQM/AQS/AQD at a certain price, such that those who were closest to qualifying for the next tier pay less or will it just be some flat fee to buy up from one to the next?
Dec 4, 16, 11:40 am
#4
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Selling eUps? You mean bidding on upgrades to J? Or did I miss an announcement that we can now buy eUp credits?
Dec 4, 16, 11:42 am
#6
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It's MATH TIME - Guesstimate Edition
OK, so let's use a 789 as an example.
30 J
1. Can anyone guesstimate how many of those 30 are actually sold?
2. Can anyone guess how many pax are willing to bid for some J seats?
3. Can anyone guess how many will still spend for a LMU if that's even available?
4. Can anyone guess if there will be any seats left for eUpgrades, which Altitude members received for flying a certain amount of miles and/or as select privileges?
5. If the assumed objective over at AC was to reduce the numbers of SEs by eliminating those who used to fly 100K for $500, what would the objective be in providing the option for 25K and 35K to buy up to a higher Altitude level - other than giving AC another stream of ancillary revenue?
6. If so, then why not offer 50K the chance for 75K, 75K the chance for 100K and oh maybe have 150K as the new 100K?
.......
OK, so let's use a 789 as an example.
30 J
1. Can anyone guesstimate how many of those 30 are actually sold?
2. Can anyone guess how many pax are willing to bid for some J seats?
3. Can anyone guess how many will still spend for a LMU if that's even available?
4. Can anyone guess if there will be any seats left for eUpgrades, which Altitude members received for flying a certain amount of miles and/or as select privileges?
5. If the assumed objective over at AC was to reduce the numbers of SEs by eliminating those who used to fly 100K for $500, what would the objective be in providing the option for 25K and 35K to buy up to a higher Altitude level - other than giving AC another stream of ancillary revenue?
6. If so, then why not offer 50K the chance for 75K, 75K the chance for 100K and oh maybe have 150K as the new 100K?
.......
Last edited by 24left; Dec 4, 16 at 12:39 pm Reason: coffee required prior to typing ;)
Dec 4, 16, 11:46 am
#7
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Originally Posted by 24left
6. If so, then why not offer 50K the chance for 76, 75K the chance for 100K and oh maybe have 150K as the new 100K?
.......
.......
Dec 4, 16, 11:55 am
#8
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Originally Posted by adam.smith
How exactly is this going to work? Do they let you buy missing AQM/AQS/AQD at a certain price, such that those who were closest to qualifying for the next tier pay less or will it just be some flat fee to buy up from one to the next?
Originally Posted by adam.smith
Selling eUps? You mean bidding on upgrades to J? Or did I miss an announcement that we can now buy eUp credits?
Originally Posted by ffsim
I wonder if they're let people bid for a higher Altitude tier...
Originally Posted by 24left
It's MATH TIME - Guesstimate Edition
....
5. If the assumed objective over at AC was to reduce the numbers of SEs by eliminating those who used to fly 100K for $500, what would the objective be in providing the option for 25K and 35K to buy up to a higher Altitude level - other than giving AC another stream of ancillary revenue?
6. If so, then why not offer 50K the chance for 76, 75K the chance for 100K and oh maybe have 150K as the new 100K?
.......
....
5. If the assumed objective over at AC was to reduce the numbers of SEs by eliminating those who used to fly 100K for $500, what would the objective be in providing the option for 25K and 35K to buy up to a higher Altitude level - other than giving AC another stream of ancillary revenue?
6. If so, then why not offer 50K the chance for 76, 75K the chance for 100K and oh maybe have 150K as the new 100K?
.......
Dec 4, 16, 12:51 pm
#10
Suspended
Wish they let people buy status with Aeroplan miles or eearn AQM/AQM using CC spending
Dec 4, 16, 12:54 pm
#11
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Originally Posted by MasterGeek
Wish they let people buy status with Aeroplan miles or eearn AQM/AQM using CC spending
Dec 4, 16, 1:18 pm
#12
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Originally Posted by jaysona
Given how AC is flirting with the upgrade bidding - as in similar implementation to other airlines, I suspect AC will make it a fixed price to buy-up to the next tier level. I suspect the price range will be $500 - $1000 based on what I have seen others offer in the past.
It's possible, but AC talks about wanting to reward profitable and loyal customers, a fixed fee to buy up doesn't make nearly as much sense.
I also figure the profitability would be better on a program where you bought missing miles, or at least the fee was tailored to your AQM/AQS. If you set a fixed fee based on an average P25K buying up to E35K, let's say $1000, who's going to pay it? The 33K guy probably won't bother. The 25K guy will only bother if he knows he can extract well over $1000 of value out of it. Whereas if you make them buy missing miles, or graduate the fee (e.g. $200 for every 1K AQM you're short), you'll probably sell more and better match the costs and revenues.
Dec 4, 16, 1:33 pm
#13
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I agree with Adam. It doesn't seem to add up much. Especially for SE.
Like, if AC won't comp up to SE someone that has 99,000 AQM and $19,900 AQD, why sell the status for $1,000 to someone that is at 76,000 AQM and $9,100 AQD?
But, I guess it makes SOMEWHAT sense for slightly lower tiers. Especially after I looked this up.
AC would effectively be cross selling lounge memberships and a "status tryout".
I can imagine a tango P25K that could see $1000, as a good deal since they would buy full lounge access for like $500 and more priority services and eUpgrades for another $500.
So that's $1000 in AC's pocket.
P25K gets excited, and decides to start purchasing Flex + eUps, and to try to fly a bit more flex/miles to ensure E35K (or more) the following year.
The only things I don't understand are:
1. Do you really think that a P25K will care about E35K for $1000?
2. Do you really think that a P25K will alter his/her spending to offset some of the costs?
3. Do you really think that a P25K will exert any kind of effort to retain a higher status level?
BUT, TBH, if I was E35K, and they offered me E50K for $1000... *G access and priority worldwide... $665 is the cost of the membership for lounges, so I basically pay $335 for *G priority worldwide...
Like, if AC won't comp up to SE someone that has 99,000 AQM and $19,900 AQD, why sell the status for $1,000 to someone that is at 76,000 AQM and $9,100 AQD?
But, I guess it makes SOMEWHAT sense for slightly lower tiers. Especially after I looked this up.
AC would effectively be cross selling lounge memberships and a "status tryout".
I can imagine a tango P25K that could see $1000, as a good deal since they would buy full lounge access for like $500 and more priority services and eUpgrades for another $500.
So that's $1000 in AC's pocket.
P25K gets excited, and decides to start purchasing Flex + eUps, and to try to fly a bit more flex/miles to ensure E35K (or more) the following year.
The only things I don't understand are:
1. Do you really think that a P25K will care about E35K for $1000?
2. Do you really think that a P25K will alter his/her spending to offset some of the costs?
3. Do you really think that a P25K will exert any kind of effort to retain a higher status level?
BUT, TBH, if I was E35K, and they offered me E50K for $1000... *G access and priority worldwide... $665 is the cost of the membership for lounges, so I basically pay $335 for *G priority worldwide...
Dec 4, 16, 1:49 pm
#14
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Originally Posted by SparseFlyer
I agree with Adam. It doesn't seem to add up much. Especially for SE.
Like, if AC won't comp up to SE someone that has 99,000 AQM and $19,900 AQD, why sell the status for $1,000 to someone that is at 76,000 AQM and $9,100 AQD?
But, I guess it makes SOMEWHAT sense for slightly lower tiers. Especially after I looked this up.
AC would effectively be cross selling lounge memberships and a "status tryout".
I can imagine a tango P25K that could see $1000, as a good deal since they would buy full lounge access for like $500 and more priority services and eUpgrades for another $500.
So that's $1000 in AC's pocket.
P25K gets excited, and decides to start purchasing Flex + eUps, and to try to fly a bit more flex/miles to ensure E35K (or more) the following year.
The only things I don't understand are:
1. Do you really think that a P25K will care about E35K for $1000?
2. Do you really think that a P25K will alter his/her spending to offset some of the costs?
3. Do you really think that a P25K will exert any kind of effort to retain a higher status level?
BUT, TBH, if I was E35K, and they offered me E50K for $1000... *G access and priority worldwide... $665 is the cost of the membership for lounges, so I basically pay $335 for *G priority worldwide...
Like, if AC won't comp up to SE someone that has 99,000 AQM and $19,900 AQD, why sell the status for $1,000 to someone that is at 76,000 AQM and $9,100 AQD?
But, I guess it makes SOMEWHAT sense for slightly lower tiers. Especially after I looked this up.
AC would effectively be cross selling lounge memberships and a "status tryout".
I can imagine a tango P25K that could see $1000, as a good deal since they would buy full lounge access for like $500 and more priority services and eUpgrades for another $500.
So that's $1000 in AC's pocket.
P25K gets excited, and decides to start purchasing Flex + eUps, and to try to fly a bit more flex/miles to ensure E35K (or more) the following year.
The only things I don't understand are:
1. Do you really think that a P25K will care about E35K for $1000?
2. Do you really think that a P25K will alter his/her spending to offset some of the costs?
3. Do you really think that a P25K will exert any kind of effort to retain a higher status level?
BUT, TBH, if I was E35K, and they offered me E50K for $1000... *G access and priority worldwide... $665 is the cost of the membership for lounges, so I basically pay $335 for *G priority worldwide...
Dec 4, 16, 2:02 pm
#15
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Location: YUL
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Posts: 5,427
Originally Posted by jaysona
Higher than 50K? I hope not.
And as sparse alludes to above, AC has to be careful with the step-up costs they choose... too cheap and it's attractive to qualify for a lower tier and buy up, too expensive and there's no incentive to change purchase habits.
