AQD: The view from a segment-running bottom feeder
Dec 19, 2016, 9:33 pm
#46
Original Member
Join Date: May 1998
Location: Vancouver, Canada
Posts: 6,222
Ahem... that's MY line.
Dec 20, 2016, 12:19 am
#47
Join Date: Apr 2015
Location: YVR
Programs: UA Premier Platinum
Posts: 3,759
+1
With AQD levels to reach, I don't see the difference between pax who pad itineraries with miles or segments.
Also, there's the myth that Tango fares are not profitable for AC. AC sets prices for fares to achieve maximum profitability, overall. Sometimes that means that Tango is half the price of Flex, while other times it's only a few % less (or more, once you include the Tango baggage fee); look at the fare differences on YYZYOW or YYCYVR. However you slice and dice it, AC is profit maximizing via all of the seats it sells - they just usually happen to make more (or lose less) with the higher fare buckets.
And yet, there are people on this forum who believe that someone flying round trip bi-weekly YYZYOW or YYTYDF, etc on a Tango fare, paying a much higher CPM than those flying monthly Flex transcons, are somehow less worthy of being considered a good customer of AC. And why? Because of competition for upgrades? (sorry, that bi-weekly Tango flyer can't upgrade) A busier priority boarding line? (As if someone boarding when Zone 1/2 is called is forced to gate check) A longer line up for lounge pickles?
With AQD levels to reach, I don't see the difference between pax who pad itineraries with miles or segments.
Also, there's the myth that Tango fares are not profitable for AC. AC sets prices for fares to achieve maximum profitability, overall. Sometimes that means that Tango is half the price of Flex, while other times it's only a few % less (or more, once you include the Tango baggage fee); look at the fare differences on YYZYOW or YYCYVR. However you slice and dice it, AC is profit maximizing via all of the seats it sells - they just usually happen to make more (or lose less) with the higher fare buckets.
And yet, there are people on this forum who believe that someone flying round trip bi-weekly YYZYOW or YYTYDF, etc on a Tango fare, paying a much higher CPM than those flying monthly Flex transcons, are somehow less worthy of being considered a good customer of AC. And why? Because of competition for upgrades? (sorry, that bi-weekly Tango flyer can't upgrade) A busier priority boarding line? (As if someone boarding when Zone 1/2 is called is forced to gate check) A longer line up for lounge pickles?
Remember, someone who buys discounted economy is a burden on the airline whereas someone who buys discounted business or first is a discerning, savvy customer.
Jan 3, 2017, 12:47 pm
#48
Original Member
Join Date: May 1998
Location: Canada
Programs: AC SE 2MM, HH Dd, SPG; IC Pl/A; AA; DL
Posts: 14,321
Interesting -- looking at changes to AA program and their introduction of AQD. Seems that some credit card spend is applicable?:
"Following the lead of its two main competitors, Delta and United, the Fort Worth-based carrier is introducing a revenue component for the traveler to earn and maintain status. In addition to elite qualifying miles or elite qualifying segments, AAdvantage members will need to spend $3,000 on qualifying air travel to maintain Gold status, $6,000 for Platinum, $9,000 for Platinum Pro, and $12,000 for Executive Platinum.
While there is no direct credit card waiver similar to what Delta offers certain American Express cardmembers, AAdvantage members can earn an equivalent of up to $6,000 in elite qualifying dollars through the use of American Airlines-branded credit cards from Barclays."
"Following the lead of its two main competitors, Delta and United, the Fort Worth-based carrier is introducing a revenue component for the traveler to earn and maintain status. In addition to elite qualifying miles or elite qualifying segments, AAdvantage members will need to spend $3,000 on qualifying air travel to maintain Gold status, $6,000 for Platinum, $9,000 for Platinum Pro, and $12,000 for Executive Platinum.
While there is no direct credit card waiver similar to what Delta offers certain American Express cardmembers, AAdvantage members can earn an equivalent of up to $6,000 in elite qualifying dollars through the use of American Airlines-branded credit cards from Barclays."