Question: Buying SE100k for $20,000 upfront
#1
Original Poster
Join Date: May 2003
Location: Sun Peaks, Taupo.
Programs: NZ Elite, AC SE100K, Westjet Teal, Marriott Bonvoy Gold Elite, Nexus, Global Entry
Posts: 6,135
Buying SE100k for $20,000 upfront
I am interested to read the opinions of others and AC if they wish to chime in, on the pros and cons for customers and company alike to buy SE100K with a $20,000 up front payment that is credit toward future travel in that year.
I would like to move back to AC and into their top tier in 2019 (I have NZ Gold Elite through until November 2019, with a soft landing to Gold until November 2020) but not have to wait until surpassing 100,000 bis miles to receive the benefits.
The advantage to me in being able to buy SE is I receive the benefits from flight 1.
The advantage to AC is that they receive the money up front. The disadvantage to AC is that they will incur the cost of giving benefit to someone who wouldn't have otherwise gotten it.
The SE benefit if bought would be the exactly the same as if earned BIS and carry over to the next year as well. The idea being that one would keep flying AC to enjoy the benefits.
I already fly AC quite a bit but accrue to NZ's AirPoints. I also have two TD Infinite Visa's that accrue about 550-600,000 miles a year through spend. These miles are used on copious quantities of Sport Chek gift cards among a few others. With SE, the use of those miles could change to AC seats. Travel patterns and limitations have made using AP miles for airline seats unrealistic for us.
Thoughts?
I would like to move back to AC and into their top tier in 2019 (I have NZ Gold Elite through until November 2019, with a soft landing to Gold until November 2020) but not have to wait until surpassing 100,000 bis miles to receive the benefits.
The advantage to me in being able to buy SE is I receive the benefits from flight 1.
The advantage to AC is that they receive the money up front. The disadvantage to AC is that they will incur the cost of giving benefit to someone who wouldn't have otherwise gotten it.
The SE benefit if bought would be the exactly the same as if earned BIS and carry over to the next year as well. The idea being that one would keep flying AC to enjoy the benefits.
I already fly AC quite a bit but accrue to NZ's AirPoints. I also have two TD Infinite Visa's that accrue about 550-600,000 miles a year through spend. These miles are used on copious quantities of Sport Chek gift cards among a few others. With SE, the use of those miles could change to AC seats. Travel patterns and limitations have made using AP miles for airline seats unrealistic for us.
Thoughts?
#2
Join Date: Jan 2017
Location: Halifax
Programs: AC SE100K, Marriott Lifetime Platinum Elite. NEXUS
Posts: 4,569
Apparently you get miles and AQD on flight pass purchases the moment the CC clears.
That is close to what you are proposing, but unless you know the region you are flying in, and it maps to an offered region, it likely there will be lots of waste.
Oh, and CC miles mean nothing to AC status. I'm strongly of the view it should not. One can always buy features, offering features because you show loyalty to something else makes no sense to me at all.
That is close to what you are proposing, but unless you know the region you are flying in, and it maps to an offered region, it likely there will be lots of waste.
Oh, and CC miles mean nothing to AC status. I'm strongly of the view it should not. One can always buy features, offering features because you show loyalty to something else makes no sense to me at all.
#3
Join Date: Jan 2013
Location: YYC
Programs: AC-E50K, *G, WS-Gold, Nexus, HH-Diamond, Marriott-Gold, Hertz-PC
Posts: 182
So essentially you’d like to receive SE benefits for 1 yr for free? If your $20k I actually just ‘credit towards future travel’, with zero (or close to zero) prior spend with AC, I’m challenged to see how this would make sense for AC.
#4
Original Poster
Join Date: May 2003
Location: Sun Peaks, Taupo.
Programs: NZ Elite, AC SE100K, Westjet Teal, Marriott Bonvoy Gold Elite, Nexus, Global Entry
Posts: 6,135
My travel pattern is not flight pass friendly. Destinations would be Europe, domestic, South Pacific, Asia.
#6
Original Poster
Join Date: May 2003
Location: Sun Peaks, Taupo.
Programs: NZ Elite, AC SE100K, Westjet Teal, Marriott Bonvoy Gold Elite, Nexus, Global Entry
Posts: 6,135
AC receives $20,000 up front as a credit toward travel in that year. If I do not burn through the full $20,000 credit then I am the one who is SOL.
#7
Original Poster
Join Date: May 2003
Location: Sun Peaks, Taupo.
Programs: NZ Elite, AC SE100K, Westjet Teal, Marriott Bonvoy Gold Elite, Nexus, Global Entry
Posts: 6,135
#8
Join Date: Oct 2013
Location: YEG
Programs: AC Lifetime SE100K, 3MM, SPG Lifetime Plat, Hertz PC, National Executive Elite
Posts: 2,901
#9
Join Date: Jan 2013
Location: YYC
Programs: AC-E50K, *G, WS-Gold, Nexus, HH-Diamond, Marriott-Gold, Hertz-PC
Posts: 182
Just trying to look at this from AC’s perspective, what do they gain here?
#10
Join Date: Aug 2009
Location: Toronto, ON
Programs: UA Gold, HHonors Gold, SPG Gold, National Executive
Posts: 35
This would be incredibly unfair to other frequent fliers. I finished last year with close to 20K AQD but AC wouldn't even credit me E50K because I only had 45 AQS/25K AQM.
#11
Original Poster
Join Date: May 2003
Location: Sun Peaks, Taupo.
Programs: NZ Elite, AC SE100K, Westjet Teal, Marriott Bonvoy Gold Elite, Nexus, Global Entry
Posts: 6,135
Ok, let’s assume you do fly the $20k worth. AC is still out the cost of whatever benefits you utilize, which have either a very real and tangible or indirect cost (eups, IKK, concierge, baggage allowance, etc), without you having spent or earned it in the prior yr.
Just trying to look at this from AC’s perspective, what do they gain here?
In my case I receive some of those benefits already as a *G. They also get my spouse and five children some of the time, that can be taken as a good or bad thing depending on the day! The kids are flying are pre-teen or teens now so flying alone more often, as well with me/us.
Concierge, IKK and eUps would be where AC gives something up.
#12
Join Date: Oct 2015
Location: Economy, mostly :(
Programs: Skywards Gold
Posts: 7,801
To those asking what does AC get, certainty of revenue is a very major concern especially in airlines, that is why businesses often give you a discount if you pay a year or whatever up front instead of the minimum period, same reason cell phone contracts exist and you get a fancy phone for a small monthly payment that barely adds up to the phones retail cost.
Such FF benefits in my view seem roughly in line with the type of incentive a business might offer for such a financial commitment, and AC can only win if the full 20k isn't used up.
It being "unfair" isn't really a business factor unless it'd seriously jeopardize the business from those other members, and those who earned status the regular way aren't losing anything so it isn't really of any consequence.
Such FF benefits in my view seem roughly in line with the type of incentive a business might offer for such a financial commitment, and AC can only win if the full 20k isn't used up.
It being "unfair" isn't really a business factor unless it'd seriously jeopardize the business from those other members, and those who earned status the regular way aren't losing anything so it isn't really of any consequence.
#13
Join Date: Jan 2013
Location: YYC
Programs: AC-E50K, *G, WS-Gold, Nexus, HH-Diamond, Marriott-Gold, Hertz-PC
Posts: 182
#14
Join Date: Jul 2013
Location: MLL / AC Cafe
Programs: It's hard to get status when the website won't let me book flights.
Posts: 5,706
#15
Original Member
Join Date: May 1998
Location: Vancouver, Canada
Posts: 6,222
It'll never fly because:
- privacy concerns
- Transport Canada rules
- not FDA approved
- too complicated for some posters too understand
- RoHS
- too hard
- too expensive to implement
- AC IT
- customers have no interest in product
- AC is competing with CX, EK, Spacex, etc and not RyanAir
- it's too good an idea.
- privacy concerns
- Transport Canada rules
- not FDA approved
- too complicated for some posters too understand
- RoHS
- too hard
- too expensive to implement
- AC IT
- customers have no interest in product
- AC is competing with CX, EK, Spacex, etc and not RyanAir
- it's too good an idea.