AF's strategic goals for La Premiere in light of its recent changes for awards
#16
Join Date: May 2018
Location: Paris and around the WW
Programs: AF/KLM Club2000 Ultimate / M&M HON Circle / ALL Diamond / Hertz President Circle
Posts: 1,040
I think there are a lot of Americans with a ton of Citi/Amex/Chase/Capital One points. Ease of accruing these points make it possible for high spenders to quickly end up with 7 and even 8-figure point balances in these currencies, and there are frequent point transfer bonuses to Flying Blue. It's not terribly difficult to accrue FB Gold (or even Plat) status while spending little time on the plane, especially with the ability to earn XP with credit cards, donating miles to charity, or spending money on reforestation. I would posit that with so few LP seats in the air, the proportion of the LP seats being redeemed by flyers who spend very little time on AF/KL revenue flights has passed the level they're willing to tolerate. Instead of limiting LP redemptions to 1 seat/flight though, I think a better course would be to release the seats closer to travel, as it becomes clear/highly likely they will not be sold. From SF it's 230k each way to Europe, and I'd think that whatever they're getting paid by Citi/Amex/Chase/Capital One for those points should easily cover the cost of transporting passengers in an otherwise empty seat.
One easy solution from AF could have been : No P award ticket if you have not flown P paid tickets within the last 6 months for example
#17
FlyerTalk Evangelist
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Join Date: Nov 2007
Location: Denver • DEN-APA
Programs: AF Platinum, EK Gold, AA EXP, UA 1K, Hyatt Globalist
Posts: 21,600
Just wondering what exactly is the point of this change and how well thought out this really was. It's not like AF is selling a lot of P seats as it is. Nor are they losing many seats to award travel that would otherwise be sold for cash.
Days with P0 flights are few and far between even under the current "generous" P award policy. Maybe LAX and JFK but those cities are already limited to P4 F2 on each flight at best and some days P4 F0. Most other cities don't have anywhere near that P demand. Checking the next 7 days from all the P service cities to CDG and one can still buy P tickets everyday on almost every flight. And GRU is a pathetic P3, P4, P4, P4, P4 and P3 this coming week.
If you want to limit award travel to higher P demand cities or at peak seasonal times, simply reduce F inventory. There was no need to piss off your best customers who now can't book an award seat for their SO. Then again, it's the lame, short-sighted Air Canada mentality that is now running the show here so it's not surprising.
Days with P0 flights are few and far between even under the current "generous" P award policy. Maybe LAX and JFK but those cities are already limited to P4 F2 on each flight at best and some days P4 F0. Most other cities don't have anywhere near that P demand. Checking the next 7 days from all the P service cities to CDG and one can still buy P tickets everyday on almost every flight. And GRU is a pathetic P3, P4, P4, P4, P4 and P3 this coming week.
If you want to limit award travel to higher P demand cities or at peak seasonal times, simply reduce F inventory. There was no need to piss off your best customers who now can't book an award seat for their SO. Then again, it's the lame, short-sighted Air Canada mentality that is now running the show here so it's not surprising.
#18
Join Date: Feb 2009
Location: SF
Programs: UA MM, AA 2MM, Bonvoy LTP, HH Dia
Posts: 1,132
Just wondering what exactly is the point of this change and how well thought out this really was. It's not like AF is selling a lot of P seats as it is. Nor are they losing many seats to award travel that would otherwise be sold for cash.
Days with P0 flights are few and far between even under the current "generous" P award policy. Maybe LAX and JFK but those cities are already limited to P4 F2 on each flight at best and some days P4 F0. Most other cities don't have anywhere near that P demand. Checking the next 7 days from all the P service cities to CDG and one can still buy P tickets everyday on almost every flight. And GRU is a pathetic P3, P4, P4, P4, P4 and P3 this coming week.
If you want to limit award travel to higher P demand cities or at peak seasonal times, simply reduce F inventory. There was no need to piss off your best customers who now can't book an award seat for their SO. Then again, it's the lame, short-sighted Air Canada mentality that is now running the show here so it's not surprising.
Days with P0 flights are few and far between even under the current "generous" P award policy. Maybe LAX and JFK but those cities are already limited to P4 F2 on each flight at best and some days P4 F0. Most other cities don't have anywhere near that P demand. Checking the next 7 days from all the P service cities to CDG and one can still buy P tickets everyday on almost every flight. And GRU is a pathetic P3, P4, P4, P4, P4 and P3 this coming week.
If you want to limit award travel to higher P demand cities or at peak seasonal times, simply reduce F inventory. There was no need to piss off your best customers who now can't book an award seat for their SO. Then again, it's the lame, short-sighted Air Canada mentality that is now running the show here so it's not surprising.
Dec 2 P0F0, Dec 3 P0F0, Dec 4 P0F0, Dec 5 P1F0, Dec 6 P0F0, Dec 7 P2F0, Dec 8 P2F0, Dec 9 P0F0, Dec 10 P1F0, Dec 11 P1F0, Dec 12 P1F0, Dec 13 P2F0, Dec 14 P3F1, Dec 15 P0F0, Dec 16 P0F0, Dec 17 P0F0, Dec 18 P0F0, Dec 19 P1F0, Dec20 P2F0, Dec 21 P1F0, Dec 22 P0F0.
So exactly 17 P seats for sale over the next 3 weeks, and 1 F seat (on Dec 14th for 230k miles and $196.60 if anyone wants it). Admittedly, as someone unwilling to connect enroute to Europe, I haven't been checking other markets-- though I suspect that booking 2 LP seats during peak travel times ex-SFO (and likely LAX/JFK/etc) months in advance is costing AF significant revenue to the point where they decided to make this change. At the end of the day, booking revenue flights in F through AMEX IAP with miles and rebate for those with Plat/Centurion cards often comes out to a better deal anyway (and accrues miles/helps with status), but it's sad to lose the ability to take my wife to Europe in LP with miles. Not saying I like the changes or trying to defend AF-- I think they could have handled this a lot better-- just pointing out that they are selling these seats in certain markets.
Last edited by ps9a; Dec 1, 2022 at 9:40 am
#19
FlyerTalk Evangelist
Original Poster
Join Date: Nov 2007
Location: Denver • DEN-APA
Programs: AF Platinum, EK Gold, AA EXP, UA 1K, Hyatt Globalist
Posts: 21,600
Maybe I'm biased, but from SFO the award seats are less plentiful than GRU--
Dec 2 P0F0, Dec 3 P0F0, Dec 4 P0F0, Dec 5 P1F0, Dec 6 P0F0, Dec 7 P2F0, Dec 8 P2F0, Dec 9 P0F0, Dec 10 P1F0, Dec 11 P1F0, Dec 12 P1F0, Dec 13 P2F0, Dec 14 P3F1, Dec 15 P0F0, Dec 16 P0F0, Dec 17 P0F0, Dec 18 P0F0, Dec 19 P1F0, Dec20 P2F0, Dec 21 P1F0, Dec 22 P0F0.
So exactly 17 P seats for sale over the next 3 weeks, and 1 F seat (on Dec 14th for 230k miles and $196.60 if anyone wants it). Admittedly, as someone unwilling to connect enroute to Europe, I haven't been checking other markets-- though I suspect that booking 2 LP seats during peak travel times ex-SFO (and likely LAX/JFK/etc) months in advance is costing AF significant revenue to the point where they decided to make this change. At the end of the day, booking revenue flights in F through AMEX IAP with miles and rebate for those with Plat/Centurion cards often comes out to a better deal anyway (and accrues miles/helps with status), but it's sad to lose the ability to take my wife to Europe in LP with miles. Not saying I like the changes or trying to defend AF-- I think they could have handled this a lot better-- just pointing out that they are selling these seats in certain markets.
Dec 2 P0F0, Dec 3 P0F0, Dec 4 P0F0, Dec 5 P1F0, Dec 6 P0F0, Dec 7 P2F0, Dec 8 P2F0, Dec 9 P0F0, Dec 10 P1F0, Dec 11 P1F0, Dec 12 P1F0, Dec 13 P2F0, Dec 14 P3F1, Dec 15 P0F0, Dec 16 P0F0, Dec 17 P0F0, Dec 18 P0F0, Dec 19 P1F0, Dec20 P2F0, Dec 21 P1F0, Dec 22 P0F0.
So exactly 17 P seats for sale over the next 3 weeks, and 1 F seat (on Dec 14th for 230k miles and $196.60 if anyone wants it). Admittedly, as someone unwilling to connect enroute to Europe, I haven't been checking other markets-- though I suspect that booking 2 LP seats during peak travel times ex-SFO (and likely LAX/JFK/etc) months in advance is costing AF significant revenue to the point where they decided to make this change. At the end of the day, booking revenue flights in F through AMEX IAP with miles and rebate for those with Plat/Centurion cards often comes out to a better deal anyway (and accrues miles/helps with status), but it's sad to lose the ability to take my wife to Europe in LP with miles. Not saying I like the changes or trying to defend AF-- I think they could have handled this a lot better-- just pointing out that they are selling these seats in certain markets.
#20
Join Date: Feb 2009
Location: SF
Programs: UA MM, AA 2MM, Bonvoy LTP, HH Dia
Posts: 1,132
Interestingly, now that these miles are worth less to me going forward, I just got this email....
Until 21 December 2022, you’ll receive a bonus of up to 120% when buying Miles online. So go ahead, create a brand new wish list and start dreaming about how you can turn all these extra Miles into amazing Flying Blue rewards!
Comes to 1.52 cents/mile, which is the lowest I recall seeing ($10,050 for 660k miles if I max out what they're offering). Wouldn't have pulled the trigger anyway, but timing seems a little funny given the other announcement this morning.
Until 21 December 2022, you’ll receive a bonus of up to 120% when buying Miles online. So go ahead, create a brand new wish list and start dreaming about how you can turn all these extra Miles into amazing Flying Blue rewards!
Comes to 1.52 cents/mile, which is the lowest I recall seeing ($10,050 for 660k miles if I max out what they're offering). Wouldn't have pulled the trigger anyway, but timing seems a little funny given the other announcement this morning.
#22
Join Date: Feb 2009
Location: SF
Programs: UA MM, AA 2MM, Bonvoy LTP, HH Dia
Posts: 1,132
This Month's Promo Rewards
#23
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Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
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Given the change to minimum required elite level for LP booking AND the restriction of the number of seats available for award redemption, do you think this implies that the LP cabin seat count is going to be reduced from 4 to 3 when the new product is introduced later this year?
This is indeed the case : P sales are very strong since the Covid period, more than ever.
#24
FlyerTalk Evangelist
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
Indeed, I can understand that they want to limit P award tickets considering the low P offer vs increasing demand.
However, limiting P award to only 1 seat and preventing top clients to travel with their partner is a cheap move !
As for my case, I travel around 70/80 flights per year, only in J or P (around 6 to 7 round trip flights per year).
With over 2 M. miles, I would be a potential client to use them in P award tickets but I won't be allowed any longer...
In addition, 2 P award tickets would require at least 1 M. miles so I'm not sure they are so many eligible clients...
However, limiting P award to only 1 seat and preventing top clients to travel with their partner is a cheap move !
As for my case, I travel around 70/80 flights per year, only in J or P (around 6 to 7 round trip flights per year).
With over 2 M. miles, I would be a potential client to use them in P award tickets but I won't be allowed any longer...
In addition, 2 P award tickets would require at least 1 M. miles so I'm not sure they are so many eligible clients...
#25
Join Date: May 2021
Programs: Flying Blue Gold, BA Bronze, Ex-skywards Platnium
Posts: 646
I wonder what the "less popular" routes to NA are? I haven't a clue because I don't pay for Expert Flyer...
#26
FlyerTalk Evangelist
Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
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I am also one who does not understand the rationale of this change. As others said, they can control the inventory of award seats vs seats for sale. On top of that, redeeming P award seats is a way to reduce drastically the miles balance of FB members and so the provision in the books. And if this is due to those credit card point transfers mentioned above, I have to say that I am a bit fed up with those. I am referring to the rumor about DL considering not allowing anymore lounge access to their Elites Plus flying Y because of lounges overcrowding, while this overcrowding is mostly due to the people accessing lounge thanks to the Amex partnership. But those CC partnerships are so lucrative for airlines…
#27
FlyerTalk Evangelist
Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
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I am guessing those paid P trips are company paid tickets for business trips and if you want to travel in P for a personal trip with your better half, you may not be happy to have to pay 10k€ for a paid seat on top of one award seat, while before you were able to book 2 award seats using the million(s) of miles you have in bank. They certainly have their reasons to do this, but from the customer perspective, it’s a restriction and certainly not an enhancement.
#28
Join Date: May 2018
Location: Paris and around the WW
Programs: AF/KLM Club2000 Ultimate / M&M HON Circle / ALL Diamond / Hertz President Circle
Posts: 1,040
I am guessing those paid P trips are company paid tickets for business trips and if you want to travel in P for a personal trip with your better half, you may not be happy to have to pay 10k€ for a paid seat on top of one award seat, while before you were able to book 2 award seats using the million(s) of miles you have in bank. They certainly have their reasons to do this, but from the customer perspective, it’s a restriction and certainly not an enhancement.
I wouldn't mind much if at least, we could use the Ulti vouchers to upgrade from J to P
#29
Join Date: Dec 2010
Location: New York
Posts: 453
Outside of that, the different perspectives here are interesting. I am not racking up nearly enough miles through flying or credit cards to spend them on LP tickets, it's actually cheaper for me to get them if there's a great sale or something like that, or a good upgrade price. But if you have millions of miles to burn through (like a lot of you seem to), that's not great news for sure.
#30
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Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
I am guessing those paid P trips are company paid tickets for business trips and if you want to travel in P for a personal trip with your better half, you may not be happy to have to pay 10k€ for a paid seat on top of one award seat, while before you were able to book 2 award seats using the million(s) of miles you have in bank. They certainly have their reasons to do this, but from the customer perspective, it’s a restriction and certainly not an enhancement.
And as AF/KL has just discovered the word "bliesure" you are supposed to bring your spouse with you on business trips and take a holiday on the end of the trip.