wayoutwest

Apparently there is no category for most devalued frequent flyer program award so I am starting one.

I nominate Air New Zealand Airpoints program as the most devalued award program of 2011/12.

My considerations include:

Reduced earning ability on long haul
High cost of getting reward seats on NZ and *A partners
Lack/inability to communicate with members in a coherent manner
Failure to follow *A luggage "rules"

Any more ideas?

zqsn5678

no more extra star gold baggage allowance.

seat fare on TT/PI can not choose space+ seat advance.

credit card fees/surcharge. (HVC should be waived)


im very looking forward to see and hear about the top up APD and everyone is on the upgrade list and fighting for a seat up front.

oranjemakker

The biggest devaluation is their decision to make awards purchasable 100% in cash, which effectively creates a 6x devaluation of airpoints. For example, take an award to USA from PE to Biz for 480 AP, that previously had an implicit value of about $2500-$3000 (the difference in fare) is now only worth $480. That is a HORRIBLE devaluation.

ajnz

I am still struggling to reconcile this vs. the statement that Airpoints are too expensive to award on the basis of flights. This is why all the discount long haul fares earn nothing or next-to-nothing.

But I can buy $200 worth of Airpoints for $200.

Very strange.

Xiaotung

I agree the most devaluation is the Top Up function. Not only to us flyers but also to many of Airpoints commercial partners. For example, a few of us would pay more than $2.50 to rent a car from AVIS or Budget to earn 2.50 APD. And a lot of people would pay a surcharge to pay by an Airpoints credit card which earns you less APD than the value of the surcharge. Because frequent flyers value 1 APD more than 1 NZD. Now there is no need to do that anymore when you can buy APD at 1:1. So why wouldn't you just rent with the cheapest car rental company (and hotels for that matter) and find another FFP that company belongs to. You would be better off twice. It's a lose-lose for Airpoints and their partners.

That's why I think the logic of "earn to fly" is so wrong. That effectively dismisses the need for a loyalty program. The only currency now is NZD. For the same reason, for customers who would pay a premium to fly NZ and hope to earn some Airpoints would now just pick another airline with cheaper fares and still earn miles with that airline. That's why NZ long haul is always loss making because they have competition. Almost all long haul carriers have a great FFP to entice and retain customers. Unlike domestic market, NZ can do whatever they want. This perhaps proves again NZ is moving to a true LCC. Just such a shame for all the wonderful crew NZ have.

Reason077

This does sound absurd. Are you saying that points can be purchased on a $1 = 1 APD basis, and there is no limit to the amount that can be purchased? When was this announced?

While many FF programs allow point purchases, there are usually strict limits on the number of points that can be purchased each year.

This not only devalues Air Points, but potentially harms NZ's core revenues as well. Customers will try to use upgrades rather than purchase premium tickets on lightly-loaded flights.

ajnz

I agree completely. I think Air New Zealand has lost sight of their core business, and in particular, how to attract and retain revenue in that business. The loyalty(?) program completely reflects that at this point.
You must have missed the rather large thread about the new OneSmart MasterCard that Air New Zealand have launched, which allegedly allows the purchase of APD on a $1:1 ratio.

I say allegedly because I have not seen it written in the literature that $1:1 is indeed possible, it is merely implied. Some posters on that thread do claim that $1:1 is correct.

No kidding.

wayoutwest

Take a look at this from Airpoints T&C's:

12.6. Airpoints Dollars Purchase
If you have an Activated OneSmart Account, you can use the funds loaded and displayed in New Zealand dollars in your OneSmart Account to purchase Airpoints Dollars which may be credited to your Account or if you specify, to another Airpoints Member's Account. At the time of the transaction you will need to specify the Account for crediting the Airpoints Dollars. For the purposes of this clause, 1 Airpoints Dollar may be purchased for 1 New Zealand Dollar. Once Airpoints Dollars have been allocated to your Airpoints Account or to another Airpoints Member's Account, the transaction can not be reversed and is non refundable. Airpoints Dollars are not redeemable for Cash. We will not issue to you and you will not be entitled to a Tax invoice in relation to the provision of Rewards and/or Airpoints Dollars. The gifting and/or transferring of Airpoints Dollars may have tax implications for Members. See clause 13.
Service Fees apply in relation to the purchase of Airpoints Dollars pursuant to this clause 12.6. You must have enough New Zealand dollars in your OneSmart Account to purchase the requested Airpoints Dollars and pay for the applicable Service Fees, otherwise your request to purchase Airpoints Dollars will be declined.
Emphasis added.

I have raised this clause directly with NZ and asked them if I was misreading it, they saiddid not tell me I was - so $1 for APD$1

ajnz

"For the purposes of this clause" reads as illustrative example to me, not a commitment. It also uses the ever popular word 'MAY'. Until someone actually confirms they've purchased APD at $1:1 I'll remain skeptical. :-)

birder

It is 1:1. I am waiting for my bank transfer to show up and then I'm purchasing airpoints. It is very clear that it is 1:1 with a small fee that is currently waived. I will confirm when it all clears and the air points show up in my account.

ajnz

I disagree with the bolded part, but I am very interested to see the confirmation one way or another.

Rebound

Looking forward to confirmation

birder

Nope, it's crystal clear when you get to the instructions on how to top up your air points. Here are the instructions taken directly from the screen:

I will confirm once I buy them, but the instructions are pretty clear.

ajnz

Okay, I'll buy that as solid confirmation. My new card is in NZ, so I can't activate an account or buy Airpoints.

The remaining areas (T&C, NZ website) are up to the usual NZ clear-as-mud communications approach, hence the skepticism -- and I was hoping they wouldn't be quite so stupid.

Thanks for the confirmation. As sad as it makes Airpoints now as a loyalty program.

wayoutwest

Wonder if the bought APD will expire like the earned APD - if they do then NZ on a winner - there will be no upgrades available with APD so everyone will be forced to spend on flights (odd car maybe until it changes), they will also be having the use of real money to use as they wish, and if you don't manage to use then you loose - clever Kiwis