Airpoints Upgrades Gone!
Mar 4, 2012, 4:29 pm
#316
Join Date: Sep 2011
Location: New Zealand
Programs: NZ*S plus various hotel programs
Posts: 945
I received a reply from Rob Fyfe overnight whilst he is on holiday.
A few snippets...
I think what stands out here is that when they are only operating on a 2% profit margin some things are no longer possible.
I'm also surprised how 50% of GEs couldn't understand the email! Clearly FT posters are not your average GE. Perhaps some of these people also approved of the changes?
It also shows how a few dozen GEs sending feedback resulted in the quick partial about turn.
A few snippets...
The reason the communications update 'responding to your feedback' was worded as it was is because 50% of our feedback from Gold Elites referred to the loss of free annual status upgrades whereas the first mail stated that these were unaffected.
In regards to the process for developing this change - it was trialled for 2 months before being implemented, and all feedback reviewed before we went live, notwithstanding we received a few dozen emails in the first two days post implementation and were keen to address these concerns. While you perceive this rapid response to customer feedback as a failure of management practice the majority of our Gold Elite feedback has applauded this response.
These latest changes were designed to further increase our satisfaction of upgrade requests which is already at one of the highest levels in the industry with our upgrades being very cheap by industry standards (the pricing of upgrades hasn't changed since 2008 despite the cost of fuel doubling over that time). The new system was designed to significantly weight and prioritise Gold Elite requests which currently account for over 50% of the 70,000requests we satisfy annually and we expect this to continue to be the case under the new scheme.
In summary, we spend tens of millions of dollars delivering these benefits to our Frequent flyers which is challenging in a business that operates on a 2% profit margin and we will continue to listen to feedback and explore ways to acknowledge the loyalty of our most valuable customers in ways that doesn't compromise the economic viability of our business.
In regards to the process for developing this change - it was trialled for 2 months before being implemented, and all feedback reviewed before we went live, notwithstanding we received a few dozen emails in the first two days post implementation and were keen to address these concerns. While you perceive this rapid response to customer feedback as a failure of management practice the majority of our Gold Elite feedback has applauded this response.
These latest changes were designed to further increase our satisfaction of upgrade requests which is already at one of the highest levels in the industry with our upgrades being very cheap by industry standards (the pricing of upgrades hasn't changed since 2008 despite the cost of fuel doubling over that time). The new system was designed to significantly weight and prioritise Gold Elite requests which currently account for over 50% of the 70,000requests we satisfy annually and we expect this to continue to be the case under the new scheme.
In summary, we spend tens of millions of dollars delivering these benefits to our Frequent flyers which is challenging in a business that operates on a 2% profit margin and we will continue to listen to feedback and explore ways to acknowledge the loyalty of our most valuable customers in ways that doesn't compromise the economic viability of our business.
I think what stands out here is that when they are only operating on a 2% profit margin some things are no longer possible.
I'm also surprised how 50% of GEs couldn't understand the email! Clearly FT posters are not your average GE. Perhaps some of these people also approved of the changes?
It also shows how a few dozen GEs sending feedback resulted in the quick partial about turn.
Mar 4, 2012, 4:33 pm
#317
Join Date: Nov 2011
Location: SYD
Programs: QF LTG, VASG, NZ*S, OZD, IHG SpireAMB, HHD
Posts: 1,421
I thought you could still use 2 RUs to jump over the PE class.
Mar 4, 2012, 4:43 pm
#318
Join Date: Nov 2011
Location: SYD
Programs: QF LTG, VASG, NZ*S, OZD, IHG SpireAMB, HHD
Posts: 1,421
[QUOTE=pbl22;18133847]I am certainly looking into the ANZ Qantas Visa to replace my ANZ Airpoints VISA. QUOTE]
ANZ Qantas Visa Platinum doesn't offer anywhere near the benefits that ANZ Airpoints Visa Platinum offers. For example, no status points and point benefit is capped at $30,000 for $1:1 points crediting, with 2 points per $1 spent above that limit. Also, Airpoints Visa has the 200 advance points. I may keep this card, as my spending will likely help significantly with the *G requal (as will domestic work travel and the odd GAS fare). QFF can get my first preference for Intl travel (for work or other), with *G only as backup. Can go for QF WP and those F lounges now!
ANZ Qantas Visa Platinum doesn't offer anywhere near the benefits that ANZ Airpoints Visa Platinum offers. For example, no status points and point benefit is capped at $30,000 for $1:1 points crediting, with 2 points per $1 spent above that limit. Also, Airpoints Visa has the 200 advance points. I may keep this card, as my spending will likely help significantly with the *G requal (as will domestic work travel and the odd GAS fare). QFF can get my first preference for Intl travel (for work or other), with *G only as backup. Can go for QF WP and those F lounges now!
Mar 4, 2012, 5:10 pm
#320
Join Date: Sep 2009
Location: Wellington
Programs: NZ*E, SQPPS, SAA*G
Posts: 35
Mar 4, 2012, 5:18 pm
#321
Join Date: Mar 2010
Location: NZ
Posts: 731
I received a reply from Rob Fyfe overnight whilst he is on holiday.
A few snippets...
I think what stands out here is that when they are only operating on a 2% profit margin some things are no longer possible.
I'm also surprised how 50% of GEs couldn't understand the email! Clearly FT posters are not your average GE. Perhaps some of these people also approved of the changes?
It also shows how a few dozen GEs sending feedback resulted in the quick partial about turn.
A few snippets...
I think what stands out here is that when they are only operating on a 2% profit margin some things are no longer possible.
I'm also surprised how 50% of GEs couldn't understand the email! Clearly FT posters are not your average GE. Perhaps some of these people also approved of the changes?
It also shows how a few dozen GEs sending feedback resulted in the quick partial about turn.
70,000 upgrade requests a year filled - not clear if worldwide or just New Zealand residents so if worldwide
Over 50% from GE but lets call it 50% so 35000 to GE.
Assume 2 recongition upgrades used per GE so about 17500 GE.
Lets say 3 times as many G as Ge and 4 times as many S as GE - very arbitrary I admit.
So 50000 G and 70000 S who between them get approx 170,000 recognition upgrades, which by my very arbitrary calculation means that of the 35000 non GE upgrades given a year as a G or S you have a 1 in 5 chance of getting a recognition upgrade.
This is not taking into account APD paid upgrades. Think Mr Fyfe needs to be clearer as to what he is talking about, if only paid upgrades means that taking all Airpoints members into account the chances are slim at getting any upgrade, but very unclear how many members in AP.
Honest and open is all we want after all you are possibly a State Owned Enterprise given the government shareholding so maybe one of you top lawyers out there and look at it and see, are they open to review given the state shareholding and the effects their decisions are having on the public and in particular members of the AP program??
Mar 4, 2012, 6:13 pm
#322
Join Date: Nov 2007
Location: Brisbane, Australia
Programs: QF Gold, VA Gold, NZ Silver, A Club Gold, IHG Gold
Posts: 374
Talk about smoke and mirrors ...
Mar 4, 2012, 6:13 pm
#323
Join Date: Aug 2011
Programs: CX, NZ
Posts: 55
The journo doesn't seem to understand how the APD updgrades system currently works, confusing it with PAID upgrades.
Under the airline's previous system, Airpoints users could a get an upgrade if they paid a fixed price before a flight and a seat was available.
Mar 4, 2012, 6:29 pm
#324
Join Date: Mar 2012
Posts: 3
I used to be Gold Elite- but after getting zero service on TransTasman am slowly dropping down the ranks as I fly Qantas a lot more- good planes, good service and cheaper than Air NZ. Been a Air NZ FF since 1996 but unless you are Works Deluxe Air NZ doesn't think you are worth a pinch of s#$t.
Maybe if Air Nz started thinking of customers then perhaps loyalty may come back and their profits rise - (or losses decrease). I have never seen a business so keen to drive away their regular customers- ie their bread and butter
Maybe if Air Nz started thinking of customers then perhaps loyalty may come back and their profits rise - (or losses decrease). I have never seen a business so keen to drive away their regular customers- ie their bread and butter
Mar 4, 2012, 6:32 pm
#325
Join Date: Feb 2011
Location: MEL
Programs: VA Gold, Aegean *G, QF, SQ...etc
Posts: 176
I would have thought that with such a low profit margin one of the most important things to do would be to keep one's most frequent, least price sensitive (because let's face it, it's a rare price-sensitive beast who would reach G or GE on Air NZ) and highest spending customers happy. The reality of it is that for anyone up to GE, they are not losing revenue by providing fixed price upgrades. No availability meant no upgrade. Now, APD can be seen as a negative on a balance sheet, and this move seems like a cash grab on Air NZ's part (in terms of a new revenue stream), but what is the cost? Frequent flyers. I don't think the trade off is going to be as good as Air New Zealand thinks it is.
Mar 4, 2012, 6:36 pm
#326
Join Date: Jul 2006
Posts: 76
I used to be Gold Elite- but after getting zero service on TransTasman am slowly dropping down the ranks as I fly Qantas a lot more- good planes, good service and cheaper than Air NZ. Been a Air NZ FF since 1996 but unless you are Works Deluxe Air NZ doesn't think you are worth a pinch of s#$t.
Maybe if Air Nz started thinking of customers then perhaps loyalty may come back and their profits rise - (or losses decrease). I have never seen a business so keen to drive away their regular customers- ie their bread and butter
Maybe if Air Nz started thinking of customers then perhaps loyalty may come back and their profits rise - (or losses decrease). I have never seen a business so keen to drive away their regular customers- ie their bread and butter
Group General Manager International Airline
Christopher joined Air New Zealand in May 2011 as Group General Manager International Airline following a successful career at Unilever in North America, Asia and Australia. His most recent role was President & CEO of Unilever Canada, based at the Toronto head office, where he was responsible for leading Unilever's $1.4 billion Canadian business and 1,500 employees. Christopher was also a key member of Unilever's North American Leadership Team. A New Zealander who graduated with a Master of Commerce in Business Administration from the University of Canterbury, Christopher began his Unilever career here as a management trainee in 1993.
Mr Luxon has zero airline experience and has been allowed to make such drastic changes within less than a year in the role. Airline and shampoo are not exactly the same thing.
Mar 4, 2012, 6:41 pm
#327
Join Date: Nov 2007
Location: Brisbane, Australia
Programs: QF Gold, VA Gold, NZ Silver, A Club Gold, IHG Gold
Posts: 374
I found this statement from Rob Fyfe to be bordering on offensive. While the present state of the airline profit might well represent only a modest 2% margin on income it most certainly won't be valid for the airfares most GE members shell out for.
Mar 4, 2012, 6:48 pm
#328
Join Date: Nov 2007
Location: Brisbane, Australia
Programs: QF Gold, VA Gold, NZ Silver, A Club Gold, IHG Gold
Posts: 374
I used to be Gold Elite- but after getting zero service on TransTasman am slowly dropping down the ranks as I fly Qantas a lot more- good planes, good service and cheaper than Air NZ. Been a Air NZ FF since 1996 but unless you are Works Deluxe Air NZ doesn't think you are worth a pinch of s#$t.
Maybe if Air Nz started thinking of customers then perhaps loyalty may come back and their profits rise - (or losses decrease). I have never seen a business so keen to drive away their regular customers- ie their bread and butter
Maybe if Air Nz started thinking of customers then perhaps loyalty may come back and their profits rise - (or losses decrease). I have never seen a business so keen to drive away their regular customers- ie their bread and butter
I too have switched my trans-Tasman business to Qantas after the Seats to suit debarcle. I quite like Business class on some of my trips and have found QF on their brand new 738's offer a very pleasant service up front.
I'd encourage other FT members to give Qantas a try!
Mar 4, 2012, 6:53 pm
#329
Join Date: Mar 2012
Posts: 3
Perhaps if AirNZ started thinking of their customers their fortunes would change. Kiwis are price sensitive - but we will pay a little more out of loyalty and for good service- but $150 for works deluxe is a bit rich when you get the same service (without lounge access) on Qantas for the same price as a seat only. The brains have gone - bring back Ralph Norris
Mar 4, 2012, 7:20 pm
#330
Join Date: Mar 2012
Posts: 1
vote with your feet. air new zealand airpoints long ago became uncompetitive and not good value when they changed to their so called "air dollars". anyone who had air points at that time was substantially disadvantaged in the conversion. i do book most of my travel now with singapore or emirates.
they call them loyalty points, some loyalty, it clearly does not go both ways
they call them loyalty points, some loyalty, it clearly does not go both ways