RSkipage

I begin my 2018 travel year feeling pretty good about my 2017 decision to allow my Air New Zealand status to drop from Elite to Gold. It is a badge Im going to wear with honour because I think it represents both the level of loyalty to Air NZ that it deserves and some more prudent travel decision making on my part. Let me explain.

Along with many on this forum, Ive watched service levels drop (although I always celebrate the Air NZ people), the feeling that as an "Elite" the benefits were constantly whittling away (the xmas gift decision only validated this view), and the price differential between Air NZ and other airlines on Asian and European routes becoming ridiculous (I've previously commented about the huge price but relatively small service differential between China Southern and Air NZ). That said, the benefits of status on the domestic and trans-tasman routes are useful - so protecting those is sensible.

So, my long haul business class travel is now governed by price / convenience. Flights to Europe via Asia win on both counts. In respect to Asian flights - I'll balance off Air NZ offerings with others, but if it makes sense to collect status points from these, I'll do so. For trans-tasman and domestic - I'll maintain loyalty to gold level and protect my lounge and mid-tier benefits.

And what does this mean for Air NZ? Well actually I can only assume they are pretty happy. They have said nothing publicly to counter the FF rumour that they think they have too many "Elites". They are certainly not making European travel easier for NZers continuing only via LAX - meaning they are confident filling the plane with Americans on the second leg. And in terms of revenue - well they seem to have a marketing strategy that values growing the tourist cohort rather than the frequent flyer one - so my decision is irrelevant.

For me, I predict I'll save at least $14k p.a, I'll still fly in the class I want, and I'll probably even pick up status in another alliance.

So I say thank you Air NZ - you helped me see the light.

ClanJ

Yes am with you on this one and all the points made. I am Elite and will be for the next couple of years. However with the devaluation of status point earn for Regional based flyers and the ditching of the Elite Gift has made me look at alternatives to Airpoints. I have settled on A3 Aegean Air which given the distance between NZ the rest of the world makes achieving and maintaining A3 Gold quite simple IMHO. Also in order to maintain Elite have to paid travel so have accumulated quite a few air dollars over the years. The bare basics for A3, fly 24000 tier miles and 4 A3 sectors in one year or alternatively 48000 miles without the 4 A3 sectors. Once achieved the re qualification is 12000 tier miles with 4 (Equates to a one way full fare to/from) or 24000 miles. A3 also has some other advantages some of which are.

1000 tier miles sign up bonus.
Once Gold able to purchase tier miles (up to 3000)
Online tool to use earned miles to book award seats and upgrades *A wide
Can gift upgrades to anyone
of course the normal *A benefits.

So to do thisI have booked one way to London with 914 air dollars applied elite upgrades and recognition upgrades to PE. (So at last got rid of some air dollars. Going to visit Greece so the 4 Sector piece done.
On the way back booked Thai Biz (J) from Milan via BKK to Auckland for $2400. So in miles I get
1000 tier sign on
1500 for the 4 A3 Sectors
18000 from the Thai
So get a total 20500 with 12 months to grab the rest on any *A carrier. What I like about it is an not tied to any specific *A carriers in and out of NZ thus able to take advantage of some of the great deals offered. Internally will be *A so able to use the Air NZ lounges.

A useful tool on calculating the mileage earn on from any *A carrier to ones A3 account is https://www.owenrudge.net/utils/starcalc/

While I guess not for everyone will work very well for me and of course could also be an option for crediting excess miles.

pewpew

I thought NZ wouldn't let you change the FFP if you're using any NZ-specific benefits, like lounge access, upgrades, etc?

codyc1515

Does Air NZ actually care if they lose another Elite status member? The number is already on the higher end and for any premium cabin travel that doesn't originate from AKL you're basically stuck with them.

RSkipage

I think it is obvious that it doesn't matter to them since they don't believe they need so many Elites in their business model going forward. And maybe they are right. If thats the case - good for them.

The real message here for me, and hopefully to other current Elites - is that we all should manage the level of loyalty we have to Air NZ in a way that suits our needs. Elite members shouldn't feel bad getting similar levels of service from the competition at cheaper prices, since Air NZ is telling us that that if we decide to spread our loyalty it won't be detrimental to them. :-)

Ellice

Thanks for sharing your strategy, food for thought. Although the requirement to do 4 Aegean flights might be a bit of a barrier to travellers based in NZ retaining status after the first year.

Ellice

I'm sure even within the Elite status level there are elites and there are 'Elites'. Air NZ would definitely be looking after the commercial accounts (ie the companies who are making the big $$$ bookings) where a lot of the business Elites are sitting.

nzkarit

AKA in that case giving the CEO or whoever sets the Travel Policy EP1? To keep the business NZ focused?

poopbunny

Our corporate policy has some strongly worded Anti Bribery & Anti Corruption regulations. I cannot personally benefit (eg. EP1 status) from influencing supply (eg. by steering travel to NZ). Inversely, we are not allowed to offer any such "arbitrary" inducements to our customers either. Product or service has to be based on its merits.

I share OP's sentiments.
I too used to be hardcore NZ flyer, but NZ's loyalty strategy over the last few years has removed the blinders and my tunnel vision. My only regret was I wished I saw the "light" earlier, still sooner than many others here.
For me, I prefer the incremental benefits of OW Emerald (Plat) from OW Sapphire (*A Gold equivalent) over say EP1 from NZ*E or NZ*E from NZ*G.
Whether you are NZ*E of NZ*G you are more or less the same *A Gold flying a *A partner airline.

OP will find it liberating, when a sale or fare difference comes up between NZ vs Other, to just book the fare, route or product that best suites you.

atknz

Is it just me or is there a sense of entitlement to Air NZ owes maximum extras to frequent flyers?

I am coming to think I am the only grateful GE on here?

Maybe I just greatful that I am provided 3 RUs to use each year, can get free lounge access every time I fly, able to buy upgrades with Elite upgrades to save me siginificant amounts of $$ and get 50% added to any oneup bid I wish to make.

Why do we have to get more and more...

CHCflyer

I am not sure Nz is bothered. They must be getting their pricing right if they feel they can consistently price ahead of most competitors. Getting that revenue but not having to pay for loyalty is what they will really appreciate. They keep the full ticket price and not give us the kickback.
And the Nz market has never been more competitive so they seem to survive profitably. If the number of Elites is 20,000-2 then that probably suits NZ just fine, especially if you consciously choose to retain gold level. They keep you mostly loyal.

RSkipage

If you are happy - thats awesome.

I felt like you for many years but have seen changes in product quality and recognition over the last few. At the same time the improvement in the competition's products and prices have made the real value of "Elite" and opposed to "Gold" not worth it for me.

I shared my view just to encourage people to consider their routes, the cost of Elite status, and the other options that have arisen in the market that can be financially beneficial and not detrimental to travel comfort.

Ellice

Totally agree with you here about some of the better aspects of Airpoints programme for Elites. However probably should correct your wording re buying upgrades - it's Elite standby upgrades, not confirmed award bookings as are offered by other *A airlines. Agreed, the standby upgrades are sometimes confirmed close after booking (so you still had to buy an NZ ticket and hope for the best), however that is not the same as booking a confirmed upgrade at the time of booking.

Kiwi Flyer

and nor is it the same as booking in business class on another airline for the same price (ie no upgrade lottery).

atknz

Your being too literal, of course everyone knows applying for an upgrade by any means, RU, Elite/APD or OneUp is not a one deal but in the context that we can apply and by due to being Elite have a much better chance than most people is an excellent benefit worth keeping.