Devaluation of Airpoints Dollar earning
#46
Join Date: Jan 2016
Posts: 2,671
Even with conventional ff schemes, such comparison has become more difficult as the miles/points earned are now often less than 100% for cheaper fare classes. For example,TG earns 100% miles on Y/B/M/H/Q fares, 75% on T/K/S, and 25% on V/W. So in TG’s case, it is better value (miles/$) to buy a Q fare than Y/B/M/H, presuming Q is available (and similarly S> T/K, and W->V).
The other consideration is that once enough miles/points are earned for a redemption, then award inventory availability is the key factor. However $AP can be used for any flight and fare.
So, my post was intended to focus discussion only on the devaluation of Airpoints in absolute terms (before & after fare increases), and not get into comparisons with other ff schemes.
The other consideration is that once enough miles/points are earned for a redemption, then award inventory availability is the key factor. However $AP can be used for any flight and fare.
So, my post was intended to focus discussion only on the devaluation of Airpoints in absolute terms (before & after fare increases), and not get into comparisons with other ff schemes.
For all those saying this or that about redemption. Why stay with Airpoints? Why not just use a different *A loyalty program where you can get your redemptions? If redemption is important why not pick a loyalty program that gives you the benefits that you want?
#47
Join Date: May 2005
Location: Sydney, Australia
Programs: NZ*G, MAR Titanium, HLT Diamond
Posts: 3,634
I don't think most people in here would regard is as a good thing.. It is simply how the program works so we deal with it.
The reality is that it is the only option for reward bookings and many people who don't fly regularly love the concept and regard the ability to use their points on any seat of any flight as a great thing.
The reality is that it is the only option for reward bookings and many people who don't fly regularly love the concept and regard the ability to use their points on any seat of any flight as a great thing.
#48
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2005
Location: WLG/BKK
Programs: TG*G, NZ*GE, QF G, Accor Gold
Posts: 10,273
Completely wrong. $AP earn is not fixed.
It is strongly linked to price paid (via fare class and fare product), perhaps not in a linear relationship. I haven’t graphed these.
I suggest you take a look for yourself at https://airpoints.co.nz 😀
It is strongly linked to price paid (via fare class and fare product), perhaps not in a linear relationship. I haven’t graphed these.
I suggest you take a look for yourself at https://airpoints.co.nz 😀
#49
Join Date: Jan 2016
Posts: 2,671
I don't think most people in here would regard is as a good thing.. It is simply how the program works so we deal with it.
The reality is that it is the only option for reward bookings and many people who don't fly regularly love the concept and regard the ability to use their points on any seat of any flight as a great thing.
The reality is that it is the only option for reward bookings and many people who don't fly regularly love the concept and regard the ability to use their points on any seat of any flight as a great thing.
Most people I talk like just being able to use their points before they expire. Know people who have moved from overseas and enjoy how easy AirNZ has made the using of APD compared to where they came from. The part pay is also a highlight for a lot of people.
Got to remember loyalty for most Airlines is a profit centre and CCs make airlines a lot of money. The ease of use of APD makes it attractive in a lot of eyes to have an APD credit card vs the other options out there. And that gets cash in the door for AirNZ.
#50
Join Date: Jan 2016
Posts: 2,671
No Airpoints like the scheme with another airline (expect things like SQ PPS & similar) is a way of driving revenue to the airline. Credit Card spend is where the revenue is at. That is where the money for Airpoints is coming from not the flying (making assumptions from what have read about other airlines)
#51
Join Date: May 2005
Location: Sydney, Australia
Programs: NZ*G, MAR Titanium, HLT Diamond
Posts: 3,634
Completely wrong. $AP earn is not fixed.
It is strongly linked to price paid (via fare class and fare product), perhaps not in a linear relationship. I haven’t graphed these.
I suggest you take a look for yourself at https://airpoints.co.nz 😀
It is strongly linked to price paid (via fare class and fare product), perhaps not in a linear relationship. I haven’t graphed these.
I suggest you take a look for yourself at https://airpoints.co.nz 😀
#52
Join Date: Apr 2013
Location: New Zealand (most of the time)
Programs: Air NZ Elite *G, Honors Gold, IHG Platinum Elite
Posts: 6,170
As others have said the big sell for Airpoints is 3rd party companies and credit cards. Selling points is huge money for Airlines and that's precisely the market in NZ and why so many people who don't fly regularly love the program and using it to book flights.
#53
Join Date: May 2005
Location: Sydney, Australia
Programs: NZ*G, MAR Titanium, HLT Diamond
Posts: 3,634
+1
Most people I talk like just being able to use their points before they expire. Know people who have moved from overseas and enjoy how easy AirNZ has made the using of APD compared to where they came from. The part pay is also a highlight for a lot of people.
Got to remember loyalty for most Airlines is a profit centre and CCs make airlines a lot of money. The ease of use of APD makes it attractive in a lot of eyes to have an APD credit card vs the other options out there. And that gets cash in the door for AirNZ.
Most people I talk like just being able to use their points before they expire. Know people who have moved from overseas and enjoy how easy AirNZ has made the using of APD compared to where they came from. The part pay is also a highlight for a lot of people.
Got to remember loyalty for most Airlines is a profit centre and CCs make airlines a lot of money. The ease of use of APD makes it attractive in a lot of eyes to have an APD credit card vs the other options out there. And that gets cash in the door for AirNZ.
Flybuys in NZ is a program for people to buy a toaster or magazine subscription. You can't even book flights easily using Flybuys now and it's not even a promoted benefit of the program.. (You can but you buy a Helloworld voucher from the Flybuys store and then take it a Helloworld store to book).
As others have said the big sell for Airpoints is 3rd party companies and credit cards. Selling points is huge money for Airlines and that's precisely the market in NZ and why so many people who don't fly regularly love the program and using it to book flights.
As others have said the big sell for Airpoints is 3rd party companies and credit cards. Selling points is huge money for Airlines and that's precisely the market in NZ and why so many people who don't fly regularly love the program and using it to book flights.
#54
Join Date: Dec 2015
Posts: 376
Completely wrong. $AP earn is not fixed.
It is strongly linked to price paid (via fare class and fare product), perhaps not in a linear relationship. I haven’t graphed these.
I suggest you take a look for yourself at https://airpoints.co.nz 😀
It is strongly linked to price paid (via fare class and fare product), perhaps not in a linear relationship. I haven’t graphed these.
I suggest you take a look for yourself at https://airpoints.co.nz 😀
#55
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2005
Location: WLG/BKK
Programs: TG*G, NZ*GE, QF G, Accor Gold
Posts: 10,273
Whilst I did not define 'strongly', the following illustrates the correlation between fare paid and $AP earned.
Seems pretty linear to me, and hence I think 'strongly linked' is a reasonable description of the relationship between $AP earned for price paid.
Last edited by Thai-Kiwi; Apr 30, 2024 at 2:09 pm
#56
Join Date: Feb 2014
Location: Frensham, Lincolnshire
Programs: RFC
Posts: 5,153
The fare classes that *A have normalised for award seats is misleading because NZ simply doesn't have the same programme structure that would *need* to make use of that fare-classes-for-redemption structure. That's the entire reason why NZ doesn't have many seats available for non-NZ *A partners to book: it doesn't need to have those seats classes in their system for programme redemptions, whether to it's own members or partners.
That said, while the availability might nominally be "good" within NZ's programme, the earn rate to get to the burn stage is still terrible IMO and has worsened with the price rises. I still think the programme is terrible overall. I can only see a very, very narrow use case for it where it might make sense. Upgrades might be more acheiveable in earn/burn, but that's really not a good measure of a programme IMO. And especially not when it's still cheaper for me to buy points with actual money on another programme and still cheaper to then garb a *A upgrade or seat outright within that programme. As I mentioned up thread, there's a good reason carriers such as Agean and Avianca have so many non-resident members in their programmes.
Very obviously, YMMV.
#57
Join Date: Dec 2015
Posts: 376
The point I was making is that when the price for a certain price/product increases due to “cost pressures” etc the APD$ earn generally doesn’t.
#58
Join Date: May 2005
Location: Sydney, Australia
Programs: NZ*G, MAR Titanium, HLT Diamond
Posts: 3,634
Yeah, nah, I'm going to agree with @sbiddle there and say you're nitpicking there with the fare class claim. The point is what is available, not what fare class is it. And on that front at least NZ do offer (somewhat close to) every seat to members.
The fare classes that *A have normalised for award seats is misleading because NZ simply doesn't have the same programme structure that would *need* to make use of that fare-classes-for-redemption structure. That's the entire reason why NZ doesn't have many seats available for non-NZ *A partners to book: it doesn't need to have those seats classes in their system for programme redemptions, whether to it's own members or partners.
That said, while the availability might nominally be "good" within NZ's programme, the earn rate to get to the burn stage is still terrible IMO and has worsened with the price rises. I still think the programme is terrible overall. I can only see a very, very narrow use case for it where it might make sense. Upgrades might be more acheiveable in earn/burn, but that's really not a good measure of a programme IMO. And especially not when it's still cheaper for me to buy points with actual money on another programme and still cheaper to then garb a *A upgrade or seat outright within that programme. As I mentioned up thread, there's a good reason carriers such as Agean and Avianca have so many non-resident members in their programmes.
Very obviously, YMMV.
The fare classes that *A have normalised for award seats is misleading because NZ simply doesn't have the same programme structure that would *need* to make use of that fare-classes-for-redemption structure. That's the entire reason why NZ doesn't have many seats available for non-NZ *A partners to book: it doesn't need to have those seats classes in their system for programme redemptions, whether to it's own members or partners.
That said, while the availability might nominally be "good" within NZ's programme, the earn rate to get to the burn stage is still terrible IMO and has worsened with the price rises. I still think the programme is terrible overall. I can only see a very, very narrow use case for it where it might make sense. Upgrades might be more acheiveable in earn/burn, but that's really not a good measure of a programme IMO. And especially not when it's still cheaper for me to buy points with actual money on another programme and still cheaper to then garb a *A upgrade or seat outright within that programme. As I mentioned up thread, there's a good reason carriers such as Agean and Avianca have so many non-resident members in their programmes.
Very obviously, YMMV.
As more and more programmes move to add dynamic burn option closely tied to retail fares (in addition to traditional redemption classes) such as QF, can we claim that all these programmes suddenly offer 100% reward availibility as well? I don't think a regular QF flyer would agree with that. It's for this reason that I insist that NZ offer close to 0% reward availibility.
I find people incredibly tolerant of anything NZ does here, which is why I guess NZ have been able to get away with a crappy programme and an outdated cabin for so long. I joined this forum in 2005, way earlier than most and know all too well how Airpoints works. Give me some credit here.
#59
Join Date: Feb 2014
Location: Frensham, Lincolnshire
Programs: RFC
Posts: 5,153
lol. You have NO idea about me, do you?
Sorry, but I don't tend to accept "Trust me, bro!" as a valid logical standard. Especially not when a lot of that argument hinges on "I want to define X in a way that suits my argument but isn't what ANYONE else has been saying in the discussion." I'm more kinda data and fact driven, I guess. I'm just stubborn that way, y'know.
And that's me done with this thread.
which is why I guess NZ have been able to get away with a crappy programme and an outdated cabin for so long. I joined this forum in 2005, way earlier than most and know all too well how Airpoints works. Give me some credit here.
And that's me done with this thread.
#60
Join Date: Aug 2007
Location: New Zealand
Programs: *A NZ Gold Elite for over 20 years previously SQ PPS and UA 1K
Posts: 283
Air points changes due in June
I understand that there has been a significant investment in changes to Airpoints to be announced in June. No idea what they may be.