Thai-Kiwi

I mused over lunchtime today on what impact these domestic fare increases have on the Airpoints program, specifically the ‘value’ on Airpoint Dollar ($AP) earn pre- and post- fare increase. I used just one sector to take a deeper look:

WLG-AKL Y class Flexi-Refund ($456 up to $530). The earn remains unchanged at 17 $AP and 36 SP despite the fare increase.

Prior to the fare increase, if I wanted to earn enough $AP to buy this fare it would take 456/17= 26.8 trips
This would cost 26.8x$456 = $12,221.
(yes, I know you can’t do fractions of a trip - but let’s keep the math pure)

After the fare increase, to earn enough $AP to buy the (new) fare it would take 530/17=31.2 trips.
This would cost 31.2x$530 = $16,536.

So, to earn enough $AP to buy exactly the same FlexiRefund Y class fare costs $16,536 - $12,221 = $4,315 more.

So it now costs 35% more real cash to earn enough $AP to buy the same fare 1653/12221 = 1.353 - a whopping devaluation (for at least this example).

There is also a increase in the dollar cost per Status Points earned from 456/36=12.67 SP/$ up to 53/36=$14.72, which is a 16% increase for this specific example.

Does this make sense? Or have I overlooked the bleeding obvious….?!

racekp

I find this amusing and highlights the lack of transparency and or knowledge from this travel writer.

Cheat sheet: What you need to know about Air NZ’s fare changes | Stuff

​​​​​​​And of course AirNZ hasn't commented as they will expose exactly what TK has unpicked above

Notagain

As is usual from Stuff they do not allow comments that may detract from their authors opinions or statement of �facts�

drajknox

At least the issue was raised. Perhaps Mike Hosking might raise the issue next time he interviews Greg!

Xiaotung

The author must have read that Airpoints is a revenue based programme and thought it earns by the dollars spent. Too simple! Too naive!

NZ has had 3 CEO's and the earn rates have stayed the same. Fascinating!
​​​​​​​

CHCflyer

My AP$ earn on my regular flights to CHC is 1AP$. to get a fairly decent low fare on the route I would have to fly between 150 and 200 times to earn one domestic discounted ticket. It really is a poor loyalty scheme if you simply fly domestic at the cheaper end of the fare inventory like me. I fly the route weekly and it would take me 18 months of weekly flying to earn a 'free' ONE-WAY ticket.

gratn

Great post TK, and disappointing to see another programme devaluation by stealth. It really is time for Air NZ to start from scratch, but I won�t hold my breath.

samjaynz

Why would they? I suspect many (perhaps the vast majority) of Airpoints program members are effectively "captive" owing to how much control Air NZ has over domestic routes - particularly regional ones - and so it's just a case of Air NZ throwing a few bones rather than needing to provide a decent program out of fear of competition overtaking them.

The vast majority of my flying is regional (3-4x per month sometimes) so I either take the increasingly meagre scraps Air NZ deems fit to throw me, or I get nothing. I imagine there are many like me.

Add to this the number of people who have blind loyalty because it's all about "sticking up for little old NZ", as well as the easy ride Air NZ has always enjoyed in the media (probably as a quid pro quo for getting cut in on travel review opportunities etc) and I imagine there'd be more concern at Air NZ HQ as to what the next Christmas function will look like, than there would be about improving the Airpoints program.

They don't care because they don't need to care.

If flying regularly internationally, particularly ex-Auckland where there is a better selection of airlines, it is getting to the point where it would make sense to start exploring alternatives. I guess I could look at Jetstar for my Auckland/Wellington/Chch travel (doesn't that allow you to earn on the Qantas program?) and then using Qantas for my trans tasman travel ... maybe that's going to be the plan going-forward.

Thai-Kiwi

If AKL based I’d have dumped AirNZ ages ago! Indeed I only effectively starting pursuing Airpoints in 2021, and went from ‘Member to Gold Elite in 9 months over 2022. I’d been living/working overseas on and off, and other programs presented much better value (for me). I’ve been flying THAI reasonably often for over 30 years, and appreciated *G status lasting for 2 years - which suited the ebbs and flows of work and leisure travel.

These days almost all travel is personally funded, and now permanently living in NZ. As a a GE I’ll stay with the program for now, but suspect I’ll strictly be a value traveller in a few years’ time - by then I’ll be very price sensitive.

Regarding JQ, yes you can earn Status Credits with certain fares. And QF is acceptable TT from ZQN/CHC/WLG.

samjaynz

Interesting perspective, thanks.

I must admit that I find value in the Elite program, if only because I have a lot of expensed work expenditure that goes through an AMEX card that earns decent APD rate. What this means is when I book international travel I usually have a healthy pool of APD to go for the EAPD upgrades (I've booked about 6 of those so far this year). Basically it means I've been able to become a premium economy, occasional business traveler when flying long haul for economy cost in terms of actual cash spent.

If I didn't have that benefit, I'd just limit my approach to trying to get Gold for the Star Alliance benefits, and then spend elsewhere for international travel based on best deal.

That just about makes it all worthwhile, considering the general "averageness" of the rest of the program e.g. crowded lounges (was actually a treat to go to the Fiji lounge recently with next to nobody in it) small number of "free" upgrades/RUs, and decreasing earn rates when adjusting for airfare costs.

Thai-Kiwi

Perhaps if the business is paying, then the required cash spend (churn) to earn those $APs is much less relevant. I assume this is also an expense used to reduce tax.

But for a predominately self-funded traveller, the calculus is quite different as the cash spend/churn is significant to generate a miserly $AP return. So of course I use my KiwiBank Mastercard and simply transfer real cash to $AP at almost 1:1 when I need to. As you note, there are many perspectives on a program and, consequently, how value is considered.

gratn

I mostly fly domestic. With a mix of main routes and regional. It�s almost all paid for by work, at good earn rates. With some long haul business courtesy of work too it�s a no brainer to keep within Star Alliance, so my personal travel can benefit from upgrades and AirPoints Dollars. Air NZ is far from perfect, but I value the benefits.

JamesBigglesworth

TT there's simply very little choice. The problem I have with it is they rely on the ignorance and narrow thinking of the average kiwi. No one in their right mind would use the NZ programme if they were serious about earning/burning. But the thing is that the average kiwi - and even a goo number of those supposedly clued in on the game - don't realise that they can belong to ANY programme on the planet.

Agean and Avianca have been better *A options for over a decade. Flying out of New Zealand programmes like the Alaska Airlines programme were often excellent option until they joined OW recently. IMO and despite the degrading of the programme post_OW join, that programme *remains* a better option than the NZ native programme if you're flying in/out regularly.

The other thing that people forget is that earn/burn is for fools these days, especially on NZ. You do far better to simply buy points on sale across other programmes and then use them for tickets. The problem there, obviously, is seat availability, especially on NZ itself, although oddly that has actually improved post-covid. Avianca still have regular points sales and their burn rates -especially when they have one of their rarer burn sales - can be rather good. I'd much rather spend NZ$1500-NZ$2000 on buying points with Avianca and then use those points for a J class return ticket on United/Thai/Singapore/Whomever. Makes far more sense than spending NZ$12,000 just to eventually get a AKL-CHC fare in NZ LCC Domestic.

The NZ programme makes zero sense for anyone that actually wants what the airline pretends it offers.

NPCtom

Would spending Airpoints on partner airline reward flights be worthwhile? Came across an AKL-SFO United flight in J for under $2000 APD which I thought was good value.

Thai-Kiwi

If transferring cash into $AP 1:1, yep.
If burning �earned� $APs, well what else to do?

I recently purchased $AP 500 for family members to use for 2x econ tix TPE-SGN, significantly cheaper than a cash fare of $720. Pax have no status so nothing lost.