Todays FW Star-Telegram re: FF Programs

 
Old Dec 26, 05, 7:56 am
  #1  
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Todays FW Star-Telegram re: FF Programs

Article in today's Star Telegram
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Old Dec 26, 05, 8:30 am
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The article says Delta started giving half the miles on discount tickets, which caused an exodus of customers. In fact they started giving half the points on cheap fares (but the same redeemable miles as always). Further, they started basing elite qualification on points instead of miles. The article didn't mention the subtle points/miles distinction, probably because it's too deep a subject for the average reader.

The essential fact remains the same: Delta monkeyed slightly with their program, which caused a huge exodus of customers. I think today's FF programs are so ingrained that they cannot be monkeyed with in any significant way.

Last edited by CloudCoder; Dec 26, 05 at 8:43 am
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Old Dec 26, 05, 9:51 am
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CO just did it slowly

For those of us who fly Co, we can recall the loss of the lowest level award for 20K miles. If I recall correctly this was three years ago. This incremental reduction does not seem to have hurt CO. Add to this the fact that so often the award seats available on weekends and in the summer are EasyPass (read 50K round trip domestic) seats and you have a reduction in benies, regardless of how corporate pr people try to spin it. CO has also cut EQM's on cheap seats unless you book online. The DL vs. CO results on changes may be a result of how the change is carried out. CO went gradually, at least more gradually than DL, and they do not seem to have suffered for it. In my case, have I not left CO, no, I just split my travel between CO and AA, mostly for reasons unrelated to award seats.

My question back to the board is what feature most motivates your decision about programs? Mine are:

1. Routes flown
2. Upgrade ease, both domestic and international

and last FF awards.

Last edited by MIA-SAT; Dec 26, 05 at 9:58 am
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Old Dec 26, 05, 2:28 pm
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What caught my attention was the decreased valuation of AA miles by the airline analyst:

At American, the cash-in cost of a free ticket hasn't changed in more than 15 years: 25,000 miles buys one round-trip economy-class seat. But over the past five years, the price of airfares overall has dropped substantially because of heavy competition from discounters like Southwest.

That means a free seat is worth less to buyers. According to analyst Winship, the value of one mile has dropped in half, from about 2 cents five years ago to about 1 cent today.

"That's a pretty precipitous decrease," he said.
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Old Dec 26, 05, 2:37 pm
  #5  
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I'm only one.. but I left CO precisely due to what I perceived as a continuous reduction in the FF Program benefits/perks.. Sl"easy" pass drove me insane.. I was so PO'd at this, I swore I would burn my miles on them and be done with them.. well I'm done with them except for my last 360K that I have to burn.. part II of the CO defection was their EQM program and a) giving full EQM's only to those tix that are considered discount fares to those purchased on CO.com.. well I can't.. work wont allow that and b) and by saying we will extend the CO.com full EQM program for another year.. it just made me keep thinking that they are going to dump it soon.. whether they did or not.. who knows.. who cares from my perspective b/c I'm on year 3 without them (other than award tix).. there were other reasons "ALL RJ ALL the time" etc.. but I left for the reasons you state that didn't matter at CO.. now AA has my 120+ a year.. and I'm satisfied with the switch.. now if they could just get my bags to me.. it would be perfect

Originally Posted by MIA-SAT
For those of us who fly Co, we can recall the loss of the lowest level award for 20K miles. If I recall correctly this was three years ago. This incremental reduction does not seem to have hurt CO. Add to this the fact that so often the award seats available on weekends and in the summer are EasyPass (read 50K round trip domestic) seats and you have a reduction in benies, regardless of how corporate pr people try to spin it. CO has also cut EQM's on cheap seats unless you book online. The DL vs. CO results on changes may be a result of how the change is carried out. CO went gradually, at least more gradually than DL, and they do not seem to have suffered for it. In my case, have I not left CO, no, I just split my travel between CO and AA, mostly for reasons unrelated to award seats.

My question back to the board is what feature most motivates your decision about programs? Mine are:

1. Routes flown
2. Upgrade ease, both domestic and international

and last FF awards.
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Old Dec 26, 05, 2:49 pm
  #6  
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Originally Posted by dfwdal
That means a free seat is worth less to buyers. According to analyst Winship, the value of one mile has dropped in half, from about 2 cents five years ago to about 1 cent today.

"That's a pretty precipitous decrease," he said.
Sure, if one foolishly uses miles for an ORD-TPA flight, then yes those miles are worth less today because one shouldn't be wasting miles on this route in the first place.

For one who uses miles for CX F tickets, miles may actually be worth more today.
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Old Dec 26, 05, 2:51 pm
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CO's "full EQM on cheap tickets purchased on co.com only" is one of many reasons I wouldn't fly CO unless I was truly desperate.

DL lost almost 3 years' worth of my business due to their stupid MQM experiment. Some of that business loss to US/UA is irrecoverable.
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Old Dec 26, 05, 5:50 pm
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Originally Posted by Spiff
Sure, if one foolishly uses miles for an ORD-TPA flight, more today.
Use of mileage is a pesonal decision. I used miles over X-MAS DFW-TPA because AA wanted a rediculous price. To me I got value and feel it was a good use of my miles.
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Old Dec 26, 05, 6:09 pm
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So what if they are worth less?

I am not at all sure that I agree that the value has gone from .02 to .01, but even if it has, so what? It is still a free flight, or an upgrade, etc.
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