Parker: "To try to change the program (to revenue based) right now would be foolish."
#136
Join Date: Aug 2008
Programs: AA EXP
Posts: 1,714
I have trouble believing this. Stickers are no guarantee of F so why would someone who's prepared to pay for F take the risk that the UG doesn't come through? Sure, a few such pax may exist but I don't believe there's even close to enough of them to make a dent in that $100m.
#137
Join Date: Mar 2011
Location: NYC LAX RDU
Programs: US-Plt;Concierge key; American AAirpass; Delta Silver;Starwood - Platinum; Amex Cent
Posts: 710
Sticker revenue might be $100 million but this is offset by passengers that would otherwise pay for F but use stickers instead.
For upgrades DL appears to have this figured out best. Price F competetively, then release UDU slowly so Diamonds and Plats have a fighting chance on many routes. Throw the bone to Gold and Silvers, they might get an upgrade at off peak hours.
Stickers seem to primarily benefit employees flying on their comany's dime where policy prevents paying for F. Although there are exceptions, why market to these people? They are often on company contracts, or hub captive, or told what to buy by management. Better to market the program to those that have more flexibility in their choice of carrier.
For upgrades DL appears to have this figured out best. Price F competetively, then release UDU slowly so Diamonds and Plats have a fighting chance on many routes. Throw the bone to Gold and Silvers, they might get an upgrade at off peak hours.
Stickers seem to primarily benefit employees flying on their comany's dime where policy prevents paying for F. Although there are exceptions, why market to these people? They are often on company contracts, or hub captive, or told what to buy by management. Better to market the program to those that have more flexibility in their choice of carrier.
#138
Join Date: May 2008
Location: Escondido, CA
Programs: US Chairman no more. AA EXP
Posts: 682
Agree that DL is at the forefront here, the combined AA-US management team in Ft. Worth/Tempe have an established successful model to follow. UA-CO didn't have this at the time of their merger.
For upgrades, stickers can also be replaced by miles and copay - it's not really that different.
They may already do this but I'd allow for a no-fee upgrade from non-refundable economy to non-refundable first. This provides another way to upgrade for those that are bound to economy tickets by work rules and would provide revenue to the airline.
For upgrades, stickers can also be replaced by miles and copay - it's not really that different.
They may already do this but I'd allow for a no-fee upgrade from non-refundable economy to non-refundable first. This provides another way to upgrade for those that are bound to economy tickets by work rules and would provide revenue to the airline.
#139
FlyerTalk Evangelist
Join Date: May 2000
Location: RDU
Programs: AA LT Gold, DL SM, HY Disc, Marriott LT Gold
Posts: 12,507
Sadly they don't do this today. If they did this AND merged EQP/EQM so that you got 150% EQM for an A fare, I'd probably do this on a number of routes. When I did my challenge to get back to Platinum, I did it almost all on those kind of discount A fares.
#140
Suspended
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
Hotel stays generally do not have the price swings that airfares do. And of course, stays booked on PL, HW and other opaque sites do not earn points. DL and UA have been taking baby steps towards a revenue based status model and I would make any bet that when the combined AA FF program is announced in 2015 if not a totally spend model certainly moving in that direction. I also eventually see smaller premium cabins on mostly domestic a/c (such as the 8F seats on the A319). Lets face it, eventually its only going to be the high dollar spend paxs sitting in comfort.
#141
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,056
You are missing there is very little equivalence between "miles" and "nights". Note that WN, despite using a revenue based status qualification system, still allows one to qualify solely based on "flights". However, they do not count individual segments (each one-way trip is a flight), so you can't really game the system with segment runs. This translates far more closely to nights than miles do. I'd expect the legacies to adopt something similar to WN's program if they go to revenue based qualification. So the cheap fare flyer still has a shot at status and an incentive to remain loyal. However, it is unlikely they will be able to get status nearly as cheaply as some of the heavy mileage runners currently can.
#142
Join Date: Oct 2013
Programs: DL PM
Posts: 700
You are missing there is very little equivalence between "miles" and "nights". Note that WN, despite using a revenue based status qualification system, still allows one to qualify solely based on "flights". However, they do not count individual segments (each one-way trip is a flight), so you can't really game the system with segment runs. This translates far more closely to nights than miles do. I'd expect the legacies to adopt something similar to WN's program if they go to revenue based qualification. So the cheap fare flyer still has a shot at status and an incentive to remain loyal. However, it is unlikely they will be able to get status nearly as cheaply as some of the heavy mileage runners currently can.
I would do much better if AA granted status based on one-way trips. I'd be solidly Platinum at least.
It would be the best way, in theory, to measure loyalty.
#143
Join Date: Aug 2011
Location: IAH / HOU
Programs: UA GS, DL-Plat, Hilton Gold, IHG Platinum, Hyatt Somethingist, Marriott Titanium Lifetime
Posts: 2,853
if you stay 49 nights at full service properties Marriott will surely provide status above the level "earned" according to strictly following the program rules. I have benefited from this "generosity" offered as a reward for my loyalty on numerous occasions.
#144
Join Date: Dec 2009
Location: Arizona
Programs: BA (GGL G4L), AA (Gold), HH (Diamond); Marriott (Gold)
Posts: 3,011
I think a revenue model is a bad idea, as it skews towards passengers flying expensive routes rather than profitable passengers. I'm pretty sure I've said this before, but there's a lot more that factors into a customer being valuable than the pure revenue they spend.
I think the BA tier point system does a better job. It greatly favors passengers who pay for premium class travel.
I think the BA tier point system does a better job. It greatly favors passengers who pay for premium class travel.
#145
Join Date: Oct 2013
Programs: DL PM
Posts: 700
Regardless, my point was about the rules of the programs. Obviously, challenges, "gifts," status matches, etc. happen.
Last edited by TXguy; Aug 17, 2014 at 9:40 pm
#146
Join Date: Jan 2003
Location: DL: Silver; AA: EX PLAT; UA: Silver; HY: DIA; HH: DIA; MR: TIT
Posts: 1,708
I diagree. AFS is a joke compared to what it used to be just last year. The seat and IFE may be better on the new planes, but everything else is worse. DL J is better than AA F at this point and I have switched - at least until January of 2015 when I need to requalify for EXP.
#147
FlyerTalk Evangelist
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,391
I diagree. AFS is a joke compared to what it used to be just last year. The seat and IFE may be better on the new planes, but everything else is worse. DL J is better than AA F at this point and I have switched - at least until January of 2015 when I need to requalify for EXP.
Also, it seems rather silly to invest millions in hard product (that can't easily be redone, you're committed once the hardware goes in) and neglect the soft product. DL's actually been plowing some of their profits back into the J soft product. Why wouldn't AA once they get their merger behind them?
#148
Join Date: Oct 2013
Programs: DL PM
Posts: 700
If AA is so much worse, why do you need to requalify for EXP?
Also, it seems rather silly to invest millions in hard product (that can't easily be redone, you're committed once the hardware goes in) and neglect the soft product. DL's actually been plowing some of their profits back into the J soft product. Why wouldn't AA once they get their merger behind them?
Also, it seems rather silly to invest millions in hard product (that can't easily be redone, you're committed once the hardware goes in) and neglect the soft product. DL's actually been plowing some of their profits back into the J soft product. Why wouldn't AA once they get their merger behind them?
#149
FlyerTalk Evangelist
Join Date: Jan 2005
Location: BWI
Programs: AA Gold, HH Diamond, National Emerald Executive, TSA Disparager Gold
Posts: 15,180
Of course, rental car prices can vary as wildly as air fares. I can rent the same class of car for a similar time frame and it can be double in one location over another.
Last edited by Superguy; Aug 18, 2014 at 9:56 am
#150
FlyerTalk Evangelist
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,391