Tiptoeing to the Aadvantage exit yet?
#91
Join Date: Oct 2003
Location: DCA
Programs: UA LT 1K, AA EXP, Bonvoy LT Titan, Avis PC, Hilton Gold
Posts: 9,658
Look at what UA has done to GS...I was on a flight from AUS-EWR yesterday (Wednesday morning!) and 6 GS walked on the plane before me. If I saw correctly, all but 1 went to the back of a plane that only had 86 pax on it. That is a sobering look at things. I was paid F with a ~$20k PQD spend on UA this year and I sat in the front while 5 GS sat in the back whose spends (and profitability) might be multiples of mine. That is where we are at in 2018. It is a sad state of affairs.
#92
Join Date: Oct 2009
Location: Austin, TX
Programs: AA LT Plat, UA 1k/1mm+, National EE, IC Plat, Bonvoy Gold
Posts: 2,605
#94
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,600
#95
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,062
It's a business loyalty program which is fundamentally about driving profits. You seem to be confusing it with personal loyalty which is very different. Maybe that $3000 flight is the only flight they took this year (in which case they were 100% loyal), or maybe not. The airlines have no real way of knowing and I'm sure they don't care if you "cheat" on them (again, it's not about personal loyalty). Maybe giving that flyer status will motivate the flyer to purchase more flights with you, maybe it won't, but they'd certainly want to motivate that flyer to purchase more flights. Note that they do provide a faster path to status for such flyers with EQM bonuses on the pricier fares. The repeat low fare flyers also have value which is why you don't want to alienate them all. The EQD thresholds are meant to be more of a low bar than a high one. They could certainly make a pure spend threshold to get status, but it would likely be somewhat higher than the current ones. WN's program is more or less spend based since they don't use mileage as a qualifier. Note that the higher priced tickets have a higher points multiplier than the cheap WGA fares.
#96
Join Date: Apr 2005
Location: PHX
Programs: AA Ex Platinum & 1MM, DL PLT, Marriott Gold, HH Diamond
Posts: 2,490
I think one thing that the airlines need to be asked is what are you going to give back for demanding more? They're well within their right to ask for more loyalty, but they often forget that loyalty is a 2 way street. Are they going to improve service? Improve the perks offered at a given tier? They want more on one hand while taking away with the other. If the program's meant to drive profit, I don't see how that's doing it.
Giving less, especially to those high value customers, doesn't seem to encourage them to keep spending for those bigger ticket fares. They'll book them when it's convenient, but if there's no extra touch or appreciation, why be a repeat customer?
Come to think of it ... it's probably a question to be asked at all tiers, regardless of spend. With air travel becoming a commodity, what is the point of loyalty? Low level elites, get little to nothing. Higher levels are seeing their benefits cut while being expected to fly/pay more.
Giving less, especially to those high value customers, doesn't seem to encourage them to keep spending for those bigger ticket fares. They'll book them when it's convenient, but if there's no extra touch or appreciation, why be a repeat customer?
Come to think of it ... it's probably a question to be asked at all tiers, regardless of spend. With air travel becoming a commodity, what is the point of loyalty? Low level elites, get little to nothing. Higher levels are seeing their benefits cut while being expected to fly/pay more.
The other thing I find interesting, as someone who has moved a significant amount of my business away from AA this year, is that the front line employees get why so many are leaving. They are seeing it every day with pax they are used to seeing on a weekly basis just disappear (as another TA in PHX said to me). And they understand that there will come a day when the company needs all of those customers back. It's those leading the company that are taking us for granted & think that the good times they are enjoying now will last forever.
If Doug Parker truly can't understand why AA has a 'premium revenue' problem, t's because he's not listening to everyone who is trying to tell him why.
#97
Join Date: Sep 2002
Location: Thousand Oaks, Ca., USA
Programs: AA Lifetime Plat; Bonvoy Titanium Lifetime Elite;Hyatt Globalist; HHonors Diamond; United Silver
Posts: 8,315
I agree with the general philosophy of want first buy first - but why buy AA?
However, much of the discussion overlooks the fact that most of American's profit comes from the sale of miles to Barclays and Citibank.
So will the cuts on the Barclays EQD incent those flyer to fly more on AA? Or just drop the barclay card altogether. Already most folks I know who weren't trying for EQD, just RDM, have given up the cards, or at least put little spend on it and have moved to cash back cards.
However, much of the discussion overlooks the fact that most of American's profit comes from the sale of miles to Barclays and Citibank.
So will the cuts on the Barclays EQD incent those flyer to fly more on AA? Or just drop the barclay card altogether. Already most folks I know who weren't trying for EQD, just RDM, have given up the cards, or at least put little spend on it and have moved to cash back cards.
#98
Suspended
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
Face facts. AA, UA and DL derive a sizable chunk of business travelers from being hub captive. Do you think time pressed business travelers want to add 2 hours to a trip with a connection to get minimal additional benefits from another airline. Its not like AA serves hot dogs in International J and DL serves surf and turf. Ultimately the differences in these three airlines are fairly minimal.
Moreover, all 3 feel heat from shareholders and Wall Street to fatten up margins. There are only some many CK types and high dollar EXPs to be had. So the lower tiers are going to see less benefits. And the leisure flyers are going to be stuffed into a 29-30 inch seat in the back or pony up for a better Y seat.
No I don't think there's thousands and thousand of high dollar business travelers heading to the door. AA still takes good care of its CK and EXP. GLD or PLT? Well where are they going to go, particularly if they are hub captive.
Moreover, all 3 feel heat from shareholders and Wall Street to fatten up margins. There are only some many CK types and high dollar EXPs to be had. So the lower tiers are going to see less benefits. And the leisure flyers are going to be stuffed into a 29-30 inch seat in the back or pony up for a better Y seat.
No I don't think there's thousands and thousand of high dollar business travelers heading to the door. AA still takes good care of its CK and EXP. GLD or PLT? Well where are they going to go, particularly if they are hub captive.
#99
Join Date: Nov 2010
Programs: AA CK, UA Silver, Marriott Titanium, Hyatt Globalist, Hilton Diamond, Radisson Platinum
Posts: 82
My home airport isn't a major hub for any of the big airlines, but I've stuck with AA after being a hub captive of DFW for years. I try to keep all of my travel on AA, even when I have to connect over other airlines that have non-stops. The main reason is that I still value the redeemable miles I earn, and get to use for family vacations. I normally clear upgrades, so the flights are comfortable. Do I wish the LUS planes had power, or that the snack baskets were a bit more stocked? Sure. Are Delta or United going to be significantly better? No. Maybe my attitude labels me an AApologist, but being a free agent doesn't appeal to me. I'd rather get my miles in one basket - with the status to earn, use, and enjoy them effectively - than have a scattering of them across different alliances.
#100
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,600
Amount spent is not in itself a good measure since it doesn't indicate how valuable a customer is
Spending $3000 on 1 ticket for travel on AA would be a passenger , likely, with a high profit customer
Spending $3000 on travelling long distances in cheap economy class and likely not that profitable
The combination of distance and spend does , I think, help lend towards ensuring level of business and money spent
Just having a dollar threshold would be good for those that spend a lot on very little travel. ( e.g. 1 st class return to Europe and get Platinum status - do 2 and potentially get Executive Platinum status )
Just having a mileage base ( such as before introduction of EQDs) rewards those that just travel long distances but may not spend much - could do a cheao economy ATW ticket and get platinum status very easily
Having 2 criteria rather than just 1 criterion does help to lend towards those that are more profitable. It seems that AA has figured that 100k EQMs but $12k does not meet the level that it is looking for as a top tier member
#101
Join Date: Oct 2003
Location: DCA
Programs: UA LT 1K, AA EXP, Bonvoy LT Titan, Avis PC, Hilton Gold
Posts: 9,658
Group A - wheelchairs
Group B - families
Group C - Military
Group D - GS
Group E - 1K
Group 1 - First Class
Group 2 - Plat - Gold
Group 3 through 9 - etc, etc, etc.
I haven't flown UA since 1K preboard - but what you are saying 1K preboard is a different group within
preboard (the last)
I guess this is off topic for AA forum.
#102
Join Date: Oct 2009
Location: Austin, TX
Programs: AA LT Plat, UA 1k/1mm+, National EE, IC Plat, Bonvoy Gold
Posts: 2,605
Doesn't make sense. So Pre-board is really multiple groups. So boarding is:
Group A - wheelchairs
Group B - families
Group C - Military
Group D - GS
Group E - 1K
Group 1 - First Class
Group 2 - Plat - Gold
Group 3 through 9 - etc, etc, etc.
I haven't flown UA since 1K preboard - but what you are saying 1K preboard is a different group within preboard (the last)
Group A - wheelchairs
Group B - families
Group C - Military
Group D - GS
Group E - 1K
Group 1 - First Class
Group 2 - Plat - Gold
Group 3 through 9 - etc, etc, etc.
I haven't flown UA since 1K preboard - but what you are saying 1K preboard is a different group within preboard (the last)
#103
Join Date: Oct 2003
Location: DCA
Programs: UA LT 1K, AA EXP, Bonvoy LT Titan, Avis PC, Hilton Gold
Posts: 9,658
To keep on AA.forum topic - I always thought EXP's should board with F. If EXP is not in F - then not interfering with overhead. I have been on AA flights with 20 EXP's on the flight - I was 15 on the upgrade list and was told by FA that there were 20 EXPs on the flight. I know UA can have same kind of numbers for 1K.
Although, I have also been on an AA flight where I was the only person in group 2 (EXP group) - and I don't thing there were many upgrades.
#104
Join Date: Jan 2009
Location: Everywhere
Programs: AA EXP - 3.7MM, Bonv LIFETIME Titan, HH Dmd, Hyatt Glob., Priority Clb Dmd, Ntnl Exec El., Sixt PLT
Posts: 1,680
Coming back to the topic. I have a colleague who also does some consulting. Well, EU wants him in Brussels on the last moment so he flies there on $7-8K ticket in J on AA all paid by EU. AA was simply the most convenient flight and he may or may not take another AA flight this year. Should he get AA PLT Pro just on that? Now he flies for a vacation and domestic F on DL is $50 cheaper. If he is already AA PLT PRO, he would still take DL flight because it is cheaper, DL is also more reliable and this will not be compensated by AA additional bonus miles from his AA status.
Finally, let me disagree with you on the true measure of loyalty. Loyalty used to be a strong feeling of support and/or allegiance that goes beyond monetary transactions. Dollars spent with AA are simply a measure of revenue. FF nowadays are morphing more and more into simple rebate schemes.
#105
Join Date: Oct 2001
Location: Somewhere...
Programs: AA PLT/3MM, UA GM/1MM, DL DM/1MM, FB Plat, AS MVP Gold, WN AList+
Posts: 1,588
...And they understand that there will come a day when the company needs all of those customers back. It's those leading the company that are taking us for granted & think that the good times they are enjoying now will last forever.
If Doug Parker truly can't understand why AA has a 'premium revenue' problem, t's because he's not listening to everyone who is trying to tell him why.
If Doug Parker truly can't understand why AA has a 'premium revenue' problem, t's because he's not listening to everyone who is trying to tell him why.