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Prock-Schauer : "Roadmap for integration „Diamond Club“ in M&M agreed"

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Old Jun 30, 2010, 10:03 am
  #76  
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Originally Posted by BristolTraveller
The big thing I'll miss is C+M redemptions. Maybe, just maybe, LH will add this to M&M.....
It will be introduced the same day they bring in one-way redemptions for 50% of a return and reduce intra-European redemption rates from 30k to DC's 9k.
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Old Jun 30, 2010, 10:08 am
  #77  
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Originally Posted by BristolTraveller
The big thing I'll miss is C+M redemptions. Maybe, just maybe, LH will add this to M&M.....
I wouldn't hold my breath. Much as many of us here love C+M, it's hard to see a compelling business case from the point of view of the airline/FFP. So it' no surprise that they're not exactly common outside of DC.

One way redemptions at one way prices is another matter. Several grown up airlines have them and they would increase the attractiveness of M&M significantly.
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Old Jun 30, 2010, 10:09 am
  #78  
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Originally Posted by zkzkz
When were they told this?
Late May 2009.

Originally Posted by zkzkz
If they announced the same thing tomorrow for BD what would the corresponding date be if they have the same lag-time?
Late November 2010.
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Old Jun 30, 2010, 10:23 am
  #79  
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Originally Posted by Raffles
It will be introduced the same day they bring in one-way redemptions for 50% of a return and reduce intra-European redemption rates from 30k to DC's 9k.
Thanks Raffles for the afternoon chuckle!
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Old Jun 30, 2010, 10:44 am
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Originally Posted by Efrem
It's not just the right thing. It's the smart thing.

Intelligent travelers realize that the only reason not to share this information would be if they fear sharing it would hurt business. (Good news, after all, would be shouted from the rooftops.) Silence sends this message as clearly as sharing any possible bad news could. In fact, because silence puts no limit on how bad the news could be, not saying anything is worse than coming out with whatever it is.
No disagreement that it would be the smart thing to do. Even if there is no truly bad news planned, lack of communication triggers FUD.

That said, I am too new to DC/BMI to be able to comment on whether we can expect them to do the smart thing.
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Old Jun 30, 2010, 12:49 pm
  #81  
 
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I know this post will be controversial. But their are plenty of sensible business people on here so here goes......

I'm CEO of bmi. I have lots of freeloaders, non-bmi flyers and shed loads of BD Golds who are not frequent flyers of my airlines. So the core focus of my plan is to dump as many of these non-revenue generating customers as possible as quickly as possible. How do I do this? Well I set the bar high, e.g 100,000 status miles, and I give them only a year to do it.

We take a one year hit on balance sheet with redemptions, but the customers we retain after twelve months are the ones we really want anyway. All the freebie grabbers are dropped to Frequent Traveller level at best.

Oh hang on... I think thats pretty much what they did with the guys from Netherlands etc..

You can see the business logic. Unfortunately for many on this board, the noise you hear gravy train is hitting the buffers.

The expected outcome...... Customers like myself and many others who use bmi for domestic flying will get FT status, trimmed back benefits, still get lounge access and the odd redemption so they'll be happy. International flyers will probably make SEN. So they'll be OK too.

So the only ones i'm upsetting are the freeloaders and occaisional flyers who've had it too good for too long. Tough times = tough decisions.

I'm bored and sat in a hotel bar on my own so thought I may as well get flamed for some entertainment!
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Old Jun 30, 2010, 12:55 pm
  #82  
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Originally Posted by TheKipper
I know this post will be controversial. But their are plenty of sensible business people on here so here goes......

I'm CEO of bmi. I have lots of freeloaders, non-bmi flyers and shed loads of BD Golds who are not frequent flyers of my airlines. So the core focus of my plan is to dump as many of these non-revenue generating customers as possible as quickly as possible. How do I do this? Well I set the bar high, e.g 100,000 status miles, and I give them only a year to do it.

We take a one year hit on balance sheet with redemptions, but the customers we retain after twelve months are the ones we really want anyway. All the freebie grabbers are dropped to Frequent Traveller level at best.

Oh hang on... I think thats pretty much what they did with the guys from Netherlands etc..

You can see the business logic. Unfortunately for many on this board, the noise you hear gravy train is hitting the buffers.

The expected outcome...... Customers like myself and many others who use bmi for domestic flying will get FT status, trimmed back benefits, still get lounge access and the odd redemption so they'll be happy. International flyers will probably make SEN. So they'll be OK too.

So the only ones i'm upsetting are the freeloaders and occaisional flyers who've had it too good for too long. Tough times = tough decisions.

I'm bored and sat in a hotel bar on my own so thought I may as well get flamed for some entertainment!
Well put. ^
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Old Jun 30, 2010, 1:00 pm
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Well, I can start off if you like?


I wouldn't describe myself as a free-loader, more a self-funded frequent flyer. Certainly I use bmi flights but I also use StarAlliance flights. I can just about afford the time and money to adjust my travel and travel patterns to earn *G.
If the bar for being recognised as a loyal customer was too high I fear I'd have to look elsewhere. It's money that I would no longer be giving to the airline and I suspect that's more than the cost I incurr them with using lounge access.
The bar is set to just about the right level in my case; it's getting ever harder though as airfares rise and mileage accural rates on the less expensive fares drop.

Of course, I'm not sure I fit the description you are refering to. After all, I've not had multiple credit cards...nor made many redemptions.
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Old Jun 30, 2010, 1:16 pm
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Originally Posted by jbfield
Well, I can start off if you like?


I wouldn't describe myself as a free-loader, more a self-funded frequent flyer. Certainly I use bmi flights but I also use StarAlliance flights. I can just about afford the time and money to adjust my travel and travel patterns to earn *G.
If the bar for being recognised as a loyal customer was too high I fear I'd have to look elsewhere. It's money that I would no longer be giving to the airline and I suspect that's more than the cost I incurr them with using lounge access.
The bar is set to just about the right level in my case; it's getting ever harder though as airfares rise and mileage accural rates on the less expensive fares drop.

Of course, I'm not sure I fit the description you are refering to. After all, I've not had multiple credit cards...nor made many redemptions.
You probably are one of very few in being a self funded FF. I certainly wouldn't get anywhere near on my own travel spend. But they'll give you lounge access and some benefits at one end, your home port, with an FT card to keep you interested for 38,000 status miles. They figure you'll suffer at the other end as you either need to fly or want to fly.

Please don't get the wrong impression here. I'm nearly at the end of my membership year and i've done 46,000 status miles, so i'm going to suffer as well.
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Old Jun 30, 2010, 2:35 pm
  #85  
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The REAL free-loaders got 2+ years Star Gold via the Hong Kong Star Alliance status match in Autumn 2009! Only 1 *A flight and a HK mailing address needed .....! (Ahem, I include me and my wife in that lot, Asiana for me and Thai for her!)
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Old Jun 30, 2010, 2:53 pm
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Oh yeah. Admittedly if I'd sorted myself out early enough and found a suitable address I'd have done this as well.
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Old Jun 30, 2010, 3:24 pm
  #87  
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Originally Posted by TheKipper
I know this post will be controversial. But their are plenty of sensible business people on here so here goes......

I'm CEO of bmi. I have lots of freeloaders, non-bmi flyers and shed loads of BD Golds who are not frequent flyers of my airlines. So the core focus of my plan is to dump as many of these non-revenue generating customers as possible as quickly as possible. How do I do this? Well I set the bar high, e.g 100,000 status miles, and I give them only a year to do it.

From a simple business perspective yes and I am not going to flame you. I am a freeloader especially ever since BMI scrapped my route to AMS but I admit my status was always earned mostly on *A flights. That said, I am sure DC does generate revenue.

DC just don't give you miles for your *A flights. The *A carrier either gives these points or a financial incentive to DC. When you spend the DC miles they are worth more then what DC would pay the partner for the award ticket. With M&C I am fairly sure that financial benefit to DC is even more. Ever heard what staff pays for long haul tickets, thats even less then what the Cash amount in M&C would be.

Suddenly these freeloaders are an interesting revenue generator.

I was very keen to make my 10 years, and had 2 years to go. No sure what happens now but we will probably find out when it is too late?

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Old Jun 30, 2010, 3:25 pm
  #88  
 
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Originally Posted by TheKipper
You probably are one of very few in being a self funded FF.
Don't count on that. The self funded % is probably quite a bit higher than you think, and also probably the most truly 'loyal'.

Yes some of us self funders are probably also the most efficient flyers (getting most for least), however if your scheme is legitimate then so are we - and even if the margin you get from us is lower, we are in turn more loyal and do have value.

Also, there are still a number of private flyers who pay for premium classes and don't even really care much about FFP. Lufthansa will know about them.

I'm not claiming they dominate, but they are a recognizable number when it comes to loyal customers.

Last edited by David-A; Jun 30, 2010 at 5:07 pm
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Old Jun 30, 2010, 3:29 pm
  #89  
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[QUOTE=David-A;14221879]Don't count of that. The self funded % is probably quite a bit higher than you think, and also probably the most truly 'loyal'. QUOTE]

90% of my flights are private trips. last year even 100% because of recession and business spending cuts.

Some in TG's premium F cabin as it is/was also easy to keep BMI status.

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Old Jun 30, 2010, 4:10 pm
  #90  
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Originally Posted by TheKipper
I know this post will be controversial. But their are plenty of sensible business people on here so here goes......

I'm CEO of bmi. I have lots of freeloaders, non-bmi flyers and shed loads of BD Golds who are not frequent flyers of my airlines. So the core focus of my plan is to dump as many of these non-revenue generating customers as possible as quickly as possible. How do I do this? Well I set the bar high, e.g 100,000 status miles, and I give them only a year to do it.

We take a one year hit on balance sheet with redemptions, but the customers we retain after twelve months are the ones we really want anyway. All the freebie grabbers are dropped to Frequent Traveller level at best.

Oh hang on... I think thats pretty much what they did with the guys from Netherlands etc..

You can see the business logic. Unfortunately for many on this board, the noise you hear gravy train is hitting the buffers.

The expected outcome...... Customers like myself and many others who use bmi for domestic flying will get FT status, trimmed back benefits, still get lounge access and the odd redemption so they'll be happy. International flyers will probably make SEN. So they'll be OK too.

So the only ones i'm upsetting are the freeloaders and occaisional flyers who've had it too good for too long. Tough times = tough decisions.

I'm bored and sat in a hotel bar on my own so thought I may as well get flamed for some entertainment!
There is an elephant in the room completely missing from your analysis: BA. And another elephant on the other side of the watering hole: Easyjet.
Ever asked yourself why the BD scheme was so generous? Do you think that it was because BD are inherently generous and had plenty of spare resources to give away?

Originally Posted by Globalist
90% of my flights are private trips. last year even 100% because of recession and business spending cuts.
Self funder here too, to the tune of at least 90%. It is true that DC enabled me to maintain elite status in at least 2, sometimes 3, of the main alliances. Make *A G status substantially more difficult and I'll just cut *A from my flying. If I have to choose between *A and OW, as a London-based flyer, there is absolutely zero contest: OW it'll be.

To be frank, from a business perspective, I would have thought that BD's first priority would be to get more people to fly BD at a reasonable yield: that is BD's real problem, not its FF programme. And if they can't solve that one, BD will go the same way as Air UK once did: become purely a feeder to Lufthansa Galaxy hubs elsewhere in Europe.
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