Should status be based more directly on revenue ?
Jan 17, 2013, 12:12 pm
#16
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Looking at Hotel schemes Hilton seems to be a good model in that it recognises multiple forms of loyalty based upon nights, stays and spend. Adding spend as an additional dimension probably wouldn't be a bad idea.
Jan 17, 2013, 12:20 pm
#17
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Excellent comments so far ^ FWIW I'm not personally advocating this approach, just looking to stimulate some discussion around the concepts of loyalty, value, etc, and how to measure these fairly and objectively.
Shamelessly cribbed from the FT blog noted in my OP:
Shamelessly cribbed from the FT blog noted in my OP:
However, there are still questions to be answered with this developing story, including but not limited to:
Will dollar spending thresholds roll over as well?
Are taxes and fees included as part of the spend?
How would spending with flights on joint venture partner airlines — if any — and SkyTeam partner airlines count?
Would the spend on code-share flights count towards Medallion Qualification Dollars?
Would it matter if it is a ticket coded by Delta Air Lines or a ticket coded by a different airline?
What exactly will be the threshold dollar amounts per Medallion elite level?
Are the above reported changes supposedly only the beginning — in other words, will there be more adverse changes to the Delta Air Lines SkyMiles frequent flier loyalty program that have not been mentioned as of yet?
Will dollar spending thresholds roll over as well?
Are taxes and fees included as part of the spend?
How would spending with flights on joint venture partner airlines — if any — and SkyTeam partner airlines count?
Would the spend on code-share flights count towards Medallion Qualification Dollars?
Would it matter if it is a ticket coded by Delta Air Lines or a ticket coded by a different airline?
What exactly will be the threshold dollar amounts per Medallion elite level?
Are the above reported changes supposedly only the beginning — in other words, will there be more adverse changes to the Delta Air Lines SkyMiles frequent flier loyalty program that have not been mentioned as of yet?
Jan 17, 2013, 12:28 pm
#18
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Jan 17, 2013, 12:31 pm
#19
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Seems pretty fair to me.
Many loyalty programmes reward you for the amount of money you spend rather than on how many times you visit the store. Seems to work for them so why shouldn't it work for the airlines?
Many loyalty programmes reward you for the amount of money you spend rather than on how many times you visit the store. Seems to work for them so why shouldn't it work for the airlines?
Jan 17, 2013, 12:32 pm
#20
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Jan 17, 2013, 12:39 pm
#21
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I could see some merit in it. I fly Y for work as its company policy, I buy flexi Y fares as I don't stay Saturday nights, for the east coast (where I go a lot) I pay £1500 or thereabouts and get 140 TPs, if I stayed Saturday and flew discount W it would cost half that and I would get more TPs.
Jan 17, 2013, 12:47 pm
#22
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I could see some merit in it. I fly Y for work as its company policy, I buy flexi Y fares as I don't stay Saturday nights, for the east coast (where I go a lot) I pay £1500 or thereabouts and get 140 TPs, if I stayed Saturday and flew discount W it would cost half that and I would get more TPs.
So, that is:
Bronze = GBP3K
Silver = GBP6K
Gold = GBP15K
Jan 17, 2013, 12:55 pm
#23
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Flying my aforementioned £1500 Y fares that works out about the same.
Jan 17, 2013, 12:59 pm
#24
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Jan 17, 2013, 1:05 pm
#25
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Jan 17, 2013, 1:09 pm
#26
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I think it is an industry trend to filter out the "higher value customers". DL doing it now, NZ has been doing it for years. LH has recently moved to splitting up the earning numbers for full fare/discounted business tickets. All ways to measure who makes the airline more money.
But: If status is reserved for the people on full fare J tickets you might ask what the point of status is? Most of the S/G benefits are already included in the J ticket. If the meaning of status is reduced to a rare J->F op-up then I wouldn't bother...
But: If status is reserved for the people on full fare J tickets you might ask what the point of status is? Most of the S/G benefits are already included in the J ticket. If the meaning of status is reduced to a rare J->F op-up then I wouldn't bother...
Jan 17, 2013, 1:15 pm
#27
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I accept that might be regarded as too cheap. Sorry
Jan 17, 2013, 1:34 pm
#28
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Jan 17, 2013, 1:35 pm
#29
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Jan 17, 2013, 2:02 pm
#30
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i use LHR as a hub as i am ex-NCL.
Hence I use BA at the moment.
I will never get Gold so Silver is fine realistically for me for my needs.
I could actually reach similar level with Skyteam via AMS on KL metal for a lot less in terms of expenditure. In fact 10 fewer flights per annum.
I would have reached that level on KLM already this year based on mileage if i'd flown with them, but i'm currently scraping round last minute for a TP run to maintain silver on BA.
So if they up the threshold, I will probably not be alone in looking for a more accommodating FF program.
it's a difficult call BA will have to make. I'm sure they will want to keep all the elites on their massive expense accounts away from those awful TP run plebs...
Hence I use BA at the moment.
I will never get Gold so Silver is fine realistically for me for my needs.
I could actually reach similar level with Skyteam via AMS on KL metal for a lot less in terms of expenditure. In fact 10 fewer flights per annum.
I would have reached that level on KLM already this year based on mileage if i'd flown with them, but i'm currently scraping round last minute for a TP run to maintain silver on BA.
So if they up the threshold, I will probably not be alone in looking for a more accommodating FF program.
it's a difficult call BA will have to make. I'm sure they will want to keep all the elites on their massive expense accounts away from those awful TP run plebs...