Should status be based more directly on revenue ?
Jan 18, 2013, 3:30 am
#46
Join Date: Apr 2012
Location: not far from MUC
Posts: 6,620
If BAEC members could book cheap(ish) tickets in Y, actually travel in F/J, and the flown miles counted significantly towards earning/keeping status, I think we might see that behaviour over here too!
Jan 18, 2013, 3:51 am
#47
Join Date: Jun 2012
Posts: 932
I think the opposite is true here - the FF system is designed to engineer loyalty, not to measure it!
By providing thresholds of achievement for customers to reach, the loyalty scheme is designed to manipulate customers behaviour increasing sales on BA.
I have a CIV of 6...and I'm proud
By providing thresholds of achievement for customers to reach, the loyalty scheme is designed to manipulate customers behaviour increasing sales on BA.
I have a CIV of 6...and I'm proud
How many people have purchased WTP not WT because of the ability to upgrade using avios? Yes those people get a J-seat very cheap and are less profitable than someone who buys a flexible J-fare, but the cheapskate has become more profitable to BA as a result of behavoral change.
I know that the margins are different in each fare, but BA isn't flying individual seats. The key to BA's profitability is to make the flight as a whole as profitable as possible. There are not enough premium passengers to fill most planes (BA 1 being an exception) so a contribution from as many people as possible in all cabins is needed to make the whole flight profitable. even those Ł35 Flight saver fares potentially add to overall profitability if the seat would otherwise be flown empty.
Jan 18, 2013, 3:52 am
#48
Join Date: Jan 2009
Location: Near Edinburgh
Programs: BA Silver
Posts: 9,034
I'd love to know how much of this so called loyalty I keep reading about is because....
a) You fly BA because you're told to.
b) You prefer to fly direct.
c) BA are the cheapest on the route.
d) BA offer the best product?
I do wonder whether those who say their loyalty should be rewarded by such things as lifetime status really are as loyal to BA as they make themselves out to be. I've certainly noticed over the years quite a few posters on this forum disappear probably through a change in employment or travel policy.
a) You fly BA because you're told to.
b) You prefer to fly direct.
c) BA are the cheapest on the route.
d) BA offer the best product?
I do wonder whether those who say their loyalty should be rewarded by such things as lifetime status really are as loyal to BA as they make themselves out to be. I've certainly noticed over the years quite a few posters on this forum disappear probably through a change in employment or travel policy.
a) We can specify an airline preference, are encouraged to go for the cheapest for the route, but can make a choice if the difference is not too much and can also take total travel time into account
b) For the majority of my Long-haul flights, I could connect through London, AMS, FRA or other cities, but chose to connect BA through London. If I could fly direct from EDI, I would do that, than connect through LHR, unless i needed the TPs to maintain status.
c) Rarely - it'd usually be cheaper for me to fly through AMS or CDG, but with a longer flight time, so I typically chose the LHR connection
d) In my experience, BA offer the better product, but I've only twice ever flown their competitors long-haul product so this could be assumption/ignorance.
Jan 18, 2013, 4:22 am
#49
FlyerTalk Evangelist
Join Date: Mar 2010
Location: JER
Programs: BA Gold/OWE, several MUCCI, and assorted Pensions!
Posts: 32,140
That is spot on analysis.
How many people have purchased WTP not WT because of the ability to upgrade using avios? Yes those people get a J-seat very cheap and are less profitable than someone who buys a flexible J-fare, but the cheapskate has become more profitable to BA as a result of behavoral change.
How many people have purchased WTP not WT because of the ability to upgrade using avios? Yes those people get a J-seat very cheap and are less profitable than someone who buys a flexible J-fare, but the cheapskate has become more profitable to BA as a result of behavoral change.
I would describe myself as "prudent" - and "loyal", of course.
Jan 18, 2013, 5:03 am
#50
Join Date: Jul 2000
Location: AUH
Posts: 8,265
With 0.5x for Discounted Y, 1x for Flexible Y, ~1.3x for WTP, 2x for CW/CE and 3x for First, I think the system is already highly geared towards revenue. You get ~6x the tier points in F compared to discounted Y, which is a staggering difference. Actually quite brutal for those usually travelling in discounted Y.
This is really quite different from US carriers where you will usually get 1x for any Y, 1.25x for C and 1.5x for F, meaning that you really only get 1.5x of Y in F. There, you can see an argument for further differentiating on revenue. But not in the case of BA.
This is really quite different from US carriers where you will usually get 1x for any Y, 1.25x for C and 1.5x for F, meaning that you really only get 1.5x of Y in F. There, you can see an argument for further differentiating on revenue. But not in the case of BA.