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-   -   Rumor: MPC will go way of PPS (https://www.flyertalk.com/forum/cathay-pacific-cathay/1644009-rumor-mpc-will-go-way-pps.html)

flyinghighinthesky Jan 12, 2015 11:46 pm

All business class. Lax,yvr,lhr,mxp,fra,cdg,ams,sfo plus a ton of flights hopping around Europe & USA on aa ba & ib.

JALPak Jan 13, 2015 12:38 am


Originally Posted by midlevels (Post 24154978)
It's difficult to calculate the fare differentials as I don't regularly price out cheaper fares, but I estimate that on the lower side, every year I spend at least HK$10,000 upselling Economy fares to V class or higher when a lower class would do just fine, just so that I can earn Club Miles and get status. No status would mean no upsell.

So, let's say for arguments sake that this HK$10,000 should go towards providing me with MPC benefits. I think it more than covers my share of the cost of annual lounge usage with plenty left over to spare.

In fact, when I put it like this, it almost makes it seem like I'm stupid to do what I'm doing and throw money at the airlines like this when I could eat in airport restaurant for less cost and get much better food.

To be fair you get more redeemable miles too (plus whatever extra benefits you get) so not the entire $10,000 goes to lounge access fee.

midlevels Jan 13, 2015 1:05 am


Originally Posted by JALPak (Post 24155482)
To be fair you get more redeemable miles too (plus whatever extra benefits you get) so not the entire $10,000 goes to lounge access fee.

True, but in the grand scheme of things I accumulate only around one third of my Asia Miles from flights and two thirds from credit card spending. But yes, your point is taken.

AgencyGuy Jan 13, 2015 1:54 am

Thanks everyone for your feedback on this thread. I thought it would be helpful to comment on this.

I think we are all aware that airlines all over the world are recognising the anomalies of a mileage based reward and recognition system, miles are not always a good measure of value. And like most airlines, CX too are studying this and the possible implications for the Marco Polo Club in terms of how members earn their status and what benefits and recognition they should be receiving based on their value. Implicitly that means better recognition of revenue delivery. Obviously there are a lot of different definitions of what that could be and this is something I don’t want to go into here and now.

There has also been feedback from members, including here on Flyertalk, that some of the benefits have perhaps lost their exclusivity, with sometimes crowded lounges and long waits in priority queues. There are no firm conclusions on this, but the belief is that the current approach has to change.

That does not mean that the loyalty of all passengers is not important, but there are perhaps better ways to reward and motivate some member segments.

No final conclusions yet, but CX does have a duty to both its members and its shareholders to look at this very carefully and consultation with members is part of that process which is continuing.

Thanks again and look forward to continuing to read the feedback and debate.

JeCCo Jan 13, 2015 2:16 am

Any indication of a timeline for the proposed changes?

alphaod Jan 13, 2015 3:12 am

So I guess this change is real then.

ffs852 Jan 13, 2015 4:45 am

Some insider rumors: Somebody hired the ex-Apple Daily CTO as its IT department head and rumored that someone up north is hopping mad due to political reasons, and the IT platform is still in shambles. Therefore more cost cutting required to please the mainlanders.

yuchung5 Jan 13, 2015 6:26 am


Originally Posted by flyinghighinthesky (Post 24155366)
All business class. Lax,yvr,lhr,mxp,fra,cdg,ams,sfo plus a ton of flights hopping around Europe & USA on aa ba & ib.

Quick question. Why not bank all the miles to AA?
Better redemption rate. 8 eVIP upgrade vouchers on AA for you from business class to first class. Unlimited one class upgrade inside US and HNL.

Guy Betsy Jan 13, 2015 7:16 am


Originally Posted by AgencyGuy (Post 24155687)
Thanks everyone for your feedback on this thread. I thought it would be helpful to comment on this.

....

There has also been feedback from members, including here on Flyertalk, that some of the benefits have perhaps lost their exclusivity, with sometimes crowded lounges and long waits in priority queues. There are no firm conclusions on this, but the belief is that the current approach has to change.

That does not mean that the loyalty of all passengers is not important, but there are perhaps better ways to reward and motivate some member segments.

No final conclusions yet, but CX does have a duty to both its members and its shareholders to look at this very carefully and consultation with members is part of that process which is continuing.

Thanks again and look forward to continuing to read the feedback and debate.

Time to rescind all of CX's AMEX's offer to some to have those Gold / DM cards who have never stepped foot on a CX plane who earned their miles the regular way?

77W_12A Jan 13, 2015 7:18 am


Originally Posted by yuchung5 (Post 24156419)
Quick question. Why not bank all the miles to AA?
Better redemption rate. 8 eVIP upgrade vouchers on AA for you from business class to first class. Unlimited one class upgrade inside US and HNL.

It doesn't do much good for those based in Asia who can't meet the four sector minimum. Plus, you can't earn on sub Y fares on AAdvantage. Those one class upgrades don't do any good if you don't plan on doing much travel to the States anyways.

Those SWUs. They're getting harder to use as there are so many AA Emeralds.

yuchung5 Jan 13, 2015 8:18 am


Originally Posted by flyinghighinthesky (Post 24155366)
All business class. Lax,yvr,lhr,mxp,fra,cdg,ams,sfo plus a ton of flights hopping around Europe & USA on aa ba & ib.


Originally Posted by gemini573 (Post 24156691)
It doesn't do much good for those based in Asia who can't meet the four sector minimum. Plus, you can't earn on sub Y fares on AAdvantage. Those one class upgrades don't do any good if you don't plan on doing much travel to the States anyways.

Those SWUs. They're getting harder to use as there are so many AA Emeralds.


But to flyinghighinthesky, all C, so no sub Y issue.
He is traveling some AA segments anyway. So 4 sectors of AA is not an issue.
SWU is getting difficult to use that I do agree.
AA miles is a lot easier to earn and a lot cheaper to spend. If someone like flyinghighinthesky, I think AA is a better program. For someone who travel in cheap Y, like me, AA will not work.

flyinghighinthesky Jan 13, 2015 11:04 am

Yeah no issue for me on 4 flights in USA & never in economic class

ieuan1 Jan 13, 2015 12:01 pm

I do a lot of long distance flying (NZ-Europe) in Y. I was previously in SQ's KrisFlyer with Gold Status. What annoyed me was that the PPS scheme seemed to be a completely different scheme (you weren't allowed into their lounges as a Krisflyer Gold-you had to be PPS) so whenever I got a letter from Krisflyer saying how much they valued my business it was patently obvious that they didn't. I eventually switched over to CX.

If CX is going to change MPO to be more revenue based that is one thing. That's their choice, and maybe my flying patterns will never take me up to the lofty heights of DM again. That is what I think CX are going to do and I have to see how to maximize what I value in MPO (guaranteed seats, One World lounge access etc)given my flying patterns. If they try and foist an inferior product (as Krisfler was compared to PPS) on Y passengers then it is more likely I will take my business elsewhere.

To people who query why Y passengers should have similar benefits to J/F passengers when buying cheaper tickets, I would point out that MPO is a loyalty programme designed to encourage people to fly with CX. The J and F passengers get better product in the air-that's where they get the extra they've paid for.

MeltingAlf Jan 13, 2015 12:33 pm


Originally Posted by ieuan1 (Post 24158413)
I do a lot of long distance flying (NZ-Europe) in Y. I was previously in SQ's KrisFlyer with Gold Status. What annoyed me was that the PPS scheme seemed to be a completely different scheme (you weren't allowed into their lounges as a Krisflyer Gold-you had to be PPS) so whenever I got a letter from Krisflyer saying how much they valued my business it was patently obvious that they didn't. I eventually switched over to CX.

If CX is going to change MPO to be more revenue based that is one thing. That's their choice, and maybe my flying patterns will never take me up to the lofty heights of DM again. That is what I think CX are going to do and I have to see how to maximize what I value in MPO (guaranteed seats, One World lounge access etc)given my flying patterns. If they try and foist an inferior product (as Krisfler was compared to PPS) on Y passengers then it is more likely I will take my business elsewhere.

To people who query why Y passengers should have similar benefits to J/F passengers when buying cheaper tickets, I would point out that MPO is a loyalty programme designed to encourage people to fly with CX. The J and F passengers get better product in the air-that's where they get the extra they've paid for.

You mean "not allowed into their Business Class lounges"? Krisflyer Gold lounges are available for KF Elite Gold members, from what I last remember.

Anyway, given in this age where customer loyalty changes like the wind, I suspect CX and SQ doesn't really give one hoot about Y passengers who are free to go. There is no value in trying to mollycoddle the usual Y passenger, DM or not, if what you provide to the bottom line is not what they want.

Furthermore, CX and SQ themselves have lucrative deals with companies in HKG/SIN, and these are the customers that they want to keep with them; for we are talking about an entire portfolio of companies rather than individuals. To satisfy these business customers will lead to the deal continuing on - and surely, to have priority queues clogged and lounges full will not satisfy these business customers and obviously the companies providing them with the deals.

Between your business and these companies' business, CX/SQ will probably aim to please the latter lest they bring their businesses elsewhere. Frankly speaking, they don't really care two hoots about your business if Y and only Y is what you are going to fly with. CX have also seen SQ done it without much of a shake-up, so they don't really think it matters in the long-run (if your service levels are on par with SQ/CX, people WILL come back no matter what.)

Also, I'd really suggest you take AA/BA/QF's FF membership up instead, and get your flights credited on those. In my opinion almost every Asian airline have poor value-for-money programmes. It always boggles me that it is slightly incredulous that one can get Lifetime BAEC Gold (OW emerald) if you happen to just spend two or three years' worth of KF PPS money if done right.

Cathay Boy Jan 13, 2015 2:00 pm


Originally Posted by MeltingAlf (Post 24159732)
Furthermore, CX and SQ themselves have lucrative deals with companies in HKG/SIN, and these are the customers that they want to keep with them; for we are talking about an entire portfolio of companies rather than individuals. To satisfy these business customers will lead to the deal continuing on - and surely, to have priority queues clogged and lounges full will not satisfy these business customers and obviously the companies providing them with the deals.
.

SQ is a niche-airline with government protection, so they can get away with PPS scheme and treating Y pax like dirt. A place like SIN do not rely on Y pax as no many of the Y pax wanted to go to SIN, and SIN is too far away to be an ideal transfer hub.

CX on the other hand has great geography, especially with the rise of China. Thus, it attracts massive amounts of transfer Y fliers. If CX thinks they got them in the bag, no really. BR is being very aggressive as they realized the same thing, and wanted to attract would-be mainland Y fliers to use them, and TPE, as their airline and transfer hub. BR's hardware is catching up, and the current leadership is emphasizing "Taiwan services standards" on the flights. We should see if BR makes a dent into CX or not.

As a unit per unit, then it's a no brainer, F/J pax outweights Y pax. As a segment of market and potential for growth and increase revenue/profit, Y is a segment that no airline should nor can ignore. Alienating them thinking these "cheapskates" have no choice but to fly with you anyway is a very bad and shallow sighted decisions.


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