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-   Cathay Pacific | Cathay (https://www.flyertalk.com/forum/cathay-pacific-cathay-487/)
-   -   Rumor: MPC will go way of PPS (https://www.flyertalk.com/forum/cathay-pacific-cathay/1644009-rumor-mpc-will-go-way-pps.html)

KACommuter Jan 10, 2015 4:52 am

Quote:

Originally Posted by AC*SE (Post 24132105)

If I'm CX, I think I have to be asking whether the loyalty of the person buying those 8 YVRSIN tickets is worth it. Those seats are going to be sold anyway, because they are going to turn up as the cheapest option on expedia or travelocity.

So why am I worried about that when what I really need to be worried about is selling all 6 of those seats in F, and all 53 of those seats in J.

The loyalty of the person buying those 8 YVR SIN tickets is worth a lot. CX won't make any money by filling 6F + 53J and having a half full Y. They would have to drop their Y prices significantly to fill those Y seats unless there is a hook in the form of FFP rewards to persuade Y passengers to pay more.

lingua101 Jan 10, 2015 4:56 am

Quote:

Originally Posted by Guy Betsy (Post 24125728)
No, I think Asiamiles will get status based on the miles you fly eg like other normal programmes. But MPC's privileges will need some sort of revenue in F/J.

Not sure why revenue has to be F/J only. Why can't airlines consider Y also. It is still money anyway.

TerryK Jan 10, 2015 7:08 am

It will be great news from my perspective. :)

CX is a great airlines with terrible FFP (Asiamiles). I fly CX frequently but bank my miles with BA. It will be great if CX allows double dipping, like SQ, so that I can receive CX status as well.

sscywong Jan 10, 2015 7:10 am

Quote:

Originally Posted by lingua101 (Post 24137613)
Not sure why revenue has to be F/J only. Why can't airlines consider Y also. It is still money anyway.

Actually one thing CX needs to consider is KA, especially quite a number of DM (including me :p), and probably 50% of the GO, are heavy economy KA flyer (to PRC). These are all business flyer, just flight time too short to get qualify for flying J per company's policy. Over half of these business flyer buy Y class (partly because it's not my money, also the full flexibility is absolutely needed for business travel, particularly for those with tight meeting schedule).

If only F/J revenue is counted, I'm sure over 75% of them (including me) will switch to CA / MU. By switching, even domestic PRC flight counts! So why don't switch?

Guy Betsy Jan 10, 2015 8:01 am

I think there is confusion here...

The current MPC may still stand but rebranded as Asiamiles Silver, Gold and Diamond. And MPC itself will spin off to something like PPS. That it is revenue based on J/F tickets on CX/KA only. Under current Asiamiles you earn miles on all tickets including V/K/L/M etc. So the 'new' system will be same. Just that MPC will spin off to a special members' club.

TerryK Jan 10, 2015 8:09 am

Quote:

Originally Posted by Guy Betsy (Post 24138306)
I think there is confusion here...

The current MPC may still stand but rebranded as Asiamiles Silver, Gold and Diamond. And MPC itself will spin off to something like PPS. That it is revenue based on J/F tickets on CX/KA only. Under current Asiamiles you earn miles on all tickets including V/K/L/M etc. So the 'new' system will be same. Just that MPC will spin off to a special members' club.

Any idea when this may happen? :confused:

sscywong Jan 10, 2015 8:47 am

Quote:

Originally Posted by Guy Betsy (Post 24138306)
I think there is confusion here...

The current MPC may still stand but rebranded as Asiamiles Silver, Gold and Diamond. And MPC itself will spin off to something like PPS. That it is revenue based on J/F tickets on CX/KA only. Under current Asiamiles you earn miles on all tickets including V/K/L/M etc. So the 'new' system will be same. Just that MPC will spin off to a special members' club.

But unavoidably current tier benefit will be reduced... Together with the feeling of "I'm just second tier member" I guess runaway will still be unavoidable...

For me personally, I'm fine to formalize DM+ and set revenue target for each MPC tier... But making a new F/J only club? Unless they keep all the current benefit to the Y club (which is unlikely), why don't I bank all my miles with CA (for example) then? For many ex-HKG PRC route, my business trip are full fare Y tickets i.e. can fly KA metal on CA codeshare flight. But at the same time I can also bank all PRC domestic flights under the same program. For Taiwan and Japan which I visited most for leisure, I can take BR and NH which may even be cheaper when comparing to flying CX!

I believe CX has quite a number of business flyers like me. If they take a wrong step in MPC reform, flyer once gone it's gone

TerryK Jan 10, 2015 8:52 am

Quote:

Originally Posted by sscywong (Post 24138512)
But unavoidably current tier benefit will be reduced... Together with the feeling of "I'm just second tier member" I guess runaway will still be unavoidable......I believe CX has quite a number of business flyers like me. If they take a wrong step in MPC reform, flyer once gone it's gone

I fully concur.

As with any major revision in loyalty program, some members will leave but some new ones will join. CX will end up with a different client mix. The question is will the new client mix serve CX better?

JALPak Jan 10, 2015 9:11 am

Quote:

Originally Posted by sscywong (Post 24138512)
But unavoidably current tier benefit will be reduced... Together with the feeling of "I'm just second tier member" I guess runaway will still be unavoidable...

For me personally, I'm fine to formalize DM+ and set revenue target for each MPC tier... But making a new F/J only club? Unless they keep all the current benefit to the Y club (which is unlikely), why don't I bank all my miles with CA (for example) then? For many ex-HKG PRC route, my business trip are full fare Y tickets i.e. can fly KA metal on CA codeshare flight. But at the same time I can also bank all PRC domestic flights under the same program. For Taiwan and Japan which I visited most for leisure, I can take BR and NH which may even be cheaper when comparing to flying CX!

I believe CX has quite a number of business flyers like me. If they take a wrong step in MPC reform, flyer once gone it's gone

Will you still have lounge access when flying CA codeshare operated by KA if you only have status from CA? Is lounge access part of the reciprocal benefit of the CX-CA JV?

jjjohn Jan 10, 2015 9:15 am

Quote:

Originally Posted by sscywong (Post 24138070)

If only F/J revenue is counted, I'm sure over 75% of them (including me) will switch to CA / MU. By switching, even domestic PRC flight counts! So why don't switch?

are you sure wanting to switch to MU?

77W_12A Jan 10, 2015 9:16 am

What about the BA approach? Their minimum to reach Gold (Emerald), is 1500 tier points. Once you hit 2500 tier points, they throw in extra perks. The more tier points you get the more perks.

As others have stated, revenue should be treated as revenue regardless of the class of service flown.

JALPak Jan 10, 2015 9:21 am

Quote:

Originally Posted by gemini573 (Post 24138645)
What about the BA approach? Their minimum to reach Gold (Emerald), is 1500 tier points. Once you hit 2500 tier points, they throw in extra perks. The more tier points you get the more perks.

As others have stated, revenue should be treated as revenue regardless of the class of service flown.

Then why stop at air fare? How about inflight shopping, ticket change fee, ticketing fee, etc?

77W_12A Jan 10, 2015 9:24 am

Quote:

Originally Posted by JALPak (Post 24138657)
Then why stop at air fare? How about inflight shopping, ticket change fee, ticketing fee, etc?

Let me clarify that. Revenue on flights flown. Inflight duty free you can get points, but I've never had them post....that's another story.

jjjohn Jan 10, 2015 9:26 am

this two tiers system is nothing now.
LH had introduced HON for many years.
They rewards top tiers customer with better service, e.g. ground service.
Only LH/LX F customer and HON member can access First Class Check-in station and FCL at their hubs.

AC*SE Jan 10, 2015 9:33 am

But don't you get it? Those Y seats are the easiest seats on the plane to sell.

The vast majority of ticket purchasers are motivated by one thing only: price. So long as CX can keep discounted Y prices in line with the competition, people buying online or from travel agencies will almost always pick the flight that's at the top of the list when sorted by price. Schedule comes second.

So those DM's buying 8 transpac round trips? Their money can be replaced tomorrow. And it matters not one bit whether they are replaced by one passenger, or 8.


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