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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)

kaka Jun 23, 2015 5:44 am

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And those cheap aaexp

fakecd Jun 23, 2015 7:32 am

When u allow students buying four v class for whole academic year for hkg jfk trips at circa usd 8000, making them gold, something is not right considering business traveller pays 10k usd for ad hoc travel and they remain mr nobody.

One way or other revenue is the hard measure of how valuable one is to an airline. I dont see why a recognition system based on bottom line contribution can be bad from shareholders prospective. To be honest the complain is only from those cheapo elite members whom we r happy to eliminate. As per freebie member from amex i am not even going to comment.

I assume there will be a grace period for qualification based on old syatem during transition. Probably we would see mass exodus during transition period

soonyeap Jun 23, 2015 8:50 am


Originally Posted by fakecd (Post 25014217)
When u allow students buying four v class for whole academic year for hkg jfk trips at circa usd 8000, making them gold, something is not right considering business traveller pays 10k usd for ad hoc travel and they remain mr nobody.

One way or other revenue is the hard measure of how valuable one is to an airline. I dont see why a recognition system based on bottom line contribution can be bad from shareholders prospective. To be honest the complain is only from those cheapo elite members whom we r happy to eliminate. As per freebie member from amex i am not even going to comment.

I assume there will be a grace period for qualification based on old syatem during transition. Probably we would see mass exodus during transition period

Again here we go back to previous lengthy discussion of FREQUENT traveller, how if it is Y,B,H traveller who pay more than cheapo so called business class traveller in I class?
Traveller who pays USD10k for ad hoc ticket might only travel once in a year whereby students who pays 4x USD$8k v class ticket travel 4 times a year. Now the question, who are the frequent traveller among the 2?

sscywong Jun 23, 2015 9:24 am

That's why revenue based is kicking in (if CX can do it right)


Originally Posted by soonyeap (Post 25014632)
Again here we go back to previous lengthy discussion of FREQUENT traveller, how if it is Y,B,H traveller who pay more than cheapo so called business class traveller in I class?
Traveller who pays USD10k for ad hoc ticket might only travel once in a year whereby students who pays 4x USD$8k v class ticket travel 4 times a year. Now the question, who are the frequent traveller among the 2?

But do you think a student paying 4x US$2K V HKG-U.S. is more valuable than a TPE based traveler paying 20 x US$0.4K L HKG-TPE ? So who is the frequent traveler? How about a business traveler paying 9 x US$1K K HKG-SIN ?

p.s. US$8K should be able to get I fare sometimes....

1010101 Jun 23, 2015 9:31 am


Originally Posted by soonyeap (Post 25014632)
Again here we go back to previous lengthy discussion of FREQUENT traveller, how if it is Y,B,H traveller who pay more than cheapo so called business class traveller in I class?
Traveller who pays USD10k for ad hoc ticket might only travel once in a year whereby students who pays 4x USD$8k v class ticket travel 4 times a year. Now the question, who are the frequent traveller among the 2?

MPC does not exist to reward loyalty. It exists to generate revenue.

Forgetting yield/loads etc for a minute, CX wants the passenger who spends the most money.

soonyeap Jun 23, 2015 9:50 am


Originally Posted by sscywong (Post 25014811)
That's why revenue based is kicking in (if CX can do it right)



But do you think a student paying 4x US$2K V HKG-U.S. is more valuable than a TPE based traveler paying 20 x US$0.4K L HKG-TPE ? So who is the frequent traveler? How about a business traveler paying 9 x US$1K K HKG-SIN ?

p.s. US$8K should be able to get I fare sometimes....

Frequent traveller in this case should be TPE based with 20 travels. We are not discussing the meaning of frequent, arent we?

soonyeap Jun 23, 2015 10:00 am


Originally Posted by phol (Post 25014862)
MPC does not exist to reward loyalty. It exists to generate revenue.

Forgetting yield/loads etc for a minute, CX wants the passenger who spends the most money.

Yes ofcourse, premium flyer will not be loyal, they fly you for other reason, schedule, location, products, etc etc whether or not all the issues mentioned here eg over crowded, deteriorate products, foods, they will still fly you.

If they lost so called 'loyalty' traveller, i will see what MPC will do next especially with strong upcoming from QR, EK, EY

Anyway im not affected by any of the changes anyway. Just my 2 cents. :D

AA_EXP09 Jun 23, 2015 6:09 pm


Originally Posted by fakecd (Post 25014217)
When u allow students buying four v class for whole academic year for hkg jfk trips at circa usd 8000, making them gold, something is not right considering business traveller pays 10k usd for ad hoc travel and they remain mr nobody.

One way or other revenue is the hard measure of how valuable one is to an airline. I dont see why a recognition system based on bottom line contribution can be bad from shareholders prospective. To be honest the complain is only from those cheapo elite members whom we r happy to eliminate. As per freebie member from amex i am not even going to comment.

I assume there will be a grace period for qualification based on old syatem during transition. Probably we would see mass exodus during transition period

for 10k USD I would be flying in C class at the very least (if not F.)

AA_EXP09 Jun 23, 2015 6:10 pm


Originally Posted by sscywong (Post 25014811)
That's why revenue based is kicking in (if CX can do it right)



But do you think a student paying 4x US$2K V HKG-U.S. is more valuable than a TPE based traveler paying 20 x US$0.4K L HKG-TPE ? So who is the frequent traveler? How about a business traveler paying 9 x US$1K K HKG-SIN ?

p.s. US$8K should be able to get I fare sometimes....

I have got tickets to SIN in L/M class for far less than HKD7500...
(and ex SIN there were tickets to HKG for SGD238+tax+YQ.)

Awesom Andy Jun 23, 2015 8:18 pm


Originally Posted by AA_EXP09 (Post 25017546)
(and ex SIN there were tickets to HKG for SGD238+tax+YQ.)

Often, it's possible to get ex SIN tickets in V class for around SGD350, including taxes and surcharges. The return trip earns about 3200 miles. Theoretically speaking, I can earn GO by flying this route at this price 19 times, for USD 5k. Looks like the NA student is generating a lot more revenue than I am...

fakecd Jun 23, 2015 8:46 pm

They also need to remember loyalty goes a long way. i know a guy he has corp fare hkd hnd. Long story short choice is PEY cx or Business on ANA. He is diamond member so he chose CX over ANA.... But he isnt happy with changes and he is ready to ditch cx...

Only other reason he or i fly cx is for safety records. Cx pilots are one of most properly trained. So sometimes mpc and business class soft product deterioation all go out the door cuz i want to get there in one peice and not disappear somewhere off Indian ocean or get shot down by a missle

Too much travel Jun 23, 2015 9:22 pm


Originally Posted by fakecd (Post 25018147)
Cx pilots are one of most properly trained. So sometimes mpc and business class soft product deterioation all go out the door cuz i want to get there in one peice and not disappear somewhere off Indian ocean or get shot down by a missle

I also appreciate the quality of CX pilots, but I think you are being naive in thinking that even the best trained pilot in the world in a commercial airliner can avoid being shot down by a Buk missile. If it was a CX plane that happened to be in the wrong place at the wrong time, the outcome would have been exactly the same.

jagmeets Jun 23, 2015 9:33 pm

Rumor: MPC will go way of PPS
 
OT- Andy: I'm curious about the exSIN SGD350 V fares! Tend to be 600+ I think.

Too much travel Jun 23, 2015 9:40 pm


Originally Posted by sscywong (Post 25014811)
But do you think a student paying 4x US$2K V HKG-U.S. is more valuable than a TPE based traveler paying 20 x US$0.4K L HKG-TPE ? So who is the frequent traveler? How about a business traveler paying 9 x US$1K K HKG-SIN ?

Surely from CX's perspective it doesn't really matter how you reward the annual US$8K traveller, but rather how you reward the annual US$80K traveller?

I think there are two problems with the current system:

(1) The system is not adequately rewarding high-value passengers. A business class passenger gets barely more miles than an economy class passenger on the same flight despite generating multiple times more revenue. Under other OWFF programmes, this is recognized – for example BAEC grants business class 2x the economy class rate... still nowhere near the relative revenue generation proportion, but at least somewhat fairer.

(2) CX - probably alone amongst all OW airlines – grants benefits such as lounge access and priority boarding to lower-level frequent flyers (can you imagine if AA/BA etc granted lounge access for Ruby? Or permitted basic members to use the priority boarding line?)

The proposed changes are a step along the way in terms of addressing the two problems above (under-rewarding more lucrative travelers, and over-rewarding less lucrative travelers).

Yes, I do sympathise with the adverse impact for Marco Polo Silver cardholders, but I would suggest the following:

- Remove all but a few benefits from Marco Polo Silver so that becomes more like a typical OW Ruby (which it appears CX is doing)

- To compensate for the above, make Marco Polo Gold easier to reach. Net-net, this will reduce the lounge crowding etc, but still incentivize Silvers to try and reach an easier Gold target

- Shift the miles earning ratio significantly in favour of higher revenue-generating ticket classes (which it appears CX is doing)

Awesom Andy Jun 23, 2015 10:29 pm


Originally Posted by jagmeets (Post 25018293)
OT- Andy: I'm curious about the exSIN SGD350 V fares! Tend to be 600+ I think.

Credit card specific promotions. Doesn't happen all the time, and you need to have the right cards (or know someone with the right cards). Can be anywhere between 350 - 500, depending on the travelling dates and the actual promotion.


Originally Posted by Too much travel (Post 25018314)
To compensate for the above, make Marco Polo Gold easier to reach. Net-net, this will reduce the lounge crowding etc, but still incentivize Silvers to try and reach an easier Gold target

It's already very easy to reach - probably too easy. While the 60,000 miles hurdle seems high at first, very few airlines these days would allow earnings of 100% with MLV fares. If this group of pax were in other programs, they would be lumbering at 25-50% earn rate even on their host airlines, and have no hope in reaching OWS.


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