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Originally Posted by AC*SE
(Post 24138707)
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. Second, CX Y is going to adapt a new strategy of discount airlines rather than the old strategy of "you're paying more but you get more", which worked for decades. For decades CX carefully build a loyal Y following that is willing to regularly pay 20% more in competitive fares for better FFP, they are going to throw all of that away because they *think* this will have them attract more premium fliers. Good luck. 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. |
Originally Posted by Cathay Boy
(Post 24139576)
Tell that to ORD, they had to reduce flight because while J class is selling, the Y aren't. Can't sustain a route with only F/J selling, go figure huh I get that we all want to think we're uniquely valuable to the airline. And as a sapphire (currently in MPC, soon to get the equivalent with BA) who flies almost exclusively Y/Y+ I'd like to think in uniquely valuable too. But I have to agree with other posters who are arguing that perhaps CX is concluding that in the current competitive environment they don't need to be quite as generous with ffp benefits to attract some market segments. |
As mentioned earlier, SCMP has a piece on this.
http://www.scmp.com/business/compani...e-big-let-down |
Originally Posted by KACommuter
(Post 24137606)
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.
She never even bothered to join the Marco Polo Club let alone join Asia Miles (I had to sign her up but she still forgets to give her number to her travel agent when booking her tickets and I do retro claim for her)! The reason why she would fly CX (even if it means an extra connection in HKG when going to mainland China) over AC or even the mainland China carriers flying to YVR is because she claims that the staff at CX (especially in YVR where the staff recognize her) are nicer to her (compared to AC) and the food/entertainment in Y is better than the other carriers. I even asked her why she didn't use her Asia Miles to upgrade to J and she just said Y is good enough for her and she always arrives at the last minute at the airport anyway (so no time to use the lounges). |
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. I never reached the higher tiers after Gold, but other than access to the Concorde Rooms (which are only at LHR T5 and at JFK), the only benefit of any conceivable use are the companion benefits. BA does not do much for its "elites."
Originally Posted by jjjohn
(Post 24138681)
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. And HON takes 600,000 points in a two year period. I fly a lot, and in premium cabins, but I would never have made that, particularly since it has to be on LH alliance carriers (not Star Alliance). |
snippet from SCMP today
http://www.scmp.com/business/compani...e-big-let-down
Cathay Pacific is set to revamp its two frequent-flier programmes - with high-spending customers winning out over regular economy travellers, sources have told the Sunday Morning Post. While details have yet to be confirmed, the airline's Marco Polo Club is expected to be overhauled to focus on big spenders travelling only with Cathay and its sister airline Dragonair. Members would not benefit for flights on other airlines in the Oneworld Alliance and the club would focus on those who pay for premium seats or buy the most expensive, fully flexible economy fares. The big losers would be economy-class passengers who have made enough journeys to reach the club's higher tiers and benefit from perks such as lounge access |
http://www.scmp.com/business/compani...e-big-let-down
Cathay, which has won a range of awards for its frequent-flier schemes, said it would make an announcement "if and when" the changes came to fruition. "We look forward to introducing initiatives that will benefit our passengers, and in particular our most loyal customers, to ensure they enjoy a rewarding travel experience with us," a spokeswoman for the carrier said. Cathay proposed last month that those eligible for lounge access as members of the club's silver tier - which can require 20 or more economy-class flights a year - might only be allowed four lounge passes per year. |
According to the SCMP, full fare Y class are included in the new MPC.
"Members would not benefit for flights on other airlines in the Oneworld Alliance and the club would focus on those who pay for premium seats or buy the most expensive, fully flexible economy fares." |
The discussion so far has focused on changes to lounge access etc.
What about redemption? What will the differences be between elites and non-elites in terms of claiming awards? I imagine that as before elites will be able to clear wait-list faster. What else? Also, will the redemption chart change? I won't imagine so, not much. Am I right? |
Originally Posted by jjjohn
(Post 24138639)
are you sure wanting to switch to MU?
so I do not need to spend money to buy V class, can just buy cheap S or even O fare, and earn 50% miles, the last time my mom got 80% miles on O fare on AY |
Originally Posted by jjjohn
(Post 24138681)
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. |
Hm..Time to change to other carrier i guess
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Originally Posted by KACommuter
(Post 24141343)
That's a *A characteristic i.e. the 2 tier system in which the airline's own most loyal customers get extra special treatment. You see that with UA, SQ and LH. One of OW's attractions is that it is more consistent in its treatment of frequent fliers.
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Originally Posted by Guy Betsy
(Post 24129118)
Does anyone remember the good old days of the MPC ?
- 40000 km BIS in the 6 months preceding the application date; - then on 40000 kms in the next year (counted from the application date) to maintain SILVER level; - or 80000 kms to get into GOLD; - or 160000 kms to get into DIAMOND; those who had clocked one million kms in 10 years would be granted the much missed LIFETIME DIAMOND membership. When I first apply to MPO I had no problems gaining and maintaining status, the big difference with today is that with the equivalent of 700-800 euros you bought a class fare giving 100% status mileage, while now you have to fork out at least 1000+ euros for the same result. Back then traveling with Cathay was like a breath of fresh air, service ground and air, travel, lounges and food were definitely head and shoulders above the then incumbents. Sadly the Cathay of today cannot be favorably compared to the one that I traveled with until the beginning of 2000s, although the service remains still amazingly on a good level of consistence. Personally I think CX needs to "tighten the screws" and simplify the program, rather than revolutionising it and risk another embarrassing disappointment, as other posters back in the thread mentioned. I'd prefer they would scrap altogether the useless GREEN card and the 50USD entry fee and reinstate some entry requirement as they had before 2000, and then perhaps revising the yearly qualification target by either increasing level threshold (as an example, get SILVER at 40000 miles, GOLD at 80000 and DIAMOND at 160000 miles) and restricting once again some class fares for status accrual. I would also avoid the differentiation between Asia Miles and MPO, and keep only the MPO name. DIAMOND and DIAMOND+ tiers membership could be renewed biannually rather than annually like the two other levels, but with more restrictive conditions. Finally I second the proposal that many put forward to differentiate lounge access per tier, so Silver cards would be directed to the Cabin, Gold and OWE to the Bridge, OWR to G16 and Diamond/Diamond+ will go to Wings. Many other proposals could be made on, regarding guests invitation, service level expected et al., but the name of the game should be simplification. |
Originally Posted by gemini573
(Post 24138645)
As others have stated, revenue should be treated as revenue regardless of the class of service flown. Why? $10k spent in J is more profitable to CX (therefore more valuable) than $10k spent in Econ. Does anyone have industry metrics on usual margins for F, J and Y class? I would be v interested to see that. |
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