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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)

Guy Betsy Jan 8, 2015 8:31 am

Rumor: MPC will go way of PPS
 
I've just heard this from a friend (in HK) who knows someone at CX that MPC will change to the way how SQ's PPS works.. and that Asiamiles will change to how KF is.

Which means that MPC status will be revenue based on J/F tickets and the miles earned will go to Asiamiles where it will have a tiered system like KF. MPC was like this in the 90s where the MPC was based on revenue in J/F class and miles banked to Passages.

So for people who earns miles in economy class, they might lose MPC and be pushed to Asiamiles' new tiered system. I don't know if Asiamiles will have OW Ruby, Sapphire or Emerald status. But apparently CX is looking at all options.

Maybe CX will allow people to double dib like PPS then.

Apparently CX will unveil or start this in 2016...

:eek:

sscywong Jan 8, 2015 9:35 am

Just read that some US airlines are changing to revenue based program... seems this is the industry trend... :(

I think probably DM+ will get public (to make MPC a 5-tier system), make it a DM meeting revenue target, GR 4-sector requirement get enforced with maybe 5000 miles requirement, and maybe add revenue target for GO and DM as well....

OW R, S, E probably will remains with SL, GO and DM / DM+...

CX HK Jan 8, 2015 10:04 am

Wow... very sad for the average, economy class leisure traveler like me.

Guy Betsy Jan 8, 2015 10:09 am


Originally Posted by CX HK (Post 24125693)
Wow... very sad for the average, economy class leisure traveler like me.

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.

brunos Jan 8, 2015 10:26 am

It is the industry trend worldwide to move to a revenue based system.
In most cases, miles earning and status earning are based on different parameters.
MPC is currentlyl geared towards Y flyers with ridiculous bonuses for J/F tickets. My guess is that it will be more difficult to get DM for Y flyers and easier for J flyers, a worldwide trend.

MSPeconomist Jan 8, 2015 10:29 am


Originally Posted by sscywong (Post 24125483)
Just read that some US airlines are changing to revenue based program... seems this is the industry trend... :(

I think probably DM+ will get public (to make MPC a 5-tier system), make it a DM meeting revenue target, GR 4-sector requirement get enforced with maybe 5000 miles requirement, and maybe add revenue target for GO and DM as well....

OW R, S, E probably will remains with SL, GO and DM / DM+...

DL (from January 1, 2015) and UA (from March 1, 2015) have gone to revenue based earning for redeemable miles, but status mile calculations and elite qualification are still as before, except that a (very reasonable for now, IMO) revenue requirement has been added, the equivalent to ten cents per mile in 2014. It remains to be seen whether this will do anything to thin the elite herd.

77W_12A Jan 8, 2015 12:27 pm

If they are going to follow SQ, here's a brief description of Krisflyer/ PPS Solitaire. Please correct if wrong.

PPS Solitaire is their highest tier equivalent to DM.

PPS Solitaire is given when you spend SGD 250,000 or USD 188,000 with 5 consecutive years of PPS club membership.

After reaching that amount, renewing will be SGD 25,000 or USD 18,800 at the end of the 12 month period. If you exceed the amount spent for the year, the excess amount will be rolled over for the following year.

The PPS value ONLY applies for SQ and MI flights.

mckerrow, thank you for the correction. Please refer below.

mckerrow Jan 8, 2015 1:06 pm


Originally Posted by gemini573 (Post 24126712)
If they are going to follow SQ, here's a brief description of Krisflyer/ PPS Solitaire. Please correct if wrong.

PPS Solitaire is their highest tier equivalent to DM.

PPS Solitaire is given when you spend SGD 250,000 or USD 188,000 with 5 consecutive years of PPS club membership.

After reaching that amount, renewing will be SGD 25,000 or USD 18,800 at the end of the 12 month period. If you exceed the amount spent for the year, the excess amount will be rolled over for the following year.

The PPS value ONLY applies for SQ and MI flights.

There are two tiers for PPS Club --

PPS Club Member: Accrue a PPS Value of S$25,000 within a period of 12 consecutive months. To renew PPS Club membership each year, a PPS Value of S$25,000 at the end of the 12-month period of your PPS Club membership year is required.

Solitaire PPS Club Member: Accrue a cumulative PPS Value of S$250,000 within five consecutive years of PPS Club membership. To renew Solitaire PPS Club membership each year, a PPS Value of S$25,000 at the end of the 12-month period of your Solitaire PPS Club membership year is required.

AC*SE Jan 8, 2015 1:24 pm

This strikes me as eminently sensible. The customer that is most valuable to the airline is the customer that provides the most money to the bottom line, plain and simple.

Cathay Boy Jan 8, 2015 1:26 pm

So... push loyal Y fliers elsewhere, hoping for more satisfied J fliers, we'll see how it works in the long run.

Y-only airlines around the world are happy, and flourishing....

CrazyJ82 Jan 8, 2015 1:37 pm


Originally Posted by Cathay Boy (Post 24127097)
So... push loyal Y fliers elsewhere, hoping for more satisfied J fliers, we'll see how it works in the long run.

Y-only airlines around the world are happy, and flourishing....

...and stay in business without offering generous perks like lounge access, seat guarantees and so on to their most frequent flyers. Given the large number of seats CX manages to fill on every flight with non-status pax (to judge by the huge lines of people who aren't even MPO green in the regular economy queues) I think it's time to re-align assumptions about what a carrier does and doesn't need to do to fill Y. FT is a highly skewed sample.

Kachjc Jan 8, 2015 2:54 pm

Really bad for progression
A lot of people start out as Y only and then become loyal to CX and as their business/career progress start flying J. Simply due to CX loyalty.

Having a full economy matters, it allows airlines to operate hubs with many frequencies.
Chicago reduction just proves economy matters

yohy?! Jan 8, 2015 3:28 pm


Originally Posted by Kachjc (Post 24127688)
Really bad for progression
A lot of people start out as Y only and then become loyal to CX and as their business/career progress start flying J. Simply due to CX loyalty.

Having a full economy matters, it allows airlines to operate hubs with many frequencies.
Chicago reduction just proves economy matters

This really depends on how CX is managing its revenue to maximise profits - traditionally I believe they make their money up front and Y is simply there to break even/not lose money. So it isn't alway necessary to fly a full Y cabin as long as across all classes a route is profitable.

Kachjc Jan 8, 2015 3:36 pm

Yup but once you stay losing y passengers you eventually lose business passengers - look at what is happening to CX on regional routes, if Y passengers more are no benefit of CX ( lounge etc) flying LCC seems reasonable
CX will have to then cut regional frequencies...
Like they did at Chicago

AA_EXP09 Jan 8, 2015 4:37 pm

Damn-CX was indeed my backup plan :(
In this case may as well become a free agent-loyalty will be of no use considering I rarely carry a lot of baggage and I have priority pass on multiple credit cards.
They can already get the budget conscious traveller through S/N/O/Q fare (i.e. there is a fare to MNL from YVR that has a 40CAD round trip discount for booking into S class instead of V.)


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