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CX New strategy rollout in 2017

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Old Feb 17, 2017, 8:58 pm
  #181  
 
Join Date: Feb 2015
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Originally Posted by QRC3288
Wow. Thank you frankguy!! You just saved me 13k HKD! I am buying a HKG-DEL roundtrip next month and was resigned to that price. I'll just call our (not often used) travel agent.

We also just spent just under 1K USD on a round-trip HKG-Tokyo fare in Y class, all booked from the website. I think it was $850-900 USD if memory serves me right. That seemed so steep that my secretary thought it was a mistake. So when I read above someone paid way less than website rate to Tokyo in J via travel agent I see a pattern here...

The website forever has been my default. I guess we need to put more business to the travel agent. Like going back in time I suppose.
I also saved around US$1,000 per ticket for my upcoming flight with CX in J by booking through my travel agent.
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Old Feb 17, 2017, 9:57 pm
  #182  
 
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Originally Posted by sxc
For flights to India there is some weird arrangement where CX has "outsourced" their sales to GC Nanda and this has been in place for years. It seems that the arrangement means that CX can't sell discounted fares directly. I don't know why they've done this. Maybe that agent has an agreement to buy a minimum volume or something. So for India flights you are always advised to use an agent.
Any idea where CX has "outsourced" their sale of I-class China fares to? So far I've checked a few popular Chinese internet airline ticket sites and all showing the same or similar price as CX full-J fares for their C class.
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Old Feb 17, 2017, 10:06 pm
  #183  
 
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Originally Posted by TravelwhileyouEat
While this isn't really a promotion, I was able to book a MNL-HKG-NRT-HKG-MNL flight for around USD 860 in J from a third-party website which is a deep, deep, deep discount from the USD 1,700 they were selling it on their website. I even called the CX hotline to double check if the ticket was valid (the agent I spoke with even got me the seat assignments I wanted).

Not sure if the agent was violating some kind of contract with CX for selling such a low fare, or CX is just giving out so many wholesale rates to third-parties just to fill premium cabins on certain routes.
Maybe it has to do with the fact that it's MNL. MNL, like TPE, is notorious for having cheaper J class fares.
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Old Feb 18, 2017, 7:04 pm
  #184  
 
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Originally Posted by GE90-115B
Maybe it has to do with the fact that it's MNL. MNL, like TPE, is notorious for having cheaper J class fares.
Yes, Ex-MNL does have notoriously low J fares MNL-SFO-MNL comes out 3.8~4.0K USD, but that's beside the point. I wanted to book directly with CX since it's the most convenient. I was comparing the same route on CX's website with the same exact itinerary on an OTA. The convenience was not worth the almost $850 difference in the fare or almost 50% more.

I wish CX just offered the same fare price, this was on an I fare that had the same penalties as the one on the CX website.
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Old Feb 19, 2017, 11:40 am
  #185  
 
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Originally Posted by sxc
For flights to India there is some weird arrangement where CX has "outsourced" their sales to GC Nanda and this has been in place for years. It seems that the arrangement means that CX can't sell discounted fares directly. I don't know why they've done this. Maybe that agent has an agreement to buy a minimum volume or something. So for India flights you are always advised to use an agent.
Read many years ago it was because GC Nanda helped "secure an extra slot in DEL" (whatever that means...) In exchange, GC Nanda has the exclusive right to sell discounted ex-HKG tickets whereas Cathay must display the full fare.

Anyone knows when will the agreement expire?
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Old Mar 12, 2017, 4:16 am
  #186  
sxc
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Analysts' grim outlook for Cathay:

Cathay Pacific may report 2016 profit slump amid sluggish fares
http://www.scmp.com/directories/arti...-ticket-prices
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Old Mar 12, 2017, 9:36 pm
  #187  
 
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Originally Posted by sxc
Analysts' grim outlook for Cathay:

Cathay Pacific may report 2016 profit slump amid sluggish fares
http://www.scmp.com/directories/arti...-ticket-prices
When I was reading through the article, I couldn't help but note the numerous pathetic excuses. For flights booked from HKG, based on what they're charging to HK customers, the passenger yields ($ per mile) are fine and dandy and they should be able to make a decent profit there.

They can legitimately gripe if they're talking about yields on connecting traffic, but yet, they want to increase capacity to further reduce yields???

Yes, the airline world has changed with the A350 and 787 which allow the long and thin routes (as well the subsidies to the mainland carriers), but instead of complaining, why don't they try to stop the knee-jerk reactions that ultimately create repeated waves of bad decisions?
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Old Mar 12, 2017, 9:50 pm
  #188  
 
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Originally Posted by triplefives
When I was reading through the article, I couldn't help but note the numerous pathetic excuses. For flights booked from HKG, based on what they're charging to HK customers, the passenger yields ($ per mile) are fine and dandy and they should be able to make a decent profit there.

They can legitimately gripe if they're talking about yields on connecting traffic, but yet, they want to increase capacity to further reduce yields???

Yes, the airline world has changed with the A350 and 787 which allow the long and thin routes (as well the subsidies to the mainland carriers), but instead of complaining, why don't they try to stop the knee-jerk reactions that ultimately create repeated waves of bad decisions?
The issue is they have diluted profitability as the HK market for high paying passengers is saturated. After all how many more investment bankers are there in HK by now? So their capacity expansion is very much catering to transit passengers, which are inherently less profitable.

Additionally the combination of inflated ex-HKG pricing and the new MPC status system actively encourages shopping for cheaper one stop J flights versus buying PEY and upgrading. Why pay HK$28k + 30,000 miles for a non-stop CX HKG/LHR J seat and get 110 TP's when QR costs HK$25k and gets 200 TP's?
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Old Mar 13, 2017, 4:28 am
  #189  
 
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Originally Posted by KACommuter
The issue is they have diluted profitability as the HK market for high paying passengers is saturated. After all how many more investment bankers are there in HK by now? So their capacity expansion is very much catering to transit passengers, which are inherently less profitable.

Additionally the combination of inflated ex-HKG pricing and the new MPC status system actively encourages shopping for cheaper one stop J flights versus buying PEY and upgrading. Why pay HK$28k + 30,000 miles for a non-stop CX HKG/LHR J seat and get 110 TP's when QR costs HK$25k and gets 200 TP's?
I guess it will depend on company policy regarding travel classes...
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Old Mar 13, 2017, 4:48 am
  #190  
 
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Originally Posted by KACommuter
The issue is they have diluted profitability as the HK market for high paying passengers is saturated. After all how many more investment bankers are there in HK by now? So their capacity expansion is very much catering to transit passengers, which are inherently less profitable.

Additionally the combination of inflated ex-HKG pricing and the new MPC status system actively encourages shopping for cheaper one stop J flights versus buying PEY and upgrading. Why pay HK$28k + 30,000 miles for a non-stop CX HKG/LHR J seat and get 110 TP's when QR costs HK$25k and gets 200 TP's?
Exactly. While CX is trying to lure MPC members to fly J, it inevitably encourages them to fly J on OTHER OW partners given the higher CP/Price ratio.
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Old Mar 13, 2017, 5:28 am
  #191  
 
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Originally Posted by SLGO
Exactly. While CX is trying to lure MPC members to fly J, it inevitably encourages them to fly J on OTHER OW partners given the higher CP/Price ratio.
yea. I'm not sure they understood this when rejiggering the program.

I might get flamed for saying this, and it is indeed selfish given my travel patterns, but I'd kill to have DM (or GO or whatnot) be "better" in relation to the basic OW partner benefits (formalize op-up priority for MPCs first, exclusive lounge for F and DMs only, etc.), which would justify DM and GO's significantly harder earn requirements vs most of their OW peers. As of now it's considerably harder to earn DM than most other OWE programs, yet there aren't a slew of tangible benefits.

I give CX credit for adding the mid-tier benefits. For someone like me they're good, because I can easily do 1,800 CP a year. But I imagine for most it's not enough. Take a Diamond who barely hits 1,200 CP. In many scenarios, it would be significantly easier for him to earn OWE via AA, BA or QF (in some cases you can earn partner OWEs in about half or less the $$ spent than on CX). This Diamond stands to receive none of the mid-tier benefits, so they are moot to him. Meanwhile, he runs the risk of not making DM because of how close his travel patterns are. This guy has a big incentive to switch over to another program. Whereas if CX actually made MPC benefits tangibly better than other partners, he might continue to accrue on MPC.

How can CX do this? Basically, they should be utilizing the assets they have - planes, lounges, HK Airport - to offer benefits above and beyond the normal OneWorld benefits, which naturally would pull people towards MPC. It would be an additional carrot you'd have to weigh in your value proposition.

I can give a personal example. I fly an excessive amount. The majority of my flights are on CX/KA, but I still probably do 40-80k+ butt in seat miles a year on other carriers (which usually translates into 75-150k "miles" after accounting for J and F bonuses wand whatnot). When I'm flying those other carriers, I wouldn't mind using the CX lounges in HKG...a nice benefit I previously had as a CX DM. But not anymore. This was definitely a "unique" aspect of MPC I'm talking about, where partners obviously don't get the benefit. CX needs to do a better job capitalizing on its assets IMO to actually make MPC stronger. Every OneWorld member out there knows you can't use OW lounges when flying on other airlines, so obviously partner travelers won't be peeved about this. It was a great way to actually enhance MPC without pi$$ing anyone off. And then...they took it away. I can't imagine it cost much, and I'm fairly certain it's not DMs on *A carriers crowding up the J lounges. CX has this data...I don't think I'm going out on a limb saying that. Most of my non-CX miles are indeed from airports not named Hong Kong. But sometimes (not often) I do.

Anyway, given CX's other problems I'm not optimistic. But the solution seems fairly obvious to me. Offer MPC benefits above and beyond those what simple partner benefits offer.
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Old Mar 13, 2017, 5:32 am
  #192  
sxc
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Originally Posted by SLGO
Exactly. While CX is trying to lure MPC members to fly J, it inevitably encourages them to fly J on OTHER OW partners given the higher CP/Price ratio.
And other carriers encourage you to fly your "home" carrier by bonus mileage earning. As it is, there's too much stick and not enough carrot.
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Old Mar 13, 2017, 6:26 am
  #193  
 
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Originally Posted by sxc
And other carriers encourage you to fly your "home" carrier by bonus mileage earning. As it is, there's too much stick and not enough carrot.
You've got the point. Virtually no exclusive benefits to MPC members as also said above.

Sometimes I feel like it's those Silver members who are the most loyal, as only they have "exclusive" benefits.
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Old Mar 13, 2017, 7:25 am
  #194  
 
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Originally Posted by QRC3288
yea. I'm not sure they understood this when rejiggering the program.

I might get flamed for saying this, and it is indeed selfish given my travel patterns, but I'd kill to have DM (or GO or whatnot) be "better" in relation to the basic OW partner benefits (formalize op-up priority for MPCs first, exclusive lounge for F and DMs only, etc.), which would justify DM and GO's significantly harder earn requirements vs most of their OW peers. As of now it's considerably harder to earn DM than most other OWE programs, yet there aren't a slew of tangible benefits.

I give CX credit for adding the mid-tier benefits. For someone like me they're good, because I can easily do 1,800 CP a year. But I imagine for most it's not enough. Take a Diamond who barely hits 1,200 CP. In many scenarios, it would be significantly easier for him to earn OWE via AA, BA or QF (in some cases you can earn partner OWEs in about half or less the $$ spent than on CX). This Diamond stands to receive none of the mid-tier benefits, so they are moot to him. Meanwhile, he runs the risk of not making DM because of how close his travel patterns are. This guy has a big incentive to switch over to another program. Whereas if CX actually made MPC benefits tangibly better than other partners, he might continue to accrue on MPC.

How can CX do this? Basically, they should be utilizing the assets they have - planes, lounges, HK Airport - to offer benefits above and beyond the normal OneWorld benefits, which naturally would pull people towards MPC. It would be an additional carrot you'd have to weigh in your value proposition.

I can give a personal example. I fly an excessive amount. The majority of my flights are on CX/KA, but I still probably do 40-80k+ butt in seat miles a year on other carriers (which usually translates into 75-150k "miles" after accounting for J and F bonuses wand whatnot). When I'm flying those other carriers, I wouldn't mind using the CX lounges in HKG...a nice benefit I previously had as a CX DM. But not anymore. This was definitely a "unique" aspect of MPC I'm talking about, where partners obviously don't get the benefit. CX needs to do a better job capitalizing on its assets IMO to actually make MPC stronger. Every OneWorld member out there knows you can't use OW lounges when flying on other airlines, so obviously partner travelers won't be peeved about this. It was a great way to actually enhance MPC without pi$$ing anyone off. And then...they took it away. I can't imagine it cost much, and I'm fairly certain it's not DMs on *A carriers crowding up the J lounges. CX has this data...I don't think I'm going out on a limb saying that. Most of my non-CX miles are indeed from airports not named Hong Kong. But sometimes (not often) I do.

Anyway, given CX's other problems I'm not optimistic. But the solution seems fairly obvious to me. Offer MPC benefits above and beyond those what simple partner benefits offer.


I am one of those who barely made DM, 14xx cp last year and I saved about 200 cp for this year. I never intentionally flies other OW J before but since the switch I have taken 14 J flights with QR, MH and QF, mostly long haul. Those OW J flights almost made up 600 cp.
Company only allows travel in Y or I can pay the fare difference for PEY and with the V fare benefit gone, it actually wouldn't make much difference to me if I'm with another program, as long as I'm OWE.
If I would be flying any less, I will switch 100% as GO is a lot worse than OWE even if flying CX exclusively.
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Old Mar 13, 2017, 8:49 am
  #195  
 
Join Date: Jan 2017
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Originally Posted by Ausriver
I am one of those who barely made DM, 14xx cp last year and I saved about 200 cp for this year. I never intentionally flies other OW J before but since the switch I have taken 14 J flights with QR, MH and QF, mostly long haul. Those OW J flights almost made up 600 cp.
Company only allows travel in Y or I can pay the fare difference for PEY and with the V fare benefit gone, it actually wouldn't make much difference to me if I'm with another program, as long as I'm OWE.
If I would be flying any less, I will switch 100% as GO is a lot worse than OWE even if flying CX exclusively.
Similar thoughts here. Although I don't fly much, but I may reach OWS with BA while only get SL with CX.
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