Rumour: CX to restrict certain lounge access to Marco Polo members
Apr 9, 2018, 1:38 am
#181
Join Date: Jul 2013
Location: LAS/DXB
Programs: LH HON
Posts: 1,193
I think this is where I disagree with you.
We are witnessing precisely the opposite these days, in fact this forum is a raging testament to the opposite! And why CX is in this MPC predicament to begin with - loyalty has less and less to do with residence and which metal you fly. People sign up for this screwy Avianca program who have never set foot in South America, similar for Alaska and Aeroplan and whatever else! Issue: "Loyalty" programs have totally lost the original plot because they aren't driving incremental revenues to airlines, but are instead revenue generators in their own right for the clever (AA, BA, Alaska) / airlines with large domestic customer bases, and low yield addiction sources for others. These programs now effectively act as the extremely low cost feeder tickets (as low as ID tickets in some cases) for premier airlines who suck at IT and can't figure out how to manage their own loyalty program properly (...ah hem, CX).
I think the trend is finally righting itself from the insanity of "loyalty" programs that have gone amuck after a robust two decades. QR essentially not playing by the rules of OW, airlines downsizing F class to a few seats, EK refusing to join an alliance, more loyalty programs going revenue based, these are all somewhat related trends. The whole point of loyalty programs early on was to reward people actually flying in your own plane and drove your yield. It would've been a bizarre idea to the spirit of loyalty programs at inception that somehow AA was profiting from its "customer", who actually never stepped foot on an AA plane but rather only flew CX. Yet this exists today, in spades! And thay customer is rather logical, can't blame him! But in common sense world, this customer should 100pct be CX's loyalty member, not AAs, and I think over time it will go back to be that way as programs rejigger themselves to align with globalization in th 21st century.
And so actions CX can take to recapture that customer under their own loyalty umbrella might actually just be a clever move, not necessarily bad. Regardless I think this is going to be the trend this coming decade after what seems to be programs just turning essentially into a "I win you lose" arbitrage game untied to profits and loss.
We are witnessing precisely the opposite these days, in fact this forum is a raging testament to the opposite! And why CX is in this MPC predicament to begin with - loyalty has less and less to do with residence and which metal you fly. People sign up for this screwy Avianca program who have never set foot in South America, similar for Alaska and Aeroplan and whatever else! Issue: "Loyalty" programs have totally lost the original plot because they aren't driving incremental revenues to airlines, but are instead revenue generators in their own right for the clever (AA, BA, Alaska) / airlines with large domestic customer bases, and low yield addiction sources for others. These programs now effectively act as the extremely low cost feeder tickets (as low as ID tickets in some cases) for premier airlines who suck at IT and can't figure out how to manage their own loyalty program properly (...ah hem, CX).
I think the trend is finally righting itself from the insanity of "loyalty" programs that have gone amuck after a robust two decades. QR essentially not playing by the rules of OW, airlines downsizing F class to a few seats, EK refusing to join an alliance, more loyalty programs going revenue based, these are all somewhat related trends. The whole point of loyalty programs early on was to reward people actually flying in your own plane and drove your yield. It would've been a bizarre idea to the spirit of loyalty programs at inception that somehow AA was profiting from its "customer", who actually never stepped foot on an AA plane but rather only flew CX. Yet this exists today, in spades! And thay customer is rather logical, can't blame him! But in common sense world, this customer should 100pct be CX's loyalty member, not AAs, and I think over time it will go back to be that way as programs rejigger themselves to align with globalization in th 21st century.
And so actions CX can take to recapture that customer under their own loyalty umbrella might actually just be a clever move, not necessarily bad. Regardless I think this is going to be the trend this coming decade after what seems to be programs just turning essentially into a "I win you lose" arbitrage game untied to profits and loss.
Apr 9, 2018, 2:06 am
#182
FlyerTalk Evangelist
Join Date: Dec 2004
Programs: CX Green, QF Platinum, BAEC Silver, Hyatt Glob
Posts: 10,780
Something I just picked up on....interestingly AA only recently rewrote their program and if anything, they went the other direction to the way you think programs would be moving. They removed the 4 sectors on AA requirement entirely.
Apr 9, 2018, 2:43 am
#183
Join Date: Jan 2006
Programs: AAdvantage Asia Miles Air China
Posts: 870
Difference between the AA and CX programmes, one of them is run as a business.
Regarding lounge access I think CX needs to think about reciprocity. In the US and Canada, as far as I know the only 2 lounges which are branded CX are in SFO and YVR, the rest are partners. In Australia they use QF's lounges. Anything restricting non-CX elites could mean an expensive hit, forcing OWEs say into the business class lounges will mean less $$$$ for access, lead to over crowding, and deny CX elites equivalency across the OW network.
For every two way flight there are two lounges. So if you gain in HKG, you might lose in New York.
Apr 9, 2018, 3:12 am
#184
FlyerTalk Evangelist
Join Date: Dec 2004
Programs: CX Green, QF Platinum, BAEC Silver, Hyatt Glob
Posts: 10,780
And there are also only two locations with a CX F lounge (HKG and LHR). So similar to the QF flyers commenting on that ausbt article above, you need to consider reciprocity.