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Rumour: CX to restrict certain lounge access to Marco Polo members

Rumour: CX to restrict certain lounge access to Marco Polo members

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Old Jan 17, 18, 10:45 pm
  #61  
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Longtime lurker here.

This thread really irks me. I have no problem with price discrimination; it's how the airline industry works. In this case, I always purchase a large horde of Alaska miles and always redeem when available. Why should I spend more when there's a seat available and it suits my schedule? There's not point for me to give more revenue than necessary to CX. I only pay cash when there's no seats available. As a DM, I am of course not a top revenue producer for CX. In fact, why should my lounge access be cut when I'm on a partner away ticket and not flying revenue?

You know who should be cut from collecting Asia Miles and have their lounge access cut when travelling? People flying on company dime! In fact, I think anyone flying on a corporate contract should not be able to accrue mileage simply it was not themselves paying the ticket. The miles should go directly back to the corporate manager or even redistributed in the form of credits back to the corporate account. Flying business or first class on company dime is not an indulgence; it a s necessity in certain applications. However, wining and dining is certainly not and it is extremely frustrating to have individuals yapping away on their phones in the lounges and acting all so 'high class' and demanding excellent service when didn't pay a single cent! Simply inelegant and obnoxious.

I myself pay for my own tickets even when purchasing Alaska points; you did not.

You didn't sign up to travel lavishly; you're getting paid to do your job.

Next!
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Old Jan 17, 18, 11:41 pm
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@tuhao:

If you mean people travelling on the company dime (I've dealt w plenty) but not in a corporate contract (not in my companies to date, maybe I've never worked for an i-bank?), discriminating corporate purchasers won't work cos staff would persuade their travel departments to let them ticket themselves instead of going thru corporate travel agents and claim reimbursement.

Just as as long as the personal fare is less than the corporate travel agent's quote, travel departments can approve. OK some larger companies may mandate all travel must go thru corporate travel agency unless it is proven infeasible, but as soon as enough bigwigs are denied their gold/dm perks this policy will disappear.

You'd just hurt corporate agents this way. There may be consequences when they go out of their way to sell non-CX airlines.

i don't know about cx contract rates. Assume they exist as a fixed fare for certain fare class or certain percentage discount, by all means CX can cut the perks but it may incur displeasure of the corporate decision maker who has to sign off on the renewal, who may be a status member himself.
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Old Jan 18, 18, 12:05 am
  #63  
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Originally Posted by andersonCooper View Post
But I agree with your point that there should be an alignment here, given now OWE almost covers DM benefits while being easier to obtain. The problem is CX has no idea how to differentiate MPC from OW FFP. Silver/OWS lounge access - easier to get from OW;
Very good point. Other programs (QF, BA) give mileage bonus if you fly their metal. Asia Miles and Marco Polo Club operate in silos, and they don't seem to be able to come to an agreement there.

They stripped out a useful seat guarantee. There is much less discretion on releasing award seats to Diamonds. There's no lifetime status.
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Old Jan 18, 18, 12:07 am
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@tuhao

As @percysmith said, this won't work for majority of companies because bigwigs who travel like earning the perks of FF elite status which they can use for personal travel. Also for the company I work for (and I suspect many others), they don't see FFP earning as a cost to the company so they don't care if employees earn miles/status on company travel. In fact, those that do earn status tend to see it as a benefit of company travel which makes them happier workers (free of cost to the company), at least in my personal experience. CX taking away lounge access from business travelers will only solve overcrowding by having business travelers actively avoid taking CX as much as possible at taking other airlines since I do not see others following this kind of practice if it is implemented.

Also, how will this work in reality... if a business traveler takes CX in J or F they don't have lounge access but if they are taking a OW partner J or F they will have access since OW rules state they do?
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Old Jan 18, 18, 12:11 am
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Originally Posted by TravelwhileyouEat View Post
Also, how will this work in reality... if a business traveler takes CX in J or F they don't have lounge access but if they are taking a OW partner J or F they will have access since OW rules state they do?
Zero CP on contract rate tix...but again I don't think CX can do this without consequences.
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Old Jan 18, 18, 1:15 am
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Originally Posted by percysmith View Post

Zero CP on contract rate tix...but again I don't think CX can do this without consequences.
Agreed, though the point you quoted had more to do with lounge access rather than status. It would be weird (and disadvantageous) to not allow entry to lounges for those flying on corporate contract CX J / F but allow those same business travelers flying say AA / BA / JL / etc in J or F due to OW lounge access rules.
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Old Jan 18, 18, 2:15 am
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Originally Posted by percysmith View Post


Zero CP on contract rate tix...but again I don't think CX can do this without consequences.
CX could effectively do this by creating a new tier above DM+ akin to BA Premier only for the travel managers and executives in charge of the corporate accounts. By luring them individually with lots of perks, they’ll be enticed to remain with CX albeit at the expense of employee travel perks for others. However, as the company is still with CX, employees will still be stuck and forced to fly with them.
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Old Jan 18, 18, 2:17 am
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Originally Posted by TravelwhileyouEat View Post
Agreed, though the point you quoted had more to do with lounge access rather than status. It would be weird (and disadvantageous) to not allow entry to lounges for those flying on corporate contract CX J / F but allow those same business travelers flying say AA / BA / JL / etc in J or F due to OW lounge access rules.
Sorry I could be more clear

Lounge access still permitted on corporate rate because it's too hard to discriminate a contract J/F pax from any other revenue J/F pax

No lounge access on personal travel thru deprivation of CP from corporate travel.
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Old Jan 18, 18, 2:28 am
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Originally Posted by percysmith View Post
Sorry I could be more clear

Lounge access still permitted on corporate rate because it's too hard to discriminate a contract J/F pax from any other revenue J/F pax

No lounge access on personal travel thru deprivation of CP from corporate travel.
That would be excellent.

Also, I think everyone here on this board should really face reality. As DMs, we’re just small potatoes to CX. 50-100k usd annual spend is seriously nothing and they couldn’t care less about our feelings. Talk about 1mm+ and then you’ll have more influence but even then, everyone will probably demand their own private room.
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Old Jan 18, 18, 2:32 am
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Originally Posted by tuhao888 View Post
CX could effectively do this by creating a new tier above DM+ akin to BA Premier only for the travel managers and executives in charge of the corporate accounts. By luring them individually with lots of perks, they’ll be enticed to remain with CX albeit at the expense of employee travel perks for others. However, as the company is still with CX, employees will still be stuck and forced to fly with them.
That is pure evil.

If properly implemented, it should work.

However I wonder would corporate travel departments properly identify decision makers. Or just name their best allies inside the office...


I'm also wondering how is this not a bribe...the one that results in ICAC raiding CX's (BA's) offices

Last edited by percysmith; Jan 18, 18 at 2:45 am
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Old Jan 18, 18, 2:44 am
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Originally Posted by percysmith View Post
That is pure evil.

If properly implemented, it should work.

However I wonder would corporate travel departments properly identify decision makers. Or just name their best allies inside the office...
Even then, CX could very well just go after the board of the company and provide them with a package. The travel decision makers lower down may not even get anything. This way, everyone ugh up retains their benefits, CX retains the existing contract and business whilst reducing the effective number of elites and elites using their and partner lounges.
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Old Jan 18, 18, 3:02 am
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Maybe boards and the whole C-suite

Anecdotally I think it's happening already (ex-officio DMs)
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Old Jan 18, 18, 3:13 am
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Originally Posted by tuhao888 View Post


Even then, CX could very well just go after the board of the company and provide them with a package. The travel decision makers lower down may not even get anything. This way, everyone ugh up retains their benefits, CX retains the existing contract and business whilst reducing the effective number of elites and elites using their and partner lounges.
This would never work, travel decision makers are glorified HR employees with far less clout in a company than most of the people travelling in F & J for work (the revenue generators) who would complain voraciously about losing their travel benefits and demand switching to a program that would allow them to earn miles & receive perks.

In the grand scheme of things corporate travel is far more important to CX's bottom line than someone who spend a few 10s of thousands to reach DM.
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Old Jan 18, 18, 3:57 am
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Originally Posted by tuhao888 View Post


That would be excellent.

Also, I think everyone here on this board should really face reality. As DMs, we’re just small potatoes to CX. 50-100k usd annual spend is seriously nothing and they couldn’t care less about our feelings. Talk about 1mm+ and then you’ll have more influence but even then, everyone will probably demand their own private room.
​​​
CX's passenger revenue was around US$8.6bn in 2016, US$4.1bn in 1H17, according to their annual reports. If you just take the minimum of the number of DMs (20k) times the minimum of your US$50k assumption, DM contributed around 11%~12% of passenger revenue in both years. And that is the bare minimum assumption. I wouldn't be surprised if DMs actually contributed to north of 20% of total passenger revenue per annum. By any means, I wouldn't call that "small potatoes" and/or "nothing". It looks quite a sizable chunk to me!
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Old Jan 18, 18, 4:01 am
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Originally Posted by Herostratus View Post
This would never work, travel decision makers are glorified HR employees with far less clout in a company than most of the people travelling in F & J for work (the revenue generators) who would complain voraciously about losing their travel benefits and demand switching to a program that would allow them to earn miles & receive perks.

In the grand scheme of things corporate travel is far more important to CX's bottom line than someone who spend a few 10s of thousands to reach DM.
No the business pax have no clout.
They're getting from A to B in the fastest way possible.
They're already given J - that can be taken away (if the company already routinely flies its employees in Y, I don't think they get contract rate)

And the c-suite have been "bought" with CX Premier.
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