Why Only 50% EQMs?
#16


Join Date: May 2002
Location: Moreland Hills (CLE)
Programs: Over-entitled UA 1.3MM Gold, AA Gold, Hilton Diamond, Marriott L-T Plat, Hertz PC
Posts: 5,526
Also, there's travel agency fees............
We fired our travel agent 4 years ago for all company travelers because of the service fee they imposed on all airline tickets - $19.
That, and I kept finding cheaper fares/routings.
That, and I kept finding cheaper fares/routings.
#17
Join Date: Sep 2005
Location: JZRO
Posts: 9,175
Originally Posted by channa
Agreed. DL never had this "workaround" which is why it never stuck at DL.
While the co.com requirement doesn't work for those with a travel agency mandate, it seems to work for a good chunk of the population. So it's not all the COers who are impacted, just those not allowed to book via co.com by their company's policies.
While the co.com requirement doesn't work for those with a travel agency mandate, it seems to work for a good chunk of the population. So it's not all the COers who are impacted, just those not allowed to book via co.com by their company's policies.
#18




Join Date: Apr 2003
Location: SEA
Programs: DL 1.7MM,AS 1MM
Posts: 4,609
Originally Posted by AviationFreak
Welcome to FT! The problem is solved because if you book the tickets at continental.com, they give you 100% EQMs.
That's a minority voice unfortunately.
Jiburi
#19




Join Date: Aug 2005
Location: DFW
Programs: Delta MM, Marriott Life Titanium, Hilton Diamond, United Silver, IHG Plat
Posts: 2,908
I'm against 50% EQM and made a swtich but its mostly personal reasons. I agree with the previous posters though - CO put in enough mitigation to keep a mass exodus of Elites from occurring including:
1. The CO.com or Bus Mgr exection.
2. The actual levels of Fare class that get EQM - If you are booking CO flts or even a CO designated flt (so long as its CO on your ticket) then the reality is that only the most deeply discounted fares get hit with 50%.
3. Competitiveness of other carriers - With apologies to the other flyers out there - most of the other programs just aren't as good as CO's - particularly with upgrade privileges for all but the top tiers.
4. Skytem limits - Skyteam members won't status match CO and Skyteam members hit CO flts with 50% EQM too so you can't switch to NW or DL and fly CO to get around the limit.
That being said the 50% EQM does really push travelers that have:
1. Companies that insist on working with travel agencies. Larger companies (I work for a DOW 30) typically insist on booking through a designated agency. They dimiss the idea of better fares on the internet due to questionable faith in their contracts. What's important to them is a travel agency that consolidates travel do get volume discount rebates and similar arrangements.
2. Needs to fly CO partners - the CO 50% EQM hits at much higher fare classes when flying a partner.
This year I've made a switch to NW but I'm not sure how much my case applies to the general population of Elite flyer. What pushed me were:
1. My company uses the designated travel agency.
2. My company has a relentless policy of always booking the lowest possible fare which is enforced by the agency.
3. I have to fly partners a lot of the time - either because of going where CO won't or because a partner has a lower fare.
4. NW 2X EQM promo - NW ran a promo where you could earn 2X EQM for a few months this year - making a switch a lot easier.
So now I'm a NW Gold instead of a CO Silver and that's with only a few months of flying as a NW member. If I had stayed with CO I'd still be a Silver.
Bottom line: CO's policy has probably hurt some flyers but I don't think its enough the CO is very concerned. However, I wonder if its going to be sustainable in the long term. Cost cutting is today's coporate mantra - more and more travelers are going to be in the same place I was. Additionally, if CO does much more to degrade their program it could start to add up.
1. The CO.com or Bus Mgr exection.
2. The actual levels of Fare class that get EQM - If you are booking CO flts or even a CO designated flt (so long as its CO on your ticket) then the reality is that only the most deeply discounted fares get hit with 50%.
3. Competitiveness of other carriers - With apologies to the other flyers out there - most of the other programs just aren't as good as CO's - particularly with upgrade privileges for all but the top tiers.
4. Skytem limits - Skyteam members won't status match CO and Skyteam members hit CO flts with 50% EQM too so you can't switch to NW or DL and fly CO to get around the limit.
That being said the 50% EQM does really push travelers that have:
1. Companies that insist on working with travel agencies. Larger companies (I work for a DOW 30) typically insist on booking through a designated agency. They dimiss the idea of better fares on the internet due to questionable faith in their contracts. What's important to them is a travel agency that consolidates travel do get volume discount rebates and similar arrangements.
2. Needs to fly CO partners - the CO 50% EQM hits at much higher fare classes when flying a partner.
This year I've made a switch to NW but I'm not sure how much my case applies to the general population of Elite flyer. What pushed me were:
1. My company uses the designated travel agency.
2. My company has a relentless policy of always booking the lowest possible fare which is enforced by the agency.
3. I have to fly partners a lot of the time - either because of going where CO won't or because a partner has a lower fare.
4. NW 2X EQM promo - NW ran a promo where you could earn 2X EQM for a few months this year - making a switch a lot easier.
So now I'm a NW Gold instead of a CO Silver and that's with only a few months of flying as a NW member. If I had stayed with CO I'd still be a Silver.
Bottom line: CO's policy has probably hurt some flyers but I don't think its enough the CO is very concerned. However, I wonder if its going to be sustainable in the long term. Cost cutting is today's coporate mantra - more and more travelers are going to be in the same place I was. Additionally, if CO does much more to degrade their program it could start to add up.
#20


Join Date: May 2004
Location: formerly Gold now Diamond, formerly MSY, now LAX, formerly NW, now DL
Programs: Hyatt Plat, Hilton Gold, SPG Gold, Delta Diamond/1MM
Posts: 4,736
As a WP member, I've voted with my $$ avoiding CO until this past month or so since they instituted the 50% EQM policy. Even if I book on co.com, I only get 50% EQM in NW WP. I'm only flying CO for the holidays as I've requalified for this year and they have quite a bit cheaper tickets....come Jan 1, I"m back on NW and DL only again....
#21
Join Date: Jun 2000
Location: Boondocks of SE CO, USA
Posts: 247
The reason I hate the 50% rule is probably the very reason CO likes it--the inability to book cheaper fares on most CO partners, regardless of whether it is booked online or not. CO can still claim to be a member of Sky-team while dis-incenting One Pass members from using Sky-Team partners. I don't understand why DL and NW, expecially, put up with it.
The other part of the 50% EQMs that doesn't make sense to me is that the policy penalizes only those passengers I would think CO would want to keep--the frequent flyer. Sure they, may be lower fares (though on the routes I fly, CO's "low" fares are ususally higher than anyone else's), but most frequent flyers fly on a mix of fares.
The twice a year flyer doesn't give a rip about EQMs. They just want to earn enough general miles to take the kids to Disney World someday. They're not affected at all by the 50% EQMs.
The other part of the 50% EQMs that doesn't make sense to me is that the policy penalizes only those passengers I would think CO would want to keep--the frequent flyer. Sure they, may be lower fares (though on the routes I fly, CO's "low" fares are ususally higher than anyone else's), but most frequent flyers fly on a mix of fares.
The twice a year flyer doesn't give a rip about EQMs. They just want to earn enough general miles to take the kids to Disney World someday. They're not affected at all by the 50% EQMs.
#22
Suspended
Join Date: Jun 2005
Programs: Continental Gold Elite, United Premier Executive
Posts: 6,766
Originally Posted by Nightflyer
CO can still claim to be a member of Sky-team while dis-incenting One Pass members from using Sky-Team partners.
#23


Join Date: May 2004
Location: formerly Gold now Diamond, formerly MSY, now LAX, formerly NW, now DL
Programs: Hyatt Plat, Hilton Gold, SPG Gold, Delta Diamond/1MM
Posts: 4,736
True except that make some incremental revenue when DL or NW buys some Onepass miles for the flight.
Now the way I see the best CO/DL/NW strategy is really to keep as many passengers amongst themselves with the true competitors are AA UA US and the LCCs. The move to shared lounges and access to all is a step towards this. To lose a passenger to a friend is better than losing it to an enemy. Skyteam is weak overall, but in the US domestically, it's great IMHO
Now the way I see the best CO/DL/NW strategy is really to keep as many passengers amongst themselves with the true competitors are AA UA US and the LCCs. The move to shared lounges and access to all is a step towards this. To lose a passenger to a friend is better than losing it to an enemy. Skyteam is weak overall, but in the US domestically, it's great IMHO

