Originally Posted by eternaltransit (Post 24260382)

Similar to the discussion on the BA board about their changes, it's harder to change the earning rates on credit cards, because selling miles to credit card partners is a nice and easy profitable business for everyone involved as it generally does seem to incentivise spend quite well. Well everyone apart from merchants, but then they just jack up the price anyway. In fact, it's sometimes (and usually, if well managed) much more profitable to operate a loyalty scheme than it is to actually fly the planes around - although you need to fly some planes around to offer an aspiration redemption possibility for actually get the whole eco-system moving. The planes are like a loss-leader. In my opt cited example, QF is a company that does exactly this: it makes money from the loyalty program (2xxM AUD profit from loyalty), but loses money on planes (500M AUD losses from flying).

That means airlines and points issuers don't want to rock the boat too much in a way that makes the credit card offering seem less attractive - not many people look at the devaluation of the currency by looking at redemption prices - especially as you can target your devaluations at certain routes, hide them in minimum fare types to boost cash revenue etc., but it's much more noticeable to notice a drop in earning rate from 1 per USD to say, 0.5 per USD. Additionally, partners will have contracts with the points issuers which insulates them to a certain extent, or guarantees the point purchase cost for certain times, so it takes longer for these changes to filter down the chain to non-directly controlled earning methods.

Originally Posted by m3red (Post 24260450)

As a lawyer who specialises in commercial banking I could have endless conversations about this!

Originally Posted by KU104 (Post 24260501)

If EK raise the cost of miles they sell to the Bank Credit Cards, the Banks will reduce the amount you earn. My Bank here in Kuwait has reduced the miles per Kuwaiti Dinar you earn locally from 5 to 3. The contract you sign with the bank when you apply for the credit card gives them the freedom to change their earn rate as they see fit without consulting with the customer.

The reason they give is that with an influx of new card issues the cost was too high on the Bank, thus the reduction. I believe the change that will go into effect is when EK and the banks renegotiate the contract at expiry, EK might raise the cost per mile, and leave the burden of dealing with the public to the Banks.

Originally Posted by m3red (Post 24260373)

I'm not sure what miles I earn with my Citibank card but know that I (sorry my wife :D) spends a lot so they rack up.

I wonder if they will change the earn rates here in Dxb given the value of them has been reduced.

Originally Posted by eternaltransit (Post 24260730)

Citi Ultima Skywards card? 2.5 miles per USD at EK, 1.5 miles per USD for foreign currency spend, 1 mile per USD in the UAE, so, what, 1 mile per 3.67 AED?

Originally Posted by m3red (Post 24261309)

I have the ultimate the cheaper one a snip at 800aed a year. The ultimate has a slightly worse rate and you don't get the 25k points.

Originally Posted by jamjaruk (Post 24268415)

Is this going live tomorrow?

Originally Posted by extramileage (Post 24270189)

Not as of this morning from what I can tell.

Burned more than 600k miles (including 300k just before midnight local time last night) in anticipation nonetheless!

Originally Posted by extramileage (Post 24270189)

Not as of this morning from what I can tell.

Burned more than 600k miles (including 300k just before midnight local time last night) in anticipation nonetheless!

Originally Posted by eternaltransit (Post 24270724)

Did you burn 600k on upgrades?! How did you even find any availability! Well done!

Originally Posted by ft101 (Post 24270634)

Probably have to wait until it's 1st February everywhere.