Chris Elliott joins [and leaves] Boarding Area
#76
FlyerTalk Evangelist
Join Date: Feb 2004
Location: London
Programs: BA, VS, HH, IHG, MB, MR
Posts: 26,871
It's just good business, IMO. But, I've been watching this "shift" over the past 10 years +/- in the world of casino loyalty. But, then again, casinos have always done a "better job" in evaluating the value of their customers. There is a reason why, everything is based on "theo" (aka "theoretical loss) in "casino-land."
IMO, every airline and hotel program should have a valuation number of their customers. It just makes it so much easier to make decisions on a discretionary and program basis.
IMO, every airline and hotel program should have a valuation number of their customers. It just makes it so much easier to make decisions on a discretionary and program basis.
In casino-land, you are dropping your own money.
Most road warriors are dropping their employers money. A change in job, in employer, in corporate preferred carrier and the flights go away. It actually makes more sense to incentivise less heavy travellers who DO spend their own money.
#77
Join Date: Jun 2005
Location: Charlotte, NC, USA | CLT, formerly LHR & AMS (with just a bit of PSP)
Programs: BAEC Gold, Hilton Diamond, BonVoy Titanium, (soon former) Caesars7*, (former) Wynn Black, HR "Icon"
Posts: 8,172
One key difference though.
In casino-land, you are dropping your own money.
Most road warriors are dropping their employers money. A change in job, in employer, in corporate preferred carrier and the flights go away. It actually makes more sense to incentivise less heavy travellers who DO spend their own money.
In casino-land, you are dropping your own money.
Most road warriors are dropping their employers money. A change in job, in employer, in corporate preferred carrier and the flights go away. It actually makes more sense to incentivise less heavy travellers who DO spend their own money.
Justifying incentive for those that "spend less" is a slippery and rather complicated slope. And, let's face it, many do spend there own money and spend lots of it. Case in point, I pay for all of my airfare personally and I *hate* flying in a non-premium cabin. (and my flying is 90% long-haul, mostly transatlantic) I have my limits, and I also understand my options very well. I am not sure if I am a heavy traveler (or not), will re-qualify Delta Diamond on my own dime this year with less than 8k MQMs in roll-over (with 125K MQMs, elite qualifying miles required for Diamond).
Oh, and don't think for a second that the "big players" who are consistently dropping $10k-$250K per trip at gaming properties are "really" spending their "own money." In most cases, it's small/medium sized business owners. And, in many cases, their companies ("special compensation" *cough*) are financing their gaming "habit." Hence, why there are so many interesting regulations with regard to casino funds and wire transfers.
#78
Join Date: Jul 2014
Programs: Jeff is Deaf
Posts: 541
Are companies too lazy to tighten their travel budgets or just don't want to anger their best employees. If I was buying tickets for my employees, I'd make sure its the lowest price possible.
Getting ripped off for a couple hundred dollars so an employee can earn a few more miles is just poor management.
Getting ripped off for a couple hundred dollars so an employee can earn a few more miles is just poor management.
#79
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
Are companies too lazy to tighten their travel budgets or just don't want to anger their best employees. If I was buying tickets for my employees, I'd make sure its the lowest price possible.
Getting ripped off for a couple hundred dollars so an employee can earn a few more miles is just poor management.
Getting ripped off for a couple hundred dollars so an employee can earn a few more miles is just poor management.
#80
Original Poster
Join Date: May 2009
Location: South Park, CO
Programs: Tegridy Elite
Posts: 5,678
Are companies too lazy to tighten their travel budgets or just don't want to anger their best employees. If I was buying tickets for my employees, I'd make sure its the lowest price possible.
Getting ripped off for a couple hundred dollars so an employee can earn a few more miles is just poor management.
Getting ripped off for a couple hundred dollars so an employee can earn a few more miles is just poor management.
#81
Original Member, Ambassador: External Miles and Points Resources
Join Date: May 1998
Location: Digital Nomad Wandering the Earth - Currently in LIMA, PERU
Posts: 58,620
Depending on the nature of the organization's travel, fully flexible, refundable tickets may be the best option in some instances. Where I work, most of the trips are often subject to change due to the kind of work involved and factors outside our control or influence. Using the cheapest, non-refundable tickets for those trips would, over the long run, cost more...as one manager learned the hard way once.
I firmly agree with baccarat_king: a casino doesn't much care if you are gambling with personal money or company money. Neither should an airline. And yes, people who fly on OPM will very often keep flying on OPM at their next job too.
I might hate it personally, but if I ran an airline my FFP would look a hell of a lot more like DL/UA than AA.
#82
FlyerTalk Evangelist
Join Date: Jun 2006
Location: IAD/DCA
Posts: 31,797
airlines are just so different from everything else, i think a lot of comparisons dont work
everything else has high value individuals whose spending dwarfs even EY Residence
while airlines are mainly focused on maximizing large/medium corporate/etc
its about numbers and frequency, rather than high value transactions
everything else has high value individuals whose spending dwarfs even EY Residence
while airlines are mainly focused on maximizing large/medium corporate/etc
its about numbers and frequency, rather than high value transactions
#83
Original Member, Ambassador: External Miles and Points Resources
Join Date: May 1998
Location: Digital Nomad Wandering the Earth - Currently in LIMA, PERU
Posts: 58,620
airlines are just so different from everything else, i think a lot of comparisons dont work
everything else has high value individuals whose spending dwarfs even EY Residence
while airlines are mainly focused on maximizing large/medium corporate/etc
its about numbers and frequency, rather than high value transactions
everything else has high value individuals whose spending dwarfs even EY Residence
while airlines are mainly focused on maximizing large/medium corporate/etc
its about numbers and frequency, rather than high value transactions
What airlines ideally want are customers who fly a lot on higher flexible fares. That and people like me who only buy business and F tickets.
#84
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
#85
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,184
Our company is 'best-buy' ex Germany since years now (to Germany they usually make deals with LH) and this year I struggle to stay in line with corporate policy and stay on the alliance of my choice. But it is possible. My colleagues don't bother and take whatever the corp TA decides is the cheapest. They all lost status. Its mildly annoying when you travel with them: no lounge access (I sometimes guest one, but when with larger groups we are in the terminal) and during irrops it sometimes happens that I get the last seat on the alternative and my boss doesn't.
Best buy is also terrible when plans change (and they do change quite a bit): its when carriers put a smile on their face and openly loot you on the spot.
Best buy is also terrible when plans change (and they do change quite a bit): its when carriers put a smile on their face and openly loot you on the spot.
#86
Original Member, Ambassador: External Miles and Points Resources
Join Date: May 1998
Location: Digital Nomad Wandering the Earth - Currently in LIMA, PERU
Posts: 58,620
Sure I'll never be GS-type level, particularly since I am airline agnostic. But they'd rather have someone like me buying their cheapest premium seat than someone like me buying their cheapest coach seat. Particularly on domestic routes when I am one of the only premium rev tickets in the cabin, surrounded by upgraders.
#88
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
#89
Original Member, Ambassador: External Miles and Points Resources
Join Date: May 1998
Location: Digital Nomad Wandering the Earth - Currently in LIMA, PERU
Posts: 58,620
Originally Posted by gpapadop
Sooooo...why did Chris leave Boarding Area? He never responded to my email
#90