Lufthansa: Changes to the Miles&More program effective January 1st, 2014
#226
Join Date: Oct 2007
Posts: 2,069
It's a new strategy they have adapted in the last two years:"drive away all your best customers to competitors, in order, to increase your profit margin by 2% to 3% and please your shareholders so when top management asks for a raise+bonus during the shareholders meeting they approve it for them on the spot"
#227
Original Member
Join Date: May 1998
Location: CH-3823 Wengen Switzerland
Programs: miles&more, MileagePlus
Posts: 27,041
while I no longer suffer much under (lower) mileage earning rules (being retired I now am burning miles on longhaule flights in first and business), but I wonder what changements will happen to my confirmed life-long Senator status.
(I still am very angry about UA when they just more or less did abandon the silver-wing life-long and paid status. UA's lifelong definition was kind of ''as long as the program lives'' and not my life.)
Egoistically, as long as Lounge access (for my paid short-haul inner-european flights), extra luggage allowance (including golf bags) and the 50% mileage discount for partners on awards stay, I am fine.
Earning more (non-status) miles is still easy without flying (I convert Coop points, and UBS key points into non-status miles).
(I still am very angry about UA when they just more or less did abandon the silver-wing life-long and paid status. UA's lifelong definition was kind of ''as long as the program lives'' and not my life.)
Egoistically, as long as Lounge access (for my paid short-haul inner-european flights), extra luggage allowance (including golf bags) and the 50% mileage discount for partners on awards stay, I am fine.
Earning more (non-status) miles is still easy without flying (I convert Coop points, and UBS key points into non-status miles).
#228
Join Date: Jun 2013
Location: Northern Germany
Programs: *A Gold (LH SEN), Hertz 5*
Posts: 128
After reading a lot of the posts here, I can personally of cousrse only agree. Many of these enhancements will make it quite hard for people to keep their statuses.
But my thought is, what good does this do to LH? How much does an FTL or SEN cost LH? Besides feeling treated like pre-school kids with these "stars", most of the upsentment comes from lower miles earned on flights, right?
I know most of you are more experienced with FF programs than me, but maybe you can help me brainstorm a little: What do miles mean to a customer?
I am sure there might be a few more but I hope I caught the major ones.
So now, what do these benefits for us loyal customers really cost the airline?
Overall it breaks down to miles and lounge access I assume. And I am really not sure if making these so much harder to acheive for the loyal customers, saves LH that much money. Please share your thoughts with me. Trying to be rational here, in a very heated environment :-)
Thanks for your input!
But my thought is, what good does this do to LH? How much does an FTL or SEN cost LH? Besides feeling treated like pre-school kids with these "stars", most of the upsentment comes from lower miles earned on flights, right?
I know most of you are more experienced with FF programs than me, but maybe you can help me brainstorm a little: What do miles mean to a customer?
- Miles to pay for award flights
- Gaining a Status
- Lounge Accesss
- Priority check in and boarding
- Wait list priorities
- Reserving better seats
- Upgrade priority
I am sure there might be a few more but I hope I caught the major ones.
So now, what do these benefits for us loyal customers really cost the airline?
- There are multiple theories of how much monetary value a FF mile has, but since e.g. with LH for award flights one still has to pay quite a bit for Fuel and Tax, the extra cost for those award flights for LH can not be so tremendously high.
- What does the status itself cost? Hmm, maybe the CC fee that is waived for SEN? Cant be too much either. Printing the card also not.
- Lounge access... OK granted, that might be a cost factor. But I assume that lounges just have a high overhead cost and the cost for each pax entering can not be too high, regarding the drinks and food they serve. So if they dont massively close down lounges, I am not sure if this saves all too much money.
- Priority Boaring and check in? I assume that basically costs LH nothing.
- Reserving better seats? Also something that should not really cost them a dime.
- Op-up priority: Well, if they overbook Y or C, they have to bump people up anyway. So where is the cost in that one?
Overall it breaks down to miles and lounge access I assume. And I am really not sure if making these so much harder to acheive for the loyal customers, saves LH that much money. Please share your thoughts with me. Trying to be rational here, in a very heated environment :-)
Thanks for your input!
#229
Join Date: Jan 2011
Programs: LH FT, IB
Posts: 77
But my thought is, what good does this do to LH? How much does an FTL or SEN cost LH? Besides feeling treated like pre-school kids with these "stars", most of the upsentment comes from lower miles earned on flights, right?
I know most of you are more experienced with FF programs than me, but maybe you can help me brainstorm a little: What do miles mean to a customer?
Overall it breaks down to miles and lounge access I assume. And I am really not sure if making these so much harder to acheive for the loyal customers, saves LH that much money. Please share your thoughts with me. Trying to be rational here, in a very heated environment :-)
Thanks for your input!
I know most of you are more experienced with FF programs than me, but maybe you can help me brainstorm a little: What do miles mean to a customer?
- Miles to pay for award flights
- Gaining a Status
- Lounge Accesss
- Priority check in and boarding
- Wait list priorities
- Reserving better seats
- Upgrade priority
Overall it breaks down to miles and lounge access I assume. And I am really not sure if making these so much harder to acheive for the loyal customers, saves LH that much money. Please share your thoughts with me. Trying to be rational here, in a very heated environment :-)
Thanks for your input!
"Short term" is the mainstream in CEOs minds right now. The same happened with ElectroPop in the music 30 years ago: it was the mainstream. Some years later it was "Rock Stadium". Some years later, etc.
I believe this move may (and "may" is the right expression here) hurt LH a bit in the medium and long term. After all, there are much more travellers wich don't have a Frequent Traveller program than those who have.
We can like it or not, but we are a minority. However, some of us (and I don't include myself in that group) have the ability to influence some other people in their decisions related with travel. And if those influence others... it's easy to get the picture.
Even in that case, we are not talking about a lot of people. But we are talking about a people which spend a lot. LH wants to talk only about numbers. They can say: we increased the load factor, we have more travellers, and our yield is better right now. Probably this is true. Today. And tomorrow? Tomorrow it can be the same, but it won't. It can be better or worse, but it will be different.
As TRAVELSIG has pointed more than once, if you begin to use a transactional approach with the costumer, he starts to do the same. And if you break the loyalty (whatever it means to both parts), it will be very very hard to get it back. And at an higher cost. LH is playing a game. But LH should be aware that is not the only one in the field.
#231
FlyerTalk Evangelist
Join Date: Feb 2002
Location: Montreux CH
Programs: FB Platinum, M&M FTL, BA Blue
Posts: 11,621
These changes are ridiculous and pointless. The frequent flyer programme should actually earn them money, not be a liability and a loser. Now it will become a loser for them, in a big way. Do you remember bmi's Diamond Club? That actually earned money for bmi, as I remember. Surely M&M earns money for Lufthansa?
I have already wandered away from Lufty and M&M, except for cheap economy shorthaul flights, and last year my custom returned to Air France KLM and Flying Blue despite the crapness of that programme. It has been a frustrating experience, however, the Gold card is not worth having, and I have little positive to report about it. Currently, I am developing my status with BAEC, and I am concentrating shorthaul onto airberlin and the LoCo carriers.
I have already wandered away from Lufty and M&M, except for cheap economy shorthaul flights, and last year my custom returned to Air France KLM and Flying Blue despite the crapness of that programme. It has been a frustrating experience, however, the Gold card is not worth having, and I have little positive to report about it. Currently, I am developing my status with BAEC, and I am concentrating shorthaul onto airberlin and the LoCo carriers.
#232
Join Date: Jul 2010
Location: BSL/FRA or PHL
Programs: LH Miles and More, DL SkyMiles, Bonvoy, Hilton
Posts: 2,335
Having (hopefully) secured SENhood until 2017 what will I do?
Hopefully I will have some luck and be able to find some good A-fares that meet my needs. When you can find them, they seem to be one of the few earning bargains left in M&M, plus they include some real customer service that is not completely over-priced...
#233
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,008
High fares and a crappy business class product.
Competitors with superior product and lower fares.
So what do you do?
Start pissing off members of your frequent flyer programme?
Well done lufthansa
Competitors with superior product and lower fares.
So what do you do?
Start pissing off members of your frequent flyer programme?
Well done lufthansa
#234
Join Date: Aug 2010
Programs: TK Elite Plus, SAS EBG, QR Platinum, Hilton Diamond
Posts: 2,297
To show my appreciation to Lufthansa, I have just booked a dirt cheap all K-fare itinerary to Stockholm, leaving me with some nice long layovers to drink them dry on Champagne in the Frankfurt Senator Lounge. Better enjoy those perks before they are enhanced away…
#235
Join Date: Mar 2008
Posts: 4,859
Of course it's only 44.4k BIS miles for M&M, but the result is only 100k M&M, not even enough for a one way F to Asia.
#236
Join Date: Aug 2011
Posts: 2,187
It is truly embarrassing and makes them look incredibly foolish. They are trying to position themselves as a worldclass product and failing miserably with pathetic marketing ploys like these. Improve your product and services - that makes people remain loyal!
#237
Join Date: Aug 2005
Programs: UA*G(1K), PC Diamond Amb, Marriott Titanium, Accor Platinum
Posts: 4,671
HTB.
#238
Join Date: Aug 2004
Location: OSL/IAH/ZRH (time, not preference)
Programs: UA1K, LH GM, AA EXP->GM
Posts: 38,265
I was only tallying up the results of meeting the thresholds - 66.6k BIS for UA will give 100k PQM but 183k award miles with class of service and ff bonus.
Of course it's only 44.4k BIS miles for M&M, but the result is only 100k M&M, not even enough for a one way F to Asia.
Of course it's only 44.4k BIS miles for M&M, but the result is only 100k M&M, not even enough for a one way F to Asia.
Assuming: 1K, flying paid B or Y.
Then that 1K needs 66.6K BIS to requalify. That will earn then 2.25x66.6=150K RDM.
In Z or P that would be 166.6K, in J,C,D,F,A your 183.33, and in F,A intl. 233.3K ....
#239
Join Date: Dec 2007
Location: ORD
Programs: BA, AA, SQ, UA, AC, WS, MR TIT
Posts: 8,659
#240
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,008