M&M going revenue based [for award miles on LH group tickets] 12MAR2018
#91
Join Date: Dec 2016
Location: WAW
Programs: A3(*G), Marriott Platinum, Hilton Diamond, IHG Diamond Ambassador
Posts: 2,534
LOT are not too happy with M&M and this could be another step in that direction. The situation has always been really weird. LH are a competitor of LO in a way unlike any other carrier that uses M&M. Forgive me but I think only OU and JP are the others not controlled by papa Lufty? Along with LG, the combination is tiny compared to LO and they barely compete with LH. LO are getting bigger and more a competitor of LH group, LH's dumping on the Polish market is notorious (It's a sea of K fares) and LO are clearly gunning for the tasty German market. I imagine LH would then retaliate against LO like they did with TK on the mileage earning...
Already they offer special promo awards for the PL market which are a fraction of a M&M promo(-show me a LH promo Y return for 7k miles with no YQ). It shows that it really isn't compatible with LO and given the generally low price of LO tickets I can see Polish Members will feel hard hit by the changes.
I just hope LO don't exit Star.
Also, you say that LH is dumping in the PL market but then say that domestic prices in this market are cheap (ie in comparison to LH's own sphere of control). But this is more likely about the fact that LH is not a price setter in PL in the same way it is in LH countries, so it could be argued that LH is merely recognising this fact by pricing to market. LO offer their own mileage bargains (Y only) which are essentially zero YQ so there is no way that LH could compete with this if they kept a fat YQ for their corresponding offering on the same routes. 7K RT for short-haul Y is exactly what LO offers and so you'd be nuts to pay more for an LH award with equally restrictive fare conditions.
I'm not sure what LO could realistically do in the German market. Kinda like a chihuahua drooling over a bone that an enormous German Shepherd dog has. It can salivate all it wants but any attempt to snatch the bone away is not likely to end well for the chihuahua!
#92
Join Date: Mar 2008
Posts: 4,859
LOT are not too happy with M&M and this could be another step in that direction. The situation has always been really weird. LH are a competitor of LO in a way unlike any other carrier that uses M&M. Forgive me but I think only OU and JP are the others not controlled by papa Lufty? Along with LG, the combination is tiny compared to LO and they barely compete with LH. LO are getting bigger and more a competitor of LH group, LH's dumping on the Polish market is notorious (It's a sea of K fares) and LO are clearly gunning for the tasty German market. I imagine LH would then retaliate against LO like they did with TK on the mileage earning...
Already they offer special promo awards for the PL market which are a fraction of a M&M promo(-show me a LH promo Y return for 7k miles with no YQ). It shows that it really isn't compatible with LO and given the generally low price of LO tickets I can see Polish Members will feel hard hit by the changes.
I do. But that ship has sailed.
#93
Join Date: Apr 2005
Programs: Eurostar Carte Blanche, SBB-CFF-FFS GA-AG, SNCF Grand Voyageur LeClub
Posts: 7,836
I am really in a "strange" place, but actually for me there are hardly any disadvantages ("strange" as in: it looks as if this is actually good for me):
1. my usual flying pattern allows me to re-qualify for status, because there are no changes there.
2. Earning miles on light fares, with a fare component around 50-75 EUR for a return flight: that yields 300-450 miles, where currently I'd only get 250 miles
3. Earning miles for my business class fares which are very often expensive (leaving on LX from SUI or on LH from GER) as I typically end up in D or above, for instance I have paid 5,600 EUR (fare component only) for a ZRH-JFK: that gives me 5,600 * 6 = 33,600 miles, whereas previously I'd get a little less than 18,000 miles. Or on a EUR >1,000 Business Class return ZRH-LHR, that yields 6,000 miles instead of the 5,000 under the old scheme
There are fares and routes where I'd lose out - for instance on discounted First Class flights in A class - but two thirds of my flying is in either scenario 2 or 3, so it works OK for me.
Actually, seeing how many miles I get on the longhaul Business flights, I'd be delighted if they also calculated status with that new earnings method.
.... or do I get the maths wrong??? I just cannot fathom that anyone could actually be better off by "enhancements"
1. my usual flying pattern allows me to re-qualify for status, because there are no changes there.
2. Earning miles on light fares, with a fare component around 50-75 EUR for a return flight: that yields 300-450 miles, where currently I'd only get 250 miles
3. Earning miles for my business class fares which are very often expensive (leaving on LX from SUI or on LH from GER) as I typically end up in D or above, for instance I have paid 5,600 EUR (fare component only) for a ZRH-JFK: that gives me 5,600 * 6 = 33,600 miles, whereas previously I'd get a little less than 18,000 miles. Or on a EUR >1,000 Business Class return ZRH-LHR, that yields 6,000 miles instead of the 5,000 under the old scheme
There are fares and routes where I'd lose out - for instance on discounted First Class flights in A class - but two thirds of my flying is in either scenario 2 or 3, so it works OK for me.
Actually, seeing how many miles I get on the longhaul Business flights, I'd be delighted if they also calculated status with that new earnings method.
.... or do I get the maths wrong??? I just cannot fathom that anyone could actually be better off by "enhancements"
#94
Join Date: Mar 2008
Posts: 4,859
The question the thought leaders in blogs were making is why reward extra people like you if you'd spend the money anyway, and if they think that a prospect of losing some miles would persuade Rambuster for example to spend more money on higher fares? If the status element stays the same, I highly doubt that.
#95
Join Date: Feb 2013
Programs: LH M&M, BA EC, DL SM
Posts: 5,721
There could be some, probably a few people. For most fliers the change will most likely mean a reduction in miles earned and those fliers would not want LH to change the status miles system in the same way.
#96
Join Date: Sep 2016
Location: CH
Programs: LX SEN
Posts: 899
3. Earning miles for my business class fares which are very often expensive (leaving on LX from SUI or on LH from GER) as I typically end up in D or above, for instance I have paid 5,600 EUR (fare component only) for a ZRH-JFK: that gives me 5,600 * 6 = 33,600 miles, whereas previously I'd get a little less than 18,000 miles. Or on a EUR >1,000 Business Class return ZRH-LHR, that yields 6,000 miles instead of the 5,000 under the old scheme
#97
Join Date: Oct 2000
Location: Munich, Germany
Programs: LH HON, DL FO/MM, Marriott Lifetime Platinum, Accor Lifetime Platinum, Sixt Diamond
Posts: 6,174
#98
Join Date: Mar 2008
Posts: 4,859
For LH, it makes sense to increase the amounts of miles credited for such a fare (and decrease the award miles on cheaper tickets). As far as I am concerned, I never purchase C class tickets at this price for my private flights, but only for my work trips made on short notice (which are paid by third parties). This raises even more the agency issue that higher mileage rewards go to persons who are not supporting the economic costs of the fares.
#99
FlyerTalk Evangelist
Join Date: Mar 2014
Location: 4éme
Posts: 12,033
#101
Join Date: Aug 2016
Posts: 70
Please let me know if my analysis is correct on how this WOULD have effected my award miles if this ticket were booked after the transition date:
Frequent Traveler status
P ticket
Ticket cost (without taxes and fees) = $4581
Miles = 8062
Old System gives me 8062 award miles
New System gives me (4581)*6 = 27486
That is difficult for me to believe that I would get 3x more award miles with this change, but if I correctly understand the rules, that would be the case. Does it look correct to you?
Frequent Traveler status
P ticket
Ticket cost (without taxes and fees) = $4581
Miles = 8062
Old System gives me 8062 award miles
New System gives me (4581)*6 = 27486
That is difficult for me to believe that I would get 3x more award miles with this change, but if I correctly understand the rules, that would be the case. Does it look correct to you?
#102
Join Date: Dec 2007
Location: ORD
Programs: BA, AA, SQ, UA, AC, WS, MR TIT
Posts: 8,658
Please let me know if my analysis is correct on how this WOULD have effected my award miles if this ticket were booked after the transition date:
Frequent Traveler status
P ticket
Ticket cost (without taxes and fees) = $4581
Miles = 8062
Old System gives me 8062 award miles
New System gives me (4581)*6 = 27486
Frequent Traveler status
P ticket
Ticket cost (without taxes and fees) = $4581
Miles = 8062
Old System gives me 8062 award miles
New System gives me (4581)*6 = 27486
#103
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
Frankly, I find this whole change underwhelming. Sure it is a devaluation for some people, but then it will also give a lot of people on more expensive eco tickets (especially domestic or European short-haul) a lot more (40%-60% for me personally) miles than before.
Also please remember that at least for German/Austrian/Swiss customers, it is much easier to accrue a ton of miles via cheap magazine subscriptions (eg. currently there is an offer for 60,000 and a daily newspaper for a year for about 700€). To get the same amount of miles with flying, you will need to spend 10 times the amount of money. So I am not sure that giving away award miles is that much of a concern at LH at all.
Also please remember that at least for German/Austrian/Swiss customers, it is much easier to accrue a ton of miles via cheap magazine subscriptions (eg. currently there is an offer for 60,000 and a daily newspaper for a year for about 700€). To get the same amount of miles with flying, you will need to spend 10 times the amount of money. So I am not sure that giving away award miles is that much of a concern at LH at all.
Last edited by GUWonder; Dec 13, 2017 at 7:57 am
#104
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
miles) and keep them hooked via status benefits. The customer and what the customer wants is an afterthought (at most) to what the airline management want to cut.
#105
Join Date: Dec 2006
Programs: LH SEN, FB Plat., HH D.
Posts: 5,050
It is very bad for european flights ex Bcn in P. Booking 1 or 2 months in advance you can get these for less than 250€ and, a few times, I have managed to pay less than 200€ if there is a black friday bonus or similar available.
These flights yielded 3000 miles + executive bonus = 3750 status/award miles, and not it will be around 1000 award miles and sometimes even less
These flights yielded 3000 miles + executive bonus = 3750 status/award miles, and not it will be around 1000 award miles and sometimes even less