HON "enhancements" getting closer [HON bonus reduced from 50% to 25%] [merged]
Sep 6, 2007, 11:25 pm
#121
Moderator, Hilton Honors
Join Date: Nov 2003
Location: on a short leash
Programs: some
Posts: 71,422
One of the big questions for me is: What does LH actually want to achieve with this?
Given that the goal is to maximize profits and also given that they realize that HON status and FCT access always need to remain an exclusive product I still don't get what they want to achieve.
HON already is a difficult level to achieve. It is very difficult to achieve when for people like Kiwi and myself. Even so we have close 600k BIS miles in two years across many airlines.
LH would get so much more business from me if HON could be achieved at 400k in two years.
Given that the goal is to maximize profits and also given that they realize that HON status and FCT access always need to remain an exclusive product I still don't get what they want to achieve.
HON already is a difficult level to achieve. It is very difficult to achieve when for people like Kiwi and myself. Even so we have close 600k BIS miles in two years across many airlines.
LH would get so much more business from me if HON could be achieved at 400k in two years.
Sep 7, 2007, 12:28 am
#123
Join Date: Aug 2004
Location: OSL/IAH/ZRH (time, not preference)
Programs: UA1K, LH GM, AA EXP->GM
Posts: 38,265
.But of course you are right and that brings me to:
That makes it worth roughly $100 pro anno (please use any dollar currency you want) as all other SEN benefits are trinkets and not worth hard cash.
Sad, really sad as it definitely was my favourite European airline
.
Sep 7, 2007, 12:41 am
#124
Join Date: Aug 2004
Location: OSL/IAH/ZRH (time, not preference)
Programs: UA1K, LH GM, AA EXP->GM
Posts: 38,265
And I like your innocent Red Riding Hood camouflage to capture the bad, bad Wolf!
Not awarding HONcho cards to one's *A brethren is one thing but not granting the basic and low-value *G membership is quite a step further.
SENdom is overpriced even and particularly for cheapo Y flyers. They can get better value for less on almost all other *A carriers. For the frequent illoyal premium cabin rider who can afford to sit 40K miles or 31K miles respectively on LH every second year, it might still be acceptable.
That alone should thwart your 12K p.a. plan for the SENile level. LH's imbecile IT ain't even required.
Sep 7, 2007, 2:11 am
#125
Join Date: Dec 2005
Location: FRA
Programs: LH, Avis, Hyatt, ...
Posts: 4,213
Now, let's talk about the big corporations. I work with a couple of those and therefore know the prices. FRA-SFO is still the price of a D fare, they just have no minimum stay included. There is probably some hidden monetary benefit for the big corporations (TA group of those may get it behind the scenes), but ticket price for the pax and price balance for the affected department is the D fare.
Don't understand, why you reduce taxes from the amount? Cost is cost here for the traveller.
Sep 7, 2007, 3:25 am
#126
Join Date: Nov 2002
Location: CH / D
Programs: Amex, Avis, BA, BD, CX, FS, Hertz, HH, IC, LH, NH, RC, RCCL, Sixt, SPG, SQ, UA
Posts: 7,050
Aside from this, even the 600K HON must be a very profitable customer, thus I would think LH was glad for every single HON member.
Raising the bar from 600K to 750K will steer away quite a few in the 500K-700K range who thought of making or retaining HON.
Sep 7, 2007, 7:14 am
#127
Join Date: Apr 2005
Programs: Hyatt Lifetime Globalist, SQ PPS Solitaire
Posts: 3,599
Taxes is no money that LH can pocket and if out of a 400 EUR fare 100 EUR are taxes (a mere 25%) - than LH has only 300 EUR for expenses and profit.
On the 4.000 EUR ticket you have the same 100 EUR - LH can pocket 3.900 EUR. Margin is significantly higher.
And then you can look what happens to the margin:
Short-haul, every HON is eating up another 50 EUR, leaves 250 EUR. The long-haul is eating up 50 EUR as well and leaves 3.850 EUR.
For a customer 10 short-hauls equal 1 long-haul (4.000 EUR).
For LH the situation is completely different: 2.500 EUR to 3.850 EUR.
Talking revenue - and that is all LH cares about (Alles fuer diesen Moment) - then you have to deduct taxes and when you take your company hat off again you can pray that minimum milage will not be changed...
Sep 7, 2007, 7:42 am
#128
Join Date: Sep 2005
Location: BRU
Programs: LH SEN, SN Gold, Eurostar Carte Blanche, BA, QF, AF
Posts: 6,856
Sep 7, 2007, 8:41 am
#130
Moderator: GLBT travelers, India-based Airlines and India; FlyerTalk Evangelist
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Sep 7, 2007, 8:59 am
#131
Join Date: Sep 2005
Location: BRU
Programs: LH SEN, SN Gold, Eurostar Carte Blanche, BA, QF, AF
Posts: 6,856
Sep 7, 2007, 9:13 am
#132
Join Date: Dec 2005
Programs: OW Emerald, *A Gold
Posts: 6,913
Anyway this is more or less OT in this thread. As pointed out by others before I am pretty sure that not a single HON is a losing deal for LH. Actually it's most likely the other way round and LH should be happy about every single HON IMHO.
BTW it's always funny that we try to discuss such issues from LH's perspective. Not that this is not interesting (makes fun to do so for sure
) but as we are not LH but their customers, we should probably discuss what such a move means to us.
Sep 7, 2007, 9:23 am
#134
Join Date: Dec 2005
Location: FRA
Programs: LH, Avis, Hyatt, ...
Posts: 4,213
I guess, I will write a letter to the HONoured persons Mr. Mayrhuber and Mr. Antinori and will express my
and will ask them for the reasons and why they 
off some of their most loyal pax with this and whether they don't want my and my emps business anymore. 
Looking forward to receive the letter of reply.
Well, just to step back a moment, this is a rumour only so far. And I will be a HON til Feb 2010 for the time being.
Sep 7, 2007, 9:23 am
#135
Join Date: Dec 2005
Programs: OW Emerald, *A Gold
Posts: 6,913
Good for you that you are able to book FRA-LHR for 400 EUR in C. I can't and I know a lot of people flying much more than me (more than once a week) on this route who can't as well. It's more like the double price you quoted.