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Keep using FF membership or not?

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Old May 5, 2006 | 9:25 pm
  #1  
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Keep using FF membership or not?

Loyalty program is really bad sometime. There are so many examples about it. I booked my flight to Wellington from Auckland during this weekend. I am going to fly with Qantas, the total fares is 206NZD, which is really cheap. At this point as the airfare is really cheap I do not expect to earn any points with QF. However, I found out QF has a minimum earning rate, which means it doesnt matter how short you are going to fly or how much you have you paid for the airfare, you will earn 1000 points minimum per flight (If I got it right). So that is a bonus for me to earn points on that cheap airfare. On the other hand, theres Air New Zealand, NZs fare to Wellington from Auckland is 186NZD one way then you can earn points, and there is another low air fare, which is about $60/70 less, but you cant earn points.(still expensive than QFs lowest airfare) I have got both *A membership with SK and OW with QF, at this point I can take QF and NZ, it doesnt matter to me at all. However, for those people who only have *membership what they are going to do? Are they going to take QF flight or NZ flight? To choose the cheapest airfare, cheapest *A airfare or the airfare that can earn points. I think sometimes the Loyalty program mix up our mind. Im sure in this situation there will be people willing to pay more to fly NZ to earn points. That is a good choice or not? Im really interesting to know what other people think about this.

I am also concerned about other airliners loyalty program. Im sure there are a lot of people in the world have airlines FF membership no matter which airline they choose. People are trying very very hard to earn airline points on their credit card, home lone, shopping and other stuff. Each month and year their airline Loyalty program balance has a big number. Simple, everyone wants free travel. And that is what airlines loyalty designed for, and that is how they make money, lock in their customers in, if you want get free travel then you have to join in our program and fly with us or our partner airlines. At end of the day, when passengers want to redeem their points to airline tickets, it becomes a big problem for them, because they cant get seats. For each flight there are only so many seats for reward tickets. For example lets say on CX 107 HKG-AKL there are only 10 seats available for redeeming. And there are many people have OW membership and they are qualified for CX107 from HKG-AKL. Sometime CX107 can be really busy that means in this world who are qualified are trying to get these 10 seats. So who is getting those seats? Well not all those people will get it, but for those who have Gold or Silver membership with OW will get those seats first. Im very sure there are more basic members than Gold and Silver members. So what is the chance for basic member/normal people to redeem free travel? Personally I had membership with CX, CA and NZ I have had free travel; ADL-AKL, HKG-XIY, FRA-TXL and AKL-BNE. However these routs are less popular and so much easier to get it, they got confirmed right away. I was just lucky because I travelled to those places. How about those busy routs such as AKL-LHR, LHR-LAX or other busy routs? May be the airline FF is not make for people like me who doesnt travel often during year, but suddenly travel heaps within a few month. I think joined in airlines FF is a mistake for me. I think from now on I should just grab anything cheap. These days airfares are getting expensive as oil price have gone up quite a lot, should be start to think get cheap tickets rather than expensive tickets with airpoints? Im already having an idea, which is not to use my FF membership but only choice the cheap ticket; even got enough points but still hard to redeem them, so

These are all my options if I said any wrong or not quite right please point it out.
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Old May 6, 2006 | 1:58 am
  #2  
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the essence of your concern is that a decision often must be made between money and ff credits, complicated by the general perception that awards are often hard to get....

its true, and is probably going to get worse as with some airlines your ticket cost may result in fewer [or no] credits or inability to upgrade for example, and you have to make a decision...

however, one doesent have to abandon the programs, just understand the pecularities and fine print in order to decide what is good for your personal situation....

i face these decisions on each trip because all of my travel costs are paid by me...of course, i'm fortunate to be able to travel a bit and the perks of elite status are important and appreciated...upgrades specifically...

good luck.
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Old May 6, 2006 | 9:41 am
  #3  
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It's not all or nothing!

You should use the FF program when it doesn't cost you anything significantly more, and (especially if you're not looking to reach a plateau for an elite level) you shouldn't use the FF program as your only factor.

Furthermore, at least in the US, if ALL you're redeeming for is coach flights that would be cheap anyway, on the creidt card side, it often works out better to simply get a "cash back" credit card. The REAL value in FF miles is if you redeem (and CAN redeem*) those miles for longhaul international upgrades and/or longhaul international flights in business or first class (in situations where sitting in that higher class is really worth it to you). Those flights are SO expensive that you might consider them "unaffordable" for ordinary purchase. If you are a tall person like me and sitting in business vs coach makes the difference of whether you'll take a 10+ hour flight (for leisure) or not, then it's definitely worth SOMETHING extra (even if "unaffordable" normally) for those classes.

But if you all you're redeeming for is "ordinary" flights, you have to look at what it costs to redeem when you can redeem (it's probably only when there are really cheap sale tickets available anyway!), and work that out into a rough cost per mile for you. Then when you can choose between a price of something (flight, hotel, anything) that earns you miles vs one that doesn't, work out the math of whether you'll earn more value in the miles than you'd save in the cash.

*How hard it is to redeem depends on a LOT of factors. First, it varies by airline FF program (not just by alliance!); for example, QF is known to be a LOT stingier than OW partner AA. Second, you have to be flexible and plan ahead: Availability is often best either about 11 or about 3 months out (but that's just a very rough statistic, it's no hard and fast rule).

Also, it CAN reduce to simple the value of miles: Here in the US at least, most airlines let you get an award ticket with HARDLY ANY restrictions as long as you use double the miles (they each have some name for it, like "saver" awards are 25k for domestic coach but "standard" awards are 50k). So with those program when people say the can't find awards, what they really mean is they can't find discounted awards (just like they might not be able to find discounted cash tickets!).
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Old May 6, 2006 | 7:18 pm
  #4  
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HI sdsearch, I totally agree with what you have said. And that is true. However, there are people not like us. I was readying a thread on SAS forum, there's a guy wants to get *G with less spending on airfare. That is understandable, however, what I believe is you can't get *G or*S unless you have spend big money, or you are not the one pays for the ticket such as business travel. Everyone one wants to have free travel or get upgrade, me too. So there will be someone can get it and can't.

Like you said, if you book early then you will be able to get a seat, but the question is how can you know that you will be travelling on the 25th Nov in year 2007 at 15:35pm from LAX-AKL? I noticed that in the most European countries or western countries people book one year ahead and they get cheap ticket. However, when time gets closer they change their plans and they have to paid heaps more money to get it changed, so what is the point to book early. I'm talking about international travel. BUT, in New Zealand, it's really sad I found, even for domestic flight people have to book a few month ahead in order to get a seat or a cheap ticket. When I was in China, it never been a problem for me at all, if you are leaving for PEK from XIY, you just give the travel agent a call and there are always seats and cheap as well. Not only for that rout but there are so many routs in China are like that. Book a seat a few month a year ahead that is just funny, and the travel agent won't sell it to you,( they said to me" sorry the computer is not allowed me to book you two month ahead") It could be just the computer booking system's problem. By the way, I had redeem a seat before in China and it was very cool! easy! I booked only 1 week before the date that I was travelling.

I found Air New Zealand's FF program is very nice! You use your Air Points as real money, as long as there is a seat then you can pay for that seat with you airpoint dollar, the only problem is really hard to to earn air points dollars. At end of the day, it's all worth earning it, coz you know you will get a seat unless it's a full flight and no tickets at all.
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Old May 7, 2006 | 12:54 pm
  #5  
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Well, again, as I said, it varies a lot from one FF program to the next.

Me, with AAdvatnage as my primary FF program, and using www.expertflyer.com (which shows "hidden" classes like the ones used for upgrades and awards only), I don't tend to have much problems finding international flights for leisure travel with upgrades available 3 or 4 months out, as long as I'm also flexible with exact travel dates and/or routings. I've never had to do 11 months in this program, but I hear some other programs that are a lot worse with availability some people seem to think you need it (tho that's just anectodal not scientific evaluation; InsideFlyer magazine did some tests and found that 3ish months was a sweet spot for many FF programs, tho being a US-based magazine they tested US-based FF programs more than others).

So (relative to my experience) by "plan ahead" I meant a few months, not a year or two.

Futhermore, by being an elite-status member of AA's FF program* I also always get access to exit row seats (the next best things to an upgrade) if those are left. I don't usually need to be booking more than a few WEEKS ahead to find those.

*Now that's where "loyalty" comes in: Since pretty much all my flying is leisure, I can't make elite status with any airline unless I steer most of flying, to it and its parners. (Until I get to 1MM, that is, at which point I'll be lifetime AAdvatage Gold. Given that AA is unique in that they give you lifetime status on ALL miles -- flying, bonus, hotels, rental cars, credit cards, pudding, etc -- I consider it an "investment" to try to steer as many miles into AA as I can until I get those lifetime statuses, and then I won't have to worry about steering there each year. Because of the different -- if any -- lifetime status qualification structure of all other airlines, I wouldn't be thinking this way if I wasn't using AA, because I don't fly enough to every likely get to 1 million miles based on flying alone with any other FF program. So this is just ANOTHER example of how you have to really know the ins and outs of each FF program to choose a good one for you, and then keep up with those ins and outs of the one[s] you chose to make best use of them.)
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