2011 Air Canada Top Tier Program Changes - General Discussion
#871
Join Date: Jul 2001
Location: YYZ
Programs: AC SE100K, HH G
Posts: 2,454
#872



Join Date: May 2007
Location: YOW
Posts: 2,351
Thanks for listening to us Andrew. I am glad that this has remained civil and no one is attacking you personally unfortunately I am going to be taking a reexamination of my travel options next year and AC will probably be that option far less (actually, it is becoming less civil in the last few pages which is unfortunate).
This year I have upgraded the following flights on AC:
YOW-HNL-YOW Lat SWU (Leftover 2009 certs) 4 e-upgrades
YOW-LAS-YOW FP SWU (Leftover 2009 certs) 20 e-upgrades
YOW-CUN-YOW FP NAU 20 e-upgrades
YOW-LHR-YOW T+ SSWU 28 e-upgrades
YOW-LAS-YOW FP NAU 20 e-upgrades
HNL-YOW Lat SWU 2 e-upgrades
I also have 7 upcoming flights and 6 SWUs to use on them. Even as a lowly E I would rate the chances of them clearing pretty high.
YOW-EWR T+ 6 e-upgrades
YOW-IAH T+ 10 e-upgrades (1,503 miles, bad luck on this one)
SFO-LHR-SFO Lat already upgraded 16 e-upgrades
YOW-CUN-YOW FP 20 e-upgrades
YOW-TPA (not booked yet, prob on FP but might go to another carrier) 6 e-upgrades
I've received 2 SSWU, 10 SWU, 4 NAU throughout the year (I think that is all of them anyway). Thanks largely to buying two Florida Plus flight passes I will probably use up all of those certs and did use up all of my 2009 certs.
Now looking at the new program these same upgrades come to 152 e-upgrades. As an E who selected the 50% bonus this year I will only start with 25 e-upgrades. With threshold levels and flight pass activity I will be up to just over 50 e-upgrade credits based on my flying this year.
Even if the U fare class was moved to the same level as M that would only bring down my e-upgrade total to about 100 e-upgrades being needed. If they do a summer/Christmas reduction on points required that would bring it down another 10 or 20 but it will still leave me in the back of the bus a lot more often than this year.
After writing this out I am going to have to seriously reconsider my flying habits. Thanks to AC's thinking that the StarMegaDo is a waste of their time I was able to qualify as a Silver on CO ($4k of revenue that AC saw none of). Since I am a leisure flyer I fly mainly to destinations where my UDUs would actually clear. I am also able to move my flights around to improve my upgrade chances. CO also gives 150% EQM for B fares so I would have earned status more quickly flying them than AC.
Initially I didn't think that this was as bad as everyone was saying but after looking at my flying patterns I now realize that I need to look at other options. While I do prefer the domestic business class provided by AC over its US counterparts I won't be seeing it much with these new changes.
I do admit that I was making nearly optimal use of my certs I am saddened that I will have to ride in steerage far more often than I did this year if I choose to stay with AC. My revenue flying will be lower than this year because of a nice award I've booked in F but I will still need to get out of fun filled Ottawa a few more times this year. I have enough for another F award in 2012 but by then they will probably remove that option so I don't think that that carrot will be enough to keep me with AC.
I guess I am the kind of bottom feeder that you are trying to get rid of though so mission accomplished AC.
(please pardon any errors with the math but it should be pretty close)
This year I have upgraded the following flights on AC:
YOW-HNL-YOW Lat SWU (Leftover 2009 certs) 4 e-upgrades
YOW-LAS-YOW FP SWU (Leftover 2009 certs) 20 e-upgrades
YOW-CUN-YOW FP NAU 20 e-upgrades
YOW-LHR-YOW T+ SSWU 28 e-upgrades
YOW-LAS-YOW FP NAU 20 e-upgrades
HNL-YOW Lat SWU 2 e-upgrades
I also have 7 upcoming flights and 6 SWUs to use on them. Even as a lowly E I would rate the chances of them clearing pretty high.
YOW-EWR T+ 6 e-upgrades
YOW-IAH T+ 10 e-upgrades (1,503 miles, bad luck on this one)
SFO-LHR-SFO Lat already upgraded 16 e-upgrades
YOW-CUN-YOW FP 20 e-upgrades
YOW-TPA (not booked yet, prob on FP but might go to another carrier) 6 e-upgrades
I've received 2 SSWU, 10 SWU, 4 NAU throughout the year (I think that is all of them anyway). Thanks largely to buying two Florida Plus flight passes I will probably use up all of those certs and did use up all of my 2009 certs.
Now looking at the new program these same upgrades come to 152 e-upgrades. As an E who selected the 50% bonus this year I will only start with 25 e-upgrades. With threshold levels and flight pass activity I will be up to just over 50 e-upgrade credits based on my flying this year.
Even if the U fare class was moved to the same level as M that would only bring down my e-upgrade total to about 100 e-upgrades being needed. If they do a summer/Christmas reduction on points required that would bring it down another 10 or 20 but it will still leave me in the back of the bus a lot more often than this year.
After writing this out I am going to have to seriously reconsider my flying habits. Thanks to AC's thinking that the StarMegaDo is a waste of their time I was able to qualify as a Silver on CO ($4k of revenue that AC saw none of). Since I am a leisure flyer I fly mainly to destinations where my UDUs would actually clear. I am also able to move my flights around to improve my upgrade chances. CO also gives 150% EQM for B fares so I would have earned status more quickly flying them than AC.
Initially I didn't think that this was as bad as everyone was saying but after looking at my flying patterns I now realize that I need to look at other options. While I do prefer the domestic business class provided by AC over its US counterparts I won't be seeing it much with these new changes.
I do admit that I was making nearly optimal use of my certs I am saddened that I will have to ride in steerage far more often than I did this year if I choose to stay with AC. My revenue flying will be lower than this year because of a nice award I've booked in F but I will still need to get out of fun filled Ottawa a few more times this year. I have enough for another F award in 2012 but by then they will probably remove that option so I don't think that that carrot will be enough to keep me with AC.
I guess I am the kind of bottom feeder that you are trying to get rid of though so mission accomplished AC.
(please pardon any errors with the math but it should be pretty close)
#873
Original Poster
Company Representative - Air Canada




Join Date: May 1999
Location: Canada
Posts: 24,224
Have not personally offered anyone any extra credits. SEs can choose 40 credits from bundle 1 and 20 credits from bundle 2 for a total of 60 credits to start the benefit year.
#874



Join Date: May 2007
Location: YOW
Posts: 2,351
The qualification level does not have to be raised. The "price" to attain E needs to be raised rather than cutting benefits.
Reducing the no. of Status Mile earning ratio on cheaper fare works just the same but without antagonizing those who buy more expensive fare.
In other words, if you buy cheap Tango Plus fare, you will have to fly more to attain E.
If you buy Latitude or Executive, you are not affected.
Keep the qualification level at 35,000 but Tango Plus earns only 0.65/mile flown.
Therefore, those usually buy Tango Plus will have to fly 35% more to attain E.
Reducing the no. of Status Mile earning ratio on cheaper fare works just the same but without antagonizing those who buy more expensive fare.
In other words, if you buy cheap Tango Plus fare, you will have to fly more to attain E.
If you buy Latitude or Executive, you are not affected.
Keep the qualification level at 35,000 but Tango Plus earns only 0.65/mile flown.
Therefore, those usually buy Tango Plus will have to fly 35% more to attain E.
#875
In Memoriam

Join Date: May 2009
Location: FRA / YEG
Programs: AC Super Elite, Radisson Platinum, Accor Platinum
Posts: 11,874
That being said, when looking at a more flexible upgrade currency, we realized that we had to better understand how people upgrade versus how many certificates they actually wind up using. In order to deliver a program with this level of flexibility, we wanted to ensure that we were allowing people to upgrade as often as they have previously, without drastically increasing the costs associated to our upgrade program. As with any other airlines, there's a huge cost associated with the upgrade benefit. In fact, we took a holistic view on members earning credits both at time of qualification and for eligible Status Mile thresholds.
The only group that will benefit from this new program are:
- FFs who only fly within North America and now will be able to upgrade 2-4 segments (vs. 2SSWUs this year)
- FFs who (exclusively) buy Latitude fares within North America.
Thats it. All other groups face cutbacks of 40%-70% depending on their flying pattern.
In the end, we've developed a system which align the amount of credits required to the actual fares that we're charging in a market - for example, J fares to/from Asia are typically higher as well as given that we have less frequencies to/from Asia versus Europe, it makes sense for an upgrade to Asia to cost more than an upgrade to Europe. M fares now cost more to upgrade than Y/B as realistically they do cost more but yet we didn't group it along with the rest of the Tango Plus fares because it's at the high end of the Tango Plus group so we wanted to give a bit more incentive to those who purchase it. U class has been grouped along with the rest of the Tango Plus fares as they're not being sold on many markets anymore and it's not the same fare level as the Y/B/M fares. In terms of flight passes that are currently booked in U class, this I can assure you that we'll review in the coming weeks and adjust if we deem necessary.
Many of you have also commented on the fact that we have decreased the number of thresholds in our program. While this is indeed the case, we did it for two reasons. First of all, we wanted to simplify the thresholds for our members by streamlining them at 20,000 Status Mile levels. These thresholds remain the most generous of any equivalent frequent flyer program in North America, none of which offer a system-wide upgrade incentive from such a low level for all tiers. Second of all, we needed to be conscious of the costs of offering additional eUpgrade Credits which can be used so flexibly.
It’s important to note that, when it comes to the Threshold program, we did make the decision this year to continue to align the expiration of the eUpgrade Credits to the benefit year (ie, February 29, 2012). However, that does not mean that we will not evaluate a change to this going forward. What’s more, even within the 2011 Top Tier program, we have the intention to extend the validity of credits earned later in the qualification year through until early 2013.
Lastly, the amount of initial credits allocated are mainly driven by the fares of various markets that our tier customers most often upgrade on as well as the average amount of revenue a tier member generates (which can be as little as $2000 as 2 r/t trips to Asia from the East would earn someone Elite and $10K for SE with 5 r/t to Asia - I am not implying this is what you guys are doing but this is realistically) as well as the average cost of an upgrade, the amount allocated is the base amount that we can afford to give each customer. While we would love to give more, we have to balance between revenue business class and upgrade demand while maximizing revenue at the same time.
Anyhow, I doubt the new upgrade system will generate more revenue, the opposite is the case, maybe you could answer the following two questions:
1) Why would someone fly 35k miles on AC if he/she doesnt even get 1 long-haul intl upgrade from T+ in exchange? ACs Y product is decent, but not miles ahead from its competitors who have mostly installed AVOD on most planes. If theres not even a chance of getting an upgrade, people will just buy the lowest fares.
2) Why would someone buying Latitude fares on intl routes stick with AC if he/she doesnt even get enough credits to upgrade those flights? (see example posted here)
1) Tango fares only earn 25% non-status miles (and the fare difference between T and T+ fares has increased to a point where it barely makes sense to buy T+ fares)
2) Other airlines have often offered DEQM/DEQS promos, either for their entire network or on selected routes
3) Some of ACs competitors offer status miles through their affiliatede credit card
4) Other airlines award 150% status miles for the most expensive economy fares (e.g. booking class B earns 100% with AP/AC, but 150% with UA MP)
So overall ACs 35k miles requirement is pretty comparable with other FFPs 50k requirement.
Thanks again for all your feedback; both on here and via email (as some of you have sent emails to Calin in the last 24 hours), your feedback is very much appreciated and we want to keep this as a two way conversation. While we can't always promise to give you what you've asked for due to various constraints, rest assured that we do take it into serious consideration as we construct our programs.
Just to summarize the above comments: Most of us fully understand that AC needs to balance benefits and costs of the FFP, but as of now the new credit system doesnt seem to provide enough incentives to stick to AC. If this is about revenue (which it is of course), here are a few suggestions how to minimize the negative impact of the new program for those who spend $$$$ on AC metal.
Anyhow, thanks for your presence here on FT which is greatly appreciated.
Last edited by Jasper2009; Dec 10, 2010 at 7:06 pm
#876
Join Date: Sep 2006
Location: YYZ
Programs: Aeroplan 100K
Posts: 222
The qualification level does not have to be raised. The "price" to attain E needs to be raised rather than cutting benefits.
Reducing the no. of Status Mile earning ratio on cheaper fare works just the same but without antagonizing those who buy more expensive fare.
In other words, if you buy cheap Tango Plus fare, you will have to fly more to attain E.
If you buy Latitude or Executive, you are not affected.
Keep the qualification level at 35,000 but Tango Plus earns only 0.65/mile flown.
Therefore, those usually buy Tango Plus will have to fly 35% more to attain E.
Reducing the no. of Status Mile earning ratio on cheaper fare works just the same but without antagonizing those who buy more expensive fare.
In other words, if you buy cheap Tango Plus fare, you will have to fly more to attain E.
If you buy Latitude or Executive, you are not affected.
Keep the qualification level at 35,000 but Tango Plus earns only 0.65/mile flown.
Therefore, those usually buy Tango Plus will have to fly 35% more to attain E.
Taking 200,000 points to buy a $1200 computer vs 2 biz class tix is prime example of how "costly" redeeming AP points is to the program as opposed to typical Aerogold customers. Now making them worth less (yes I know I keep using that split phrase) to upgrade means less money flowing out of the Aeroplan coffers.
The answer here is not to inconvenience yourself by flying another carrier. Simply shuttle the points to another program. The airline has its own issues in terms of being competitive. Make Aeroplan realize it no longer serves as an airline loyalty program but rather as a gas station/credit card loyalty program.
#877
Original Poster
Company Representative - Air Canada




Join Date: May 1999
Location: Canada
Posts: 24,224
Andrew,
There's a few things that either the decision makers fail to see or just refuse to acknowledge which's why people are pissed!
While we appreciate the 2-way communication that seems to be going on and appreciate the fact that AC is trying to move forward with a new upgrade system, as LOTS of people have stated the new benefits do not come close to matching the old. They don't even have to be exact but in this case they just don't match.
I'm only going to speak for Es as I've little to no knowledge of SEs - was hoping someday but now that's up in the air (no pun intended.)
An E can get 35 points if they forego the tier bonus. In the past they'd get 2 SSWUs and the tier bonus plus 2 SWUs. Okay, you argue that the time of using the SSWUs for long haul upgrades is now gone. We got an awesome deal and now have to pay the piper. Fine. More creds are needed. Let's equate that to needing 2 SSWUs + 1 SWU to get a RT Can-Asia upgrade. More certs you've got to cough up right? This leaves you with one SWU and your tier bonus.
Wait a sec, based on the current model, you can only upgrade ONE WAY and are left with 15 credits and no tier bonus. ONE WAY! You then hit the next threshold and can upgrade for your flight back.
There's a few things that either the decision makers fail to see or just refuse to acknowledge which's why people are pissed!
- People go for status each year under the assumption that any changes wouldn't impact them greatly
- Changes being made do not bring the 2011 anywhere near to being par with 2010
- No public consultation was made even via survey of sorts
- With the drastic changes where's the incentive to go for 2012 status?
While we appreciate the 2-way communication that seems to be going on and appreciate the fact that AC is trying to move forward with a new upgrade system, as LOTS of people have stated the new benefits do not come close to matching the old. They don't even have to be exact but in this case they just don't match.
I'm only going to speak for Es as I've little to no knowledge of SEs - was hoping someday but now that's up in the air (no pun intended.)
An E can get 35 points if they forego the tier bonus. In the past they'd get 2 SSWUs and the tier bonus plus 2 SWUs. Okay, you argue that the time of using the SSWUs for long haul upgrades is now gone. We got an awesome deal and now have to pay the piper. Fine. More creds are needed. Let's equate that to needing 2 SSWUs + 1 SWU to get a RT Can-Asia upgrade. More certs you've got to cough up right? This leaves you with one SWU and your tier bonus.
Wait a sec, based on the current model, you can only upgrade ONE WAY and are left with 15 credits and no tier bonus. ONE WAY! You then hit the next threshold and can upgrade for your flight back.
#879
Join Date: Jan 2010
Location: Edmonton, Alberta
Programs: AC *E/PC Gold /BW Diamond/Hertz Gold Plus/SPG Gold/Marriot Silver/ TUMI Alpha
Posts: 1,470
Would Aeroplan just please fix the darn Problem so everyone can go back to their regular happy lives of living and traveling on AC metal.
#880
Original Poster
Company Representative - Air Canada




Join Date: May 1999
Location: Canada
Posts: 24,224
You might not like me because you don't like what I am posting; but I am spending lots of time on here trying to answer questions and let you guys know some of the rationale behind the changes.
#881
Original Poster
Company Representative - Air Canada




Join Date: May 1999
Location: Canada
Posts: 24,224
And your carriers are the only ones in North America that does not offer complimentary SYSTEMWIDE (read anything outside of NA) upgrades to their mid tiers, not permit lounge access on domestic itineraries, 50K to qualify instead of 35K.
#882
Join Date: Dec 2010
Location: YVR
Programs: AC SE
Posts: 29
Andrew, a lot of problems could be alleviated simply by reducing the amount of credits necessary on long haul flights with no changes to amount of credits given to members. This would also not affect the NA only passengers. I, for one would, would reconsider moving to continental if this were the case.
#883
Join Date: Mar 2007
Location: Across the pond
Programs: Aeroplan SE, Goldpassport Platinum, Avis Something, Hertz Gold
Posts: 750
The upgrade credits are designed to be a universal currency. Many feedback tells us that customers can't use the SWUs that are earned throughout the year so our end goal is to make the credits applicable on all T+ fare types if that's how a customer chooses to use them. We had to come up with a balance system that would still permit upgrades from Tango Plus and yet not giving the shop away. If we give all the Elites the equivalent credits vs 2010 using the worst case scenario (which is Asia since that's the furthest and most expensive), then all of a sudden customers would have many credits to upgrade T+ within North America. For example, if we give E say 40 credits to start the year, that would be equivalent to 4 SSWU on NA for a NA customer and that is 2 extra SSWUs for many customers vs 2010. Majority of our customers fly a mix of NA and International itinerary; there are LOTS of NA only customers especially within the Elite tier.
The changes penalize those flyers that fly long haul international a lot more than those flying within NA. One of the key issues is the very small amount of credits given at each threshold. I mean come one you are replacing 2 SSWU at 40k and 2 SSWU at 75k with 15 eupgrade credits at 20k and 15 eupgrade credits at 80k.. in essence going from the equivalent of 40 eupgrade credits at 40k and 40 eupgrade credits at 75k to a combined of 30 eupgrade credits at 40k and 80k. This really is a devaluation of atleast 62.5% of the benefit right in those 2 threshold levels..
#884
Join Date: Jun 2007
Location: YUL
Posts: 2,283
You guys are obviously not consumers of anything that reflects the day to day in your life. That's the issue.
#885
Original Poster
Company Representative - Air Canada




Join Date: May 1999
Location: Canada
Posts: 24,224
We only make LMU available after we clear all waitlisted R class customers. If you decide to add yourself to the list on the day of departure, you're on the waitlist not because we didn't clear you, but because you didn't request the upgrade in advance.



