United CFO Rainey Implies Certain Elites were "Over Entitled".
May 19, 2012, 11:02 am
#16
Join Date: May 2001
Location: Since the BoSox and ChiSox won it, now it is the Cubs turn to take the Series. Go Cubs Go!
Posts: 3,685
This is an extremely foolish statement by the new United CFO, and it will anger many elites when they hear it. It also helps to explain the large number of UA elites status matching to AA. One of the keys to successful business is to retain exisitng customers and keep your best customers happy.
May 19, 2012, 11:04 am
#17
In Memoriam, FlyerTalk Evangelist
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Another is guerilla marketing. I think AA scored a coup over UA while they weren't paying attention.
May 19, 2012, 11:04 am
#18
Suspended
Join Date: Mar 2012
Programs: United Mileage Plus Premier Executive, AmericanAdvantage Gold
Posts: 180
Disgusting attitude from CO exectutives towards their customers who are loyal!
I can't believe he still has a job after this speech!
I can't believe he still has a job after this speech!
Last edited by iluv2fly; May 19, 2012 at 3:58 pm Reason: merge
May 19, 2012, 11:04 am
#19
Original Poster
Join Date: May 2012
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As I suspect United will remove the webcast link, does anyone know how to attach the 30 second comment to this link? It is about 11 minutes and 40 second into the webcast.
May 19, 2012, 11:11 am
#20
Join Date: Apr 2003
Programs: UA *G 1MM LT United Club & Global Entry
Posts: 2,756
At least he did not call us Muppets... 
SunLover
SunLover
May 19, 2012, 11:14 am
#21
Join Date: Dec 2007
Location: Las Vegas
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Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B206 Safari/7534.48.3)
So that 2K I was going to spend on a Q fare to London next year? Its going somewhere else. You
Don't insult customers- let alone those who are frequent customers
So that 2K I was going to spend on a Q fare to London next year? Its going somewhere else. You
Don't insult customers- let alone those who are frequent customers
May 19, 2012, 11:14 am
#22
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I know many of your are incensed, and perhaps legitimately so.
Then again, I believe this was an honest statement of the business model at CO, namely that high-end frequent flyers are not worth the company's energy if they are buying a lot of cheap seats and require a costly and unwieldy infrastructure to manage them.
Why would UaCo be excited about a 1K who achieves his status on the least expensive fares and then expects constant perks such as free upgrades, a dedicated CS line, and semi-official exemptions from fees and rules?
UaCo would just as soon fill those same seats with equally cheap kettles who expect nothing in return and might even occasionally spend some hard cash (even if only ToD's) to sit in FC. If a kettle needs to change a ticket, or do SDC, he or she is paying for it at full dollar value. If they want to sit in E+, they're paying for it, etc.
I'm not saying the CO approach is right, but that's their business model.
Then again, I believe this was an honest statement of the business model at CO, namely that high-end frequent flyers are not worth the company's energy if they are buying a lot of cheap seats and require a costly and unwieldy infrastructure to manage them.
Why would UaCo be excited about a 1K who achieves his status on the least expensive fares and then expects constant perks such as free upgrades, a dedicated CS line, and semi-official exemptions from fees and rules?
UaCo would just as soon fill those same seats with equally cheap kettles who expect nothing in return and might even occasionally spend some hard cash (even if only ToD's) to sit in FC. If a kettle needs to change a ticket, or do SDC, he or she is paying for it at full dollar value. If they want to sit in E+, they're paying for it, etc.
I'm not saying the CO approach is right, but that's their business model.
May 19, 2012, 11:15 am
#23
Join Date: Aug 2006
Location: PDX
Programs: AS MVPG
Posts: 2,956
Clear insight into what current management is discussing and/or implementing in their senior leadership meetings.
May 19, 2012, 11:17 am
#24
Join Date: Dec 2007
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Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B206 Safari/7534.48.3)
UA was "over entitled" to the 2K I was about to spend for a flight to London in Y.
So what is exactly the point of having an elite program then? What's the incentive to fly 100K miles?
UA was "over entitled" to the 2K I was about to spend for a flight to London in Y.
Originally Posted by TWA Fan 1
I know many of your are incensed, and perhaps legitimately so.
Then again, I believe this was an honest statement of the business model at CO, namely that high-end frequent flyers are not worth the company's energy if they are buying a lot of cheap seats and require a costly and unwieldy infrastructure to manage them.
Why would UaCo be excited about a 1K who achieves his status on the least expensive fares and then expects constant perks such as free upgrades, a dedicated CS line, and semi-official exemptions from fees and rules?
UaCo would just as soon fill those same seats with equally cheap kettles who expect nothing in return and might even occasionally spend some hard cash (even if only ToD's) to sit in FC. If a kettle needs to change a ticket, or do SDC, he or she is paying for it at full dollar value. If they want to sit in E+, they're paying for it, etc.
I'm not saying the CO approach is right, but that's their business model.
Then again, I believe this was an honest statement of the business model at CO, namely that high-end frequent flyers are not worth the company's energy if they are buying a lot of cheap seats and require a costly and unwieldy infrastructure to manage them.
Why would UaCo be excited about a 1K who achieves his status on the least expensive fares and then expects constant perks such as free upgrades, a dedicated CS line, and semi-official exemptions from fees and rules?
UaCo would just as soon fill those same seats with equally cheap kettles who expect nothing in return and might even occasionally spend some hard cash (even if only ToD's) to sit in FC. If a kettle needs to change a ticket, or do SDC, he or she is paying for it at full dollar value. If they want to sit in E+, they're paying for it, etc.
I'm not saying the CO approach is right, but that's their business model.
Last edited by iluv2fly; May 19, 2012 at 4:01 pm Reason: merge/edit
May 19, 2012, 11:20 am
#25
Join Date: Feb 2005
Posts: 251
Someone PLEASE make up t-shirts and luggage tags that say
Ex "Overentitled" United Customer
So we can wear and display them at the airport. I'll buy 10. Let's also buy that domain name ex-overentitledUAcustomer.com and start listing our names.
Theses guys are so insulated in their nickle and diming world they forgot they are running a business that needs return customers.
Ex "Overentitled" United Customer
So we can wear and display them at the airport. I'll buy 10. Let's also buy that domain name ex-overentitledUAcustomer.com and start listing our names.
Theses guys are so insulated in their nickle and diming world they forgot they are running a business that needs return customers.
May 19, 2012, 11:22 am
#26
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May 19, 2012, 11:26 am
#27
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Obviously not using a teleprompter...
Starts at about 11:50...
"...Additionally, we also changed our Mileage Plus program, some of the benefits that, uh, accrued to the members. Uh, we, uh, we had certain groups in this group were over entitled if you will. Uh, and now, uh, we have realigned the benefits of that program with what the, the, the customers and, and, program, um, um, the participants are actually providing to the airline, and, and this is a good change going forward..."
Starts at about 11:50...
"...Additionally, we also changed our Mileage Plus program, some of the benefits that, uh, accrued to the members. Uh, we, uh, we had certain groups in this group were over entitled if you will. Uh, and now, uh, we have realigned the benefits of that program with what the, the, the customers and, and, program, um, um, the participants are actually providing to the airline, and, and this is a good change going forward..."
"...we have realigned the benefits...the participants are actually providing to the airline, and, and this is a good change going forward..."
It's not about what benefits the program provides to the customer, it's about what benefits the customer provides to the program.
That's the key right there.
If a 1k is achieving his status on $300 round trip transcons and then expecting routine upgrades, dedicated CS (1K line), exemption for change fees and rules, the customer is providing no benefit to the program, quite the contrary, in fact.
May 19, 2012, 11:26 am
#28
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No surprise.
Even not saying it, CO's behavior has made it clear they don't give a rats patootie about Elites. After all, United spent a decent amount of effort to stroke the egos of elites so they felt nice, squishy and LOYAL to united, directing spend there. Being realistic, what % of elites are flying on L fares 100k a year to get 1K? No more than 10% I'd guess. We do know that CO considers the SWU expense to be unacceptably high.... (but they control R class, so you can't get it if they think they'll sell the seat, so the real cost is almost nothing.).
Even not saying it, CO's behavior has made it clear they don't give a rats patootie about Elites. After all, United spent a decent amount of effort to stroke the egos of elites so they felt nice, squishy and LOYAL to united, directing spend there. Being realistic, what % of elites are flying on L fares 100k a year to get 1K? No more than 10% I'd guess. We do know that CO considers the SWU expense to be unacceptably high.... (but they control R class, so you can't get it if they think they'll sell the seat, so the real cost is almost nothing.).
May 19, 2012, 11:27 am
#29
Join Date: May 2001
Location: Since the BoSox and ChiSox won it, now it is the Cubs turn to take the Series. Go Cubs Go!
Posts: 3,685
Obviously not using a teleprompter...
Starts at about 11:50...
"...Additionally, we also changed our Mileage Plus program, some of the benefits that, uh, accrued to the members. Uh, we, uh, we had certain groups in this group were over entitled if you will. Uh, and now, uh, we have realigned the benefits of that program with what the, the, the customers and, and, program, um, um, the participants are actually providing to the airline, and, and this is a good change going forward..."
Starts at about 11:50...
"...Additionally, we also changed our Mileage Plus program, some of the benefits that, uh, accrued to the members. Uh, we, uh, we had certain groups in this group were over entitled if you will. Uh, and now, uh, we have realigned the benefits of that program with what the, the, the customers and, and, program, um, um, the participants are actually providing to the airline, and, and this is a good change going forward..."
May 19, 2012, 11:28 am
#30
Join Date: Feb 2003
Location: NCL
Programs: UA 1MM/*G. DL Gold for one more year.
Posts: 5,305
I had to stop around the same time - when he started equating "upgrades" with "defects" (twice, for effect). I now understand a bit more about the mindset of the arrogant and ignorant kids who began by dismantling CO and now are doing the same to UA.