Birdwatching
Topic Author
Posts: 3573
Joined: Sat Sep 06, 2003 10:48 am

2 Ideas That Would Make FF Programs More Logical:

Tue Feb 16, 2010 6:21 pm

Hi all.

Going through award charts recently gave me two ideas that would make frequent flier programs so much more logical and fair, but I have never heard of a single FF program that works this way. Please tell me any reasons why an FF program should NOT work in the two ways outlined below.

1) Miles earned based on $$$ spent.
Why award miles based on distance flown? This is unfair, people who have spent thousands earn the same amount as people who got the $59 ticket. Yes I know there are systems in place like award 125% for true Y class and so on. But hey, why not just award ONE MILE PER DOLLAR SPENT, no matter what class, which products, whatever. This is how loyalty programs should work. (Don't know if it would be per dollar before tax, or including tax. I guess without tax)

2) Miles used for awards linear to award fare cost
Why have all these stupid award charts, then awards are not available on that date, and what not. Why not do it the following way: EACH MILE REDEEMED LOWERS PRICE BY 1 CENT. So you would just use 40.000 miles for booking an award ticket that would normally cost $400.00. Or use 20.000 miles to lower that ticket's cost by $200.00, and pay the rest. You'd have to buy the ticket through the airline's web site though, not through Orbitz and those.

Your opinions please.

Soren   
All the things you probably hate about travelling are warm reminders that I'm home
 
User avatar
TK787
Posts: 3064
Joined: Wed Jan 04, 2006 3:43 am

RE: 2 Ideas That Would Make FF Programs More Logic

Tue Feb 16, 2010 6:30 pm

It might be a good idea but those two things won't work since;
-it doesn't matter anymore how you accumulate miles, because..
-those FF seats are disappearing faster than ever.
In short, I get tons of miles but the awards keep going up because the airlines are loosing money, now my miles are worthless. 10 years ago I was able to get a J seat on DL to Europe for 80K miles now more than double that whereas the fares are about the same.
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: 2 Ideas That Would Make FF Programs More Logic

Tue Feb 16, 2010 6:34 pm

Quoting Birdwatching (Thread starter):
1) Miles earned based on $$$ spent.


Yes some airlines have this already including Virgin America and Jetblue, and reportedly the relaunched Southwest program might also.

I have been a strong proponent that airline loyalty programs should be based on spending and not miles flown to better identify and reward those flyer's that truly generate income for airlines. In general other business from hotels to grocery store use spending as a criteria and frankly its time airlines do the same.
From the desert to the sea, to all of Southern California
 
FlyingSicilian
Posts: 1373
Joined: Mon Mar 02, 2009 7:53 pm

RE: 2 Ideas That Would Make FF Programs More Logic

Tue Feb 16, 2010 6:34 pm

Several airlines have higher award levels based on money spent. Continental just introduced one, which IIRC, is at around 30,000$usd spent per year to qualify
“Without seeing Sicily it is impossible to understand Italy.Sicily is the key of everything.”-Goethe "Journey to Italy"
 
C010T3
Posts: 1613
Joined: Wed Jul 19, 2006 5:48 am

RE: 2 Ideas That Would Make FF Programs More Logic

Tue Feb 16, 2010 6:42 pm

Quoting Birdwatching (Thread starter):

1) Miles earned based on $$$ spent.
Quoting Birdwatching (Thread starter):
2) Miles used for awards linear to award fare cost

That's more or less how AD's (Azul) FFP "Tudo Azul" works. You earn 5% of your fare in credits for your next flights. So, if you spend R$ 200, you'll automatically receive R$ 10 in credit in your online account. You may only spend your credits in multiples of R$ 50, so you need to reach that level in order to spend. The credits work as a discount, so there is no need to wait to have the whole fare in credits.

http://www.voeazul.com.br/aspx/tudoazul.aspx
 
lhcvg
Posts: 1255
Joined: Mon May 25, 2009 2:53 pm

RE: 2 Ideas That Would Make FF Programs More Logic

Tue Feb 16, 2010 6:50 pm

Quoting LAXintl (Reply 2):
Yes some airlines have this already including Virgin America and Jetblue, and reportedly the relaunched Southwest program might also.

I have been a strong proponent that airline loyalty programs should be based on spending and not miles flown to better identify and reward those flyer's that truly generate income for airlines. In general other business from hotels to grocery store use spending as a criteria and frankly its time airlines do the same.

Well in a sense they do this, with the bonuses for booking full fare Y or J classes at some airlines, which I think apply to all not just elites. So indirectly you get more miles if you spend more.
 
mutu
Posts: 263
Joined: Tue Mar 21, 2006 7:04 am

RE: 2 Ideas That Would Make FF Programs More Logic

Tue Feb 16, 2010 8:13 pm

Quoting LAXintl (Reply 2):
I have been a strong proponent that airline loyalty programs should be based on spending and not miles flown to better identify and reward those flyer's that truly generate income for airlines. In general other business from hotels to grocery store use spending as a criteria and frankly its time airlines do the same.

well undoubtedly there is logic to this (some hotel chains reward by $$ spend, others fixed points per stay as well btw)
My main counterargument from an airlines perspective is this: Just because a ticket costs lots of $ doesnt actually mean it generates much profit to "pay" for the miles award. Once again its all about yields.

On the other hand under such a scheme you could broadly the same miles flying F or J on TATL than flying LHR/SYD in the same class, which would then seem illogical to some!!
 
kiwiandrew

RE: 2 Ideas That Would Make FF Programs More Logic

Tue Feb 16, 2010 9:40 pm

Quoting Birdwatching (Thread starter):
1) Miles earned based on $$$ spent.

Air New Zealand bases their "Airpoints Dollars" scheme on a mixture of distance and ticket value and as the name suggests you earn and redeem 'currency' rather than miles ( although they are not directly proportional to the fare - they are allocated in bands of fares - as an example AKL-PPT 'earns' $60 in discounted economy , $100 in regular economy and $210 in business or AKL-LHR earns $110 in discounted Y $140 in higher priced Y $165 in premium economy and $370 in J - so you can see that the higher spenders earn significantly more for their tickets with J class earning in most cases more than 3 times the earning for discounted economy ) ... you can also use this "currency" to buy 'regular' revenue seats if there are no redemption seats available ... if you have enough "airpoints dollars" in your account you can buy a full fare seat in any class - even if it is the last remaining seat for sale on the flight , which for high value customers removes one of the biggest gripes about traditional programmes - that you can be left with vast earnings which you can 'never' redeem due to scarcity of redemption seats . . ( although obviously this costs a lot more points than a 'regular' redemption .)


http://www.airnewzealand.co.nz/airpo...nts_dollars/airnz_earn_accrual.htm
http://www.airnewzealand.co.nz/airpo...ints_dollars/star_earn_accrual.htm

Forgot to mention one downside .... the "airpoints dollars" only work as currency for purchasing non-redemption seats on NZ itself , if you are spending them on partner airlines they still need to have redemption seats available eg you purchase a full fare J class seat on AKL-LHR provided you have enough airpoints dollars , but to purchase a First class seat on SQ on AKL-SIN there must be first class redemption seats available on SQ .

[Edited 2010-02-16 13:46:57]

Who is online

Users browsing this forum: Exabot [Bot] and 6 guests