Qantas are removing the Minimum Points Guarantee when flying American

[woodborer]

American removed it from Qantas, now Qantas are taking it from American Qantas removing Minimum Points Guarantee on American Airlines ~ Australian Travel Points

 

[RooFlyer]

Shock, horror.

Now why didn't we hear this from Qantas?

 

[codash1099]

It seems that's it's all one way traffic these days. All take, no give.

 

[eminere]

Can a mod please fix the glaring typos in the thread title?

 

[Isochronous]

Another bloody enhancement. FFS.

 

[JohnK]

Isn't AA also removing minimum points guarantee?

 

[JohnPhelan]

Isn't AA also removing minimum points guarantee?

Yes, AA actually did it first! (Which may be why QF is doing it - presumably AA pays them for the points given?)

 

[Pleb Status]

QF has to pay for the recent QF/AA alliance television advertising campaign somehow.....

Basically, QF want you to fly on the QF codeshare if you are considering a partner airline. This would be fine if you can book the QF codeshare with the same conditions, flexibility and at the same price as booking direct (which is generally not possible).

 

[defurax]

The QFF points calculator hasn't been updated yet. I find it hard to understand since both carriers have said that they want to move away from a distance based model to a revenue based one and yet they insist that there is a big difference between a 400 and 401 miles flight irrespective of the price paid for the ticket.

 

[bad]

Another bloody enhancement. FFS.

yep I gather you meant the opposite (sic!)

 

[JohnK]

yep I gather you meant the opposite (sic!)

LOL. AFF uses the word "enhancement" in relation to any Qantas changes.

 

[dfcatch]

The QFF points calculator hasn't been updated yet. I find it hard to understand since both carriers have said that they want to move away from a distance based model to a revenue based one and yet they insist that there is a big difference between a 400 and 401 miles flight irrespective of the price paid for the ticket.

That's because QF NEVER said that they were moving to a revenue-based model.

Only inaccurate commentary by many on AFF and other places stated that.

QF did however use similar rhetoric to justify Simpler and Fairer saying that those who spent more should get more than those who bought cheaper fares (of course - this was the case prior to Simpler & Fairer as well).

AA has moved to a revenue-based program, whereas QF 'simply' moved to zone & code-based - (but QF never moved to "revenue") just more complicated.

JohnPhelan- yes, AA removed theirs first as it was designed to compensate short-distance flyers in a system that awarded based on actual distance flown (not zone based). By moving to revenue-based, minimum mileage guarantees are irrelevant, that's why they were removed. Now - you get rewarded for a $100 flight regardless of whether it's LAX-SFO or SEA-MIA.

If you are crediting an AA operated flight to QFF - then AA does indeed pay QFF for the points earn. AA pays circa 0.5 cents per point. Short answer - AA said "no way" to paying for a minimum.

 

[defurax]

That's because QF NEVER said that they were moving to a revenue-based model.

Only inaccurate commentary by many on AFF and other places stated that.

QF did however use similar rhetoric to justify Simpler and Fairer saying that those who spent more should get more than those who bought cheaper fares (of course - this was the case prior to Simpler & Fairer as well).

AA has moved to a revenue-based program, whereas QF 'simply' moved to zone & code-based - (but QF never moved to "revenue") just more complicated.

JohnPhelan- yes, AA removed theirs first as it was designed to compensate short-distance flyers in a system that awarded based on actual distance flown (not zone based). By moving to revenue-based, minimum mileage guarantees are irrelevant, that's why they were removed. Now - you get rewarded for a $100 flight regardless of whether it's LAX-SFO or SEA-MIA.

If you are crediting an AA operated flight to QFF - then AA does indeed pay QFF for the points earn. AA pays circa 0.5 cents per point. Short answer - AA said "no way" to paying for a minimum.

You are absolutely right, in the case of QF "Simpler and Fairer" was explained as a model less reliant on distance, but it is not a direct revenue model as DL, AA and others are implementing.
My main comment is more that the pricing of AA flights is rarely based on distance in the 0-400 and 401-750 miles brackets.

 

[dfcatch]

You are absolutely right, in the case of QF "Simpler and Fairer" was explained as a model less reliant on distance, but it is not a direct revenue model as DL, AA and others are implementing.
My main comment is more that the pricing of AA flights is rarely based on distance in the 0-400 and 401-750 miles brackets.

No - it's based on competitive pricing.

 

[defurax]

No - it's based on competitive pricing.

Exactly, so if 500 QFF points cost AA $2.50 and most flights in the 0-400 and 401-750 miles on average cost the same price it is a weird decision. You don't have to agree with me, I just feel it goes against the new philosophy of QF and AA of having FF schemes being overall less reliant on exact distance flown. I hope AA saves millions of dollars by cutting this expense to $1 or $2/flight instead of $2.50.

 

[dfcatch]

Exactly, so if 500 QFF points cost AA $2.50 and most flights in the 0-400 and 401-750 miles on average cost the same price it is a weird decision. You don't have to agree with me, I just feel it goes against the new philosophy of QF and AA of having FF schemes being overall less reliant on exact distance flown. I hope AA saves millions of dollars by cutting this expense to $1 or $2/flight instead of $2.50.

I'm not quite sure how it goes against their new philosophy??

I'm not following your argument.

I certainly think it's a stupid decision - but that's more due to making the AAdvantage program and AA less attractive to customers.

 

[bad]

LOL. AFF uses the word "enhancement" in relation to any Qantas changes.

It looks like the bad enhancements outweigh the good. The BAD's have it

 

[defurax]

I'm not quite sure how it goes against their new philosophy??

I'm not following your argument.

I certainly think it's a stupid decision - but that's more due to making the AAdvantage program and AA less attractive to customers.

Why do airlines have minimum points guarantee?
I think it is because many airlines acknowledge that for very short flights (e.g SAN-LAX ~100 miles) it is silly to credit only 50 or 100 points if the fare is identical to mid-haul domestic flights. That it why I think QF has a 800 points minimum guarantee.
This decision by AA and QF to cut their mutually agreed minimum points guarantee goes against this idea.
I may be wrong as to why minimum points guarantee exist.

 

[dfcatch]

Why do airlines have minimum points guarantee?
I think it is because many airlines acknowledge that for very short flights (e.g SAN-LAX ~100 miles) it is silly to credit only 50 or 100 points if the fare is identical to mid-haul domestic flights. That it why I think QF has a 800 points minimum guarantee.
This decision by AA and QF to cut their mutually agreed minimum points guarantee goes against this idea.
I may be wrong as to why minimum points guarantee exist.

The price of a super short haul has nothing to do with the price of a short-mid haul.

Any resemblance is purely coincidence. Remember pricing is dynamic. If the airline can fetch more on a segment they will.

Minimum points guarantees were designed so that folks that were flying small distances (and therefore earning small amounts of points on the old point-per-mile basis) were given a meaningful amount of points so that the FFP was meaningful.

Otherwise people wouldn't bother.

 

[trippin_the_rift]

The price of a super short haul has nothing to do with the price of a short-mid haul.

Any resemblance is purely coincidence. Remember pricing is dynamic. If the airline can fetch more on a segment they will.

Minimum points guarantees were designed so that folks that were flying small distances (and therefore earning small amounts of points on the old point-per-mile basis) were given a meaningful amount of points so that the FFP was meaningful.

Otherwise people wouldn't bother.

So you can spend $200 on a short haul flight, engaging with all major parts of the airline and the core of their brand - and receive nothing.

Or you can spend $200 on a bank product and receive 20,000 points without ever needing to look at the ugliness of flying.

Do airlines even care if you fly? *nudge nudge*