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Okay. You seem to think that loyalty businesses run very differently to how loyalty businesses actually run. Most, if not all, will absolutely cross-charge in and out of their 'main' business. It is virtually impossible to consider the revenue and profit of a loyalty business as disconnected...

You're talking about CR (lack of) availability as the catalyst for your points chasers to leave. The trade-off isn't $500k of card spend to then use on CR+ redemptions, it's paid sales. Your strawman is that you flip between QF and Loyalty depending on your argument. Absolutely Loyalty will...

This is a strawman. The correct comparison is not between your theoretical points chaser and the business owner whacking spend on their card. My expectation is that QFF don't actually care just how many CR+ redemptions they make. It's between the profit QFF makes selling that seat as a...

Only on some routes and in some cabins where yield management dictates. Seems like a perfectly rational business decision to me. But the "1% business owner segment" is likely to have a greater propensity to want to use CR+. In comparison, the "1% disloyal points hackers" segment is more...

But those that actively and repeatedly do hit at T-353 are a small sub-segment of those ABLE to. There's plenty of SG/WP/WWP1 that, for a variety of reasons, don't have the flexibility to manage their travel to allow this. In fact, typically the more valuable customers are often the ones with...

The previous 11am 353 days in advance only advantaged a very select group of frequent flyers. Increasingly that group was points hackers displaying inherently disloyal behaviours. They may be a different "1%" of the frequent flyer base, but that was still to the disadvantage of the remaining...

Money well spent, IMHO...

I think this article is wrong. QF don't have a Classic Reward availability problem. QFFers have a Classic Reward availability problem. Especially QFFers that are wanting to live in the past, with an expectation that the program isn't evolving in QF's favour and at their expense.

I disagree. Program changes of the like we've just seen land take months and months of behind the scenes work prior to an announcement like yesterday's one. They would have been very close to sign off on this work when Velocity's changes were made public. Qantas don't operate in a vacuum and...

I personally wouldn't sleep well with this arrangement, particularly with the long haul flight at risk of forfeit. If everything goes right, they'll make it. Most of BA's DUB flights to LHR arrive a T2. Only a handful are into T5, IIRC. If it was 150 mins with a flight into T2 and they were...

Entirely up to you. No one’s forcing loyalty upon you. And if it doesn’t meet your needs, then the rational decision is to give up on it. But a disproportionate number of customers act irrationally enough that loyalty programs are wildly profitable. With a duopoly domestically, you have the...

Of course there are. In almost every case I've seen, moving to a spend-based status framework widens, in an obfuscated way, that burn/earn cost and reduces cost by reducing the number of members achieving status.

Nope. The biggest impact that moving to a spend-based rewards program has is that it changes the shape of the demand curve for the underlying product. At the moment, DSC or J sales currently drive spikes in demand. For those chasing status in a spend-based program, there is less of a need to...

Card churning is a behaviour that, by it's very definition, is inherently disloyal. Customers that are inherently disloyal in one vertical (cards) have a higher propensity to be inherently disloyal in other verticals (such as choice of airline). It's a gamified behaviour that benefits disloyal...

Depends if you consider margins with/without subsidies. But other programs (not necessarily airlines) manage anomalies like this by introducing fare classes (or equivalent) that are non-earning. Almost certainly. And then on the 'burn' side too. Want J reward flights to HND? Nope, no...

I work in Loyalty (although not with QFF) and it's hardly a ridiculous question. There's a lot more loyalty programs than just the frequent flyer programs out there for QFF (and others) to draw experience from. Shifting to spend based performance metrics is not a new thing and not unique to...

My expectation will be a lot of grumbling and predictions of the demise of QFF, especially on these forums, but insufficient change in actual aggregate behaviour for QFF to contemplate moving the dial back. Just like with the elimination of JASAs or the introduction of CR+ or...

In loyalty, customers that are 'too sticky' indicate there's more margin to be extracted because your customers will bear more. Devaluation, in one form or another, is a given if that's the case.

Emerging experience shows that it's profitable overseas. The question is "why would it be different here?"

Because you don't have to outrun the bear, you only have to outrun the other guy trying to outrun the bear. The market, both domestically and internationally, for good or ill, is moving towards a model with far less members attaining tiered status. Qantas have a (relatively) captive market and...