I agree with Matt’s sentiment that FF programs are inevitably heading down the dynamic pricing route in some shape or form, if not already. They are seeking ways to grow their profits and Customer Loyalty (via their FFP’s) is a prime candidate with some of the highest sustainable margins available in a non-cyclical environment.
But what really grinds my gears with FF Programs is:
1) They execute massive points devaluations without notice (ala United a couple of months ago). You’d think a Rewards Program designed to reward Customer Loyalty would at the very least try to keep their most Loyal Customers happy. Unannounced massive devaluations achieves the exact opposite.
2) Marketing spin/Propaganda that purports to Enhance availability of the lowest priced awards by making them inaccessible (unless ultra elite status) unless you pay many multiples more in points. And if we’re not awake, available or in the know at the very moment a batch release is made, then bad luck, we’re not “match fit”. No soup for you.
3) The ongoing issuance and swelling points balances of the Airlines balance sheets is growing at a much greater rate than the underlying volume of what we all want but which the Airlines are deliberately holding back; long haul business/first class awards at regular award prices. I don’t believe this will stop anytime soon, but at some point the public will realise the cost to benefit value proposition is terrible value and the customer will disengage. Indeed, many of us here on AFF have diversified our points and pick out sweet spots from of a range of FFPs to try and beat the system.
I could list many more but ultimately, we are of course all just pawns in these Customer Loyalty Programs. They have the right to screw us over whichever way they like, because we voluntarily choose to partake in these programs. It’s a take it leave it scenario.
I suggest many of us reconsider our loyalty, not just to our Government backed National Carrier.
www.australianfrequentflyer.com.au
