Article: Should Qantas Sell Status Credits?

[JonesBoys]

I'd start by saying that the assumption is not that sound, it certainly isn't in the case that I've done runs before, and I'd end by saying that it's clearly a different value judgement to yours. I won't even go into the environmental justification stuff - an incredibly small proportion of the customer base taking a few occasional additional flights is a non-event. Plenty of business travelers travel for the sole purpose of "the vibe" of being in the same room and not on the other end of a Teams call. I'm much more guilty of traveling just to be in proximity to customers or colleagues than for status runs, which I'd only do if I was close enough to a goal that I found valuable enough to do a run for.

So my assumption is not sound. Fair enough. Obviously your money is not hard earned! Hang on someone else is paying for it! Got it. I think you missed the point of the whole article and my comment.

 

[33kft]

So my assumption is not sound. Fair enough. Obviously your money is not hard earned! Hang on someone else is paying for it! Got it. I think you missed the point of the whole article and my comment.

No, none of the above. You are on a forum where members maximise their experience with airlines. Many more people here (as a proportion) would have the knowledge or motivation to take a status run when compared to the general population of FF members, especially because they are aware of the specific value (or lack thereof, from your perspective) of meeting status thresholds.

I use points for status runs. It is trivial to earn significant points balances if you know how, and if you do in QFF you achieve points club and as a result you get SC earn on reward flights booked with those points.

So no, I don't spend hard earned cash doing it. My cash is hard earned and my status runs are not funded by anyone else. It's simply your lack of knowledge that leads you to assume what you do, and it's no wonder as a result that you are so surprised by the practice.

Some people go through life with the no true Scotsman philosophy. No real frequent flyer would take unnecessary flights for status. Others understand the tools and resources available to them and use them to maximise comfort and utility. Frankly I don't have a lot of time for the former.

 

[JonesBoys]

Wow how incredibly patronising of you. Well done! Hit a nerve did I. By the way you have no idea of the depth of my flying experience.

 

[hsct]

i don’t mind to purchase status credits if they’re open for selling.

 

[Big John]

My 2 cents worth:

I'm OK with Qantas selling a limited amount of SC to each person per membership year (say 100 SCs).

That would be enough to get someone over the line to the next tier or retain their current status.

If priced correctly, it would save punters from having to make status flights and free up seats for others.

Happy for others to disagree !

 

[sudoer]

I'm OK with Qantas selling a limited amount of SC to each person per membership year (say 100 SCs).

They already sell 50 SC per year through Green Tier.

They also sell Gold/Plat renewals for a flat 80k/120k, and from the data points we've seen, it doesn't matter if you're 100 SC or 1000 SC short. That's an excellent deal - especially for Plat - given how easy it is to earn 80-120k points with credit cards in Australia.

I hear the argument that selling status credits could lead to overcrowded lounges by members without BIS miles. But compared with the (perhaps under publicised) existing points-for-renewal deal, Qantas selling SC for a set amount should actually quell some of those concerns IMO. Selling SC for cash would be a less attractive proposition for those doing very little flying in a given year.

Considering the QC RRP is now $699, I think $2-2.50/SC would be reasonable. This would make Gold retain $1300-$1625 for someone with no current year SC. Golds and QC members are sharing the same lounges so IMO the overcrowding argument is largely irrelevant given QC is a publicly available product.

Using that same $/SC rate, Platinum retain would cost $2400-3000 for someone starting at zero.

There are different ways to manage the potential influx of new status pax and ensure the SC are only top-ups rather than outright status purchases:

• Purchased SC can only be used to retain - you can't buy up to a new tier
• A % cap on the number of SC that can be purchased each year
• An increase on cost as you purchase more SC e.g. first 100 SC are $2ea, next 200 SC are $3ea, next 300 SC are $4ea, next 400 are $5ea, next 200 are $6ea.

On that final point, Platinum would cost $5200 which I don't think many would take up, but if someone is stupid enough to donate $5k to Qantas I think they deserve a year of Plat.

 

[aikman]

I hear the argument that selling status credits could lead to overcrowded lounges by members without BIS miles

I don't buy this argument. If someone has to buy SCs to achieve status then they are unlikely to be visiting lounges often enough to overcrowd it.

I think $2-2.50/SC would be reasonable.

Looking at it from the point of view of a Qantas accountant, they should price it at a similar cost to a status run, plus a price premium for the convenience of not actually flying. I'm thinking $6 at an absolute minimum. I think it will still be popular at that price.

 

[Big John]

• Purchased SC can only be used to retain - you can't buy up to a new tier

That's quite a good idea. I would be OK with that !

 

[RichardMEL]

They also sell Gold/Plat renewals for a flat 80k/120k, and from the data points we've seen, it doesn't matter if you're 100 SC or 1000 SC short. That's an excellent deal - especially for Plat - given how easy it is to earn 80-120k points with credit cards in Australia.

Yeah, but we have also seen these offers aren't consistent eg the recent anecdote that a poster commented tgat they were denied this with iirc 200 SC and 3 ~ wanting Gold renewal.. so they do draw a line somewhere and don't consistently(ahem) offer this option to retain. So it's far from guaranteed.

Considering the QC RRP is now $699, I think $2-2.50/SC would be reasonable. This would make Gold retain $1300-$1625 for someone with no current year SC. Golds and QC members are sharing the same lounges so IMO the overcrowding argument is largely irrelevant given QC is a publicly available product.

Except Gold is far more valuable in a number of respects than QC so they're not really a like for like imo. If one were to go this route, it should be much higher imo.

Goodness, who would ever fly a sector if it were $1300 for SG and say $2400 for WP?!

Given revenue SCs are more around $10per as a general rule - or used to be (yes, I know DSC and runs in the US can generate values far far lower than this) why would QF sell the status basically for far cheaper than the revenue they would get doing it the "normal" way?

Plus what about ~?

Using that same $/SC rate, Platinum retain would cost $2400-3000 for someone starting at zero.

I much more favour a cap as you suggest. Say 20% of the requal target.

Otherwise gee folks just buy cheap, maybe use sure, or use for status matches etc. Great for those folks - easy as - but bad for things like lounges, reward seats and so on

There are different ways to manage the potential influx of new status pax and ensure the SC are only top-ups rather than outright status purchases:

• Purchased SC can only be used to retain - you can't buy up to a new tier
• A % cap on the number of SC that can be purchased each year
• An increase on cost as you purchase more SC e.g. first 100 SC are $2ea, next 200 SC are $3ea, next 300 SC are $4ea, next 400 are $5ea, next 200 are $6ea.

On that final point, Platinum would cost $5200 which I don't think many would take up, but if someone is stupid enough to donate $5k to Qantas I think they deserve a year of Plat.

Ah, but they could pay a lot more actually flying and paying and probably would revenue.

Now those who care enough to drop a few thousand on status alone are likely relatively few, and the types who hang here (who may well see it a very worthwhile investment)

Anyway QF will never do anything like this imo. They can make far more revenue. No need or want to sell status so cheaply imo.

 

[tdimdad]

Selling SC to retain your current status would make sense but with limits. It could be e.g. max 25% of the renewal levels, i.e. an SG could buy max 150, WP max 300 SC, etc.

If the price was comparable to a decent status run ($5/SC?) then it'd create an option to flying if you are a little short of credits and want to retain the status.