Award tickets further devalued with a new peak surcharge for tickets

[Saintza]

I'm sure this means that base ticket prices during peak times will be cheaper if they're moving the "peak fee" to a surcharge, right?! Who's with me? .. Anyone? Hellooo??

 

[cove]

I was surprised by this one. Thanks for pointing it out markis10. It will be quite disappointing for a big group of QFFers who have been hoping to earn a free flight.

 

[RooFlyer]

Oh, while we're at it:

Qantas Trans-Tasman Fare Increase 09 May 2014

Qantas will increase core tariff fares sold in Australia and New Zealand on selected trans-Tasman routes.

Effective for sales and ticketing on/after Monday 12 May 2014, for travel from 01 July 2014, the following fare increases will apply for tickets sold in Australia:
•Economy fares from Cairns to Auckland, Wellington, Christchurch and Queenstown to increase by $10 one way;
•Business fares from Brisbane, Sydney and Melbourne to Auckland, Wellington, Christchurch and Queenstown to increase by between $10 and $50 one way;
•First fares from Brisbane, Sydney and Melbourne to Auckland and Christchurch to increase by $50 one way.

and

Changes to Fuel Surcharge (YQ) Application 09 May 2014

Qantas is changing the way it applies Fuel Surcharge (YQ).

From 7 May 2014 the fuel surcharge on Qantas flights* will be calculated based on the point of origin of the itinerary instead of the country where the ticket is issued. The fuel surcharge will be applied in the currency of the country where the itinerary originates, then converted to the local currency in the ticketing country using the exchange rate applicable at the time of ticketing.

There will be no change to the Qantas fuel surcharge levels where tickets are issued in the same country as the point of origin.

Tickets issued in a country different to where the itinerary originates may see a change to the Qantas fuel surcharge levels.

Effective Date

07 May 14 – For itineraries commencing from Australia, New Zealand, USA, Canada, Mexico, UK, Europe,North Africa, Singapore, Thailand, Malaysia and Dubai.

Any existing international bookings must be ticketed on/before the effective dates, otherwise un-ticketed bookings will be reassessed and the new fuel surcharge levels will apply.

<rest of statement snipped>

Busy little beavers, aren't they?

 

[Ansett]

It is yet another sad day for QF in my humble opinion.

QF have some good figures that many other airlines would envy such as the debt to equity level, they complain continuously about customers deserting them and hence the need to make all these changes. Yet all the changes are doing is alienating a group of loyal customers.

Simpler and Fairer really is a joke, we have a more complicated less fairer FF programme, even more complicated pricing now based on the day of travel the time of travel and the destination, surcharge after surcharge after surcharge !!!!

Please Qantas consider the KISS principle and give us some LOVE and stuff this Simpler and Fairer Approach where the sun don't shine

 

[Mr_Orange]

Oh, while we're at it:




and





Busy little beavers, aren't they?

That second one is closing the .br loophole once and for all.

 

[markis10]

That second one is closing the .br loophole once and for all.

No its not, it does not matter on what basis a surcharge is calculated if its illegal to charge it in the first place.

 

[Aussie_flyer]

I figured the fuel thing was more to do with currency fluctuations

 

[MEL_Traveller]

That second one is closing the .br loophole once and for all.

I don't know what the rules are exactly regarding fuel surcharges ex Brazil... does it apply to tickets sold in Brazil, or only for travel originating in Brazil?

It seems strange QF would move to collect fuel surcharges on the few tickets sold via .br and yet continue to prohibit sales for anyone in Thailand and China who can't buy without going to a sales office.

 

[Timba-Jet]

Another way Qantas is showing, how they are the spirit of Australia, by milking as much hope they can get out of everyday Australians to save up for a free flight, then reward them with taxes and surcharges that resemble a full fare itself.

Have no issues with the price increases, simple case of demand pricing, but enough with sneaky tactics. Think of your customers and then you may be able to generate more revenue instead resorting to excessive surcharges.

Not to mention. TA's being scr^%* over with commissions.

 

[lovestotravel]

Spoke to an ex CSM who took a Redundancy package and the theory of some is that An Ex Board Member along with 4 other key people are working with AJ to drive the price down so that the Orange 5 as they are currently known can come in buy it up with Overseas money and other investors, hence the push to alter QF sale act.

The theory goes that they will be able to buy cheap have cheap labour due to loss of staff and have a clean sheet of paper to start from, with what most see as constraints, removed. Comment was made that the current leader is merely a Puppet for the Orange 5. JB was not offered the position as he would not be a puppet.

NOTE I am only relaying what was told to me as a rumour and I make no formal accusations as to the truth of it just thought it was interesting..

Pretty much exactly right there TBH especially the bolded bit

 

[Powerballsam]

They are making these changes because they dont want people to claim award seats during peak times. They would prefer you to fly awards when it is off peak. So they make it more expensive.....makes sense to me.
If the off peak seat is worth the same as the peak seat in terms of points why wouldnt they do that to make more money?

 

[markis10]

They are making these changes because they dont want people to claim award seats during peak times. They would prefer you to fly awards when it is off peak. So they make it more expensive.....makes sense to me.
If the off peak seat is worth the same as the peak seat in terms of points why wouldnt they do that to make more money?

That's a farcical suggestion, given any demand could be quelled by not releasing seats. The changes affect all tickets and its simply a way of increasing fares but still allowing advertising of fares from $xx_, or for awards, seats from 8000 points + taxes + (the increasing) carrier surcharges!

 

[Powerballsam]

They cant not release award seats, but they can make it harder and harder to claim. Makes sense to me...whether it is factual is no the point. The point is from their prospective it makes sense.

 

[markis10]

They cant not release award seats, but they can make it harder and harder to claim. Makes sense to me...whether it is factual is no the point. The point is from their prospective it makes sense.

Yes they can reduce award seats to non peak releases, there is no requirement to offer a seat on every flight.

 

[Powerballsam]

They really have no choice. From a saving face prospective they have to have "some" award seat during peak times. So they can say they have those seats. Members with status can also request the opening of award seats.

This is not a relevant issue for Qantas as it affects such a small minority. Who most of the times are still going to pay the fee as it is still good value to fly J.

 

[PointyEnd]

Soon we'll be out on tarmac pushing the bird to the take-off holding point to save on avgas.
Then we'll clamber up into the cabin on a borrowed ladder (jetbridge was sold on ebay, sorry!)
Quick whip-round to pay the crew and we're off!
Make sure you have a few gold coins, the toilets are pay-as-you-go...
Form an orderly queue at the microwave to heat up the frozen dinner you had to bring with you.

Where does it end?

 

[AnonymousCoward]

They really have no choice. From a saving face prospective they have to have "some" award seat during peak times. So they can say they have those seats. Members with status can also request the opening of award seats.

I doubt it has much to do with award seats per se. It looks like market segmentation/discriminatory pricing 101. Peak periods, by definition, are when more people want to fly. Demand is inelastic, so increasing prices will increase net revenue (incremental revenue offsets a smaller loss of business). The alternative would be to increase prices by a lower amount "across the board", however during non-peak periods when demand is elastic (i.e. incremental revenue doesn't offset the loss of business), QF would see (comparatively) less money coming in.

Now, as to why it's a surcharge - I think that's been canvassed well in posts already. I wonder how hard it would be to file all these differing prices as base fares in the GDS? I guess that might be another reason, but grabbing the additional rev from OW and Award seats would be icing on the cake.

 

[Powerballsam]

They would rather you not claim a awards flight anyway. They would rather you use points plus pay. That way the points you pay are relative to the price of the ticket.

Again this issue only effects such a small number of people, that statements like "this is end for Qantas" is over inflated. People love to scream about the end of things prematurely.

 

[mannej]

Each move it seems creates more and more cynicism towards the QF brand.
They are either helpless or deliberately don't want to stop the cynicism growing.

It is almost as if they are encouraging the growing of the Qantas bashing sport.

 

[lovestotravel]

With the imminent demise of mASA's and now this - I may just go back to concentrating on burning my QFF points on upgrades.

However, I am certainly considering strategies for more earn on other programs.

I mean even now, a Business transpacific award between east coast Oz and West coast USA is 192K QFF points and $800+ in +++ compared to 188K Velocity points and $135.

Add to that for VA you can normally get 10% off the 188K and also a 10% bonus when transferring points to VA so you can get that down to 155K and $135

Is $650ish really worth a few hours in an F lounge in MEL/SYD and LAX (once the new one opens)

To me NO I'd rather keep the $650 and spend that on a few nice dinners/massages outside of an airport