Fixing QF Lifetime Status

[trippin_the_rift]

Over the two decades or so that I've been on frequent flyer forums, the topic of lifetime status regularly pops up.

Aside from lifetime Platinum, Qantas's lifetime status offering has never changed.

This is despite the airline growing, shrinking, changing routes, making loads of changes to the way status is earned, penalising it's own members for flying some oneworld member partners, and running loads of status-related campaigns.

Fundamentally, what served airlines well 5, 10, 20 years ago, is far less effective in today's world.

I believe it's time for Qantas to bring lifetime status into the 2020, so that the tier has benefits and leverage to deliver new revenue to the airline into the next decade, while protecting premium pax revenue in the program.

The number of lifetime status holders is more today than it ever has been, and there has now been a tipping point, where it makes sense to recognise the lifetime value through new benefits versus be concerned about adverse selection on revenue dilution (which is correct logic with a smaller program - aka: qantas loyalty 20 years ago).

The current lifetime setup means that if you're Lifetime Gold (with no hope of ever hitting lifetime Plat), you're incentivized to stop using the qantas loyalty program.
Infact, if you are QF lifetime gold, and you wanted lifetime oneworld emerald status - it would be easier, faster and cheaper to start from ZERO with BA to achieve their lifetime emerald status, than it would be to try and move from QF lifetime gold -> lifetime platinum.

All of this amounts to Qantas effectively writing off the very customers who have shown loyalty and spend over a sustained period of time and hold elite status.
These members are better off, in almost every case - switching their business to other airlines, splitting their business, or buying flights based entirely on price/network instead of being influenced by loyalty benefits. This is the exact opposite of what airlines want.

Alaska Airlines recently made changes to their lifetime status, which are fantastic changes: Alaska Airlines Making Huge Improvements To Lifetime Elite Status - View from the Wing

Some ideas to mitigate the lifetime revenue loss QF experiences (they might not even know it):
- Lifetime status holders begin their membership year with status credits to encourage spend-up. Currently, lifetime status holders are de-incentivized to fly/spend beyond their lifetime tier, as they have that tier to 'fall back' on. Why would a lifetime gold member bother to strive to earn any status credits unless they could hit platinum status? They don't.
- Lifetime status should appear on boarding passes, and crew should be able to recognise these pax.
- Lifetime status should receive priority over non-lifetime status holders at the same level.

And like magic, Qantas would instantly pull back all lifetime elites away from Virgin and other carriers.
Virgin has no way to counter this without costing them a small fortune.

Qantas has a waiver from oneworld to implement these initiatives.

Let's get the party happening, QF!
Time to make lifetime status more interesting again.

 

[Princess Fiona]

Couldn’t agree more with this post.
I hit LTG many years ago now.

Currently still crediting to QF as I make P1 every year but the bar for LTP seems very unachievable even for the average P1. I’m actually incentivized currently to credit anything over the P1 threshold to other programs and I know I’m not alone here.

 

[pjm99au]

With 50,000 LTSC I’m one of those stuck in the twilight zone. LTP at 75k is too far to realistically achieve given my mid 50’s age.

I’ve been P1 for the past 10 years and this will very likely be my last. I wish now I’d been less tied to that level and had been smart enough to switch to BA 5 years ago. Once I’m back to LTG offering me only some average lounge access and token seat selection options is a pragmatic and emotional disincentive to fly with them.

The 75k threshold for LTP always struck me as a “there we’ve created the level now stop your complaining and go away” response to most.

 

[ShrinkWrapped]

I would prefer if QF made achieving platinum more incentivising once you reach LTG. I'm about 4000 SC away and trying to decide what to do when I get there.

sure first lounges are great for TT hops which are a lot of my flying, but that's really about it. It remains difficult to request for classic awards release due to yield management this days and even flights with I9 will be blacked out for a number of months during the year July - Sept and likely Dec - Jan.

perhaps they can take a page from regional programs. NZ / AA / CX all have upgrade instruments given to elites which can be confirmable in advance space pending.

NZ elites (WP equivalent)get 2 recognition upgrades confirmable 355 days in advance if available

CX diamond get 4 long haul 1 class upgrade into T/I/A classes AND you get the extra status earn, but you need to earn 1600 status points to get them (1200 SP to qualify for diamond)

AA EXP and Plat Pro get SWUs which can also be confirmed in advance if I recall

QF meanwhile is stingy Scrooge McDuck and we get very little extra as WP beyond the few listed benefits above

heck even AY has upgrade vouchers

 

[Peasant]

Great post. I’ve given thought to all of your points above at various times on my travels, so I completely agree with what you’ve outlined, especially with LT Gold providing some incremental benefits and recognition beyond the standard tier.

I still think they botched the LT Platinum roll out - and it has probably had the opposite effect to that desired - other than to tick a box to say “we listened and we’ve done it!”

My thinking is that they should probably rebrand LT Platinum as LT Platinum One, then create a new LT Platinum tier at a more realistic 30-35,000 SCs.

One good thing I like about my Solitaire membership with SQ is that every dollar spent above the qualification threshold is banked for future requalification, so it provides a further incentive to keep spending within the year. It’s still not as good as LT status, but the behavioural impact can be quite significant.

 

[Kendall Roy]

As a LTG, I'd like a 700 SC start when my membership year resets.

The other points I won't lose any sleep over.....

 

[kpc]

As a LTG, I'd like a 700 SC start when my membership year resets.

So would I but can't see Qf doing this ever. It is easier and cheaper for me to just retain Plat each year with Qf using doubls SCs and Points Club as stepping ladders. I think aiming for Ba LT Gold (OW Emerald) will be much more expensive and difficult for me at least.

 

[justinbrett]

“Lifetime status” and “change” aren’t things I really want to be discussed together.

Fixing from QF’s POV might not be what you’re after.

 

[Anna]

When I got LTG many years ago I joked to friends that I wasn't sure if it meant my lifetime or QF's. The point being, there's no point holding 'lifetime' status if the corporate entity that gave it to you is not around any more due to restructure, purchase or insolvency. I would never go out of my way for 'lifetime' status for that reason, I don't care what benefits are held out.

BA status might be more attractive for people who fly a lot on BA but if most of your flights are on other airlines then weigh up that you have no control over whether BA continues to have arrangements with other airlines that allow you to benefit from that BA status. Status on BA might not always equate to OW status, for example. Personally to the extent that I seek status at all, I'm happy to go for status on the airline that I mostly fly. Even if that is currently QF

 

[trippin_the_rift]

Couldn’t agree more with this post.
I hit LTG many years ago now.

Currently still crediting to QF as I make P1 every year but the bar for LTP seems very unachievable even for the average P1. I’m actually incentivized currently to credit anything over the P1 threshold to other programs and I know I’m not alone here.

^^ This is the only logic that holds any weight from Qantas's perspective of not wanting to change it.
That, perhaps there are large numbers of folks who are lifetime gold/plat who continue to spend and fly, and the airline wouldn't want to jeopardize the spending of these folks.

This might have been true years ago, but not anymore because:
- There are more people in the program today.
- The 'new to status' people are lower today than ever before (ie, people are choosing NOT to chase status versus price/network/other), and thus, QF will run into major issues for loyalty in the future without addressing these today.
- The number of folks with lifetime status that are of age, continues to grow. These folks will travel less and less frequently with age, and I'm sure there's a correlation between the age of pax <-> ability/willingness to spend/fly.
- Most important: The number of people who have disengaged/are dis-incentivized once hitting lifetime status (some are silver, some gold, some plat), is a higher number than the people who have lifetime status and continue to earn the higher tier above their lifetime status on merit. This is important because it relates to the first bullet point that there are more people in the program today, which is the tipping point.

Overall: It's now in QF's interest to put lifetime benefits into lifetime tiers because there is a financial incentive to do so versus not do anything and rely on the folks like Princess Fiona who continue to spend/earn a higher tier.

Aka: The incremental spend is now higher than the revenue protection number.

So would I but can't see Qf doing this ever. It is easier and cheaper for me to just retain Plat each year with Qf using doubls SCs and Points Club as stepping ladders. I think aiming for Ba LT Gold (OW Emerald) will be much more expensive and difficult for me at least.

Giving you 700SC at the beginning of each year as a lifetime gold, is the same effect as providing you with double SC for the entire year, every year (well, almost - assumes you were only gunning for platinum and not P1)

Don't get me started on double status credits. That's another thread.
Qantas, IMO, has used it in entirely the wrong way of late and has actually missed revenue opportunities because they're addicted to the sugar rush hit of bookings versus alternatives they could/should be doing (a thread for another day..)

 

[Ade]

Not a Lifetime Anything with any airline, but this thread is interesting.

- Lifetime status should appear on boarding passes, and crew should be able to recognise these pax.
- Lifetime status should receive priority over non-lifetime status holders at the same level.

This would sooooo work in favor of QF ... I'm sure that people like to be recognized, acknowledged for their loyalty.

 

[justinbrett]

Do you not think there's a lot of people who slog it hard to get LTG, who then have that as motivation to keep flying QF/oneworld so they actually get to use the status?

There may be an argument to change FF programs within oneworld to BA or AA or whatever, but that's just the FF program - are they actually going to change the airlines they fly with (assuming they remain in oneworld)? You only need four legs on QF a year for status retention, so you can already maintain QF WP barely setting foot on a QF aircraft.

I guess a small minority will start afresh with one of the other alliances, but I don't think there's much to stop that.

IMO Lifetime Status does what it says on the tin. I imagine QF thinks a lower threshold for LTP would erode the benefits of WP which I tend to agree with.

 

[Bundy Bear]

Can I ask Qantas don’t change anything until I get to Life time Gold so about 3 years away.

 

[Gold Member]

“Lifetime status” and “change” aren’t things I really want to be discussed together.

“Enhancement”, “Simpler” and “Fairer” are the words that come to mind.

 

[aus_flyer]

I'm a P1 with more than 50k lifetime SCs. I'm in two minds about continuing to credit to Qantas after I renew P1 each year.

On one hand, I continue to credit so I can reach lifetime Plat sooner.

On the other hand, I'm unlikely to ever drop below Platinum anyway, so why bother?

Crediting to other programs isn't as generous as it used to be. And redemptions are harder than ever. So I stick with QF because at least I can request award seats.

 

[Gold Member]

Not a Lifetime Anything with any airline, but this thread is interesting.

Unless you can realise a very clear and tangible benefit from Lifetime status for many years, my advice to almost everyone is not to bother with any Lifetime status, in any airline.

In the late Norties, and just before I reached LTG a few years later, I discovered the “too good to be true” proposition of purchasing and redeeming miles with Foreign Airlines for long haul travel in Business and First class - US Airways Dividend Miles and Avianca Lifemiles back in the day. Fast forward to today and the landscape has changed a fair bit since then but there’s still some great value to be had across Air Canadia Aeroplan and BA Avios to name a few. The landscape will continue to evolve but I’m sure that we will still have these opportunities well into the future, albeit perhaps not as lucrative.

Earning (via paid subscription, buying miles or CC churn etc) and burning miles while cherry picking each program’s sweet spots gives me 90% of the benefits and experience of Lifetime Gold/Platinum Status while saving about 90% of the expense. I also don’t have any handcuffs so my options are far more flexible (with the obvious exception of award availability).

Like many others, since achieving LTG many years ago I have not credited a single Oneworld flight to Qantas. This highlights the great points raised by Trippin in the original post - QF has a huge opportunity to change LTG Customer behaviour which would drive additional revenue and customer engagement.

 

[Blackadder]

As a LTG, I'd like a 700 SC start when my membership year resets.

The other points I won't lose any sleep over.....

Likewise as a LTS , I would like a 300sc start when my membership year ends.

 

[mrsterryn]

I am a few thousand away from LTG , so LTGand getting on bit and really do prefer business for the northern hemisphere long trips . Also I do enjoy those convoluted trips that go to odd countries and airports , so getting from A to B is not the proverbial straight line.
Qantas is so so much more in costs than other comparable airlines. For example JAL. It is odd cutting the lifeline to Oneworld but...Qantas really gives no incentive to stay with their differences in prices. So it is the BFOD.

 

[RSD]

I'm LTS with a long way to go to LTG, and that is probably about where I will finish up. It will get me into the Emirates lounges at MEL, DXB, and CAI - that is pretty much my main use for Gold

 

[RichardMEL]

It's an interesting idea - does giving a "status boost" if you will for LT status of say 250/700 or even 200/600 (ie the renew rate, which is what one would in theory have required to retain that status) would that create more incentive to spend with QF vs the inertia of LTG.

I guess it comes down to how one views and intends to use their LT status and where they are at in their flying "lifetime" as it were. By that I mean, if still active with travel on a regular basis - and thus potential to earn the higher status levels for themselves with spend and flying vs those who may be using the LT status (specally LTG) in a situation of only a few leisure trips a year - reward or paid - where even with a boost the next level likely won't be attainable. Of course for each individual it's going to be different and it's probably not very useful to make generalisations about LT status holders as a group with what their own motivations are.

(there's also those who, attain LT status, and move elsewhere or BFOD or whatever and keep the LT status as a backup rather than actively use it).

So, for the group of less frequent travel the equation is simple - it likely doesn't matter and their spend/travel is unlikely to change - net effect to QF is nothing.

For the group who are active (I'm in this category as it happens) with LT status - playing devil's advocate for QFF - is giving a "boost" revenue positive or negative for them? That's probably a big unknown. Some would spend more to say get from 700 to 1400 to get Plat - but would it be more than usual spend might be? Probably a mixed bag between the positive of those that would fly extra to make it vs the revenue potentially lost by those thinking "I have LTG, but VA is better for this trip" - so then one asks would a "boost" make a difference?

I don't know of any other programs that do this sort of thing. eg the US programs give the LT status but don't give any kind of bonus into the current year. I can't see QF changing this thinking - they want to maximise revenue each year because for them that's the whole point of yearly status (for them). Probably little incentive, or at least perceived revenue positive incentive to give a boost to LT members imo. If you want that higher status for this year - pay for it - would likely be the bottom line.

What would probably be a more achieveable incentive for an airline like QF to introduce would be added benefits for LT members - eg: higher priority in the status level for upgrades, irrops processing etc - eg: if you have LTG you're at the top of the list for Golds - then sorted by fare type). Perhaps throw some bonus points every year on the member's anniversary date or something as a token "thank you" or even say a "long time loyalty discount" of say 10% or something on the next booking code - it may not be used by all, but may just get some extra bookings from the less active membership. Would cost QF not terribly much, but still keep the current status pools still reasonably balanced instead of effectively cutting the qualification criteria by the "boost" amount.

Realistically though, since VA has zero LT recognition at this point (will they ever?) then QFF has no major competition in this space (a bit like P1 benefits) there's little incentive for them to change things to better recognise the long term membership.

imo