Hyper Inflation - $ & Points

[legalistic]

Hi All,

There's an undertone of dissatisfaction amongst lots of different threads that is more sinister than mere sabre IT issues, and finding a more sinister roots in the smell of greed rising from the pits of the corporate underbelly.

That beast is manifesting itself in what can be described as hyper-inflation in:

• Flexi Fare Costs
• Reward Points requirements for non-direct routes

I thought I’d kick start this thread to consolidate the feelings of the enhancement by stealth, so that discussions are not caught in the fringes as fourth tier thread topics, as it deserves the spotlight.

Was the true purpose of sabre to actually increase revenue per mile travelled, i.e. profits? I can’t imagine it would have been for the customer experience…
Anyways I digress, to all AFFers, please kindly use this thread to vent instances of corporate bullying, and state examples of hyperinflation so many VA reps (or the RBA, jokes) can investigate.

Would really like VA to be a clear differentiator of value against Qantas, and not try to close the value gap for the sake of profits…

Another PAX, another number, another $ to be made

 

[elbarto]

Well they are in the business of making money.

 

[Fruitcake]

Was the true purpose of sabre to actually increase revenue per mile travelled, i.e. profits?

Yes, it was.

 

[bullerdude]

Yes, it was.

Yes. From what i've heard, it has made it easier for global travel agents and partners etc to access and sell Virgin fares.

 

[Deleted member 29185]

Be interesting to see the comments recieved and it's good to see this topic get it's own thread.

We have to remember that VA want to make as money as they can. If they see an opportunity, it'd be amiss of them not to exploit it (they do answer to shareholders after all).

Having said that, since the 'game change" plan started, VA have continually upped the prices and it seems, cut the volume of the cheaper buckets. I used to (read pre-Sabre cutover) be able to pick up the $79 OOL-SYD fares regularly at short notice. Now it seems the cheapest short notice fare is $95+. Two years ago, $59 was pretty much standard with $49 a frequent player.

The Saver Lite fares are nearly always sold out now.

 

[eastwest101]

Yes. From what i've heard, it has made it easier for global travel agents and partners etc to access and sell Virgin fares.

Well I hope it has made it easier for travel agents and partners to book customers onto VA, because with Sabre still not talking to VA and Velocity web sites it sure hasn't been easier for their passengers, or VA's checkin & call centre staff.

I am not totally sure about the fares - but as I am a BFOD victim/passenger I am seeing more VA flights than QF being booked by my company over the last few months. Thankfully our corporate travel agent seems to have forgotten that JQ and TT exist......

 

[ChrisFlyer]

The value proposition for me has really decreased. Previously, it was incredibly easy to get BNE-SYD for ~$65-79, when QF would always show $110-120 on the same dates. Since the rebranding, VA is always very close to (and often more expensive than) Qantas, but offers less (IMO). For essentially the same price, I can choose to fly with a carrier that offers IFE, F&B, and IMO better service (QF), or one that asks for me to pay for soft drink, has no spirits in the lounge, and has relegated me further back in the aircraft, with no possibility of 'T-80' seat selection.

It used to be only about the cost - in which case, DJ always won hands-down (and even after buying a snack, a drink, and paying for Live2Air, I'd still come out ahead). When the asking price is the same, I pick the one that offers me the greatest 'value' - which is QF.

Of course, I'll be prepared to re-evaluate in a few months once the Sabre transition has matured, but if the price is the same, then my decision won't change.

For those that are loyal VA flyers (by choice rather than just company policy), may I ask what you see in VA? There's obviously something there if so many people still enjoy flying with them - I just can't figure out what it is! (and yes, I'm being serious - not trying to take a stab at VA)

 

[serfty]

TBH, for short haul domestic it is much of a muchness, VA is normally a few dollars cheaper, even with having to pay the CC fee (which I can generally avoid with QF).

Armed with expert flyer, I was able to access 3D on a flight this morning as an SG.

By May I'll be back to WP - the pooling can work really well.

What really does interest is the WP/SG velocity upgrades on long haul that since SABRE can be confirmed months in advance.

 

[Supersonic Swinger]

For those that are loyal VA flyers (by choice rather than just company policy), may I ask what you see in VA? There's obviously something there if so many people still enjoy flying with them - I just can't figure out what it is! (and yes, I'm being serious - not trying to take a stab at VA)

This will depend on the individual, for me personally:

- much easier to earn and retain status (including through domestic Any Seat Awards)
- much easier to earn points on VA than on QFF
- I prefer the service and lounges
- lower likelihood of routes being handed over to a low-cost subsidiary
- leather seats not cloth
- a CEO who hasn't grounded the fleet and inconvenienced customers to score points in an industrial dispute
- lower likelihood of having to sit through daggy safety videos involving cricketers
- not being forced into my credit card spend automatically being "direct earned" but I have the choice as to whether to transfer to Velocity or other programs

 

[elbarto]

- much easier to earn points on VA than on QFF

Can you tell me how? If anything, I think its harder to earn VA points. At least through non-airline partners unless I'm just not looking hard enough.

 

[mannej]

a CEO who hasn't grounded the fleet and inconvenienced customers to score points in an industrial dispute

Much more decisive action than the prolonged union action wasn't it...

 

[tickthelist]

- a CEO who hasn't grounded the fleet and inconvenienced customers to score points in an industrial dispute

Agree with your points except for this one. Personally, I thought it was a terrific decision.

 

[ChrisFlyer]

I agree and disagree with status being easier to earn. Domestically within Australia, most definitely. Overseas however, I suppose it depends on where you travel!

To the grounding, I also agree that it was better than allowing the continuous disruptions to occur while one of the unions were making a couple of unreasonable demands.

However, to avoid getting O/T, thanks for sharing your thoughts! I can also see how confirmed int'l upgrades are an advantage, though a disadvantage for their long haul travel in Y would be the 0.5/mile earn in discount Y - with upgrades only from Flexi buckets. I can see how that might work for some, but it doesn't work for me

 

[serfty]

Probably getting off topic here, but the difference I am seeing between flexi and PE fares are often not "that much".

 

[Jama]

The huge rise in costs will see much of my travel go to the budget providers despite them being rubbish. I have to consider reality and the cost differential flying 3 people is just becoming too big. I am not wealthy by any means and as much as I love the benefits of my status, the cost for a couple of hours of the trip is getting much harder to justify.

 

[moa999]

Can you tell me how? If anything, I think its harder to earn VA points. At least through non-airline partners unless I'm just not looking hard enough.

I suspect onboard.
Particularly for Plats with the 10x $ on domestic,
a $300 flexi might earn triple what it will earn on Qantas
and a $500 business ticket four times what it would on Qantas
(example for SYD-MEL where you only get the 1000/1250 minima)

 

[albatross710]

Isn't Sabre (the information management system) just a way of implementing the business rules? So, rather than thinking it has anything to do with the actual technology, the underlying business rules/direction has been to raise yields.

Virgin has improved its value offering to be able to raise itself above the LCC (which it used to be). It's been going on since JB was brought on board to do just that.

Not sure that there is any price gouging. A supplier wished to increase a price for a service that it provides and makes a business decision to do that. By improving the yield on a city pair they then make it more attractive for another entrant.

Now the problem comes if the staff and services don't raise along with the prices.

Alby

 

[Supersonic Swinger]

Can you tell me how? If anything, I think its harder to earn VA points. At least through non-airline partners unless I'm just not looking hard enough.

Points earned for each domestic flight are higher, particularly once you reach status levels
Allianz Insurance earns you 3-6 points per dollar depending on status on travel insurance (compared to 1 QFF point per dollar with QBE)
Ability to transfer points from credit cards programs without them being automatically and exclusively linked (with associated occasional transfer bonuses like the current one)
3 car hire partners with 3-6 points per dollar depending on status (compared to flat 3 QFF per dollar with 2 car hire partners)
Westfield Online and Shopping portal (no real equivalent for QFF)

Agree with your points except for this one. Personally, I thought it was a terrific decision.

That decision annoyed a lot of travelers and thankfully resulted in VA being added to my employer's preferred supplier list.