Is QF considering Lifetime Platinum?

[wannabeinvestmentbanker]

I believe that (a) would actually be less than 5k - probably closer to 3k. And as for (b), again, far less - maybe 1-2k.

I think we get lost in this forum with the huge over-representation of true FF here.

Agreed, I think little old Australia and Qantas are quite isolated and the program is dominated by NBs who shop at Woolworths and get the odd credit card signup rather than heavy duty FFs that we see in the CX, AA and BA world especially if you take away the Federal Government workers. This is from perspective being away from Australia for a while and flying on other OW airlines exclusively.

 

[JohnK]

And QF gets the loyalty $ whilst they do.

From 8 sector AA runs to PTY? Qantas does not make very much there.

 

[JessicaTam]

From 8 sector AA runs to PTY? Qantas does not make very much there.

But they do make something compared to nothing - as well as the 4~.

 

[Pleb Status]

But they do make something compared to nothing - as well as the 4~.

But is this extremely small amount of revenue worth it when QF would then need to offer lifetime F lounge access and an additional lifetime 25% FF points once the FF reaches LTP status....

 

[Ansett]

Yes but if they then needed a further 14000 status credits to get to LTP rather than using other airlines that could mean say a minimum of 25 MEL-LHR Return in Discount J at a cost of say 7.k per trip for 560 Status Credits that would equate to an income to QF of around $175000 per person at todays value now lest say 5000 people attain LTP then that equates 875,000,000 which is not too shabby.

If we used first class then that would equate to 15K per trip and would need 17 trips equating to revenue of $255,000 so lets say 3000 people do this over a period of time then again we are looking at a revenue of $765,000,000 again not too shabby.

Time frame could be anywhere from 5 years to 20 years and is an estimate only and based on some one changing flying patterns and no longer flying QF as the dominant carrier.

So LTP could indeed bring some good potential revenue.

I do also recognise things like DSC would obviously make this happen quicker more quickly and mean less revenue for QF

 

[mviy]

The thing is though, does QF track lifetime flying on QF marketed flights currently?

If not, what would they do with existing lifetime tallies? Assume they were all flown on QF marketed? Assume a percentage was?

 

[JessicaTam]

But is this extremely small amount of revenue worth it when QF would then need to offer lifetime F lounge access and an additional lifetime 25% FF points once the FF reaches LTP status....

Taking that argument to the extreme, that would mean LTG is a bad idea because of limited revenue but all those LTG's in the QCs.

 

[mviy]

Taking that argument to the extreme, that would mean LTG is a bad idea because of limited revenue but all those LTG's in the QCs.

Once you offer something like LTG it would be a very bad look to stop offering it.

 

[JessicaTam]

Once you offer something like LTG it would be a very bad look to stop offering it.

Like anytime access?

 

[mviy]

Like anytime access?

Certainly, but a lifetime benefit can take a very long time to earn.

Whereas if you don’t like enhancements to benefits for status you can stop doing the flying to earn that level.

 

[JessicaTam]

Certainly, but a lifetime benefit can take a very long time to earn.

<snip>

All the while creating revenue for QF!

Let's not forget that to use the F lounge as an LTP, you have to pay someone to fly you somewhere. Either they pay QF for the privilege of hosting you, or QF are getting the international flight revenue themselves.

 

[Kiwi_Flyer]

Once you offer something like LTG it would be a very bad look to stop offering it.

SQ removed their lifetime status (grandfathering in those who already had it) with just 6 months notice. In fact missing out on that and the private equity sniffing around QF at the time was the prompt for me to accelerate timing for achieving QF lifetime status.

 

[Pleb Status]

Taking that argument to the extreme, that would mean LTG is a bad idea because of limited revenue but all those LTG's in the QCs.

I do not think this is extreme at all. Lifetime anything sounds like a good idea when it is first introduced and costs nothing to provide as no one has earned it yet. But twenty years in, the number of LTG would be increasing rapidly and the costs will now start raking up.

Since dropping to LTG, the only flights I have taken relying on my LTG status for lounge access etc have been very cheap PBG 3K fares PER-SIN v.v. These flights would have had a razer thin profit margin at best. If 3K had to pay for my lounge visits they would have lost money for sure.

If I lived in SYD or MEL and was a LTP, the only QF group flights I would most likely book would be JQ flights across the ditch. A good visit to the F lounge would certainly wipe out any profit margin those flights may have had in them...

 

[mviy]

SQ removed their lifetime status (grandfathering in those who already had it) with just 6 months notice. In fact missing out on that and the private equity sniffing around QF at the time was the prompt for me to accelerate timing for achieving QF lifetime status.

Interesting. If QF did that soon with that amount of notice I should be able to reach LTS with a bit of an effort but LTG would be no chance.

I certainly would like to get LTG ASAP to secure that and be in a position to be able to go for LTP if that is introduced down the track.

 

[JohnK]

All the while creating revenue for QF!

Let's not forget that to use the F lounge as an LTP, you have to pay someone to fly you somewhere. Either they pay QF for the privilege of hosting you, or QF are getting the international flight revenue themselves.

Or book JQi domestic flights cheaply like an AFFer is doing regularly for their work travel.

 

[serfty]

Or book JQi domestic flights cheaply like an AFFer is doing regularly for their work travel.

I doubt that would be really productive - these tag flights departing and arriving at international terminals operate unreliably at best and doing so for work travel would be a headache.

 

[Pushka]

I doubt that would be really productive - these tag flights departing and arriving at international terminals operate unreliably at best and doing so for work travel would be a headache.

Agree. We would never book JQ for business travel. Can’t risk it. And the new terminal in Mel is the pits and no lounge access.

 

[JessicaTam]

Agree. We would never book JQ for business travel. Can’t risk it. And the new terminal in Mel is the pits and no lounge access.

JohnK was referring to the international JQ flights that irregularly fly between domestic ports as part of their itineraries. So you could have access to the lounges in the international terminals.

 

[JohnK]

Agree. We would never book JQ for business travel. Can’t risk it. And the new terminal in Mel is the pits and no lounge access.

If you were travelling between MEL-SYD-BNE regularly you can book the JQi flights from international terminal where the opportunity arises to include breakfast/lunch and a few drinks.

 

[Pushka]

If you were travelling between MEL-SYD-BNE regularly you can book the JQi flights from international terminal where the opportunity arises to include breakfast/lunch and a few drinks.

Makes sense if you can be bothered with all the palaver associated with that. But obviously not our route.