Loyalty Bonus changing from 1 July 2013

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because last time I checked this is a frequent flyer program that is part of the oneworld alliance. And the benefit is status credits and miles on any partner airline. QF don't fly the places i want to go, nor do they offer the class of service I want to most places, and they have an inferior business class on other routes (CX full flats compares to skybed mark 1).

QFFF is very lucky they get any business from me at all. I do my 4 ~ cause I have to. The rest I'll fly someone else until QF can actualyl deliver a product that meets the competitors.

QFFF needs my business because they sell points to credit card companies that get sent straight back into QFFF. If They increase the ~ I'll join asia miles and perhaps miss out on credit card points. But so will they miss out on selling them to the bank!

Hit nail on head:!:

Without OW.........QF would get very little business from me.

I've done my years of DOM commuting - long haul makes up our flying these days & OW alliance is the key to attract our money. QFs offer outside of LHR & LAX - isn't that impressive.


So my objective question to you is - Should this type of pax (in all reality) be joining the FF program of the OW partner with whom they are flying the most?
If QF upped the SG requirement to 8~, and WP to 12~ would you still qualify? Would you perhaps still qualify SG but not WP? And would you move your program to your preferred airline as a result?

If you think about it objectively - if you are a high-status FF but are only 'just' meeting your 4~ requirement currently, Would you not be better being a CX elite? You would still get to use your OW Emerald privileges when you do fly QF.

Alternatively - would your response to my question be different if the proposal was to enforce 50% of SC must be on QF (as opposed to increasing the minimum ~)?

Or would your view be the same regardless of the tool used to increase the requirement?

But the PAX who does two return trips to LHR is already meeting the ~ requirement and hitting WP.

;)

Yes - but not if the ~ requirement is increased :)



EDIT - I guess my thinking is this:

QF have tightened up on the Loyalty Bonus to save money where they don't see a benefit in giving away the points so easily. To quote QFF "Points aren't free".

Here on AFF we (as a collective) regularly whinge that the lounges are overcrowded or that DSC promotions "devalue" the status and introduces more people competing for our benefits. The comment is regularly made that status is too easy to achieve and that the qualification levels should be made more difficult. The comment was accurately made above - that we advocate positions that allow us individually to requalify but should exclude others (we all aspire to TH's DYKWIA club).

We also complain that the difference in benefits between WP and SG is marginal (especially for a domestic flyer), and that WP benefits have been excessively "enhanced", despite WP requiring double the qualification of SG - it is perceived that there is not double the marginal benefits.

QF have already moved the goalposts for PG from 2100-2400.
It doesn't take a rocket-scientist to see that re-jigging the SCs required for qualification is always on the table.

It just seems to me that increasing the ~ requirement may be the simplest adjustment to qualification levels that disadvantages the least number of FFs, whilst alleviating many of the concerns as per above. Naturally - all of these things still need to meet QF's commercial requirements and strategies (once they actually develop a coherent one).

It's folly to believe that we can obtain increased benefits from QF without a tradeoff in qualification requirements IMHO, and left to their own devices to come up with "enhancements" QF has a track record of randomly applying the sledge-hammer instead of the tweezers ;)
 
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So my objective question to you is - Should this type of pax (in all reality) be joining the FF program of the OW partner with whom they are flying the most?
If QF upped the SG requirement to 8~, and WP to 12~ would you still qualify? Would you perhaps still qualify SG but not WP? And would you move your program to your preferred airline as a result?

Already discussed. We live in Australia, we use australian credit cards, and earn points through australian companies. That makes the logical choice to join QFFF if we want to.

QFFF cannot afford us to join CX because they would lose too much money. They must sell hundreds of millions of points to woollies, the banks, phone companies etc etc etc.

And if we only qualify on 4 flights, that's four flights we are giving to QF rather than DJ.

If I only do 4 flights, then giving me gold costs them almost nothing. I'd only use the qantas club 4 times (what's a cup of drip filter coffee and a square of the waggon wheel they call 'brie' worth??) BUT I have credit card spend and everything else going their way.

The math seem to be in QF's favour to do this. 500,000 people doing the bare basic 4~ = around $200m to QF. Last time I checked that's pretty much their entire profit!
 
I have flown Melbourne to New York return and Melbourne to Bankgkok in J - paid by me and not on point this years. Might only be 8 sectors but I reckon it has got to be a lot more profitable for QANTAS that 4 Melb - SYD returns in Y = 8 sectors.

The number of sectors does not tell the whole story. The SC's earnt do and theyalso show the relative profit of the client to QANTAS.

I don't see why the number of qualifying sectors should be increased if people are spending the money in J. At the end of the day it is all about profit and if the lounges are full because lots of people are qualidfying then I reckon GREAT. it means QANTAS has got the yields up and hopefully gets back into profit and it all just keeps on keeping on.

I don't think the lounges were designed to bejust an exclusive club for an exclusive few but are to reward the profitable customers and encourage their loyalty
 
I have flown Melbourne to New York return and Melbourne to Bankgkok in J - paid by me and not on point this years. Might only be 8 sectors but I reckon it has got to be a lot more profitable for QANTAS that 4 Melb - SYD returns in Y = 8 sectors.

The number of sectors does not tell the whole story. The SC's earnt do and theyalso show the relative profit of the client to QANTAS.

I don't see why the number of qualifying sectors should be increased if people are spending the money in J. At the end of the day it is all about profit and if the lounges are full because lots of people are qualidfying then I reckon GREAT. it means QANTAS has got the yields up and hopefully gets back into profit and it all just keeps on keeping on.

I don't think the lounges were designed to bejust an exclusive club for an exclusive few but are to reward the profitable customers and encourage their loyalty

- The person flying "QANTAS that 4 Melb - SYD returns in Y = 8 sectors" isn't qualifying as a WP. They would still have to be earning 1400SCs somehow to qualify.

- Yes - the SC's do tell the story - that's why SCs are the measure to reach status. It's also why SCs are weighted based on fare class and distance rather than segment quantity.

- If people are spending enough money in J on QF then they are no doubt qualifying on SC and sectors.
But what if all their J flying is on CX/AA/BA etc. Yes QFF gets paid for the points/SC by the marketing carrier, but clearly not as profitable as your example where you are presumably flying QF in J.

- QF have (with their changes to loyalty bonus) restricted loyalty earn to QF code - clearly they are interested in people flying and earning SC on QF code.

- I agree with your lounge comment - but some of our colleagues here think they are overcrowded ;)
 
The math seem to be in QF's favour to do this. 500,000 people doing the bare basic 4~ = around $200m to QF. Last time I checked that's pretty much their entire profit!

Except that I doubt 500,000 are deliberately flying 4~ flights that they otherwise wouldn't have taken just to requalify their status ;)


PS. Surely you don't just earn your status on other airlines, then only fly the minimum 4~ just to have wallet candy ;)?

You can still be a member of QFF and earn lots of points and claim reward flights without having to worry about status levels, requalifications and minimum ~ flights.

(I apologise in advance for such blasphemous thoughts on a FF forum :) )
 
Except that I doubt 500,000 are deliberately flying 4~ flights that they otherwise wouldn't have taken just to requalify their status ;)


PS. Surely you don't just earn your status on other airlines, then only fly the minimum 4~ just to have wallet candy ;)?

You can still be a member of QFF and earn lots of points and claim reward flights without having to worry about status levels, requalifications and minimum ~ flights.

(I apologise in advance for such blasphemous thoughts on a FF forum :) )

I mostly fly star alliance. half the time out of Sydney. I have a choice of carrier to get there, atm QF gets that business because I am a member of their FF program. While being lifetime silver makes this a bit of a moot point, if I needed ~8 to get status I'd just get rid of QF outright and go with DJ.

edited to add - i actually DID fly a flight I din't need to take on QF - to keep my miles alive! Had nearly 200,000 about to expire so I hopped on a plane :)
 
- QF have (with their changes to loyalty bonus) restricted loyalty earn to QF code - clearly they are interested in people flying and earning SC on QF code.

I'd like to disagree on that. The monetary value of the maximum 20,000 points is $300, 1.5c/point, $400 tops at 2c/point (just my opinion I value them at 1-1.5c/point). If I'm doing that much flying to get that much SC, the money I put into flights is going to be huge, and more than likely if I was to switch that from AA/CX/BA/etc to QF, the pricing will go up (pretty sure QF are more expensive than other OW carriers on the same route) or the fact that I can change carriers on the same route means I'm already flying with the product I prefer and an extra $300-400 a year in monetary value isn't going to be much sway for the WP's who earn on other OW carriers.
 
I mostly fly star alliance. half the time out of Sydney. I have a choice of carrier to get there, atm QF gets that business because I am a member of their FF program. While being lifetime silver makes this a bit of a moot point, if I needed ~8 to get status I'd just get rid of QF outright and go with DJ.

edited to add - i actually DID fly a flight I din't need to take on QF - to keep my miles alive! Had nearly 200,000 about to expire so I hopped on a plane :)

Thanks MEL_Traveller for the insights.....

I don't think your situation is unusual around here or in the program generally.

I think the key to your argument is just the general "if it's to difficult to maintain status - I simply won't".

Whereas my argument is more - "if they are going to make it harder - then I think this is the least painful/most beneficial way".

Personally I don't care how many others are WP, I only care about my own decisions. But I accept others around here have a different view - QF included.

Caviack - that's is some impressive analysis and I agree with your conclusion - but QF have restricted the loyalty earn, and they would like us to fly QF more (your analysis shows that it probably won't work that well).
 
I think the key to your argument is just the general "if it's to difficult to maintain status - I simply won't".

Whereas my argument is more - "if they are going to make it harder - then I think this is the least painful/most beneficial way".

Caviack - that's is some impressive analysis and I agree with your conclusion - but QF have restricted the loyalty earn, and they would like us to fly QF more (your analysis shows that it probably won't work that well).

If you flick back to page 14 post #138 (sorry don't know how to work the links here yet, still on my AFF training wheels) I did an example of how this affects those traveling OW to rack up points and status. If you're finding SC at $2 each it hits you at a 7.4% increase on your travel budget at worse if you were to convert the points at 1.5c/point, less if you're finding SC at more than $2 each (which unless you're doing a YUPP is probably going to be the majority of cases.)

The percentages on points earned is horrendous though... The loyalty bonus is nice, but it's nowhere near juicy enough to be any incentive for me to switch carriers. (If I traveled that much in the first place...)

PS I like the way you think, fancy cards in the wallet! (Cringing at losing it after next year since I won't be doing anywhere enough travelling to re-qual gold, oh well least painful way to DJ silver then since I get to keep PS for 2014 for doing absolutely nothing next year. Two slightly fancy cards for the price of 1 half decent card? Not too bad a trade...
 
QF is my airline of choice, but for inter-Asia travel it's nowhere. I fly to AU on QF a couple of times a year and that gets me my ~4 to ensure I can get status, but the remainder of those required SCs are on CX. I'm thinking of switching to use MP for my CX flights, and try to build up Status there, but I like QF because I still spend on CCs that garner me the points, etc and that helps with offsetting fares etc.

Oh the dilemmas of FF; then again it's what makes flying for business (and lounge access) worthwhile - and visiting AFF for all the good natured banter, naturally!!:)
 
Related question for our AAdvantage members based in AU......

Of course the earning strategies differ depending on fare class when on QF metal, but given the lack of CC earning opportunities for AA (from AU), I assume that you all still direct CC earn to QF, even though flight earn and burn is via AA?

No Loyalty Bonus when not earning flights to QF eh?
 
- They don't care for points bonus - they're NOT Frequent Flyers (at least not with QF).

- I would take F seat selection over EC anyday ;)
(Don't forget that an F flyer making WP on their 2 x return F flights to LHR who isn't making more than the ~ minumum) isn't needing to have Row 4 seat selection ;) )

- F service is pretty good without needing premium desk

- Same goes for award requests......

The question is whether such a flyer is a Frequent Flyer - I posit that they are not.

Further - I suggest that such a flyer is less concerned with such benefits as the rest of us. Clearly their purchase of F seats at whatever cost that is outweighs those smaller benefits (if it even is on their own dime).

And whilst they may qualify only on this, if they do even a small handful of other flights in whatever class - then they meet the ~ requirement.

You don't know what they care about (or what they don't care about), for all you know these flyers are using their QFF points for Woolworths gift cards or toasters. How many people do you personally know that exclusively fly long haul F on QF annually to make 1400 SCs?
You quickly change your tune in the same post by making a proclamation of certainty "they don't care for points bonus" then retreating to "I suggest that such a flyer is less concerned with [benefits including points bonus]".

For the rest, I was referring to your J flyers remark. A one way MEL to LHR in J is 240 or 280 SCs depending on flight numbers, ie ~3 return J trips will get you WP. Status bonus one way is 10,516, six times that and ~63k QFF points per year is not to be baulked at.

Base points in J is 15,774 one way. ~90k points from a year of flying is significant.

I was referring to J seat selection in EC. Colloquially there is no F EC. How many times has it been mentioned here that rows 11-13 on the A380 are preferred over rows 21 or 22?

The point is that they are not getting all benefits due to COS, some of which would have significance.

Whilst I have no problem with raising the ~ requirement, someone who flies 3 return trips to LHR in J is a frequent flyer.

I wonder how genuine your concern about WPs who do not have more than 8 or 12 ~s per year is, do you have any data on what percentage of WPs have only 4 ~s, 5, 6, 7 and so on? Without that knowledge it appears you are making a mountain out of a molehill...
 
So my objective question to you is - Should this type of pax (in all reality) be joining the FF program of the OW partner with whom they are flying the most?
If QF upped the SG requirement to 8~, and WP to 12~ would you still qualify? Would you perhaps still qualify SG but not WP? And would you move your program to your preferred airline as a result?

If you think about it objectively - if you are a high-status FF but are only 'just' meeting your 4~ requirement currently, Would you not be better being a CX elite? You would still get to use your OW Emerald privileges when you do fly QF.

Alternatively - would your response to my question be different if the proposal was to enforce 50% of SC must be on QF (as opposed to increasing the minimum ~)?

Or would your view be the same regardless of the tool used to increase the requirement?

For me loyalty is a two way street.

Now that I've moved into a new phase of life:D which involves very little DOM travel - I'd be very pissed off if suddenly the goal post changed.

If QF left OW - I'd be leaving QF......as soon as I achieve LTG, less 700 SC to go:D BTW, I'd estimate that 85% or more has been QF ticket & metal.
 
You don't know what they care about (or what they don't care about), for all you know these flyers are using their QFF points for Woolworths gift cards or toasters.

True, I don't, and they might :)


How many people do you personally know that exclusively fly long haul F on QF annually to make 1400 SCs?

Outside of AFF - 6. (2 of whom are related to me).

All of whom fly exclusively F with QF (where available) when traveling long-haul. All fly long-haul on the employer's dime, 3 are P1, 3 are WP.

2 would fit into the example that I painted (status only due to the long haul F flights, and possibly wouldn't make 12 flights per year on QF). The others all fly domestically on QF a bit so would have no trouble clearing 12 or 16 minimum flights with ease. That said, 2 of these 4 mix their domestic flying up depending on BFOD, lounge access, schedule, personal vs work travel and may choose between VA and QF. They wouldn't hesitate to adjust this mix if they were required to reach a higher minimum ~.

Out of interest - none of them would choose JQ if VA or QF were available alternatives. Also - 4 of 6 have stated they have no interest in flying EK either. 2 are looking forward to trying it out.

The 2 that fit into my example (long haul F only, with little domestic) - have their travel arrangements made by their PA, are aware that they have significant FF points, but pay no attention to the details. They generally use their points for family members or family transfers... Eg. Have a partner or child accompany them on the trip "Do I have enough points Miss PA? If not, just buy the ticket".

The 2 that mix up their domestic flying are more acutely aware of points - but not to an AFF-level of awareness. They are more likely to choose VA vs QF over lounge access (eg. No VA lounge in CNS), or schedule than points accrual.

None of the above would be able to tell you how the Loyalty Bonus works, and 2 probably don't even realize they receive it.
I know that 2 of them would be aware, but wouldn't change their carrier choices just to earn another one.



For the rest, I was referring to your J flyers remark. A one way MEL to LHR in J is 240 or 280 SCs depending on flight numbers, ie ~3 return J trips will get you WP. Status bonus one way is 10,516, six times that and ~63k QFF points per year is not to be baulked at.

Yes, and if my calc is right only 2 x F returns.

You're correct - ~63K points isn't to be baulked at. And you and I wouldn't pass them up.

Out of my group above - 2 would almost certainly adjust their domestic flying to ensure they reached the minimum segments to requalify, 2 already would (at least ~30 per year as an absolute minimum).

None of them would adjust their long-haul flying based on not receiving the status-bonus, in particular the two that probably only do 4-6 QF flights in total.

Their flying decisions are more based on airline, COS, comfort, route, schedule, price. And they like QF F long-haul.

I was referring to J seat selection in EC. Colloquially there is no F EC. How many times has it been mentioned here that rows 11-13 on the A380 are preferred over rows 21 or 22?

2 don't fly QF long-haul lower than F. The others who have (rarely as on an A380 would be in F, J would most likely be a 747) have never heard of EC. (Or realized that 11-13 was preferential seating until I told them).

The point is that they are not getting all benefits due to COS, some of which would have significance.

Technically true, I oversimplified.

To my 6 examples they care about, in rough order of benefit priority:

- Lounge Access
- Priority Checkin
- Additional baggage allowance
- Priority baggage

All of which are included in COS.

They certainly don't care about Q-Tags ;)

IF they cared about non-COS status benefits, then you're absolutely correct that they would be upset for missing out on them if they no longer qualified to retain WP based on ~ requirements.

But in my example - all the cared about benefits are still received due to COS.


Whilst I have no problem with raising the ~ requirement, someone who flies 3 return trips to LHR in J is a frequent flyer.

I stand corrected - they are indeed a Qantas Frequent Flyer.... Whether they are in fact, "frequent", is a matter of opinion.

More importantly - it's a matter for consideration by QF whenever they review qualification requirements.

I wonder how genuine your concern about WPs who do not have more than 8 or 12 ~s per year is, do you have any data on what percentage of WPs have only 4 ~s, 5, 6, 7 and so on? Without that knowledge it appears you are making a mountain out of a molehill...

My concern is genuine and considered, fact is that any change will affect people. My argument is that to the flyer that fits and matches my stated stereotype, the impact is minimal, and the areas it does impact (such as points earn) are not necessarily areas that rank in their decision to continue flying QF F long-haul or not.

Ultimately - for these 2 x F return, or 3 x J return LHR flyers..... Will they stop flying these 2/3 return flights in F/J on QF if they lost some of these non-COS benefits due to now only being SG or PS rather than WP? That's the magic question that no doubt QF has modeling for. Of course ideally - QF would love for them to fly more flights on QF, not just these ones - isn't that the goal?

Just look at the genuine enhancement to the status bonus for SG - all the WPs around here got upset even though it didn't change anything for a WP. As to numbers - we'd all love QFF to share that ;)

It's not a mountain or a molehill, it's a suggestion as to a way to adjust qualification levels when the inevitable happens and QF reviews it.


We can certainly agree to disagree over the impact of such a change (although I think we're in agreement)..... but.....

There are 3 certainties in QFF life:

1/ Existing status members will complain about lounges being overcrowded, award seats and upgrades not being available, heathens breaching the inner-sanctum due to DSC promotions etc etc;

2/ QFF seeking to cut costs and maximize profits without being seen to dilute/reduce benefits "too much";

3/ QFF "enhancing" the program ;)

There's enough collective wisdom around here to know that change is inevitable, this thread just demonstrates that :)
 
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because last time I checked this is a frequent flyer program that is part of the oneworld alliance. And the benefit is status credits and miles on any partner airline. QF don't fly the places i want to go, nor do they offer the class of service I want to most places, and they have an inferior business class on other routes (CX full flats compares to skybed mark 1).

QFFF is very lucky they get any business from me at all. I do my 4 ~ cause I have to. The rest I'll fly someone else until QF can actualyl deliver a product that meets the competitors.

QFFF needs my business because they sell points to credit card companies that get sent straight back into QFFF. If They increase the ~ I'll join asia miles and perhaps miss out on credit card points. But so will they miss out on selling them to the bank!


Same for me! The options from MEL (& everywhre else orther than SYD) are almost non-existent: QF don't fly where I need to go nor when I would like to (or can) travel. It's not possibl to fly QF if they don't have flights to where you need to go
 
I should have mentioned this before but the annual maximum from the loyalty bonus is 32000 points.


And at 2,400 SCs you have a choice of several rewards one of which is 50,000 points. When I earnt my 2,400 SCs and logged onto the QF site I was given the choice and once I selected the points they were posted within a couple of hour.
 
I should have mentioned this before but the annual maximum from the loyalty bonus is 32000 points.

Okay... I have some backtracking to do... kept getting the number 5,000 per bonus in my head from somewhere...
 
Okay... I have some backtracking to do... kept getting the number 5,000 per bonus in my head from somewhere...

That was the old system that had no cap on loyalty bonus. It was replaced last year with an 8000 point bonus capped at 4 per year.
 
That was the old system that had no cap on loyalty bonus. It was replaced last year with an 8000 point bonus capped at 4 per year.

That might make sense....

And I can't go back to edit the other post...
Might do another one tomorrow with the correct figures so people can tell what the change is in percentage terms for varying value/point.
 
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