Loyalty programs - worse than cigarettes or crack cocaine.

[Vic]

Repetition + emotion of love/joy/freedom
Repetition + emotion of love/joy/freedom
Repetition + emotion of love/joy/freedom
Repetition + emotion of love/joy/freedom
Repetition + emotion of love/joy/freedom
Repetition + emotion of love/joy/freedom

Eventually - you become addicted to that feeling.

That feeling you associate with the airline/loyalty program.

In short - it's not the loyalty program you crave.

Rather - It's the feeling of love/joy/freedom that you have consistently experienced when being part of the airline/program.

Love/Joy/Freedom are the TOP 3 emotions we can feel as humans, and these are our 'true state' - it's what we want to feel as much as possible.
Airlines are able to hit on all 3 of these feelings due to the nature of the product.

That's why they work.
That's why you feel addicted.

You're addicted to the feeling of the airline/loyalty program.

Fortunately, as a frequently domestic economy traveller in peak times, Qantas failed to do the love cycle for this platinum. So much status on board I rarely heard from the CSM and saw many real glass glasses of wine go back to others. Clearly platinum isn't enough for love...and so I can enjoy the freedom of choice...

 

[trippin_the_rift]

Fortunately, as a frequently domestic economy traveller in peak times, Qantas failed to do the love cycle for this platinum. So much status on board I rarely heard from the CSM and saw many real glass glasses of wine go back to others. Clearly platinum isn't enough for love...and so I can enjoy the freedom of choice...

Far as I am aware, Qantas does not have a formal program which tracks passengers and creates love moments.

I hear Cathay, Singapore and Malaysia Airlines know how to treat top tier passengers.

 

[boomy]

Loyalty programmes are basically games for adults where real money is used to go up the ladder. Some play better than others and it’s all fun and games until the money runs out...

 

[drron]

Boomy that's the situation I face.Our extensive travel has been because I have been able to work part time.I know I am not as quick mentally as I was and the time is getting closer to when I will finally totally retire.I have put an end date of no later than the end of 2021.Basically that is when for practical purposes I will not be able to continue super payments.However it is quite possible it will be before then If I think I am not up to the task.
So next year will probably be the last time either of us will be able to renew as OWE.
I retain AA LTP as well as Bonvoy LTP and mrsdrron is QF LTG so all is not lost.

 

[Lynda2475]

I joined AFF for advice at the time of the Ansett collapse in shock that having accumulated enough points (via a lot of work funded expenses on diners club when i was consultant) for a RTW reward and redeemed it a week or two beforehand, then having it not honoured as the old paper ticket hadn't been issued (they used to take up to 4 weeks send you the old carbon copy tickets).

My mistake is that I didn't stick around AFF after switching over to QFF (briefly did a bank loyalty scheme in between), and leverage the excellent resources here. so never really maxed point or SC earning opportunities, until returning about 2 years ago.

My attitude having suffered the Ansett loss is:

• I'm happy to sacrifice some data about my shopping habits to earn points on my points earning credit cards, if it was money I was going to spend anyway (so i look for a card with good points earn not just good sign-on bonus);
• i'm happy to churn 1-2 cards a year for decent sign-on bonuses but only where the fee is waived or is returned in kind as travel voucher etc. These offers are less common now, often only a reduced first year fee.
• I will fly QF or OW partner, where the price is reasonable and timing/routing of the flight suits me, but am not wedded to them if the $ or timings do to suit. For domestic USA im happy to fly SouthWest as it includes baggage, lounge is of most benefit on long haul for showers.
• I will leverage work travel to earn SCs on QF (we have to fly QF) and hotel rewards given i have to stay at one of the approved properties anyway, why not get some benefit however small

but i wont spend $ i wasn't already going to just to get points. And no amount of points will tempt me to shop at the evil Woolworths (had them as a client years ago and worst company i've ever had to deal with, so rude and so horrible to their corporate staff, not to mention the way they screw over our farmers).

Last FF year i had a good amount of work and personal travel on QF and OW, and with DSC promos I was able to get to Gold for the first time. This year work travel is virtually non existent, and my personal travel wasn't going to earn me enough SCs in Y to maintain gold, so i opted to leverage status to redeem QF Y+ and OW J classic rewards, meaning I wont even earn enough SCs to maintain silver although that is where i will land falling from Gold.

For me, in years where i feel i have enough OW travel to get close to Gold (like last year), i'd probably play the FF game a little harder to ensure it happens, otherwise I will take the easy earning opportunities where they exist, and leverage any benefit I can.

Luckily Im usually only needing one reward seat, and travel outside of school holidays so can usually secure something that suits. I am wary of letting points balance get too high; as over time they do seem to lose value.

I haven't yet reached the point of dreading flying, even the horrible 6am to MEL still sees me enjoying flying.

Id love a job that would get me the required travel to get LTG, that will be the sweet spot for me, assuming QFF dont terminate this benefit at some point.

 

[dfcatch]

Furthering your comments, and those of others like Trippin, what do you think about the ability of an individual to avoid such manipulation? Can we all do it, or are some more prone than others?

There are a couple of things here:

1- At a basic level (think of an average NB)... it is really up to the program to have an attractive enough reward proposition that motivates behaviour.

Put another way - if the reward on offer is desirable enough - AND - you believe that it is realistically achievable you will alter your behaviour to pursue it. Same applies to any reward in life - could be the paycheck, winning a race, completing your degree, or chasing the hot chick at the bar.

Now it is a subjective assessment - so bothering to play the points game (getting a FF earning card, consolidating travel spend, engaging with program partners) may make sense for someone who is interested in free flights and believes they can earn enough points to score the free flight.

But programs like QFF can be their own worst enemy. We all know folks who believe that FFPs are a scam; that you can never redeem your points; that you can never earn enough points; etc etc.
Some of these people have never even tried to make a redemption - but they have heard enough stories - that they believe it's real. It's all about perception. Technically - it's called the availability heuristic - the same concept that lets us overestimate the chances of being eaten by a shark.

So for a non-status person - there is sorta a natural break on being suckered too much - in the sense that the minute you no longer believe that the reward is either achievable or desirable - you will stop pursuing it.


2- Now, for a regular flyer with status - it's an entirely different dynamic.

You have a lot of other issues, even ignoring the sunk cost of a substantial points balance (potentially).

You have both real and perceived switching costs (the Golden Handcuffs); and you also have a delayed impact of the reverse of the reinforcement concept we talked about earlier.

When the behaviour is no longer being rewarded - you'll eventually stop performing the behaviour. That's called extinction.

But it's not a switch - it's usually a gradual lessening of interest. (Except of course in the event of a significant service failure).

Think about if your employer stopped paying you. Kinda like that stapler dude in Office Space.... You keep going for a while - but at some point, when you no longer receive the benefits/treatment/love that made you loyal in the first place - you start to lose interest as the 'magic' has gone.

The next stage is more akin to being in an abusive relationship.

You still keep flying them, paying more than you should, defending them, forgiving service missteps, but eventually... it gets to a point where you can no longer be blind to the fact that you're in an abusive relationship and you should leave.

But it's scary for most people.

Where is the checkin desk for the other airline? Which terminal? Where is the lounge? How does PB work? HOw to choose the best seat? What's the etiquette and nuances that have become so second nature with your current airline?

#2 is quite strong for most flyers - if for no other reason than familiarity of habit.

Inertia is a much easier choice than change.

That's the true power of an FFP.

 

[33kft]

Loyalty programmes are basically games for adults where real money is used to go up the ladder. Some play better than others and it’s all fun and games until the money runs out...

Not all that different to cars, houses and other assets for which large loans get taken out on fancy versions to enhance one's stature

Not sure flying for status is the more expensive of these pursuits

 

[ramboflyer]

Some will chase status in the hope of getting lounges, better seats and the chance of an upgrade. That's potentially going to cost a lot of money, and perhaps more than the benefits you receive. The international upgrade lottery is an example of squeezing every last dollar out of someone... you need to pay a higher fare just to be in the running for an upgrade, and you try and get platinum so you can be at the front of the upgrade lottery.

The other is not by chasing status, but availing the other opportunities... like buying miles. Many of us will have saved many tens of thousands of dollars buying miles through US Airways, American Airlines, Avianca, United, even British Airways (avios). The airlines are still making nice profits off all those sales, but we as consumers are also benefiting through much lower fares. Generally you are also protected against mileage devaluations because you buy the miles for a specific award (buy and burn fairly close together).

By not chasing status you also have the freedom to mix and match airlines, and take advantage of opportunities such as the Oman Air $500 business class flights from Asia to Europe (crediting to EY so you can get a free US domestic flight on AA at another time )

There is of course a third category... 'passive' participation. You accrue points through every day spending, but don't go out of your way to buy anything you wouldn't normally buy, and aren't tied to a single supplier. The risks here are very low, but so are the rewards.

I would like to think there is a 4th category.

I don't fly internationally nearly as often as some who contribute to this forum. In fact only every 2nd year for a total of 3 trips. The first trip was a combination of economy, premium economy and business class. The only paid trip was economy from MEL - LAX so that was the only trip where I earned points for flying (internationally) and there will be no more because thanks largely due to this forum I have learned how to find J seats and how to get the FF points to book them. The next 2 trips were all in J

So (1) I have no interest at all in chasing status because it can't happen and I don't need it. If I book a J seat I get all the trimmings I need. A good seat (except on BA), lounge access and priority boarding (handy sometimes).

(2) buying miles also doesn't interest me. If I have enough points I don't need to buy them although I wouldn't rule it out if I was short of points.

(3) I do accumulate points through everyday spending and have never bought something simply to get FF points. The real points earning capacity comes from bonus credit card sign on points.

Low risk yes because all I do is fill in new applications about 2 times a year and pay off in full every month.

Low rewards no. I haven't done the calculations but I feel sure I am in front given the number of J flights (x2 pax) taken simply for changing credit cards every so often and earning points for everyday spending.

Bottom line is I am addicted to FF loyalty programs because I think at the end of the day I get value from them.