I suppose a DSC promo (as opposed to sales) can serve multiple purposes of course, but I still think, trying to think outside of he bubble of an AFF/FT mindset and to the more general population of QFF customers that DSC promos probably still mostly serve for revenue raising via aspirational marketing.
It would certainly explain some motivation for doing a DSC promo when it didn't seem there was an obvious demand/revenue need.
seems the DSC was intersecting with the on-going status extensions which perhaps is a form of positive re-inforcement
the current domestic Red-E specials where for example the Adl-Syd pricing has come down from $229 to $199 to $159 especially from the time of the July school holidays suggests a softening of demand at the low cost leisure end of the market. Melb-Syd $150. this co-incides with the positively buoyant Canberra to anywhere fares and especially the highly prized J seats filled by those who FIFO to Canberra!
so the recent DSC (or double points (which was featured in the half yearly report)) would have aided, prompted some customers to use their credits. See slide 8
Total COVID travel credits of $0.8b as at 1H23 with majority expiring by 31 December 2023
Management driving ongoing initiatives to support usage by customers including: – Promotional offers for bookings that use credit (e.g. double points offers) – Ongoing marketing, targeted communication and reminders – Flexibility for direct bookings through credit concierge and indirect bookings through agency incentives
and the 2022 FY report suggested Qantas club membership fees had dropped by upto 17%
~50% YoY growth in Qantas Hotels and Holiday booking activity, following the expansion of the Qantas Holidays brand and improved redemption value
>$160m to thank and recognise customer loyalty — $50 flight coupon offered to QFF members — Further status extensions and other gifts for tiered members
However, what they had done over a fair period of time was to cut back on things like JASA which gave you status credits on redemptions and then later introduced an abridged version of this as long as you are a Points Club member (so credit card churners, or infrequent flyers).
if you are an infrequent flyer, I'm not sure how DSC would help you
If a frequent flyer points accumulator, it doesn't aid your Status cause to redeem points for flights until and unless you qualify for Points Club. it still causes the challenge that when you use the FF points, you may well be "treading water" when it comes to maintaining status....
Or decide to involve doing things outside of flying to qualify for Points Club (and yes, not everyone wants to solely devote their life leisure spending into one cohort of partner businesses to earn points without regard for the $ and extra you might pay should you go with a points earning partner instead of the unrelated competitor whose price, quality and service might be better for you as the consumer. eg, the Optus offers are varied, yet I would need to substantially raise my current spend for no better service as my existing price point already includes all calls and SMS...
the future redemption challenge
Revenue Received in Advance
of which unredeemed FF revenue
June 2019 $5.9b $2.5b
December 2019 $5.8b $2.6b
June 2020 $5b $2.8b
December 2020 $4.9b $3b
June 2021 $5.4b $3b
December 2021 $6b $3.1b
June 2022 $7.9b $3.1b
December 2022 $8.3b $3.2b
Loyalty unredeemed Frequent Flyer revenue expected to remain at current levels, representing a structural uplift from pre-COVID
so bigger pot of points for the same relatively small set of prized Classic F & J rewards (let alone the addition of other FF program vying for the same set of rewards
And I wonder if in future, individual complimentary status extensions was has been a thing in the past, might go the way of JASAs