What's wrong with a revenue based system?
There are pros and cons. I'm familiar with an airline that moved from static award inventory to full dynamic redemption.
I doubt Qantas will move in that direction. Qantas like to let others lead and slowly follow once there is no risk. The downside of moving to full dynamic still outweigh the upside. As I said in a previous post - there is no full-service carrier anywhere in the world that has seen an increase in profitability from shifting to pure dynamic. Plus, Qantas already have dynamic pricing! More likely to introduce 2-3 buckets of award seats similar to basically every other major airline.
I wrote this article on the recent United Airlines changes where they are doing exactly that (increased award inventory buckets) but not telling members the actual cost in miles. Read it here:
United Airlines Breakdown: MileagePlus Loyalty Program Changes
Sarcastically - if not already on the agenda, AJ should add use of points for treatment for nuclear levels of anxiety amongst AFFers on what might or might not happen.
The probability of my guesses being any better that other AFFers is unlikely to be better.
However if I was CEO I would be looking at:
- How to neutralise any benefits perceived or claimed by Velocity, not currently in QFF.
Think about where QF Loyalty derives its cash. Banks.
Velocity is the same.
Outside of these two - the next biggest 'competitor' are major foreign airlines that have massive ASK into Australia.
Between Asia Miles, KrisFlyer, Emirates, Delta and United - I'm guessing that share of bank points being converted to those programs combined could be as much as Velocity transfer business. That's an easier and more profitable segment to chase when considering the bank points/co-brand to airline tickets correlation. Here's a diagram I whipped up to illustrate!
- How to drive people to utilise their points without costing the company $$ - perhaps drive them to unused capacity somewhere, gimmicks like QFF plane to Japan
Likey!
- How to limit or modify the gaining of Lifetime privileges which are an increasing liability on the company
There is virtually zero liability from more folks having lifetime status. The risk is that these members achieve the status and never fly Qantas again. From the endless pages on this forum about ppl achieving LTG then disengaging, it's a trend. QF can easily solve this by giving LTG members a benefit of 600 'starting credits' each year. In that sense, there is likely to be additional 'spend up' from LTG members AND Platinum members who are now close to the next reward or close to P1. I've been harping on about this for years to Qantas management. Fingers crossed!
- How to gain patron kudos introducing something that doesn't really cost the company anything but is perceived as a significant improvement by patrons (and perhaps induces them to squander points)
Similar to your other idea. It's only a matter of time before Qantas realise how many millions they've been losing by not charging people to earn double status credits. Charge in points for additional value creation in QF ecosystem.
- How to increase market saturation in their market areas - already more adults in AU have a QFF account than those who don't.
The fact is, outside of Australia - Qantas & collecting Qantas Points doesn't register on peoples radar.
Generally, QF is seen as expensive to fly, poor transfer rates (if bank transfers are even possible), no co-brand opportunities, poor burn rates, expensive upgrades, limited network unless constantly travelling to AU/NZ.
IMO the biggest opportunity for 'Qantas Loyalty' outside AU/NZ is to start a new business in Asia.
- Call it "Jetstar Rewards" and offer it as the default Jetstar program.
- A new currency, link/transfers to QF to keep customers within the Group. Aka: de-couple existing Jetstar points earning from QF and transfers that value into JQR. Keep existing JQ/QF FF on-ground benefits (lounge), and introduce a currency transfer from JQ -> QF as to not lose the die-hard QF fans.
- Different look and feel to traditional FFP
- Base it in Asia
- Get on the co-brand train in SEA markets (where other low-cost airlines are racking in the cash from the banks)
- A simplistic program to drive SEA customers onto Jetstar, riding on QF Loyalty air+non redemption opportunities in the backend
- Reward passengers based on ancillary spend instead and reward the 'right' behaviour. Thus the ability to generate more points is increased, and scales by pax spend and doesn't affect ticket prices.
- That basic idea will pick up the 'high-yield yet LCC focused' pax segment
- Plenty more benefits to QF that I won't list here [
contact me if you want to know]
Heck, I'd structure the commercials right so the Australian Government funds the development and rollout of the new program!
Plus I'm sure Jetstar is itching to expand in a way that compliments Qantas.
QF Loyalty needs to move beyond Australia in order to maintain momentum. Shareholders should really be demanding this type of strategic growth.
link.springer.com
amadeus.com
w3.accelya.com
