Qantas FF announcement 20 June - "biggest overhaul" in program history

[AustraliaPoochie]

Adding more fuel to the fire:
a.Bringing in an annual fee for all above 18 year old QFF members?
b.All Qoints are to be used in a year or they will expire?
c.Giving all QFF members 100mb or on board wifi and then charging per mb after?
d.No more alcohol on flights outside of main meal times, no alcohol outside lunch time flights 12noon - 1.30pm take off, outside 5.30pm - 7.30pm dinner takeoff?
e.Self service of food and drinks on board from a bar for shorter international flights?
f.Being allowed to bring pets on board flights in the passenger cabin, ala US based airlines, and these pets will earn Qpoints too?
g.Being able to earn Qpoints and QF SC on JQ without having to buy a bundle?

 

[Deleted member]

I guess this thread needs a Poll

 

[Deleted member]

Anything to do with Olivia Wirth is ominous.

Could be a wirthless change

 

[RooFlyer]

Question is - why roll out the CEO if there will be bad news?

Because bad news for frequent flyers will be good news for Qantas' profitability.

It will almost certainly be good news .... from a shareholder and analyst perspective. Isn't that why you roll out the CEO?

Yes, unfortunately, for the customers!

 

[levelnine]

Okay, so here's a proposition for AFF: would you take the introduction of LTP in exchange for revenue-based SCs/dynamically-priced awards?

I think that's a possible outcome. It means they'll be able to sell the devaluation to high tier FF as well.

 

[drron]

I guess this thread is why QFF thinks it will get away with it-150+ posts in just over 6 hours.

 

[mviy]

Okay, so here's a proposition for AFF: would you take the introduction of LTP in exchange for revenue-based SCs/dynamically-priced awards?

It depends how hard LTP is to get. If it's set at an unattainably high level then one would still have an overall negative feel about the changes.

 

[mviy]

How does ~37.5 years worth of WP retain sound?

45000 LTSC would be completely unattainable for me unless I somehow had an unexpected windfall of several times the cost of doing the flights to achieve that, or changed jobs to a job where the company paid for such travel.

 

[RichardMEL]

Remember that a forum like AFF and it's members represent only a small part of the QFF membership and have goals and desires far different to the majority of members. What would probably be considered bad news for many of us can be spun and even possibly be good for the majority of members.

For example we laugh and scoff at the use of points for toasters, DJs vouchers and the rest.. people out there value that stuff.. or they just want to take the kids to OOL for the hols etc on JQ and do not see sitting in F to LHR or RTW awards as a realistic goal so it's not an issue for them, let alone reaching significant status and the like.

Most members are irregular travellers.. And indeed there are many more frequent flyers(like the domestic road warriors) who are unaware of and don't care that much about what status perks they have (We've all met at least one who has been blissfully unaware of what that Gold or Plat card can give them!).

QF can come out and, for example, spin a FF "evolution" wiith I dunno access to more seats, more toasters, being able to earn and pay at maccas and all the rest.. and you know what? A lot of people will find THAT appealing.. and if award charges go up, or become dynamic, or have other caveats that may drive some of us crazy likely won't be noticed or worried about by the masses.

So when pondering what changes could be, and what the effect can be (while understanding, as noted above, that the priority is profit for QF) it's wise to keep in mind that if this's such a drastic shift as being suggested (and AJ doesn't get rolled out for just any old presser) then it's aimed at the overall membershp and not just those worrying about LTG or the utopia of a LTP that is unobtanium with QF because your average punter can't relate to these things, and QF will throw in things to make it seem really good for more people..

imo

PS: comments about onboard experience changes and the like are missing the point of tis announcement - it's specifically about QFF/Loyalty.. it's not about customer experience at the airport or on board (though may I guess be impacted if they announce major partner changes, but I doubt it - at least in terms of airlines). I would not expect to see ANYTHING about onboard product or experience, unless tangently such as better wifi access (as AP suggested above) or similar.

 

[levelnine]

QF can come out and, for example, spin a FF "evolution" wiith I dunno access to more seats, more toasters, being able to earn and pay at maccas and all the rest.. and you know what? A lot of people will find THAT appealing.. and if award charges go up, or become dynamic, or have other caveats that may drive some of us crazy likely won't be noticed or worried about by the masses.

This is why I'm betting it will be a shift to dynamic pricing of awards and revenue-based SC earn.

Easy to sell to the public. Look, I've just written their motto for them: 'Any Seat. Any Flight. The New Qantas Frequent Flyer'.

 

[trippin_the_rift]

Because bad news for frequent flyers will be good news for Qantas' profitability.

'Devaluations' are the result of:
- Airline execs scared of doing something different
- Taking the advice of inexperienced consultants
- Vendors selling them a new solution for a problem that doesn't exist
- Not understanding why customers engage with the FFP
- CFO on an uneducated power trip

Generally speaking, if you look after your customers, they will look after the bottom line.

It totally is possible to improve a program AND become more profitable.
Qantas has unique market advantages. Similar to how Delta has its own set of advantages that wouldn't apply to Qantas.
In fact, most airlines/frequent flyer programs have a massive unique advantage in their own way and thus the program can be adjusted to extract maximum value out of that unique competitiveness. Program features that work in the USA won't necessarily work in Australia.

I guess we'll see on Thursday the new direction of the FFP. Hoping it's good for members.

 

[opusman]

Easy to sell to the public. Look, I've just written their motto for them: 'Any Seat. Any Flight. The New Qantas Frequent Flyer'.

So basically an end to "classic" awards.

 

[RichardMEL]

45000 LTSC would be completely unattainable for me unless I somehow had an unexpected windfall of several times the cost of doing the flights to achieve that, or changed jobs to a job where the company paid for such travel.

And yet there are members here who have over that - well over.. and many who could consider it obtainable (I am around 32k LTSC now, so it wouldn't be TOTALLY out of the question). Assuming that is a real thing.. which honestly I doubt given QF Loyalty have allegedly said a number of times LTP is not on their radar.. and really thinking about it why would it be? VA has nothing even close - heck they don't have LTS/LTG so why would QF go offer these things that their competition isn't even close to? not entirely sure on the cost/benefit analysis of that one.

Still, we can but wait and see. I expect LTP is near the bottom of potential changes personally.

 

[trippin_the_rift]

This is why I'm betting it will be a shift to dynamic pricing of awards and revenue-based SC earn.

Easy to sell to the public. Look, I've just written their motto for them: 'Any Seat. Any Flight. The New Qantas Frequent Flyer'.

I like your new tag line!

Except that, there is no full-service carrier anywhere in the world that has become more profitable by moving to full dynamic pricing.
Multiple tiers of award flight redemptions make sense. Similar to SQ/CX/BA/AA/UA ......<list goes on..>

 

[DavidFlynn]

Can I just add to that, RichardMEL, that although the high-value flyers are Platinum-grade and Gold-grade, the bulk of Qantas Frequent Flyer members are Silvers and below. You'd be surprised how many points a lot of these people have and yes, for many it's just the annual family trip to OOL or DPS. It's understandably easy for those who are more frequent flyers and more focussed on status to overlook this.

 

[trippin_the_rift]

You'd be surprised how many points a lot of these people have and yes, for many it's just the annual family trip to OOL or DPS.

I thought DPS was a "once in a lifetime" trip

 

[levelnine]

I like your new tag line!

Except that, there is no full-service carrier anywhere in the world that has become more profitable by moving to full dynamic pricing.
Multiple tiers of award flight redemptions make sense. Similar to SQ/CX/BA/AA/UA ......<list goes on..>

Hasn't AA's FF program profitability increased since going revenue based in 2016? U.S. Airlines Report Sky-High Profit From Frequent Flyer Programs

 

[RossM]

QFF programme to be sold!?

 

[DavidFlynn]

I thought DPS was a "once in a lifetime" trip

Especially if you fly in mini-first class

 

[trippin_the_rift]

Hasn't AA's FF program profitability increased since going revenue based in 2016? U.S. Airlines Report Sky-High Profit From Frequent Flyer Programs

AA does not have full dynamic redemption. They have revenue based status earning.

Also, note that AA took a ~$20M hit on revenue forecasts in 2016 which was more of a loss than the expected saving on miles creation as a result of the revenue based accrual changes.