Qantas surveying members about spend-based status attainment

[Gremlin]

Or are they sticky because of the current arrangements?

In loyalty, customers that are 'too sticky' indicate there's more margin to be extracted because your customers will bear more. Devaluation, in one form or another, is a given if that's the case.

 

[33kft]

Emerging experience shows that it's profitable overseas. The question is "why would it be different here?"

That's a ridiculous question, sorry. There are more than 70 programs worldwide and of those, how many are revenue based for status? BA (not yet), VA (not yet), AA, UA, Finnair, Delta,....? According to this, it's different for 91% of frequent flyer programs, many of which rank higher than those programs, and one of which is relevant regionally to our market, but which we have absolutely no insight into because it hasn't commenced.

There is hardly going to be one common rule that you could just blanket attribute to all programs, and I don't see why this would be the first.

 

[moa999]

to do what their boss wants

But who says the boss wants it. A survey of something a few other airlines have introduced doesn't mean much.
The AA program is still very different to BAs, particularly in terms of CC earn contribution.

The question is "why would it be different here?"

Case in point is WA FIFO workers.
Very high revenue, but I suspect still pretty low margin due to the nature of remote operations and low aircraft efficiency on these routes.

One item of BAs changes i found interesting was BA Holidays. I assume this is mostly targeted at the self-funded traveller rather than corporate, but seems an interesting push for additional incremental margin at almost zero cost.

Qantas has run a few bonus points programs for Qantas Hotels, which as I understand book via Expedia with presumably Qantas getting a comission, but giving SCs (or equivalent for this) might supercharge the program amongst some.

Of course it's a tradeoff to hotel programs as these bookings generally don't give the hotel programs benefits.

 

[Sabot]

In loyalty, customers that are 'too sticky' indicate there's more margin to be extracted because your customers will bear more. Devaluation, in one form or another, is a given if that's the case.

Maybe we will find out just how sticky people are through all of this

 

[justinbrett]

Because you don't have to outrun the bear, you only have to outrun the other guy trying to outrun the bear.

The market, both domestically and internationally, for good or ill, is moving towards a model with far less members attaining tiered status. Qantas have a (relatively) captive market and (relatively) little opportunity to scale membership internationally. It doesn't need to outperform the market on offering, so it won't.


I don't think they want them empty. But they do want them less at capacity and cheaper to run. And lounge access to be a profit centre, not a cost centre. Or is that the quiet part out loud?


Betting against the market then?

Double Status Credits.