QF Double Status Credit Promos - I am not 100% sure I follow the logic anymore...

[Cossie]

Unfortunately we are still a bit away from LTG

I will admit that it's really only down to discovering this forum that LTG for me is a reality. I doubt the boss will get close, but as long as one of us does.

 

[mrsterryn]

I will admit that it's really only down to discovering this forum that LTG for me is a reality. I doubt the boss will get close, but as long as one of us does.

Oh definitely this board has certainly increased my travel and my....ability...to do more advantageous things with my travelling
I wouldn't have either considered platinum and we have both achieved for a few years now.
LTS is in the past and gold is the hopeful.

 

[RichardMEL]

Qantas, here's a simple way to stimulate sales. Drop the ridiculously high airfares and people may start to fly again. I said it in another thread. PER-BNE for $384 one-way. Seriously?

I dunno at first blush this seems semi reasonable, though I know they usually sell PER-MEL (a shorter trip of course) for ~$200 in sales.
What do you usually see it as, or what is VA selling it for?

But to the general point of pricing...

QF have started toying with this with their discount J options trans-tas they are working with currently which they may or may not expand.
I could also see QF following others to un-bundle more in various fares (eg: Business).

The real thing is that, obviously, pricing, specially at the discount end, is going to be governed by the market. If they can get $384 for PER-BNE for example then they'll charge it, or it could be they have a lower price point, and it's sold out (demand). These things happen.

A few years back there was a bit of a domestic blood bath as both QF and VA had a capacity war which led to lower prices to fil all that up, and it hurt both of them, but VA a lot. Last year a truce of sorts was called and I think we're seeing a situation where demand and supply are much more evened up (and QF losing the 330's to international flying more and more has pulled back capacity a bit).. neither of them want a price war either.

 

[nutwood]

I was trying to figure whether $384 was cheap or expensive! One side of the country to the other for the price of a few tanks of fuel didn't seem too bad, but I usually fly flex, due to the vagaries of clients, but also because the flex price generally doesn't fluctuate too much.
I'm currently contemplating a future business model where I fly cheapest flights everywhere and suck up the occasional forfeit. I've calculated I can't reliably sustain P1 without DSC so I'm becoming much more interested in other options. Even now, I fly Jetstar where they offer a direct route. With a max bundle (inevitable because of checked luggage) and a front seat, the only downside is the lack of a reliable service. In recent times my experience has been that Jetstar delay me, whilst Qantas cancel the whole !*!*! flight.

 

[mviy]

Unfortunately we are still a bit away from LTG

I'm still trying to get to LTS. I would like to get to LTG but that will only remain a realistic goal if DSC offers keep coming.

 

[Matt_01]

Whilst there are a number of comments on this thread about delaying bookings, holding off on spend, QF could make more revenue with DSCs, you could look at DSCs from a different angle. Maybe the bean counters have worked out that these offers cost the company more in the long run. With a DSC offer SG can be gained for about 35OSC and retained for 300SC so hardly a big outlay but that person now has free lounge access and the opportunity to use other OW J lounges which may also cost QF. The same can be said for WP level you just need a few more SC’s. Getting to WP1 even with DSCs will still require a fair a bit of travel, but if you have the autonomy to control your own flights it can be relatively easy to obtain.

For the higher tier fliers once P1 is retained there is no need to fly QF unless you are chasing LTP or LTG. So hitting WP1 or any other level for a significantly less outlay may result in lost revenue as PAXs may choose to fly other carriers either OW or other alliances.

 

[levelnine]

Maybe the bean counters have worked out that these offers cost the company more in the long run. With a DSC offer SG can be gained for about 35OSC and retained for 300SC so hardly a big outlay but that person now has free lounge access and the opportunity to use other OW J lounges which may also cost QF.

While there is some additional cost to Qantas, it is tiny in comparison to the benefits they get from having more flights booked with them.

Think about it ...
1. They don't have to hire more lounge staff, they just make everyone wait a bit longer for their coffees in the morning, their beers in the evening and their food in the First lounge.
2. They don't have to make much more food because buffets already have excess built into them (they are terrible from a food waste point of view). We're talking a couple of extra beers bought at wholesale discount prices (eg $1 per beer).

The only substantial cost Qantas faces is paying for its own frequent flyers to access other oneworld lounges. But realistically, how many times is that going to occur? Remember we're talking about people who need DSC offers to get from Silver to Gold and from Gold to Platinum, so they are going to be trying to direct as much of their spend to Qantas, not other carriers, as possible to get them over the line.

 

[nutwood]

Whilst there are a number of comments on this thread about delaying bookings, holding off on spend, QF could make more revenue with DSCs, you could look at DSCs from a different angle. Maybe the bean counters have worked out that these offers cost the company more in the long run. With a DSC offer SG can be gained for about 35OSC and retained for 300SC so hardly a big outlay but that person now has free lounge access and the opportunity to use other OW J lounges which may also cost QF. The same can be said for WP level you just need a few more SC’s. Getting to WP1 even with DSCs will still require a fair a bit of travel, but if you have the autonomy to control your own flights it can be relatively easy to obtain.

For the higher tier fliers once P1 is retained there is no need to fly QF unless you are chasing LTP or LTG. So hitting WP1 or any other level for a significantly less outlay may result in lost revenue as PAXs may choose to fly other carriers either OW or other alliances.

Very valid point. The question is though, once having started down the DSC path, there's a portion of customers who expect to be SG based on 300 SC's worth of flying and careful planning. Three offers in one year raises expectations, gives lounge access to those who never expected it and then suddenly withdraws it.
Given the general Qantas marketing incompetence, it wouldn't surprise me if this is the strategy. Give the lower level fliers a taste and expect them to double their flying to sustain the status.

 

[Matt_01]

While there is some additional cost to Qantas, it is tiny in comparison to the benefits they get from having more flights booked with them.

Think about it ...
1. They don't have to hire more lounge staff, they just make everyone wait a bit longer for their coffees in the morning, their beers in the evening and their food in the First lounge.
2. They don't have to make much more food because buffets already have excess built into them (they are terrible from a food waste point of view). We're talking a couple of extra beers bought at wholesale discount prices (eg $1 per beer).

The only substantial cost Qantas faces is paying for its own frequent flyers to access other oneworld lounges. But realistically, how many times is that going to occur? Remember we're talking about people who need DSC offers to get from Silver to Gold and from Gold to Platinum, so they are going to be trying to direct as much of their spend to Qantas, not other carriers, as possible to get them over the line.

Either I was not clear in my post or you are just focusing on the bottom end of the totem pole. QF does not need more SG or WP and additional members just results in more lounge over crowding. The point I was trying to make is loss or revenue at the top end of QF status.

 

[OATEK]

I think they might be taking the overcrowded lounges a little more seriously.

Haven't seen a Qantas Club sale either for a while.

Qantas, here's a simple way to stimulate sales. Drop the ridiculously high airfares and people may start to fly again. I said it in another thread. PER-BNE for $384 one-way. Seriously?

The QANTAS Club sales seem to be focussed on Business Rewards members - I saw they were offering 20% off recently.

 

[levelnine]

The point I was trying to make is loss or revenue at the top end of QF status.

But that occurs at every level. There's nothing special about P1 there.

Eg. if someone can use DSCs to go from Silver to Gold, but will be unable to get to Platinum, they can also shop around on other carriers after they reach Gold. And given that there are exponentially more Golds than P1s, the loss of revenue is likely even larger there.

Qantas' business model is based on the assumption that you stick with Qantas once you obtain status because (a) you (generally) need to keep flying Qantas to retain that status, and (b) Qantas give you benefits that no other airline does (eg points upgrades, a bottle of champagne at the end of the year for P1, etc).

Finally, Qantas have given P1s an incentive to keep flying Qantas after they reach P1: LTP (lol).

 

[nutwood]

Status only works as an incentive if it's possible to achieve it. For myself, and many others, LTP is not something to even contemplate as, even if I don't retire and carry right on working, I'll be that old by the time I get there, what's the point?
Likewise P1 for many people. My year has just reset, so I'm heading up the ladder again. Last year it took me three months to reach WP. That was a busy end of 2018 and I had some DSC's, but I'll still get there reasonably soon. By the time I'm there, I'll also be LTG. At that point, where's the incentive to continue flying Qantas? Do I head out across the great gulf to P1? Based on previous years, without DSC's I won't quite make it.
Logic says to use my current P1 status to leverage as much benefit as possible but save the $'s wherever possible. Basically, exactly the opposite of what Qantas would like their high status fliers to do!

 

[levelnine]

Logic says to use my current P1 status to leverage as much benefit as possible but save the $'s wherever possible. Basically, exactly the opposite of what Qantas would like their high status fliers to do!

With or without DSCs, you have to spend a lot of money to obtain P1 -- more than 99.999% of Australia's population spend on air travel. I'm fairly confident Qantas is happy that you obtain P1 regardless of what you do afterwards. Sure, they'd like you to spend even more money with Qantas, but Qantas would be the wealthiest company on the planet if most people spent as much money with Qantas as you do.

 

[Borisdog]

I agree. It will be interesting. Presumably, if you're going to drop from 4100 to 100, the trend line of your Qantas spend is going to look like it went over a cliff. If that doesn't trigger some sort of response, nothing will!
Are you planning on a bunch of award flying, whilst you're still P1?

Yep - we're off on Tuesday as a matter of fact. Honkers (Transit O/N) Toronto, London, Helsinki and Lapland, Reykjavik, Zurich, Athens.

Snagged Q suites from Doha to Honkers and J on BA's new A350 Toronto to London, the rest is pretty run of the mill. Cathay J Honkers to Toronto direct which is the longest J run we'll have ever done, 15.25Hrs

 

[nutwood]

With or without DSCs, you have to spend a lot of money to obtain P1 -- more than 99.999% of Australia's population spend on air travel. I'm fairly confident Qantas is happy that you obtain P1 regardless of what you do afterwards. Sure, they'd like you to spend even more money with Qantas, but Qantas would be the wealthiest company on the planet if most people spent as much money with Qantas as you do.

That's why they send me a bottle of bubbles at Christmas

 

[UP4014]

But that occurs at every level. There's nothing special about P1 there.

Eg. if someone can use DSCs to go from Silver to Gold, but will be unable to get to Platinum, they can also shop around on other carriers after they reach Gold. And given that there are exponentially more Golds than P1s, the loss of revenue is likely even larger there.

Qantas' business model is based on the assumption that you stick with Qantas once you obtain status because (a) you (generally) need to keep flying Qantas to retain that status, and (b) Qantas give you benefits that no other airline does (eg points upgrades, a bottle of champagne at the end of the year for P1, etc).

Finally, Qantas have given P1s an incentive to keep flying Qantas after they reach P1: LTP (lol).

What would be the point of getting to Gold then swapping airlines and starting at the bottom without benefits again, wouldn't you want to use your gold and enjoy a cold one.

 

[Matt_01]

With or without DSCs, you have to spend a lot of money to obtain P1 -- more than 99.999% of Australia's population spend on air travel

That must put me in the 0.001%.

 

[levelnine]

What would be the point of getting to Gold then swapping airlines and starting at the bottom without benefits again, wouldn't you want to use your gold and enjoy a cold one.

Swap to Qatar, Emirates, Malaysian, BA, AA, etc etc. All the lounge benefits often at cheaper prices.

 

[levelnine]

That must put me in the 0.001%.

How many P1s are there? A couple of thousand at most.

0.001% of 25 million (Australia's population) = 2,500 people. Sounds about right to me.

Alan Joyce would be earning more than Jeff Bezos if he could get even 5-10% of Australia's population to spend what a P1 spends on Qantas, DSC or not.

 

[nutwood]

250?