RichardMEL
Enthusiast
- Joined
- Mar 28, 2014
- Posts
- 10,072
- Qantas
- Platinum 1
I've asked that question as well some posts ago. Still waiting to be enlightened about the financial sense.
I know someone who spend a lot of money to keep his HON Circle tier (P1 equivalent). When asked why the answer was "because LH treats me like a god!".
Wish I could say the same thing about QF as P1...
I think you've answered the question right there.
I mean EVERYONE has a different value judgement on what something like this is worth (and I know how hard it is to get HON too)... and what might seem crazy to most of us can indeed make some sort of sense to someone else.
Is P1 worth it? Do they treat "us" like "Gods"? in most people's experiences probably not, but it does have some value in terms of upgrade priority and all of that stuff. If one flies paid J to say DXB monthly or maybe more often (as an example) the ability to (most likely) get into F on a regular basis is probably considered value.
And much of it is an intangible, much like many companies value things like "customer goodwill" and "brand value" on their balance sheets with some sort of value (how one comes up wit this stuff though is another matter. I seem to recall Eddy Groves fudged "Goodwill" or somesuch as a billion or more for ABC Learning at one point....)
And of course "value" is relative. What if the OP's travel budget is, let's say $100k then spending 15% JUST on status may make some sense (of course this ignores the status gained from the other $85k spent, but they could be on other airlines).
At the end of the day what is "value" and makes "economic sense" will be different for each and every one of us IMO