I just can't let this go I'm afraid. I've failed the value sell. I'm no expert in marketing, in fact I'm pretty new to business (I'm a scientist originally). Hear me out one last time.
What I'm trying to get a match with you on is the value of what you're redeeming. Return first to Europe. You're all stuck on a cost based model. Forget about what you'd pay, 6 grand or 8 grand, whatever, that's some imaginary made-up cost, is that right? Yes. You're ACTUALLY getting a first class flight, that's the benefit, is that right? Yes. The cost of what you're ACTUALLY paying is points and fees, is that right? Yes.
So the value is hard to quantify, to break down to a single number. You can't divide an apple by 450,000 oranges. But you can't deny you're getting the SQ suites experience for some points and some taxes and fees. That's a pretty damn good offer if you ask me.
Value must be greater or equal to cost, otherwise you're being ripped off.
A return F Suites trip to Europe is made up of many parts:
1. Transport to/from Europe
2. Priority Check in
3. Fast Track Security
4. Lounge Access/The Private Room
5. Priority Boarding
6. Pre-take off Krug (mmm.. Krug)
7. Lie flat seating
8. Amazing service
9. Premium in flight meals/alcohol
10. Big TV
11. Priority Baggage
Item 1 to me is the most important as thats the sole purpose of my travel - I want to get to the destination and back. The value of that component to me is the cheapest, full service economy ticket with minimal transits to get me to where I want to be. I run on the assumption that a return flight to Europe during the times I can fly is going to cost me $2,500 per pax (damn school holidays), and use that in my assessment of value.
Items 2-11, whilst nice, are secondary to me and a luxury. Based on a $12,500 return suites fare per pax, and considering basic transport to/from Europe is valued at $2,500 on the above assumption, it provides that a $10,000 value is attached to these 10 components.
So on that basis, Singapore Airlines attaches a $10,000 value on these 10 items. What do you consider their value to be? Thats going to differ across every individual that reads this forum - everyone will have their own assessment of value they attach to these items, which are over and above basic transport that an economy ticket provides.
To me, its no more than $1,000-1,500. There is no way I consider I'm getting $10,000 of value out of a suites return flight... it just doesnt stack up and hence why I think its lunacy that anyone would pay that much for a flight.
Would I think they are crazy if they only paid $4,000 for a suites return flight? Nope - I'd pay it myself.
And coming back to my opening line, if I attribute $4,000 of value to a suites return flight, then provided this remains equal or greater than my cost of obtaining the flight, then I'm a happy man.
Looking at it a bit further
First Class (I'd pay $4,000 per pax to fly first)
296,000p = $4000 - taxes
296,000p = $4000 - $172.34
p = 1.29c
Business Class (I'd pay $3,500 per pax to fly business)
210,000p = $3,500 - taxes
210,000p = $3,500 - $172.34
p = 1.58c
That tells me that I get better value out of a business class award than I do a first class award as I simply dont value the increase in benefits enough to justify the extra points. That said, I will still fly first if I have the points and availability dictates - next week we are flying first because business class wasnt available as an award, so I placed value on availability of the dates we needed.
Edit: at the end of the day, there is a LOT of value to be had by obtaining award seats via points. Personal opinion on value obtained will differ, but as long as the benefit you obtain (however you value it) is greater than the cost of obtaining the points, then you should be a happy man/woman.
, but not as generous as you. I'd say I'd part with maybe up to AU$4-5k for F (AU-EU) and that'd be about it. Even then I'd be thinking hard as the flight to us is not the holiday. It's only a means of getting to a far off land and a back-of-the-bus fare does that also and status does help in that regard. This is purely hypothetical, but rather than spend AU$6-7k on a two leg airfare, I'd seriously consider spending that on the holiday and coming up with a milk run itinerary (hopping between destinations to get to where I originally intended ... eventually) which has a two fold effect, 1) breaking up the flight to sectors which have more palatable durations for Y seating; and 2) visiting destinations which I may be unlikely to visit otherwise!
