Upgrade to the Velocity Program

[markis10]

With DJ, not so clear. Other than LAX, no international business destinations of note. Limited (in most cases no) opportunity for status from other destinations.

Have you forgotton about JoBurg? I would imagine it is a destination of note at the moment!

 

[Gremlin]

Have you forgotton about JoBurg? I would imagine it is a destination of note at the moment!

Yes and no. Clearly a destination of note at the moment but I don't think extending the World Cup into 2011 and 2012 is a sustainable business strategy.

I'm also not entirely sold on MEL-JNB being the sole route, especially when the 777 can't fly a great circle and MEL pax can get their faster by connecting via SYD on QF.

But the bigger issue is they are underrepresented in terms of status accrual for Asian and European destinations - two of Australia's biggest international business travel markets.

 

[nlagalle]

Plus, even on a flexible ticket, you may not have flexibility - try booking a MEL - SYD Friday 7pm QF "flexible ticket" and turning up at Tulla around 4, and see just how "flexible" it is!

Actually every time i have flown MEL-SYD-MEL during peak times, I've always been offered an earlier flight!

 

[medhead]

Yes and no. Clearly a destination of note at the moment but I don't think extending the World Cup into 2011 and 2012 is a sustainable business strategy.

It wouldn't be necessary to extend the world cup. Southern Africa is a big business destination for some Australians - the miners. A large number of miners are located in Melbourne.

 

[dajop]

I'and MEL pax can get their faster by connecting via SYD on QF.

Not true. Total flying time to get to JNB (but not from) is less via SYD but still need to connect!

MEL-JNB 16:00 MEL-SYD 01:25 SYD-JNB 14:05 total 15:30 mins plus connection time
JNB-MEL 13:00 JNB-SYD 11:50 SYD-MEL 1:30 total 13:20 plus connection time

On published connections (ow timetable) direct service is 50mins faster outbound and 1:55 faster inbound without the hassle of a bus transfer or risk of missed connections.

 

[Gremlin]

It wouldn't be necessary to extend the world cup. Southern Africa is a big business destination for some Australians - the miners. A large number of miners are located in Melbourne.

I'm not doubting that there is a market for this route! I'm also not doubting that there are business travellers travelling this route.

And maybe if you're regularly flying MEL-JNB and only flying MEL-JNB, then this may be your loyalty program of choice. But in general, with their current routes and more importantly their current partner status earning arrangements, for most regular international business travellers it's hard to see how Velocity Rewards will be the loyalty program of choice.

Therefore, in my view, in order to capture a greater share of the business market DJ needs to either:

1. Find a way of ensuring status can be earned on a wider variety of international routes (either partnering, through an alliance or increasing their own range of international destinations), or;
2. Provide a more compelling offer for the regular "Domestic Only" business travellers.

At the moment, I don't think they're doing either. Which personally suits me fine as I'm a regular domestic business traveller whose only international business trips are to LAX (although the lack of Lounge access at BNE International is not cool). The less they appeal to a wider market, the relatively more elite I become with them.

 

[markis10]

I'm not doubting that there is a market for this route! I'm also not doubting that there are business travellers travelling this route.

And maybe if you're regularly flying MEL-JNB and only flying MEL-JNB, then this may be your loyalty program of choice. But in general, with their current routes and more importantly their current partner status earning arrangements, for most regular international business travellers it's hard to see how Velocity Rewards will be the loyalty program of choice.

Depends where you go, JNB is big enough to support services from PER and SYD, by going to MEL its quite a good move given the number of miners who consider MEL their home. Dont forget the Flying Club offers status credit on DJ, that would be the obvious choice for flyers looking to spread their wings beyond the footprint of DJ, its elite perks are better than Velocity in that context as well with lounge access on SQ to help with Asian trips etc.

 

[Gremlin]

Depends where you go, JNB is big enough to support services from PER and SYD, by going to MEL its quite a good move given the number of miners who consider MEL their home. Dont forget the Flying Club offers status credit on DJ, that would be the obvious choice for flyers looking to spread their wings beyond the footprint of DJ, its elite perks are better than Velocity in that context as well with lounge access on SQ to help with Asian trips etc.

That's all fair, but this thread was about the relative attractiveness of the Velocity program, especially in trying to lure business travel. I don't think that DJs strategy for international business travellers should be "join Flying Club because they'll look after you better than us".

 

[AnonymousCoward]

Wrong. You are using loyalty as an additional consumer "currency", certainly not "giving anything away": you then use "loyalty" to increase revenue.

I didn't say revenue - I said profits.

DJ probably only makes marginal profits on each flier, and now you're cutting into that margin. Having more marginal flights might increase revenue, but with less profit/flight, is much being achieved?

Again - no. You use this position to extract a premium price point over your competitors,
as well as extract additional revenue.

Most of what you're suggesting seems to be revenue subtracting. Giving away the PE cabin means that no one needs to pay for PE. Or F&B, or whatever.

So, how are you going to extract this premium price? Charging FFs more isn't really a viable option.

 

[kamchatsky]

My wish (and wish it is) is and always has been: Become part of Star Alliance.

Instantly you have an excellent network of great airlines to leverage on. Even with limited routes you can pull a lot of loyalties from QF.

HOWEVER, it probably will cost an arm and a leg to get into, as well as changing IT systems. So whilst it would be a fantastic way to upgrade their program, I cannot see it happening in the short term. Maybe it require some sponsorship from other airlines.

Of course, they can get into Skyteam but I think it still costs a lot to get into as well as changing IT systems.