What "lessons" will VA learn from today's changes to QF's FF program?

[Melburnian1]

My cynicism about frequent flyer programs may be shared by some other AFFers. An airline has all the power; you and I have none, and it can change the rules at any time.

What, if any, lessons will VA and its Velocity program learn from the 20 June 2019 "enhancements" to QF's FF scheme?

In particular, is there anything VA is likely to soon copy that will adversely affect Velocity members?

 

[levelnine]

I think they have a big chance to swoop in and steal a lot of high value FFs away from QF by implementing a more realistic goal for LTP. Prompt people currently loyal to QFF to rethink that loyalty and aim for LTP with Virgin instead. Doubt they'll do it though.

 

[pauly7]

I’m not sure there is much for them to jump on. People flying high amounts are very likely not the ones making the call on who they fly anyway. So, sure they could introduce a lower hurdle LTP for a PR stunt but I strongly suspect there would be very little commercial upside.

And bluntly, VA have their own much more serious challenges to work through at the moment as they downsize and sort through all the Easter eggs JB left them...

 

[Dr Ralph]

Nil.

 

[jakeseven7]

Nil.

Totes agree, VA couldn’t manage a school tuck shop in a depression at the moment.

When is the last time they did something remotely interesting? Limited edition hot dogs in the lounge?

 

[Melburnian1]

i've not read the full article and he does tend to take 100 words to say what most could state in 60, but Terry McCrann in News Ltd papers/online sites has not long said that the QF changes are an 'attack on QF's most valued clients.'

Presumably including him. This develops the AFFer levelnine's theme above.

 

[hutch]

I think they have a big chance to swoop in and steal a lot of high value FFs away from QF by implementing a more realistic goal for LTP. Prompt people currently loyal to QFF to rethink that loyalty and aim for LTP with Virgin instead. Doubt they'll do it though.

But what can VA offer to entice customers to aim for platinum, let alone LTP. Gold seems to be enough with VA.

QF has separate lounges in places, a few F lounges and OW partners with F lounges - lifetime access to these may seem useful to some.

 

[jakeseven7]

But what can VA offer to entice customers to aim for platinum, let alone LTP. Gold seems to be enough with VA.

Free meal vouchers on its owner Etihad so you don’t get charged for food when you fly?

 

[Denali]

i've not read the full article and he does tend to take 100 words to say what most could state in 60, but Terry McCrann in News Ltd papers/online sites has not long said that the QF changes are an 'attack on QF's most valued clients.'

Presumably including him. This develops the AFFer levelnine's theme above.

Treat them mean, keep them keen?

QF LTP is out of the question for 99% but some will try

 

[HS-TQE]

Free meal vouchers on its owner Etihad so you don’t get charged for food when you fly?

Doubt it when they're cutting back on their own services, plus possibly looking at selling out of VA because of EY's own dire financial debt.

The other owners HNA, also have their own financial problems, and SQ are hands-off (not involved) in the day to day running of VA, SQ only still has their VA stake to access VA's FF base for their own flights between AU-SIN and beyond.

 

[theblank]

In particular, is there anything VA is likely to soon copy that will adversely affect Velocity members?

Nothing.

There is nothing in the Qantas changes that would cause any FF's to jump ship from VFF.
Qantas still has very high carrier charges. I have had a look at the tables, and these chargers are still outrageous compared to what you can go buy a ticket for with cash.

If anything VFF could respond by moving some goal posts to keep the distance the same.

 

[Revolutionary String]

As others have stated, probably nothing. VA already have a focus on the "frequent buyers" thing, as well as credit cards which provide 2x entries to the VA lounge. I guess they won't have a status from points thing.

 

[ric_melb]

Terry McCrann has stated that the Qantas changes are an attack on their most valued clients.
I listened to the interview he gave on 3AW. His comment is based on the assumption that the most valued customers are those that book premium cabins using points. I think most of us would agree with this assumption. However in drawing the conclusion that Qantas are attacking these customers I believe he fails to take in two factors. These are the improvement in the business product over the years, and failing to take into account the reduction in fuel surcharges in this current change.

Whilst many have commented on the decline in meal standards on board I don't think anyone could deny that they prefer 1-2-1 seating on the A330 compared to 2-2-2 seating. And no doubt they appreciate the renovations to the BNE/MEL/PER domestic lounges. And internationally the renovations to the HKG lounge, even though the SIN lounge is a work in progress.

I looked at 2 examples of J rewards internationally.
MEL/HKG reward was 60,000 points and $183, now it is 68,400 points and $140.
You can dispute the value of a point but for this example lets take 1 cent.
Therefore the net points increase is 6.5%.
MEL/LAX reward was 96,000 points and $472, now it is 108,400 points and $352.
Therefore the net points increase is practically zero.

So on these examples I disagree with Mr McCrann, and also his general theory.

 

[oz_mark]

The only thing I can see them doing in response is to look at their own Award charts and maybe make some adjustments.

 

[nathrek]

His comment is based on the assumption that the most valued customers are those that book premium cabins using points.

I think the most valued customers would be those that book premium cabins using cold hard cash.

 

[p--and--t]

Terry McCrann has stated that the Qantas changes are an attack on their most valued clients.
I listened to the interview he gave on 3AW. His comment is based on the assumption that the most valued customers are those that book premium cabins using points. I think most of us would agree with this assumption. However in drawing the conclusion that Qantas are attacking these customers I believe he fails to take in two factors. These are the improvement in the business product over the years, and failing to take into account the reduction in fuel surcharges in this current change.

Whilst many have commented on the decline in meal standards on board I don't think anyone could deny that they prefer 1-2-1 seating on the A330 compared to 2-2-2 seating. And no doubt they appreciate the renovations to the BNE/MEL/PER domestic lounges. And internationally the renovations to the HKG lounge, even though the SIN lounge is a work in progress.

I looked at 2 examples of J rewards internationally.
MEL/HKG reward was 60,000 points and $183, now it is 68,400 points and $140.
You can dispute the value of a point but for this example lets take 1 cent.
Therefore the net points increase is 6.5%.
MEL/LAX reward was 96,000 points and $472, now it is 108,400 points and $352.
Therefore the net points increase is practically zero.

So on these examples I disagree with Mr McCrann, and also his general theory.

I think the most valued customers would be those that book premium cabins using cold hard cash.

Its probably a lot more complex than most consider.

Given QFF is now 30% of QF profit the dynamic has significantly changed and Terry has focused in the wrong area (perhaps a couple changes effected him personally).

I have no facts to substantiate, but just possibly a small margin on up to 10 million Y flyers with no status may contribute more in total to the bottom line than a larger margin on a couple 10s of thousands premium flyers and don't attract increased expenses like lounge capacity, special hotlines, other special privileges.

 

[moa999]

Changing VAs program is more difficult given they only own part of it...
Any changes to the program are potentially a value transfer to/from the PE partner.

The only lesson from the Qantas changes is that it's possibly to dress up a 10-12% devaluation as a positive change

 

[Revolutionary String]

Changing VAs program is more difficult given they only own part of it...
Any changes to the program are potentially a value transfer to/from the PE partner.

The only lesson from the Qantas changes is that it's possibly to dress up a 10-12% devaluation as a positive change

I mean, Amex tried to do this as well, and I think that both attempts went about as well as each other.

 

[traceyy]

qantas suck. my hubby flys a lot for business almost always with qantas (not his choice) we just went to china two return flights from melb. guess how many points we got on standard economy tickets 1250 qff points and no status credit for 2 people mind. on top of that it took 6 hours (i kid you not) on the phone to get our measly points, their service is deplorable. qff can stick their membership, im only gold with virgin and in comparison i get treated like royalty. at least after a year of travel my hubby got enough points to buy some qantas luggage tags lol

 

[jakeseven7]

I think the most valued customers would be those that book premium cabins using cold hard cash.

Actually it’s the people that control the spend not the actual flyers.

qantas suck. my hubby flys a lot for business almost always with qantas (not his choice) we just went to china two return flights from melb. guess how many points we got on standard economy tickets 1250 qff points and no status credit for 2 people mind. on top of that it took 6 hours (i kid you not) on the phone to get our measly points, their service is deplorable. qff can stick their membership, im only gold with virgin and in comparison i get treated like royalty. at least after a year of travel my hubby got enough points to buy some qantas luggage tags lol

Um where to start... actually not worth it
Good luck with Velocity.