Choice Magazine: "Frequent Flyer Schemes Not Worth It"

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Re: Article: Frequent Flyer Failure?

AaronBradford said:
What Choice doesn't appear to understand is that frequent flyer programs are for, well, frequent flyers. They seem to have written this from the stand-point of the leisure traveller who only flies once or twice a year. But still - small rewards are better than no rewards. :)
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Fully agree.I am very happy with my FF program.Just booked an award through AA-BNE-SYD-BKK-AMM-IST-AMM-BKK-HKG-HND-CTS-NRT-SYD-BNE in J.The only change was having to fly 1 day earlier on the initial day flying QF to BKK.Big deal.Cost-150000 miles + $A350.Cheapest quote-$A10450.
But I research,plan and book early.this trip is for july next year.
 
Re: Article: Frequent Flyer Failure?

Great article IMHO.

The more the general public at large view FF incentives as valueless the less likely they are to persue them which will lead to less and less FF redemptions which will mean more chances for frequent redemption flyers to capitalise - PERFECT.
 
Re: Article: Frequent Flyer Failure?

But what do they expect.
Fly SYD-LAX once and get a free flight just for being a member??

Agree on it being called a Freguent Flyer for a reason - although maybe it should be Frequent Flyer or Spender (or small business owner with big ATO bills)
 
The latest choice magazine has published an article stating that current frequent flyer programs in Australia are not worth it. They use example of Virgin Australia Velocity Rewards which would require 13 round trip flights from SYD-LAX to get enough points to get one economy SYD-LAX flight with points. With Qantas, it would take only 7. They also stated that frequent flyer miles are virtual currency and they frowned upon the new trend to offer products for frequent flyer miles as often they worth far less than the miles used to redeem them are worth. They give examples of a 129 dollar microwave costing four SYD-LAX return flights on Virgin's Velocity Rewards. Qantas has similiar redemption offers like a 439 dollar telesivion that would cost six SYD-LAX return trips. Virgin was quick to point out that a flight with Etihad SYD-LHR would accumulate enough miles to book 2 trips SYD-MEL.

This is an interesting point that I'm sure has been made countless times on forums like this, and Choice is no frequent traveller as they didn't mention status tiers benefits per se (just the fact you got more points with status). Their analysis is quite obtuse as it always is. I did start to wonder if I just went with the lowest fare and not bother with loyality whether or not I would come out ahead. Luckily Etihad has the best sales to Europe in first/business class compared to Qantas, but sometimes Qantas does have good deals. Would saving 1000-2000 dollars every one of 6 flights to LHR make up for the added miles I would get on Etihad which would be about 54,000 miles. Currently it would take 7 first class trips SYD-LHR to get one first class award SYD-LHR. It would take a year flying Etihad to get one first class ticket, but as I only see Qantas fares lower than Etihad in first class maybe once a year I'd only end up with 1000-2000 dollars spare (which is not enough to buy another first class ticket). So in my case it is better to stick with one airline if you just analyse it with dollars, frequecny of trips, but ignore status benefits etc. Personally I prefer Etihad's first class compared to what I've heard about Qantas' first class so I think I come ahead in all fronts!

http://www.choice.com.au/reviews-an...irline-travel/frequent-flyer-points/page.aspx
 
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Any chance to merge the other 2 threads started on this topic.

As for what choice understand, the bit I read in the Australia this morning clearly stated to the effect it wasn't worthwhile unless you were a frequent flyer. So they do understand these programs are for frequent flyer. But they also realise that these programs are increasing marketed at non-frequent flyers or frequent shoppers. So the story is a timely warning for those people who think they'll get something worthwhile by only collecting points when shopping.
 
re: Choice "Frequent Flyer programs not worth it"

Sounds not unreasonable to me - I buy 10 coffees from the coffee shop and I get 1 free. Obviously the reporter didn't bother to compare the value of J redemptions or other options as that would reduce the sensationalism of the headline...
 
re: Choice Magazine: "Frequent Flyer Schemes Not Worth It"

The value for everyone is based on the individual and if you know the rules of the scheme, then you can determine if the scheme is worth anything to you.

Personally, I try and get points via normal purchases, travel etc. I do alter some behaviour to gain points and am willing to pay a small percentage extra to gain points. However, I wouldn't buy unnecessary things to get 1000 points etc.

So each to their own and as you correctly state, status provides tangible benefits beyond free flights etc.

So in this case, I disagree with Choice. Then again, don't they do this every couple of years anyway?
 
re: Choice Magazine: "Frequent Flyer Schemes Not Worth It"

I didn't notice at first but it references this forum and Clifford Reichlin


Clifford Reichlin, whose online forum The Australian Frequent Flyer has been a busy stopover for travellers since 2002, says frequent flyer points are a “promotional and marketing currency” designed to get consumers to fly more, not help them save money. What they really want to do is convert the occasional traveller into a frequent traveller,” Reichlin says. “It’s not a loyalty program and has nothing to do with loyalty. The airlines aren’t rewarding you for flying with them, they’re trying to get you [to] buy more airline tickets, preferably the pricier ones. If it were a straight-up loyalty program, your points wouldn’t expire and the programs wouldn’t be so difficult to figure out.”
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re: Choice "Frequent Flyer programs not worth it"

I assume the ppl on this forum are smart enough to take both points and lower prices (and status) into consideration when deciding who to fly with? ;)
 
re: Choice "Frequent Flyer programs not worth it"

yogi said:
"A review of Virgin Australia’s entry-level frequent flyer scheme found passengers needed to book 13 return flights between Sydney and Los Angeles to earn enough reward points to pay for the same trip once."

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Dont know if that is correct. 13 return flights and surly you would be right up there which would then alter your status which would then allow you to gain additional points.
Doesn't seem correct.
Not too sure about anyone else but I dont care a great deal about points. For me it's about the status and additional benefits.
 
Sorry but can we have all the threads on this story merged?
 
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Re: Article: Frequent Flyer Failure?

Dont understand that when you use a credit card with bonus points etc, then you can very quickly earn points, not just buy flying... Paying for your flight directly is more about earning status credits, not miles, unless you fly across the world regularly.
Finally where is this year MR bonus things, like they had in USA recently to earn 15k a month from spend... Any word yet for us in Australia...
 
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re: Choice "Frequent Flyer programs not worth it"

They seem to have forgotten that they are frequent flyer programs.
 
Re: Choice "Frequent Flyer programs not worth it"

Choice's conclusions are fair enough on the assumption that they are limited to non-frequent flyers or low spenders. For the average denizen of this forum though they are irrelevant.

yohy?! said:
Sounds not unreasonable to me - I buy 10 coffees from the coffee shop and I get 1 free. Obviously the reporter didn't bother to compare the value of J redemptions or other options as that would reduce the sensationalism of the headline...
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Hah! My Frequent Coffee Drinker Scheme is better than yours - I get one free coffee per 7 bought.
 
Choice magazine... Not much more needs to be said

It's up there with quality information like Today Tonight and A Current Affair

I'll drink to Choice magazine next time I am flying J overseas thanks to FF points!
 
Good thinking lovestotravel! So many people miss the point but hey there are our seats over there up front.
I remember now why I havent looked at Choice for ages!
 
In their defense, they did state you'd need to fly a lot to make the programs work. The ppl who get an everyday rewards card thinking it a free ticket to a SYD-LAX (which the ads seem to promise) will be disapointed. those ppl however who get to PS SG WP or WP1, the programs work well for by simple virtue of access to better checkins, more checked bags, lounge access etc...

Choice failed to mention thoe little perks which the non loyal flyer doesn't get.
 
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