Heads up about program changes

[lovestotravel]

Click on that link and have a read of the words put against the various members of the Loyalty Team. Now 'Loyalty' goes way beyond the 'loyalty' of its actual FFers and it is a significant profit centre for QF, but reading it in the context of how they are managing my loyalty to QF, I had a bit of a chuckle. Perhaps there is a 'Yes Minister' attitude to customers - they could build a fantastic, really profitable FF scheme with lots of happy partners and great IT if they didn't have to worry about the bloody passengers.

QF's main interest is selling points to banks/credit card providers and Woolies

 

[Supersonic Swinger]

Perhaps there is a 'Yes Minister' attitude to customers - they could build a fantastic, really profitable FF scheme with lots of happy partners and great IT if they didn't have to worry about the bloody passengers.

I notice that on Lesley Grant's CV, "customers" rank after "business stakeholders".

One of the reasons I'm retreating to "Frequent Flyer Programs" from "Loyalty Programs".

 

[Archphoto]

I just finished reading an article in the INYT, titled: "Show us the money, not the miles, an airline tells its most loyal fliers". It was splashed in the header section on the front page and I immediately wondered if it was about QF, as it was in the Business Asia section.

Instead, it is a story on Delta who implemented (almost?) identical "major changes" to this SkyMiles program, at the beginning of 2014. Like QF, you need to pay more $$$ to get more miles etc. The reporter and interviewee were discussing "how airline service for loyal fliers is going downhill fast." Sounding familiar??

The person interviewed gained Diamond Medallion Status in 2013, but will now need to spend $12,500 minimum, to make the 125,000 miles (in one year) to retain his Diamond Medallion level. His comments on being loyal to Delta, ". . . . I stuck with Delta through the tough years, but now that they're on their feet financially, they're telling me. "Oh, we really don't care that much about you as a loyal flier anymore. All we care about is your money." had a rather familiar ring I thought.

Did QF take notes on Delta's approach to their "enhanced" FF program??

 

[Deleted User]

Is it just me or are the VA emails being sent out more often since the Qantas enhancements...?

 

[Supersonic Swinger]

Did QF take notes on Delta's approach to their "enhanced" FF program??

I think Delta has been taking notes on Qantas' approach over the last few years, whereby Qantas has become the most profitable frequent flyer program per member in world (according to analysis which was done by CAPA).

Whatever Delta's failings, it's "Any Seat" equivalent for SYD-JFK return in J is just shy of 400,000, light years below the Qantas requirement which will be more than 1,000,000 at a minimum.

 

[trippin_the_rift]

I just finished reading an article in the INYT, titled: "Show us the money, not the miles, an airline tells its most loyal fliers". It was splashed in the header section on the front page and I immediately wondered if it was about QF, as it was in the Business Asia section.

Instead, it is a story on Delta who implemented (almost?) identical "major changes" to this SkyMiles program, at the beginning of 2014. Like QF, you need to pay more $$$ to get more miles etc. The reporter and interviewee were discussing "how airline service for loyal fliers is going downhill fast." Sounding familiar??

The person interviewed gained Diamond Medallion Status in 2013, but will now need to spend $12,500 minimum, to make the 125,000 miles (in one year) to retain his Diamond Medallion level. His comments on being loyal to Delta, ". . . . I stuck with Delta through the tough years, but now that they're on their feet financially, they're telling me. "Oh, we really don't care that much about you as a loyal flier anymore. All we care about is your money." had a rather familiar ring I thought.

Did QF take notes on Delta's approach to their "enhanced" FF program??

- Delta Skymiles changes are nothing like the QF enhancements... one is miles per dollar and one is region/miles based.
- Did you forget how you earn points on Virgin Australia? $$$
- The $12,500 min spend is only for US customers and you can get around this by spending ~$25K/year on a delta co brand CC. Smart play.
- If you're not spending >$10k for Delta Diamond; you're on the cheap fares which dilutes the benefits of the program for others and not a 'real' diamond.
- Ultimately FFPs don't want status runners or anyone to game the system. They have an interest to protect customers who are spending the big wads of cash!

The real question is whether or not low tier frequent flyers will bother. Their loyalty isn't measured in spend but rather in share of wallet.

 

[QF WP]

Showing your intimate knowledge of FFP and loyalty there trippin_the_rift. Did you offer to fly to SYD today to consult with the Loyalty team ??

 

[Robbi]

I think Delta has been taking notes on Qantas' approach over the last few years, whereby Qantas has become the most profitable frequent flyer program per member in world (according to analysis which was done by CAPA).

Whatever Delta's failings, it's "Any Seat" equivalent for SYD-JFK return in J is just shy of 400,000, light years below the Qantas requirement which will be more than 1,000,000 at a minimum.

Most profitable, before they screw the punters over... Do many businesses remain profitable after doing that?

 

[kevrosmith]

There's much to say about the psychology of change, though I thought this diagram probably sums it up pretty well...



Now, if only we can get through to the Accepting phase quickly, we'll have so much more fun in the Exploring and Testing phases and work out how to crack this new "Fairer and Simpler" system..

 

[sumthinfornuthin]

Isn't this the essence of the QF crisis? I believe that many of us would really like ot support QF but business is a relationship: the vendor provides a product the customer sees as fit for purpose and value for money. QF seem to have forgotten this or no longer know/care what we se as value

I've just had a brain wave.....Let's start a Loyalty program that encourages people to fly with us all the time even if it is a bit dearer and make them feel special with some free food and a comfortable chair at the Airport whilst they wait....nah...it won't work.............

 

[ChrisDPom]

I think Delta has been taking notes on Qantas' approach over the last few years, whereby Qantas has become the most profitable frequent flyer program per member in world (according to analysis which was done by CAPA).

Whatever Delta's failings, it's "Any Seat" equivalent for SYD-JFK return in J is just shy of 400,000, light years below the Qantas requirement which will be more than 1,000,000 at a minimum.

From AP news today, American Airlines are also making changes:

"American the latest airline to tweak flier program


DALLAS (AP) -- Airline travelers are adjusting to constant turbulence in frequent-flier programs.


American Airlines is the latest to tinker with its program. The Dallas-based carrier on Tuesday announced changes that make it tougher to redeem miles for a flight during busy travel periods, and to check a bag without a fee.


The changes aren't as dramatic as Delta Air Lines Inc.'s recent switch to basing rewards on money spent, not miles flown, but they are just the latest example of airlines giving away less as executives increasingly focus on growing profits."

Also remember VA are making losses and while their majority owners may or may not have deeper pockets, they also sometime have to make a profit.

Chris

 

[defurax]

And here we go...QF already giving "extra SC":

With Qantas, you can be assured of exceptional service and great rewards. And for a limited time, those rewards are even better. Simply book an eligible Qantas domestic flight[SUP]^[/SUP] and you'll receive 50% more Status credits* than you would normally earn.

Register and book a new eligible Qantas flight[SUP]^[/SUP] between 9 April and 17 April 2014, for travel between 9 April and 31 May 2014. And make sure your Qantas Frequent Flyer number is in your booking, so you can start earning 50% more Status credits[SUP]*[/SUP]. The more you fly, the greater the rewards.

 

[ketsuzei]

Register and book a new eligible Qantas flight[SUP]^[/SUP] between 9 April and 17 April 2014, for travel between 9 April and 31 May 2014. And make sure your Qantas Frequent Flyer number is in your booking, so you can start earning 50% more Status credits[SUP]*[/SUP]. The more you fly, the greater the rewards.

Have they excluded ASAs this time?

(Sorry, just saw the answer--no--in a different thread)

 

[burmans]

I've just had a brain wave.....Let's start a Loyalty program that encourages people to fly with us all the time even if it is a bit dearer and make them feel special with some free food and a comfortable chair at the Airport whilst they wait....nah...it won't work.............

This describes it pretty well, its quite funny when people refer to a loyalty program and assume it means that QF wants to be loyal to them, of course it's quite the opposite. AND they make good money out of it.

 

[lovestotravel]

Have they excluded ASAs this time?

(Sorry, just saw the answer--no--in a different thread)

LOL

Poor QF

Claiming they want to get rid of MASA's as they enabled too many people to obtain P1, yet they give a 50% bonus offer on MASA's

Yet another fail and makes a mockery of what was said at the lunch, but again why anyone would believe the QF spin is beyond me!

 

[drron]

Both of us have received the 50% SC offer.However we paid for our Circle Pacific flights in May on Monday.
These offers are always a waste of time for us.Have never taken one up so I guess that is why we continue getting them.

 

[Himeno]

These offers are always a waste of time for us.Have never taken one up so I guess that is why we continue getting them.

Same here. I've never gotten one that could be used when I was able to travel.

 

[Robbi]

And here we go...QF already giving "extra SC":

With Qantas, you can be assured of exceptional service and great rewards. And for a limited time, those rewards are even better. Simply book an eligible Qantas domestic flight[SUP]^[/SUP] and you'll receive 50% more Status credits* than you would normally earn.

Register and book a new eligible Qantas flight[SUP]^[/SUP] between 9 April and 17 April 2014, for travel between 9 April and 31 May 2014. And make sure your Qantas Frequent Flyer number is in your booking, so you can start earning 50% more Status credits[SUP]*[/SUP]. The more you fly, the greater the rewards.

My offer must be "in the mail"

 

[katiebell]

I just came across this in an email sent on 27th Feb:

"...

Qantas is changing, but what will never change is our commitment to rewarding you for your loyalty, whether on the ground, or in the air.

Yours sincerely,

Lesley Grant CEO Qantas Loyalty"

So the commitment to rewarding our loyalty is yet another enhancement that reduces earning abilities for most flights.

This Qantas mob would have done well writing propaganda for a communist government

 

[Princess Fiona]

I just came across this in an email sent on 27th Feb:

"...

Qantas is changing, but what will never change is our commitment to rewarding you for your loyalty, whether on the ground, or in the air.

Yours sincerely,

Lesley Grant CEO Qantas Loyalty"

So the commitment to rewarding our loyalty is yet another enhancement that reduces earning abilities for most flights.

This Qantas mob would have done well writing propaganda for a communist government

To be fair to Lesley the email did say



" Dear Princess Fiona,

Today Qantas announced a range of measures to take $2 billion in costs out of the business over three years, including through deferring and selling aircraft, and significant job reductions.

I have received many questions both directly and through social media and wanted to reach out to you personally as a valued member.

These are tough but necessary measures to ensure a strong future for Qantas and our nearly 10 million Qantas Frequent Flyer members.

Let me assure you, however, that these measures will not impact your Qantas Points balance or cause your Qantas Points to expire."

The recent changes have not changed either of the above statements.

It's more what wasn't said in the email which makes it disingenuous.
Must have been swapping notes with Suzanne and the team at AA I think