Qantas Frequent Flyer changes coming in early 2024

[AFF Editor]

Qantas CEO Vanessa Hudson flagged "permanent improvements" to the Qantas Frequent Flyer program, to be announced early next year, at today's AGM.

Details here:

https://www.australianfrequentflyer.com.au/qantas-changes-coming-early-2024/

What Frequent Flyer changes would you like Qantas to announce in early 2024?

 

[Seat0B]

Uh oh! I hope "improvements" does not mean the same as "enhancements" or "better and fairer".....

Edit - with credit to @Rangalad, of course I mean "simpler and fairer"

 

[RooFlyer]

Quotes are from Matt's article:

One of the most common complaints about the Qantas Frequent Flyer program in recent times has been a lack of Classic Flight Reward availability on routes and cabin classes that people want to fly. So, we wouldn’t be surprised if part of these changes involved making more reward seats available – albeit, perhaps, for a higher number of points.

When I heard all this, I wondered if they might (just to complicate things further) introduce a 'premium' classic reward seat which would take more points (but nothing like points+pay !!!) and would be released first, with any 'unsold' PCR seats then being thrown back into 'classic' classic reward pool. Or maybe like you say, some additional ones.

I'd not like the tiered system of reward seat points cost like VA has introduced.

On the downside, are they looking at dynamic pricing? That would be the total end for me (not that I carry many QFF points these days).

There are probably a few AFF members who will look at today’s announcement and fear that “enhancements” (often a codeword in the loyalty industry for “devaluations”) are coming. However, we don’t think there’s much cause for concern at this point.

I breathed a bit of a sigh of relief when the 'enhancement' word didn't appear!

You ask what changes would we'd like? I'd prefer to go back the predictable schedule of release of seats, timing priority to Plats & above (else its another diminution of high status (=money in the airlines' pocket) and guaranteed 2 Award seats in Biz cabins & below on every (yes, every) flight; 4 on an A380.

 

[anyonebutqantas]

Uh oh...

 

[jrfsp]

Hopefully this doesn’t mean revenue based points earning

 

[Seat0B]

You ask what changes would we'd like? I'd prefer to go back the predictable schedule of release of seats, timing priority to Plats & above (else its another diminution of high status

I would like this too. And I would like to see a much bigger number of seats available in premium cabins on popular routes - anywhere in Europe, anywhere in USA, Japan would hit the sweet spot for me.

I'd like them to convert the Platinum can ask for a FF seat to be released" to a guaranteed release when requested say once per membership year, or as a loyalty bonus when you are half way to LTP but will never make it or some other way to encourage those with LTG to stay flying with QF.

 

[Gremlin]

Bear in mind the audience where VH used the term “improvement”. It was the shareholder group, not a customer group. Improvements for shareholders could very well mean “ways of extracting more from our customers whilst providing them less”.

 

[Seat0B]

Uh oh...

Me too! But then I read to the bottom of the article and kind of do agree with @AFF Editor that they might not want to create any more anger right now. But hey after all it's Qantas, so who knows

 

[Rangalad]

Uh oh! I hope "improvements" does not mean the same as "enhancements" or "better and fairer".....

Simpler and fairer

 

[levelnine]

Almost certainly a devaluation, but they won't be able to do a straight devaluation so early into the new CEO's brand reputation rebuild process.

So it will also need to have some sweeteners attached.

They could probably spin a full switch to dynamic pricing as being an 'improvement' if they initially set the redemption prices for the old classic reward seats at a lower point than is currently the case. Then tout all the other seats as being increased availability — 'now you can buy any spare seat on the plane with points' (even though points plus pay already offers that).

They could also fiddle with the award levels, improving economy again while devaluing premium cabins, but that won't do enough to address the main gripe, which is lack of availability.

My money is on dynamic pricing.

 

[anyonebutqantas]

Dynamic pricing would be a disgraceful move from a discredited airline with a despicable management culture.

 

[levelnine]

Dynamic pricing would be a disgraceful move from a discredited airline with a despicable management culture.

While I don't disagree with your assessment of the airline, think about it from Qantas management's perspective.

Most of the reasons for their trashed reputation have nothing to do with the loyalty program. They have to do with call centres, cancelled flights, lost refunds, etc etc.

As the AFF article correctly notes, the main pain point with the loyalty program is lack of award availability. People are still sitting on enormous balances that they are eager to cash in for flights.

Dynamic pricing solves that problem entirely and has the benefit of: (a) allowing Qantas to sneak in a devaluation and (b) allowing Qantas to sell points to partners at a slightly reduced rate, allowing them to offer even more attractive sign-up bonuses (think 200K for a credit card).

For Joe Average, that all looks like good news (they'll never notice the devaluation because they don't track prices close enough). The only people it really hurts are the savvy earners and burners, who were never that profitable to begin with.

 

[Seat0B]

Simpler and fairer

thanks for the correction @Rangalad - classic example of my chemo brain fog meaning I forget even the most obvious things that I know really well - it's both frustrating and hilarious!!

 

[elanshin]

For Joe Average, that all looks like good news (they'll never notice the devaluation because they don't track prices close enough). The only people it really hurts are the savvy earners and burners, who were never that profitable to begin with.

I disagree here. Aviation outlets (like AFF) will pick up on the fact its a devaluation and then the MSM will see "negative qantas news" and jump at that. Then suddenly you've just shot yourself again in the head this time.

No i suspect they'll possibly do things that are the sweetener part of devaluation (like more availability and guaranteed availability) without the negatives for now. Then sneak an enhancement in later when the airline isn't under the microscope.

Edit: Just look at the amount of backlash Delta copped a couple of months ago when they introduced their "enhancement" so much so that they had to backpedal.

 

[dajop]

Two ways you can go with tiered pricing. The US way - where pricing is basically genuinely dynamic and can (very rarely) provide good value, but most often be dreadful value. Then there's the SQ way - with a separate tier of awards priced at approximately 2 x lowest cost awards, but immensely better inventory, along with waitlisting.

I am inclined to think QF will either leave award structures largely as is (with some tweaks, but really change earn rates when flying) or go for dynamic pricing. But I think the SQ approach works out much better for customers.

 

[kangarooflyer88]

Hopefully this doesn’t mean revenue based points earning

It is simpler and farer…for the airline!

 

[levelnine]

I disagree here. Aviation outlets (like AFF) will pick up on the fact its a devaluation and then the MSM will see "negative qantas news" and jump at that. Then suddenly you've just shot yourself again in the head this time.

No i suspect they'll possibly do things that are the sweetener part of devaluation (like more availability and guaranteed availability) without the negatives for now. Then sneak an enhancement in later when the airline isn't under the microscope.

Edit: Just look at the amount of backlash Delta copped a couple of months ago when they introduced their "enhancement" so much so that they had to backpedal.

The reason I disagree with that prediction is dynamic pricing allows them to do both at the same time.

Initially, Qantas introduces dynamic pricing with cheaper prices and more availability. That will get heaps of positive press, both here (AFF can't be too cynical in its reporting if it is initially all good news) and, more importantly, in the mainstream press. Indeed, it'd be a huge PR win — people cashing in their points for great value flights across the network.

Then 6-12 months later, Qantas starts to quietly ratchet up the dynamic price costs. It happens so incrementally that it will never attract any mainstream press attention.

Indeed, that's what Delta did wrong, as the CEO admitted. They tried to rip the bandaid off by doing all their devaluations at once. The CEO has said they still intend to devalue according to the original plan, but they're going to do it more slowly. So they've backtracked on the worst parts for now. Everyone celebrated the backtrack and all the negative press has gone away. Everyone has forgotten that the devaluation is still coming, just a year or two later!

As for those who think dynamic pricing is all bad news, that's not true. It's all about the implementation. In the US, dynamic pricing has been all bad news for Delta flyers. The points are basically worthless now. But for United and AA, there are still heaps of great deals. You can often pick up flights from anywhere in the US to Australia for 100K or less — cheaper than Qantas now!!

 

[kangarooflyer88]

Much of the discussion this far has focused on the award travel aspect of the frequent flyer program. However, such permanent enhancements can also be headed for the status aspect of the frequent flyer program. For instance tying status to $$$ spent on QF instead of status credits.

In the US, dynamic pricing has been all bad news for Delta flyers. The points are basically worthless now.

Not entirely. For one thing you can often find Australia to North America for 90K SkyMiles in business. Certainly much better than the QF rate. Also if you can partner availability on Korean or Air France those tend to be priced fairly. Lastly Delta does do these spontaneous sales where one could find good deals on random routes with Delta. What Delta did was essentially make the bargains only available to those with the flexibility to book crazy routings (e.g. SYD to MEX instead of SYD to LAX) sometimes at weird times. In other words they changed the rules of the game and the gamers had to figure out those news rules

 

[levelnine]

For one thing you can often find Australia to North America for 90K SkyMiles in business.

Delta closed that loophole. You're well behind the news. Once the bloggers found out about it and published it everywhere, they shut it down. Delta points are worthless on any flight that has Delta metal or touches North America, making them effectively useless for anyone living in the US.

 

[mviy]

What Frequent Flyer changes would you like Qantas to announce in early 2024?

Domestic First Lounge?
More J/F classic reward seats to/from LHR?
Triple Status Credits Promo?