QF Double Status Credit Promos - I am not 100% sure I follow the logic anymore...

[wannabe_wp]

Don't expect any further general DSC promos. Targeted offers based on forward bookings will be all that remains now.

Why not? They offered a DSC offer to all users in Q1 this year like they do every year. Then on top of that they’ve done a few targeted (the most recent one sent to the majority) DSC offers.

 

[opusman]

I also am of the firm belief that status has a fairly low cost to the airline, compared to the spend required to attain.

Really it costs them nothing to provide status in and of itself. Some benefits of status (like lounges) have a marginal cost when people use them, but they only provide those benefits when you are travelling and therefore paying (either cash or points). About the only way status can be nothing but an expense for them is if you do all your post-status travel on another OneWorld airline and exclusively visit Qantas lounges. I suspect the incidence of that would be rather small.

 

[Brettmcg]

Why not? They offered a DSC offer to all users in Q1 this year like they do every year. Then on top of that they’ve done a few targeted (the most recent one sent to the majority) DSC offers.

I'm well aware of what they have already offered this year, thanks. I'm simply sharing with you what I have been told by very reliable sources. What you do with that information is entirely up to you.

 

[juddles]

Maybe they are actually using targetting to measure "success" of DSC offers, in order to tweak the system? That would be a sound approach by any business.

 

[Lat34]

Just received targeted 75% bonus SC for domestic travel 11 June to 28 May 2020. I am WP.

MrLat34 (SG) 25% SC offer.

 

[woodborer]

About the only way status can be nothing but an expense for them is if you do all your post-status travel on another OneWorld airline and exclusively visit Qantas lounges. I suspect the incidence of that would be rather small.

In OneWorld, if you fly economy and enter any oneworld lounge, the program that gets you in the door pays for the entry. So, if you're Qantas Gold (or Platinum) fly economy, fly any oneworld airline, enter a oneworld lounge, then Qantas will pay your entry.

 

[opusman]

In OneWorld, if you fly economy and enter any oneworld lounge, the program that gets you in the door pays for the entry. So, if you're Qantas Gold (or Platinum) fly economy, fly any oneworld airline, enter a oneworld lounge, then Qantas will pay your entry.

True but even so, you'd have to fly just enough on QF to get status and then never fly them again (and fly other OW airlines a lot) for that to be a real expense for them. The number of members doing that would be pretty small I'd guess.

 

[Vic]

Anecdote is not data.

You are spending less, but plenty of people might be spending more. Someone who would only get silver, spends more (eg buying fares during DSC promos rather than during sales) to get gold. Someone who would only get gold, spends more (eg extra flights) to get platinum. Someone who now has gold/platinum flies Qantas rather than Virgin to get the benefit of some free slop in a now overcrowded lounge, which costs Qantas almost nothing to supply (because the lounges are going to be there regardless).

I'm not sure I see how double status means someone spends more to get platinum instead or gold, or gold instead of silver. The earning requirement for the next level is double, and they are getting double status. So they should be able to get the next level for close to the same spend.

 

[levelnine]

I'm not sure I see how double status means someone spends more to get platinum instead or gold, or gold instead of silver. The earning requirement for the next level is double, and they are getting double status. So they should be able to get the next level for close to the same spend.

Easy. DSC offers are limited in time (ie certain periods only) and scope (eg only international flights; only QF metal). Thus, it will be exceptionally rare for a person to earn all their SCs through DSC offers. Thus, they'll have to make up the shortfall with extra spending that they wouldn't otherwise spend if they weren't chasing status.

To give you a clear example, say Bob flies enough to get 700SCs per year (QF Gold). As a result of DSC offers available for some of Bob's flights, he now earns 1100SCs per year. He thinks 'I'm so close to platinum, I might as well spend a bit extra to get platinum either by taking extra flights (ie a status run) or by buying more expensive fares (ie a saver rather than a sale fare)'. Extra money for Qantas for very little outlay (ie an extra meal serving at the First lounge).

 

[sxc]

In OneWorld, if you fly economy and enter any oneworld lounge, the program that gets you in the door pays for the entry. So, if you're Qantas Gold (or Platinum) fly economy, fly any oneworld airline, enter a oneworld lounge, then Qantas will pay your entry.

Not true. The operating carrier pays for the access in all cases.

 

[woodborer]

Not true. The operating carrier pays for the access in all cases.

True for premium cabins. Not true for Economy If in Economy access is paid for by the FF program (in oneWorld),

 

[RichardMEL]

I agree. When flying Y (or PE) on oneworld carrier X with status from carrier Y to enter lounge, then carrier Y pays for that access - otherwise CoS gets you in.

I'd also entertain that if I am flying QF J out of HKG but I use CX F lounge as a OWE, then QF pays for that. Even if I fly CX J, and use CX F, I suggest QF pays for some portion of that as the status provider... but I guess each airline has its own agreements on such things.

These are ll reasons why BP's are scanned or otherwise noted - for cost recovery to one airline or the other.

 

[RichardMEL]

Another reason QF would hand out status like candy via these promos - general or targeted (and it absolutely seems there has been a recent change to do these targetted promos but doesn't have to rull out a general one I guess, but I never expect them anyway). Anyway another reason to hand out status is in the hopes of future revenue. Sure, one could get that status cheap and then go fly oneworld airlines and use the status the next year.. but then they will drop again.. and while it has cost QF something, one still needs the 4 ~ to requalify, so there's going to be a bit of revenue there, and the chasing of status or toretain, in theory, would see a fair number of people fly again with QF to get them.

This is, of course, in addtion to the short term revenue boost from bookings made during the promo period to earn those DSC which, these days, only apply to QF metal flights anyway - so again QF figures the revenue they get from that earn, which may possibly be extra to the flying that may have been done, would offset the cost of status use later, and may just lead to future QF spend anyway.

 

[opusman]

Also of course the cost of providing status is amortised across the whole FF base, meaning the incremental cost of adding one more SG or WP would be minimal. Kind of like FF points; there are billions and billions of points on issue that QF have received revenue for and there would definitely an expectation that not all of those points would ever be redeemed for anything.

 

[sxc]

Although I have not sighted any documents, I’ve had corroborated from separate inside sources that for Oneworld it’s the carrier who pays for lounge access in all cases. In Star Alliance it is based on how you access the lounge (if status, then program pays. If class, then it’s the carrier).

In Oneworld there are also limits on how many “free” status memberships can be handed out (ie status matches). I suspect these limits exist due to how lounge access is paid, and hence why you will see more gratis status matches in star alliance. (However in oneworld, status challenges skirt the rules on this and aren’t included as a free status handout).

 

[RichardMEL]

I'll take your word for that but it kind of makes no sense.

OK CX operate the F lounges at HKG.. let's say I am flying out on AY in Y. I have QFF Platinum Status. So you are suggesting that CX (or is it AY?) aabsorbs the cost for me to use the F lounge and QF pay nothing? There has to be an accountability pass back surely. Seems to me if, for example, CX were paying for all these freeloaders in their lounges they'd want to restrict access (a la QR in DOH)? Thogh I suppose the major downgrade in food quality since yet another change of operator may reflect the cost burden.

Still if this is the case it woud definitely explain why QF would be happy to throw out status willy nilly if people's use of OW status doesn't affect them financially.

Just seems odd to me.

 

[sxc]

I'll take your word for that but it kind of makes no sense.

OK CX operate the F lounges at HKG.. let's say I am flying out on AY in Y. I have QFF Platinum Status. So you are suggesting that CX (or is it AY?) aabsorbs the cost for me to use the F lounge and QF pay nothing? There has to be an accountability pass back surely. Seems to me if, for example, CX were paying for all these freeloaders in their lounges they'd want to restrict access (a la QR in DOH)? Thogh I suppose the major downgrade in food quality since yet another change of operator may reflect the cost burden.

Still if this is the case it woud definitely explain why QF would be happy to throw out status willy nilly if people's use of OW status doesn't affect them financially.

Just seems odd to me.

I am saying that the operating carrier that is moving you pays for the access. In your example it would be AY. It is essentially a referral benefit from oneworld: AY gets the revenue, AY pays the costs. And the principle is that you wouldn’t have flown on AY if it was not for your oneworld status.

 

[downgraded]

Economy is in the doldrums at the moment,

With the rise of the 737 and 787s, Economy is most certainly reaching a new low!

 

[opusman]

So you are suggesting that CX (or is it AY?) aabsorbs the cost for me to use the F lounge and QF pay nothing? There has to be an accountability pass back surely.

From what I've read that's how FF redemptions on partner airlines work as well, e.g. you "pay" Qantas in points and they issue the ticket, but they never pay anything to the airline actually operating the flight. I think the theory is it all evens out in the wash!

 

[RichardMEL]

yeah I was going to say I guess it all evens out in the end, though I bet there are some stations that see it differently...

thanks folks.

(I think I like the Star model better myself from a common sense point of view, though the back end accountiung - like IATA ticket settlement - would be a mess I bet)