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Frankly - there is a risk in introduction Lifetime Platinum. Sure - BA and AY might have it - but that is a different market and they have their own challenges. Neither of those carriers has a captive market, interchange is shot to shreds, massive competition, lower margins, high pressure on yield and strong dependence on ancillary. It's a totally different ballgame in Europe that affects airline economics.
Sure, Qantas could do something special for you if you're coming into 'passenger retirement' as recognition of a lifetime of years. What that special thing is for you, will be different for everyone.
Perhaps QF could introduce a Loyalty Retirement benefit. So long as you've earned over 25,000 status credits and you don't plan on earning Platinum ever again - QF Loyalty could have a special team that curates extended special experiences to create 'money can't buy' memories that will live on forever in your heart.
Thoughts, Qantas?
In the short term - in my opinion, the best move QF Loyalty could make is to introduce a new benefit for LTG members.
That being - each membership year, the member receives 700 status credits into their account.
- Recognises Loyalty with no cash outlay from QF
- Creates new valued based benefit to the member
- Re-engages the members who disconnected from the program once hitting LTG (seems to be a lot based on those I speak with)
- Members who would otherwise average around 1,200 SC/year suddenly are on 1,900 SC/year and have reason to 'spend up' to reach the next bonus threshold.
- Increase allure of LTG and would encourage a few non-LTG to 'spend-up' faster
Cost of implementing the proposed benefit:
- A few powerpoint presentations
- Technical/LMS man-days
- Minor changes to communication material
- Contact centre training & memo updates
Non-financial benefits
- Innovation/more rewarding proposition
- Increase program attractiveness to high-value flyers
Risks & Mitigation Strategy:
- Lifetime rules / park it under OW exemption
- Revenue accounting if Status Credits have cross charge costs / Award as a bonus on 1st ~QF flight of their membership year. Potentially post amortization. The hard cost technically doesn't exist so can find a way around this problem
- Potential ticket revenue cannibalization / offset by spend-up and revenue protection of high-value members
- Other programs will copy / Get in first
Damn, I'm good at this. I should run a frequent flyer program ;p