The true value of status - why NOT to spend to seek status...

[juddles]

Hi all,

I see many threads, mainly from new members, asking advice on how to jump from one status level to the next, and invariably these focus on lounge access. This site is an excellent source of tips on the best ways to gain such (everything from credit card bonuses to status runs), but I wonder often the real value that anyone gets. I know we all ponder this, so I wished to express my thoughts in a "rational" or mathematical (dollar) way, so maybe we can all see the light and stop doing silly things

I know there are some additional benefits (seat selection, baggage allowance, improvement in points earn, alleged better availability of award tickets), but I perceivce that most just want lounge access, or at least think that this is what they value.

I want to burst this bubble.

There are, IMHO, two parts to lounge access - the first is the wow factor (the prestige?). The second is the real benefits that this includes (drinks, food, etc). I am writing from my humble experience where I have been lucky enough (or forced to endure) enough travel that I get everything - I have top status with a few airlines including Qantas so every lounge is available.

So I wish to try to share what I consider the real value of this is, so people can reassess their desire to do status runs and similar.

To me, a lounge visit can be very roughly broken down into two main situations. The first is the ideal scenario, which is a multiple hour visit in the afternoon, or evening, where you have ample time to laze and eat and drink. The second is a morning, rushed, visit. Little time and no desire to consume much alcohol.

I talk about alcohol, because if you are not consuming this the value of lounges truly PLUMMETS.

So, what do I value a lounge visit as? Let's talk top status with Qantas. The bees knees is the famous Flounge visit in SYD or MEL. IE at least WP (Platinum) status. To be honest, my usual stopovers here are two hours, and I just sneak in for a quick scrambled eggs on toast and a few champagnes. Unless you are about to board a jetstar economy flight, the value of food and drinks is rather low. You can get enough of that on the impeding flight.... I am NOT knocking the service - I love the Flounges!! But the higher level of services (think the massages) are not truly available unless you are flying F anyway.

I define the value in cash of a lounge visit as what I would happily receive in cash to not have access. For a morning visit I value thus a Flounge visit at $40, and a leisurely afternoon visit at $100. If we are talking just gold status (Qantas Club), these would be reduced to maybe $30 for mornings, $60 for arvos.

I say again, I know this is ignoring the novelty factor, which I am over. But really, $100 even at airpor prices gets you a meal and some drinks in a comfy setting.

If you are not flying enough to gain status all by itself, I doubt you will be doing enough lounge time to make $1000 status runs worthwhile...

Now, please, my dear AFF'ers, throw those rocks at me

 

[marki]

One rock coming your way now. There is a need to to sit relax and work on your computer. Maybe get something to drink non alcoholic and not be disturbed by anyone. Have a shower, use the toilet and wait for your next maybe even delayed flight.
That makes a difference. The difference between the normal QF lounge and the Business lounge is not all that great and I go to where less people are.

 

[RooFlyer]

A few benefits of lounges missed there, I think.

* Ability to shower and generally freshen up between long haul flights;

* A place to be able to socialise with family, friends and colleagues in a reasonably civilised environment (lounge refurbs not included!);

* Ability to do some work in a reasonably quiet and productive environment (don't laugh, I have been known to do some actual work in lounges).

And some status perks I think that have value (Qantas system but partly true for many schemes):

* Higher priority for upgrades

* Can request award seats to be released

That said, I agree on the lack of value in status if you have to chase it (ie pay to achieve it beyond what you would otherwise fly). I'd value lounge visits a bit higher, esp Flounges. Then again, the HBA QP I'd value at zero when its crowded (often) - I sit out in the crowded concourse, but at least there there's a bit of variety!

 

[ermen]

Well if you equate it to the dollars and cents one probably cannot make a case (on the numbers) on how status runs work out.

But that's the beauty. There is this thing that economists call "utility".

What is the utility of lounge access (and status), it is what someone values it to be. By definition, under rational economic circumstances, if someone is willing to pay $5k for lounge access, it is because it is what it is worth.

Why buy a BMW when a Lada gets you from A to B?
Why fly Qantas when Jetstar gets you there fine*?

etc etc

 

[Hvr]

I talk about alcohol, because if you are not consuming this the value of lounges truly PLUMMETS.

Totally agree and as a teetotaller it is a consideration when I decide if a status run is worthwhile.

However, I'm at the stage where flying is enjoyable and fun to dp even without status.

Status adds to the experience and things such as express cards and even a spa treatment in the QFi F lounge have utility to me.

Finally, I would never throw rocks at you @juddles . I enjoy a good polemic and with your writing skills you can argue the merits of your point without making it personal.

This is of great benefit to AFF to raise, explore and discuss ideas.

 

[serfty]

Leaving lounges to one side.

If you like to travel, like I do as a Hobby then status can be very useful in its various benefits - free & better seating (BA, AA if QF, economy-X if VA) to additional luggage at no additional cost, etc.

I'm gunna do those flights anyway so to optimise them for status earn makes sense.

 

[Pushka]

Leaving loumges to one side.

If you like to travel, like I do as a Hobby then status can be very useful in its various benefits - free & better seating (BA, AA if QF, economy-X if VA) to additional luggage at no additional cost, etc.

I'm gunna do those flights anyway so to optimise them for status earn makes sense.

That makes sense. And being able to avoid awful queues to check in. These always do my head in, more than access to lounges.

Last year we traveled to Bali in J Adl via Sydney. Decided to skip the meal in F lounge (well, MrP did and I thought I should join him) as we thought the nice J meal would kill some flying time. Bad move. The food in J was execrable. Flying this route again in 3 weeks, on the earlier DSC promo and we will be eating in the lounge. That is the joy of status. That, plus getting two J award seats released, from Aus to SFO which was offered to me - didn’t even have to ask for it.

 

[Bundy Bear]

For me and probably others I don’t think the lounge novelty factor will ever go away.

 

[eastwest101]

I would put a price on the lounge access and other benefits as follows, and this is just me, as I don't drink a great deal:

Morning visit coffee toast etc $10
Morning breakfast $15
Shower $10
Lunch and non-alcoholic drink $20
Short afternoon drink $20
Quiet place to do work $ your hourly rate
Elaborate planned Flounge $100 (assuming full mean and beverage service)
Guest access into lounge $ 20- $100 with the caveat that guest has to pay to fly
Better seats on aircraft $25-$250 per successful use depending on length of flight and if bulkhead/exit row etc

Luggage allowance (per trip) $100 (only if you use it)
Priority checkin $ 20

With a mix of international and domestic Y and J class flying with either QF and their partners or VA and their partners you would be looking at a "typical" basket of airfares in the region of $3500 to say $4500 spend to obtain gold status and a minimum of $5500-$8500 spend to obtain platinum status (assuming $5-$7 per SC which is really the best case scenario, unless you have the time and inclination plan SC runs originating in Mongolia via Sierra Leone to Myanmar)

The economic equation is really all about what you (or your employer) spend that results in the status, if its travel on someone-elses dime and you are going to travel/earn the status anyway, then the status is an absolute no-brainer. Spending your own money on unnecessary travel or status runs means you have to be smarter and have the flexibility/time, skills and funds to outwit the airlines dedicated yield management team - and thats just unrealistic in most cases.

 

[RichardMEL]

Some good points from several posters.

I think at the end of the day the value of status is different to everyone. For some road warriors it comes along and they barely notice(or care).. others strive for it. I recall a year or so back someone in the P1 thread claiming to have chased it for the card alone and no other particular reason.

It also depends on one's travel habits. eg: if I fly mostly out of ADL to regional ports, then the value of Platinum status is far reduced - there's no dom J lounge and probably mostly regional aircraft to get. However, if I flew from SYD or MEL to SE Asia or NZ, then regular access to the F lounge could be seen as a valued asset for the comfort factor, the pretty good food and drink options, plus upgrade priority, standby priority and the like.

Now, there are posts here every so often that go somehting like this "I'm X SC short of Silver. I fly about 5 times a year between Melbourne and Brisbane.. is it worth it?" I'd say NO. It very much depends on one's situation, proposed future use(ie: travel opportunities) and the like.

I've been P1 for the past 4 years and have requalified for a 5th... like many here who have had or currently hold it, I'd say it's probably not worth chasing at all. I fyou get it due to flying activity then great but that level doesn't provide anywhere near the value for any kind of $$$ outlay to attain it, unless it's a side effect of already planned travel. Now sure, I've gotten there some years with DSC and that totally helps and yes, when I've realised I'm close, I've made a few run over the years.. absolutely. However there's a point where I will draw the line and say nope, it's not worth it to do that extra. Plus I also have been flying other carriers (SQ for one) that provide better service and product for the price.

I always try to remember these schemes, both FF and status related, are forthe benefit of the provider, not the customer. I play the game like molst here, and extrat what I feel is value. I've found being ble to get a F seat released at short notice brilliant as it got me out of a bit of a bind in a particular situation (though ironically that flight wound up being badly delayed and got me into anothe bind, which status with another airline-UA-actually got me out of!). I am certainly under no illusion though that none of this is for my benefit per se.

However it does't mean that status and making efforts to get to a certain level, or sweet spot, like Gold aren't worth it, or even having a longer term plan to work towards lifetime status (this is my goal with UA, as I have QF) and, assuming the schemes keep these benefits, the idea is to then have those for the next few decades to get the benefit for when I may only be making the occasional trip, Now that's a big assumption of course that such benefits will continue for that length of time, but that's the risk we take playing the game.

I enjoy status but I don't live or die by it, and I do enough travel (luckily) whhere I can "spread myself around" a bit and go to multiple programs/alliances, and thus keep the options open both to take advantage of fares/sales/availability of awards but to also not be only tied to the one lot.

Really though my siituation and views on it are unique to me. Everyone puts their own value on such things... there's not going to be one answer fits all with this kind of thing.

 

[badseed]

It's all a matter of value for each individual, and that will have both 'real' and 'perceived' aspects.

Prior to having a young child the lounge access was indeed the best part of status - now it is the priority check-in and security. The little one is slow at learning patience. And the additional baggage so we can cart along trains, books, and infinite changes of clothes without having to worry about excess baggage charges.

And given I'm not travelling much for work (although that is about to change), I love being able to guest in my wife and child, so that more than doubles the value in my case.

So Velocity Gold is really the sweet spot for me. Relatively easy to get and retain. Family pooling is my best friend.

 

[Points Pirate]

It's all a matter of value for each individual, and that will have both 'real' and 'perceived' aspects.

I agree. There's cost/price (objective), then there is value (a bit of objective and subjective) and perhaps further still there is perceived value (totally subjective).

There is also the fact that humans don't always behave entirely rationally.

 

[ozjuice]

I only really think it's a consideration if you literally have to go out of your way and expense to achieve status. I'd say the idea of it is to reward PAX that actually earn it due to flights and therefore it's a set of perks that as a whole make their travel a lot more comfortable. If you are just going out of your way to pay for status then you're probably wasting money. Overall it's the carrot that dangles that keeps customers loyal and it works a lot of the time. I like the perks!

 

[mviy]

I probably wouldn't have been able to justify going for Platinum without the carrot there of LTG. I'm still not even at LTS yet though.

For me the main benefits of status are:

• Lounge access
• Upgrade priority
• Better availability of QF award seats
• Ability to request seats be released (WP or above)
• Priority boarding (I hate getting on board and finding I can't put my bags anywhere - that situation stresses me out probably more than anything when travelling).
• More points earned when flying

I earn lots of points from churning Credit Cards. There's not a lot of point doing that if I don't have the status to have a realistic chance of being able to use them.

Upgrading with points can provide much better value than purchasing a seat at the pointy end.

 

[drron]

As we now fly paid J or Award F status really doesn't have a great financial benefit for us.It does count domestically where we usually fly Y.Then again I am LQP and mrsdrron LTG on QF.
But there are other advantages such as better resolution of problems and a better lounge when flying J.
But best benefit-more availability of awards.
So I would not pay to do a status run but will utilise the why fly direct rule if there is no additional cost.So in the past we used an OW Circle Asia fare but now the BA BKK return fare.Same price if I do SYD-SIN-BKK-SIN-SYD as BNE-SYD-SIN-NRT-BKK-NRT-SIN-SYD-BNE. now that I have finally got the no more than 2 stopovers rule and we love Japan.

 

[downgraded]

That makes sense. And being able to avoid awful queues to check in. These always do my head in, more than access to lounges.

Last year we traveled to Bali in J Adl via Sydney. Decided to skip the meal in F lounge (well, MrP did and I thought I should join him) as we thought the nice J meal would kill some flying time. Bad move. The food in J was execrable. Flying this route again in 3 weeks, on the earlier DSC promo and we will be eating in the lounge. That is the joy of status. That, plus getting two J award seats released, from Aus to SFO which was offered to me - didn’t even have to ask for it.

I tend to agree.
The shower has a value way in excess of its $$$ cost when you're about to jump onto a long haul flight.
Priority check-in and express path are two of the few perks that can't be obtained unless you're otherwise traveling in a premium cabin. I'd forgotten LTG got me express clearance which was a nice benefit when I thought I was going to have to join the normal queue.

The bonus points earn rates seem an oft forgotten benefit as well.

Have never done a status run in my life.

 

[Boca68]

A lot of great responses, one of the common themes arising, is it's different for everybody. For myself, I'm self funded flyer. I've always loved flying, long before I knew of the possible perks.

As an example, I travelled frequently before just because I love it. Never knowing of QFF, Lifemiles or Skymiles etc... If I knew 20 years ago Ufff!

I was self funded then and now. Now technically business funded, but it's my business. It costs me quite a lot, but I try to maximise the cost versus benefit equation as much as I can. But I don't equate a lounge visit on a $$ basis. Because its there already due to my spend. I do however target my spend with an eye to the extra perks. Why? because it makes the long haul travel I do slightly more bearable. And I have to usually get off at the other end and met someone I consider important. Rather not feel or look like a dog's breakfast at that time. Especially as its usually my wife who I might not have seen for a month meeting me. Or even worse, her mother

So, I guess the upshot is that I'd probably spend the $$ anyway with someone. The lounge is a nice perk to have. If it wasn't there, i would certainly be much more picky in where I spent.

edit: a p.s.- besides I can't stand most of the production line food and dreadful coffee at airports. And don't get me started on airport bars! yet to encounter one that is reasonable. Actually that would be a good thread..... great airport bars...non-lounge of course hmmm??

 

[stm1sydney]

Last year we traveled to Bali in J Adl via Sydney. Decided to skip the meal in F lounge (well, MrP did and I thought I should join him) as we thought the nice J meal would kill some flying time. Bad move. The food in J was execrable.

This must be QANTAS then.

 

[BD1959]

I understand the basic premise: this is to warn those wanting to attain status of the unlikely benefit versus cost, however the perceived major benefit (simple lounge access) is not the same as for those of us who achieve the level, but then drop.

A couple of years ago I dropped from WP to SG; hey, did I miss some of those WP benefits and strove to recover ASAP (include a Status Run this year).

Lounge Access.
It is not simply the act of walking through a door and accessing free coffee prior to flying. WP provides - as others have stated - Domestic Business Class and International F Lounge access. While these are good, on their own they're not necessarily enough. I've been in to the SYD FLounge mid-morning and almost walked out, such was the crowd (I then reminded myself of my previous SYD Int J Lounge visit and found a single seat and resigned myself to not being served breakfast and got on with the work); the food and drink offerings in the MEL and SYD Domestic J Lounges is not a patch on (even) 3 years ago, while the overall quality of the wine seems to be on a downward spiral. HOWEVER: Domestic Lounge Access on arrival can be a god-send (I am planning to use it tomorrow when myself and a colleague arrive with 45mins to spare in Adelaide) as can be the additional guest in domestic lounges ... saves scrounging a paper pass here if you have a +1 family member/colleague travelling.

Recovery
I used to fly MEL-SYD-MEL regularly back in the bad old days of oversupply and book the xx:15 or xx:45 back because they tended to be cheaper. They were also the flights which seemed to be most prone to operational cancellations. When this happened, invariably I'd be contacted with the +15mins later flight already booked. That is what I call service recovery!
On the flip side, I recall handing my card over at SYD one afternoon and the machine rejecting it; I'd totally forgotten to check-in for my return. It was not an issue and I was taken to the service desk and the BP produced. Similarly, once jumped in a cab heading out to MEL intending to check-in enroute; of course was side-tracked on a call and by the time I arrived at MEL check-in had closed. I explained the situation to one of the CSEs roaming the bag drop and with a wry smile - and a quick phone call - I'd been checked-in for my flight. Simply, with increased status, issues tend to be eased away.

Different perspectives on the value of status.

Regards,

BD

 

[wandering_fred]

Has any of the previous posters in this thread actually seated themselves in a chair in the normal gate area before a flight for more than five minutes? The lounge chairs are nothing to write home about (well maybe that they need re-upholstering) but they are a great deal more comfortable. And while the quiet may not be deafening, most lounges would be quieter than an airport concourse.
And now that QF won't check you in on separate PNRs, perhaps the value of business class check-in has been seriously reduced. But when 96% of your flights are international ex-Australia, avoiding the lines which you see for economy seating (yes there are a number of smaller seats towards the rear of the plane even if they are not observed by most posters here) is greatly appreciated if you do not wish to spend time standing in (slow moving) lines. And besides, one of the high points of my recent trip with a land based relative was seeing the long lines and then avoiding them.
As well given the price of beer or wine (or coffee) in hotel environments, I would suggest the savings benefits of the lounge is rather more than previously mentioned.

But perhaps I am wandering (too much)
Fred