Why thank you for volunteering me to reply
Definitely it's to do with locking folks into the brand for the coming years.
Like - if Qantas shared the average membership length of paid Qantas Club, my guess is that's well over 3 years, and the average tenure of those who cancel within 5 years would be higher than 2 years. By having a joining fee (on any product - not just airline memberships), it has a few benefits:
- Member is 'buying-in' to the status, and thus, has a greater affinity toward the brand, and toward their newly purchased membership. They've passed the initiation and therefore feel like the membership has been 'earned'.
- Allows Qantas to use the joining fee as a carrot to attract in new business "oh we will waive the joining fee JUST FOR YOU........." Similar to a car salesman saying they'll give you $1000 off for buying today.
- Once you've paid for the membership, why would you ever consider flying with Virgin? After all, don't want to 'waste your membership'. So it creates a lock-in effect whereby you'll fly more with the airline. Also more likely to get the credit card......transfer points into the program......shop at woolies... you get the idea...
- When the renewal comes around, the idea of paying $xx_ as a joining fee in the future isn't desirable. Some folks will justify paying the renewal like this -- "well renewal is $400 (example) but the joining fee is $500 ... so I'm better off renewing than not paying it, then re-joining next year when I think I might fly more..." See the logic?
- Ego and social pressures "Oh, you're not in the Qantas Club? I bet you're too poor to fly Qantas as well." > Renew renew renew.
Contextually, now is a great time for AFF to insert an ad for corporate Qantas Club membership! Insert Ad here