[Anonymous]

[MartinJ]

I’ve lost count of how many miles devaluations I have seen with the various FFP of which I am a member. Often I just resented paying more miles for future flights and sometimes I was infuriated by how my hard-earned miles were devaluated retroactively. I often caught myself vowing to “burn and leave” but a few months down the road my new “safe haven” suddenly followed suit in the expropriation run. The worst offenders so far have been Flying Blue (April Fool’s Day), Miles&More (2012) and, most recently, my new darling Lifemiles (still good value but their changes always seem to be unannounced which makes the programme just too unreliable and risky).

Seeing all that, I am getting tired of being on my guard all the time and checking out different FFPs to get the best deal only to find that the goal posts are constantly moving. Should I just accept the fact that the earn/burn ratios are getting worse every year, put up and shut up, or is it really worth complaining, searching for better programmes, switching loyalty, status matches, etc. What do you think?

PS: it’s not the status I’m after but the discounted long-haul premium flights.

[Ab0dache]

That’s a good topic to discuss MartinJ.

I have the feeling the answer may be “burn” the miles as soon as we can do it.
I am not lucky to travel enough. Not my choice but real working life currently reduces my globalisation style of work wishes. And this ends with less miles earned. Which means fewer opportunity for free fligths or no more long-haul premium flights.

I believe high frequent travellers may still have incentives to be interested in FFP. But you are correct to say that the constant moving rules needs time consumming to do your homework. I wonder if airlines or other companies are not lost also at a certain stage with their constant moving and sometimes complex rules. I understand it has a cost for them (or maybe they pretend it has). For sure then easyjet is in the right path to say “we don’t want to manage a FFP”.

However sometimes I have the dream one FFP annouces that the mile is worth let say 2 pence. And that can be converted to a MCO deductable when you buy a specific airline ticket. It seems at least we will be able to do what we want even if the value of the mile is inferior to what can be expected when using it with the current rules.
I wish also I could convert that for a Relais & Châteaux voucher, even on a 1 penny for 1 mile parity, and pamper myself in a good restaurant in town.
I notice supermarkets in France stopped to use points in their loyalty programms. They give now monetary value that is deductable the day after when you are at the cash desk. No need to wait ages for the unfeasable airline trip of your life. It is an immediate award. It is of course less fun than a flight but it is immediate and you almost do not lose any value. There is still the question why the price does not include already the discount but I believe this is marketing, no?

And where to leave? Here also it is a lot of homework. I will not earn enought miles in my case anyway. So I don’t spend too much time on it. But I am interested to read what others answer you and to learn from them.

How nice it was 20 years ago when redeeming flights was easy and with no costs at all whatever it is now fees, taxes or surcharges. This time has ended.

[IanFromHKG]

I don’t understand why there should be a devaluation when miles are earnt on the basis of distance flown (which will be a constant even where fares rise). I have more understanding with some hotel programmes where points are earnt on basis of the dollar spend – it then seems entirely reasonable to raise the points requirement to match increasing rack rates.

What I really fail to comprehend, however, is why airline status is tied to mileage, with uplifts according to travel class which bear virtually no relation to the increased cost. Why on earth don’t airlines give elite status according to dollar spend, which is surely what they are trying to increase and encourage?

[MartinJ]

Ian_from_HKG, when redemption rates go up, the miles in my pocket lose in value. That’s what I call devaluation, and it annoys me when the miles that I’ve already earned are being devalued retroactively. Reducing accrual rates is fine as I can factor this into the equation when I decide to buy or not buy particular flights. But when airlines are raising redemption rates, especially at very short or even no notice at all, FFP members are completely at the airlines’ mercy.

[openfly]

Virgin are the worst at this annoying practice. You get within striking distance of the required miles and they up the requirement…I have stopped playing their game!

[Bath_VIP]

Ian,

I agree with you that loyalty programmes should be based on spend rather than miles. A very good template for such programmes is Welcome Rewards run by Hotels.com (owned by Expedia). You collect 1 point for every night you stay in a hotel (booked through them). On reaching 10 points, you can redeem for a free night. The value of your free night is the average of your spend per night from the 10 points you collected but you can use this as part redemption. I have just redeemed by first free night (in Vancouver this week) but the hotel rate was actually higher than my earned average so my redemption was a straight discount off the total price.

Personally, I would love to see an airline run a similar program and there is no reason why not as far as I can see apart from a lack of lateral thinking.

[MartinJ]

Bath_VIP, if airlines were to adpot the hotels.com model they could no longer dump unsold seats but would have to tolerate customers using their miles/points on going where and when they actually want to go. Dishing out discounted seats to Inner Mongolia in January doesn’t cost the airline a penny (in fact, fuel and other fantasy charges bring in a little revenue for seats that would otherwise go unsold) whereas giving a discount on any flight to Florida in peak season actually costs them money.

[IanFromHKG]

From one of my posts above (and I made the same post on the thread at http://www.businesstraveller.asia/discussion/topic/Lounge-access-1): “What I really fail to comprehend, however, is why airline status is tied to mileage, with uplifts according to travel class which bear virtually no relation to the increased cost. Why on earth don’t airlines give elite status according to dollar spend, which is surely what they are trying to increase and encourage?”

Finally, one of the airlines has listened! Delta are moving towards a revneue-based system for earning status: http://www.businessweek.com/articles/2014-02-26/delta-to-frequent-flyers-distance-mileage-is-over-show-us-the-money

[SimonS1]

Interesting Ian. Makes a lot of sense to me.

[Bath_VIP]

Interesting move by Delta and hopefully others will follow. With BA allowing money off part redemptions on their EU flights, there is hope that the airlines may eventually move to the Hotels.com model.

[Inquisitive]

Singapore Airlines started miles/status based on dollar spent on ticket quite sometimes ago.
Delta is following SQ line now.

[MarcusUK]

I agree with the harder top earn, more to spend comments with all the FFP’s and also the Hotels. All programs have been re-vamped in recent years, and we lose out completely.

It is only fair though, for very frequent flyers who do not travel Business class or buy higher fares, that they get status also. in Flying Blue you can renew your Gold status with miles or with 30 flights a year.

Certainly in Europe, far fewer fly Business class, the difference being minor if you have a Gold + status as all the benefits are there anyhow.
Choosing KLM for 42 flights return from London (varying airports) to AMS last year, i think my loyalty and membership is justified.
I also made several long haul flights with KLM, but enjoy the freedom of choosing a different Airline when i wish.

Currently in Ne Zealand having flown with Etihad via Abu Dhabi, and 2 weeks in Sydney. KLM do not fly here any poor selection of partners this side of the globe. So, I chose Etihad Business Class.

These days, we need to have a couple of options for FFP’s, many going with the changes is not possible, but i like to keep 2 Programs at an advanced status.

So for the Very frequent flyers, especially in Europe they should continue to have the right to obtain status through regular loyalty.
There are many who pay there Own travel costs, who are on the forum not through a business. It could also be argued, that if as Business pays, they should own and have the miles?

Those personal paying frequent flyers, rightly earn their status through loyalty, and frequency, and should also be recognised.

[Author]

Posts