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Showing posts with label frequent flyer status. Show all posts
Showing posts with label frequent flyer status. Show all posts

Monday, January 03, 2011

My top posts for 2010 over at Boarding Area

Nearly a year ago I moved my blog from this site to Boarding Area, home to several blogs with a business and frequent flyer travel focus. I notice there are still many people reading this old site - please click here to the Boarding Area home of Musings of the Global Traveller.

The most popular posts of 2010, based on views, made in the other location are:

  1. All A380 routes - all scheduled routes operated with A380 aircraft (all airlines) [continues to be updated]
  2. Frequent flyer mileage expiry - mileage expiry policies for all major frequent flyer programs [continues to be updated]
  3. Lifetime elite airline status - lifetime elite status qualification and benefits for all major frequent flyer programs [continues to be updated]
  4. Super easy Star Alliance gold status with Aegean - by far the easiest way to top elite status with Star Alliance, and is still live
  5. New Qantas first class (A380) - now 2 years old but still popular as it remains one of the better first class offerings in the air
  6. A380 business class comparison Emirates, Qantas and Singapore - surprisingly more popular than my A380 first class suites comparison Emirates, Qantas and Singapore
  7. HON Circle mileage run by private jet - a number of readers got this airline status (with extra special benefits) for low cost, and in great comfort
  8. US tourist tax (ESTA fee) starts 8 September & already inflated
  9. Frequent flyer questions on status - part of a series of posts answering questions from readers of Wendy Perrin's Perrin Post
  10. bmi Diamond Club timeline for closure revealed by Lufthansa

Thursday, February 04, 2010

Badly targetted frequent flyer offers

In my email inbox today was the latest in a long history of badly targetted offers from Lufthansa Miles & More.

The email included as "selected offer for your mileage balance" the Silver Promotion. Frequent Traveller status (Star Alliance Silver) can be earned by taking 30 paid flights on Lufthansa, Swiss, Austrian, LOT, Adria, Croatia, Brussels, Air Dolomiti or Luxair by 31 December.

This is wrong for me on a few levels.


  1. As referred to at the start of the email I have a higher elite status.

  2. Not only that but I've already requalified to 2013.

  3. Since I'm not based in Europe, 30 flights on those airlines would be more than enough to qualify for Senator, not Frequent Traveller status.


An example of a previous promotional mis-step by Miles and More include offers of 10k bonus miles if I make 3 intercontinental round trips in first class on Lufthansa within 6 weeks. That bonus was paltry compared with the cost of achieving it and the huge amount of miles that would already be earned (rate of 325% times mileage).

Still, it is better than Virgin Blue Velocity Rewards, which offered gold status only to rescind the offer.

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Saturday, January 23, 2010

Star Alliance Gold Plus

The majority of Star Alliance frequent flyer programs (FFPs), including all the main ones, have more than one elite status level that is Star Alliance Gold. Oneworld has 3 elite status tiers across the alliance (although some programs do not have every alliance tier represented), so I'm not sure why Star Alliance couldn't also introduce an extra tier with additional benefits over Star Alliance Gold.

Star Alliance Gold Plus

(AC) Aeroplan - Air Canada Super Elite
(NZ) Airpoints - Gold Elite
(OZ) Asiana Club - Platinum
(US) Dividend Miles - Platinum Preferred
(MS) EgyptAir Plus - Platinum
(SQ) KrisFlyer - PPS Solitaire, PPS
(NH) Mileage Club - Diamond
(UA) Mileage Plus - Premier Executive 1K
(LH) Miles and More - HON Circle
(TK) Miles and Smiles - Elite Plus
(CO) OnePass - Platinum Elite
(CA) Phoenix Miles - Platinum
(SA) Voyager - Platinum

Programs with only one Star Alliance Gold status

(FM) Crane Club
(BD) Diamond Club
(SK) Eurobonus
(TG) Royal Orchid Plus
(JK) Spanair Plus
(TP) Victoria

Friday, January 22, 2010

Lifetime elite airline status

As part of a review of my frequent flyer strategy for the year ahead I have been thinking about lifetime elite status. If one year of elite frequent flyer status is good then a lifetime is better - travel can be focussed on purposes other than requalification of elite status.

As the term suggests, lifetime elite status gives status benefits for the rest of your life, or the life of the frequent flyer program, whichever ends first. In respect of alliance benefits there is an additional caveat that the host airline remains in the airline alliance.

In 2007 I achieved lifetime Oneworld Sapphire status through Qantas Frequent Flyer. I was also well on the way towards lifetime Star Alliance gold status through Singapore Airlines before they pulled the plug by grandfathering existing lifetime PPS Solitaire members and stopping any new qualification of the status. Since then I haven't paid too much attention to lifetime statuses, since most of the programs I use either do not have lifetime elite status, or have a long time period qualification (in one case decades for me).

The last couple of years my travel patterns have changed markedly, and as I continue to seek out more difficult to reach places they will keep changing for the foreseeable future. Thus, removing the requalification hassle will be welcome. I haven't yet finalised my approach but in the meantime, here are some lifetime elite airline statuses that are available together with their requirements.

Lifetime status earned by a period of time with high status

Air France/KLM - 10 years platinum for lifetime platinum (Sky Team elite+)
bmi - 10 years gold for lifetime gold (Star Alliance gold)

Lifetime status earned by a period of time with high status and minimum status mileage

Lufthansa - 10 years senator/HON circle at or above age 60, and 1 million status miles for lifetime senator (Star Alliance gold)
SAS - 10 years gold at or above age 60 for lifetime gold (Star Alliance gold)
South African - 6 years of platinum earned by flying 100,000 miles per year on South African or by the requisite tier points (only South African flights count) for lifetime platinum (Star Alliance gold)

Lifetime status earned by lifetime status mileage (restricted)

Air China - 1 million status miles on Air China for lifetime platinum (Star Alliance gold)
Alaska - 1 million status miles on Alaska and Horizon for lifetime gold
Asiana - 1000 flights on Asiana for lifetime platinum (Star Alliance gold)
EgyptAir - 1 million status miles on EgyptAir for lifetime platinum (Star Alliance gold)
Philippine - 1 million status miles on Philippine for million miler
United - 1 million status miles on United for lifetime premier executive (Star Alliance gold)
United - 2 million status miles on United for lifetime premier executive (Star Alliance gold) and lifetime Red Carpet Club membership
United - 3 million status miles on United for lifetime 1K (Star Alliance gold)

Lifetime status earned by lifetime status mileage (unrestricted)

Asiana - 1 million status miles for lifetime platinum (Star Alliance gold)
Continental - 1 million status miles for lifetime silver (Star Alliance silver)
Continental - 2 million status miles for lifetime gold (Star Alliance gold)
Continental - 4 million status miles for lifetime platinum (Star Alliance gold)
Delta - 1 million status miles for lifetime silver (Sky Team elite)
Delta - 2 million status miles for lifetime gold (Sky Team elite)
Delta - 4 million status miles for lifetime platinum (Sky Team elite+)
Korean - 500,000 status miles for morning calm premium club (Sky Team elite+)
Korean - 1 million status miles for million miler club (Sky Team elite+)
Qantas - 7,000 status credits for lifetime silver (Oneworld ruby)
Qantas - 14,000 status credits for lifetime gold (Oneworld sapphire)

Lifetime status earned by lifetime mileage (any source)

American - 1 million miles for lifetime gold (Oneworld ruby)
American - 2 million miles for lifetime platinum (Oneworld sapphire)

Comments

Sky Team appears to be the easiest to earn lifetime top tier status. For me that isn't much help as I very rarely fly Sky Team airlines.

Star Alliance has a number of options for lifetime top alliance tier status. Easiest would have been bmi, if you've already had bmi gold status. The expected merge into Lufthansa Miles & More within the next year scuppers hopes of lifetime status for most people. For someone starting now Asiana may be easiest except for those who predominantly fly United.

Oneworld has no lifetime top tier status. Lifetime middle tier status is most easily earnt with American since all mileage counts.

In all cases lifetime status requires a significant commitment and a lot of flying (except for American). So an important consideration is whether or not the lifetime status benefit will still be available for long enough to earn it, and whether the requirements may go up significantly in the meantime.

Something for me to think about.

Tuesday, November 24, 2009

Emirates Skywards major devaluation

About 6 weeks ago I posted the news that Emirates Skywards will have a major overhaul effective 1 January 2010.

In short the frequent flyer program will be more closely aligned to revenue than it currently is. Earning rates depend on fare basis and the class of service factors for business and first class are higher.

Since the announcement, Emirates has drip-fed more detailed information including the new geographic zones (from 2010 both earning and redemption is zone-based), and new earning & depemption charts. After crunching the numbers on hundreds of routes, the conclusion is unmistakeable - this is a significant devaluation.

Geographic zones

The current program has 13 geographic zones for awards. From 1 January 2010 there will be 18 zones for both earning and redemption. Mostly these are unchanged from the existing zones, except:

  • America split into 3 zones - North America west (which includes Houston), North America east and South America
  • Australia/NZ split into 3 zones - Australia west (ie Perth), Australia east and New Zealand
  • Cyprus switches from Near East to Europe South
  • Cities near to Dubai (ie Bahrain, Doha and Muscat) switch from the Home zone to Middle East

The consequences of the America & Australasia zone splits are to make some awards cheaper for cities closest to Dubai, and some awards more expensive for cities further from Dubai.

Cyprus awards are more expensive.

Cities near to Dubai now have a small extra award mileage cost relative to the equivalent award to/from Dubai.

The new charts have a disclaimer that the figures are based on the most direct route between zones. Since Emirates has lots of tag flights (ie flights between cities other than Dubai), it is unclear how to interpret the new earning & redemption rates on some routes. For example between Asian Sub-continent south and Far East there are some direct flights (Male to Jakarta for instance) but between most city pairs travel would need to be via Dubai (eg Colombo to Seoul). How are the rates determined in those cases?

As the Emirates route map changes frequently, Skywards members will need to pay attention to changes in the zone earning rates. This could be a positive or a negative depending on changes to the routes and how quickly Skywards reacts. It certainly is a nuisance and is a drawback of using geographic zones so heavily in a frequent flyer program (incidentally Air NZ Airpoints also uses zones, but the issue is less relevant for them due to their much more limited route network and less active changes in that network).

Awards relatively unchanged

The good news is that on the whole award costs are the same in the new chart as the existing one. There are some increases (mostly associated with the zone changes) and some decreases.

This is particularly reassuring to those who have a sizeable stash of miles, given the short notice to cash them in on the old award charts if the rates had increased significantly.

The new ability to redeem one-way awards is a genuine improvement.

Upgrades costly

The new upgrade costs are much higher than the old costs. Upgrades from flexible fares are generally slightly higher than the old upgrade cost (with some slightly cheaper and some much higher), and upgrades from saver fares are generally 30-40+% higher than the old upgrade cost.

In most cases the new mileage cost to upgrade from economy saver to business is almost as high as the cost of a business award.

Earning rates slashed

The most significant change is to the earning rates. Emirates spun the changes as being an enhancement to the class of service bonus. While it is true the mileage earned for first class relative to economy class (flexible fares) is higher from 1 January 2010, this has been achieved by reducing almost all the earning rates as outlined below.

The 2009 earning rates are 100% mileage in economy, 150% in business and 200% in first.

The 2010 earning multiples are 50% for economy saver, 100% for economy flexible fares, 125% for business saver, 175% for business flexible fares, 200% for first saver and 250% for first flexible. However the base mileage earning between the zones is roughly 80-90% of the typical distance flown.

The result is marginally higher earning on flexible first and business fares, a 15% drop in earning on saver first fares, a 30% drop in earning on saver business fares and a whopping 55% drop in earning on saver economy fares. Some routes have smaller or bigger changes in earning than these generalisations. Most people fly on saver fares because the definition includes all fares not fully refundable, fares which are available for a limited period or are non-published, and all fares which include other airlines.

Status more difficult to achieve

In more PR spin, Emirates trumpeted that the elite status requirements were unchanged. Of course now we see the detail of the earning rates it is immediately obvious that from next year it will be harder to earn Silver or Gold status.

Summary

The changes remove most of the anomalies in the existing program, and at the same time represent a significant devaluation.

With both earning and redemption being fixed amounts based on zone and fare, the earn to burn ratios are relatively constant. The earn to burn ratios on Skywards from 1 January 2010 are generally in the 8-10% range, with some as poor as 5% and some as good as 15%. This represents much worse value than most US-based frequent flyer programs, for example.

These changes are big enough for me to rethink my plans for some premium longhaul trips on Emirates for 2010.

Thursday, November 19, 2009

United eggs on extreme mileage runners, again

No I'm not referring to double or triple EQM (elite qualifying miles) promotions. Last year United Mileage Plus had an Elite Choice Team competition, where the winning 50 teams (of 4 people) earned 1 million redeemable miles (all these to be shared between each team) plus some other lesser prizes.

The 2010 individual Elite Choices are not as lucrative but once again appeal to competitive insane Flyer Talkers. Top billing is for the first 50 people to reach 250,000 EQM or 250 EQS (elite qualifying segments) - they get 50,000 redeemable miles (on top of the pile of miles earned) and also get 1K status (with all the attendant Star Alliance gold benefits) to gift to a nominated person.

Another great, but hard to get, prize is for the person who in a calendar month earns the most EQM from United flights - 2 SWUs (systemwide upgrades good for any one-way trip between stopovers) and also Premier Executive status (also Star Alliance gold) to gift to a nominated person.

To show how lucrative this could be for someone flying an insane amount, take the following hypothetical.

Suppose you win both of the prizes mentioned above (most United flying in a calendar month and also in the first 50 to reach 250,000 EQMs in 2010). Suppose also you currently do not have any United status. While reaching 250k EQMs you would earn at a minimum (ignoring everything other than the Elite Choices promo):

  • up to 250,000 redeemable miles from flying depending on fare class and airline
  • potentially a significant amount of redeemable miles from credit card spend
  • 25,000 redeemable miles or gift of Premier status at 125k EQMs
  • 25,000 redeemable miles or gift of Premier Exec status at 175k EQMs
  • 50,000 redeemable miles from 250k EQMs prize
  • gift of 1K status from 250k EQMs prize
  • 2 SWUs from most United flying in a month prize
  • gift of Premier Exec status from most United flying in a month prize
  • up to 6,250 redeemable miles from the Premier 25% bonus miles on United flights (between 25k and 50k EQMs)
  • up to 200,000 redeemable miles from the Premier Executive and 1K 100% bonus miles on United & Continental flights (after 50k EQMs)
  • up to 88 of 500-mile region 1 upgrades from the 4 500 mile region 1 upgrades per 10k EQMs on United after 25k EQMs
  • up to 2 confirmed region 1 upgrades (CR1s) from flying 10k miles on United in a quarter
  • 6 SWUs on qualifying for 1K (credited at end of 2010)
  • 6 SWUs from 2 SWUs per 50k EQMs starting at 150k EQMs in a calendar year
  • up to 25% of the way to Million Mile status (if all EQMs are from United flights)

I've assumed all this flying happens in the first quarter & so have ignored the new unlimited United domestic upgrades system.

If all the flying is on United, and assuming take the bonus miles option this comes to a total of:

  • up to 556,250 redeemable miles (before any other promotions, minimum mileage, credit card earn, etc)
  • 14 SWUs (8 of 2010 vintage and 6 of 2011 vintage)
  • 88 500-mile upgrades
  • 2 CR1s
  • 1 gift Premier Exec status
  • 1 gift 1K status
  • 1 sore butt

I'm not an expert on United Mileage Plus, so hopefully my maths is right. Please correct me if not.

That is a lot of bennie for some crazy enough to do a lot of flying on United (or slightly less benefits if flying other Star Alliance airlines). How much flying? Well 250k EQMs in a premium cabin is at least 167k flown miles, or roughly 7.5 times around the world. I have flown that distance in under 2 months, although admittedly not on United.

Saturday, November 14, 2009

A380 first class suites comparison - Emirates, Qantas and Singapore

This year I've been fortunate enough to fly in first class on A380 on all the airlines which operate it (excluding Air France which has just taken delivery of their first A380). I think it may be useful having a comparison between the three products.
In each case, the A380 first class is the best first class offering of the relevant airline. Singapore Airlines even has restricted bookings in this class to special paid fares and no awards (Qantas also had special paid fares for A380 first class initially but soon dropped this approach).
Emirates - Sydney to Auckland (picture from Emirates)

Qantas - Sydney to Singapore (picture from Creative Commons)
Singapore - Singapore to Melbourne (picture from Singapore Airlines)

Pre-departure

All 3 airlines treat A380 suites the same as any other first class on the airline - ie pretty well. This means a dedicated first class check in lane (Qantas in Sydney & Melbourne, and Singapore in Singapore also have a special curbside first class check in lobby), priority immigration queue, access to a nice first class lounge (or combined business & first class lounge in the case of Emirates), as well as priority boarding together with business class and frequent flyer elite passengers. Emirates also has airport limo transfers at both ends for first and business class passengers on most routes (including trans-Tasman).

Qantas in Sydney and Melbourne, and Emirates in Sydney, also have a priority security queue for first class, business class and frequent flyer elite passengers. At Singapore security is processed at the gate, and the gates used by A380 do not have a priority lane.

Onboard all three airlines you are escorted to your seat, offered a pre-departure drink (juice, water and champagne are offered but in practice you can request other drinks as long as they don't take too long to prepare). On Singapore Airlines the champagne is a choice of Krug or Dom (2000 vintage currently), on Emirates it is Dom and on Qantas it varies. Emirates also offers a date and shot of Arabic coffee before departure.

Menus are handed out before departure. Other amenities (pajamas, slippers, toiletry kit) may be handed out before or after departure. Note due to the short flight duration, my Emirates flight did not offer pajamas or the normal amenity kit, but did include slippers and a small collection of creams.

On all three airlines noise cancelling headphones are used. Qantas has the headphones ready in a cubby hole but doesn't switch on the IFE (except for the tail camera) until well after take-off, Emirates hands out the headphones before departure so you can start watching movies straight away, whilst Singapore Airlines doesn't hand out headphones until after departure.

The hard product

All three airlines have a suite for first class - ie at least partially private with lie flat bed and ability for couples to dine together. Emirates and Singapore Airlines have a relatively similar set-up - in contrast Qantas is quite different.

On Qantas and Singapore Airlines, first class suites are on the lower deck, but on Emirates they are on the upper deck. Qantas has 1-1-1 layout across the cabin with seats angled to the direction of travel, Singapore Airlines and Emirates are 1-2-1 layout with seats facing forward. This means Qantas is not so good for couples travelling together, Singapore Airlines has the widest suite, whilst Emirates makes use of the space beside the grand main stairs to provide 2 showers in well appointed shower rooms (limit to 15 minutes use per flight, with timeslot bookable). Emirates and Singapore Airlines A380 suites have doors, and Qantas does not, but due to the angled seat direction Qantas suites are almost as private as if they had a door.

All of these suites have plenty of legroom in bed or reclined mode, however Qantas has an odd arrangement whereby seats face forward for take-off and landing and this has minimal legroom. The Qantas (and I think Emirates too) seat can convert to a bed with you sitting in it, whereas with Singapore Airlines you need to get out for a minute while cabin crew converts it for you.

The tables are good in all three - large so that a couple can eat together, and somewhat adjustable, although Singapore Airlines table has less flexibility than the others.

Of the little touches, I like the double blind system used by Qantas - lower one set to cut out glare while keeping the suite light and lower the second set to darken, I like the several air nozzles in the Emirates suites but the mini bar is a bit gimmicky for my taste.

All three suites have large screens to watch the in flight entertainment. The selection is the widest of the various offerings by each airline - Qantas has a special system not available on their other aircraft, and both Emirates and Singapore Airlines have their renowned comprehensive entertainment options. I've flown Qantas A380 twice and both times the IFE crashed in my seat (and other seats). 2 flights is a small sample so I could have been unlucky there.

Qantas and Emirates have a special touch screen controller to adjust the various suite functions (seat/bed positions, lights, etc) and double up as IFE controller. Singapore Airlines has the more traditional handset plus buttons in the suite wall.

Soft product

On all three airlines, A380 first class has much the same soft product as other first class, and it is pretty good.

Singapore Airlines has a special menu for suite class (ie A380 first class) but really it is no different to first class menu for the same or equivalent route. All three airlines have great food and drink options, and the option to dine at your leisure (ie you pick the time to eat). One of my great pleasures of flying longhaul premium travel is the ability to take my time savouring a great wine and food menu. I think it is a mark of great crew to identify the pacing a passenger wishes to take and making sure they don't feel rushed or slowed down (in case of trying to get to sleep afterwards) unduly. I enjoyed a long slow meal with Singapore Airlines, for Emirates the flight is too short for maximum effect but there was some tailoring in the speed for each passenger, but with Qantas there was less flexibility offered in this regard - I felt rushed.

On the Sydney to Singapore flight Qantas has the degustation menu, which is a great way to sample many different foods with accompanying wine selections. Emirates had the least interesting food options, but for a 140 minute flight it was still very impressive (and far better than any on offer by any of the other 7 airlines flying the Tasman). Their longhaul menu was better still.

Cabin crew can make a world of difference to how a flight is enjoyed. Emirates and Singapore Airlines had great attentive staff who seemed to read minds when you wanted something. Qantas on the other hand continues to have a problem with consistent quality of cabin crew, and this was made worse with A380 by their decision to use staff on a newer contracting arrangement for this aircraft. Qantas appears to have accepted the negative feedback and since my flight has included other more experience crew in addition and is taking steps to improve quality all round.

How can you experience A380 suites for low cost?

Emirates flies A380 between Auckland and Sydney, and first class fares are relatively low (a little over US$1000 return). For longhaul look for fares from certain cheap originating Asian countries to Toronto. Otherwise, Skywards miles are easily able to be used on A380 first redemptions.

Qantas first class fares are never cheap. Look for British Airways premium sales to Australia - often these include first class (as return or one-way in business and one-way in first), and thanks to the joint services agreement on the kangaroo route these are bookable on the BA codeshare on the Qantas A380 flight as well. Otherwise, mileage redemptions are possible although hard to get unless using Qantas Frequent Flyer points (since QFF redemptions are opened at roughly 355 days before departure often prime awards are sold out by the time AAdvantage redemptions open at 330 days before departure).

Singapore Airlines blocks awards on A380 suites. You can get lucky, as I did, by booking an award on a flight operated by 747 before it is switched to A380. However, the easiest and surest way (for now) is to book first class between Singapore and Hong Kong and pick the A380 flight. Eventually Singapore Airlines must open up A380 suites to awards, but it has been over 2 years already with this policy.

Summary

I enjoyed the first class A380 suites experience on all three airlines. I certainly want to try Emirates on a longer flight. Qantas was the most different and also the most disappointing. I hope my experiences were an aberration as they have the potential for a very good service. Singapore Airlines offered all that I imagined, and lived up to their high reputation and my expectations from many prior flights on other aircraft.

If you have any questions, feel free to ask by comment and I'll try to answer.

Wednesday, November 11, 2009

Learn the basics of frequent flyer programs

Fellow nomad Chris Guillebeau has launched a guide how to use frequent flyer miles and has requested for a quick review*. I like what he does so I'm happy to oblige.

I like the guide. It covers the basics well, and includes practical, real, examples. This will save someone unfamiliar with frequent flyer programs from making simple, common, mistakes. It will also save a lot of time on researching how to get the best value out of them. All the information in the guide is available on Flyer Talk and elsewhere, but it is hard to find because you have to know what to look for and the right questions to ask - tricky.

As with real life mileage earning opportunities, the guide does have a US bias. Most of the promotions referenced are current US-based ones (although some are also available to global residents). There simply are more ways to earn much more frequent flyer miles through non-flying activity if you live in USA and/or have USA-issued credit cards than if you live in Asia-Pacific for example. Chris acknowledges this towards the bottom of his sales pitch.

If you don't know the ins and outs of frequent flyer programs, or how to earn significant sums from non-flying activities, the $49 fee can easily be recouped in time & money saved, and not only covers the guide but additional resources such as updates on significant promotions for the next 6 months.

Chris offers a guarantee so you can try it out and be refunded if it doesn't work for you.

Since the guide is targeted for non (or newly) frequent flyers there is no discussion of elite status benefits. I don't think that is a problem, but it would be nice to point out that those flying more than 1 intercontinental trip or half a dozen transcontinental trips in a year have additional factors to consider.

There is also little mention of mileage upgrades, although I understand this will be coming in an update.



* as with all my reviews I receive no reward for making the review, and also do not accept any restrictions on what I can or can't say. I simply tell it how I see it.

Thursday, October 22, 2009

Travel dreams can come true

Granted, the first travel dream coming true for me recently sets a low bar, but it has been long time a-coming. Finally after years of frustration my local airport will have a bus service that meets every arriving and departing flight. Over the years I've spent a small fortune on cabs (it is a 30-60+ minute cab ride each direction for me) because there is no bus early enough for the early morning departures, or late enough for the late evening arrivals, both of which feature prominently in my itineraries. It was recently announced that from next week the bus will be running 24/7. Yay. I still have gripes about the service, such as the spotty frequency and the lack of frequent flyer discounts (this week alone I'll use the bus 8 times!) but 24/7 is a good move to be applauded.

The second travel dream was the very rare double upgrade from a cramped economy seat to a luxurious business class bed on a 14 hour flight. I'm very grateful to the airline staff who arranged this for me.

The third travel dream is yet to happen, but I am counting down to it. I've been wanting to fly Singapore Airlines on the A380 for years, even planning to be on the inaugural until my hopes were dashed by the date confirmation coming hot on the heels of a complicated itinerary booked in a race for lifetime frequent flyer status a few years ago. Since then I've flown Qantas A380, and Emirates A380, both in first class. Earlier this year I flew Singapore Airlines A380 for the first time, in business class. Finally, in a couple of weeks time, I get to fly first class on Singapore Airlines A380 thanks to judicious use of a frequent flyer mileage award. That isn't the only thing I'm looking forward to on that trip, but the other stuff will have to wait for my flight has been called for boarding.

Wednesday, October 14, 2009

Emirates Skywards program moves to revenue basis

Emirates has announced there will be some sweeping changes to their Skywards frequent flyer program from 1 January 2010. The changes can be summed up as a move from a traditional mileage basis to a more innovative revenue basis. In a post a few months ago I described the various types of revenue-based frequent flyer programs (FFPs). The new Skywards program does not match any of those types but instead has fixed earning and fixed awards.

The key changes announced to date include:

  • no new status tier, yet, and no change to earning requirement
  • fares categorised as flex (normal published fares) and saver (sales and fares brought through other airlines)
  • earning fixed amounts based on whole journey using geographic zones
  • earning related to profitability - higher for first and business class, lower 50% rate for saver fares
  • status mileage earning to match redeemable mileage earning (yet to be seen if this also applies to bonus mile promotions)
  • status earning based on membership year rather than calendar year, with year reset on attaining a higher level
  • awards categorised as flex (more availability) and saver (limited availability)
  • flex awards at double cost
  • one-way awards introduced
  • upgrades cost more from saver fares than from flex fares

Other than awards being fixed amounts based on the journey and geographic zones (instead of variable per flight), it looks very similar to NZ Airpoints program. This is good for those who travel on expensive fares, not so good for others and useless for mileage runners.

I like how the Skywards page announcing this overhaul has an option to get email updates for any further changes posted.

Friday, September 04, 2009

Buying your way to status on Air NZ

Air NZ Airpoints status credits can now be bought by using their partner Global Plus credit card. Every $250 spent (on anything) = 1 status credit. For qualification or requalification of a higher status level at least half the requirement must be earned from flights.

This means Star Alliance Gold can be bought for about NZ$100k in credit card spend + a handful of flights.

Good for small businesses and those who don't quite fly enough to meet the thresholds for elite status. Not so good for frequent flyers - lounges will be more crowded and preferred seats even harder to get.

Updated - requalification also must be at least half earned by flying.

Saturday, August 08, 2009

Continental - 2 day hiatus between alliances

As an update to the earlier post on airlines changing alliances, Continental has now confirmed 27 October 2009 is the date they will join Star Alliance.

It is not yet clear what frequent flyer benefits, mileage earning and redemption will be possible on 25 or 26 October 2009.

If flying Continental on those 2 dates, I'd expect:

  • Status benefits to apply for elite members of Continental OnePass
  • Star Alliance elite benefits might apply, or might not
  • No club access for Sky Team elite members
  • Earning and redemptions through OnePass program
  • No earning and redemptions through Sky Team frequent flyer programs, or those of any other partners which Continental drops on 24 October (eg Alaska)
  • Probably no earning and redemptions through Star Alliance frequent flyer programs

For OnePass members flying Star Alliance airlines on those two dates:

  • Elite benefits and lounge access are intended to apply but are at the discretion of the airline you are flying
  • Continental has promised mileage will be earned but may require a manual process to credit

It is good we now have a date for Continental joining Star Alliance, and the transition period is relatively short. It is also good they are trying to apply Star Alliance benefits straight away even before the official join date.

Tuesday, August 04, 2009

Revenue Based Frequent Flyer Programs

Most frequent flyer programs (FFPs) are based on the traditional mileage concept. Each of the 3 main aspects (earning, status and redemption) are based on mileage flown.

United Mileage Plus is an example of a traditional mileage-based FFP.

  • Earn a multiple of distance flown, with minimum mileage, status bonus and class of service bonus.
  • Status is achieved by passing elite qualifying mileage thresholds.
  • Redeem awards at fixed mileage amounts based on the zones flown (loosely proportional to distance).
There are some frequent flyer programs that have switched to a revenue based system. There are also some mileage-revenue hybrid systems in use. So far there isn't a standard way these work as each FFP has taken a slightly different approach. I'll explain more below.

The least different to the traditional programs are what I call enhanced mileage based FFPs, such as bmi Diamond Club. These work just like traditional programs except the earn and burn rates are much higher in premium cabins (eg 300% mileage in first vs 150% in the traditional FFPs), and sometimes also in certain high demand/high fare zones. The earning rates are also be very low or zero on cheap economy booking classes, and sometimes also for cheap business and first class booking classes. Thus there is a greater spread of earning rates and award costs.

Analysis: With the altered earning and redemption scales, the value equation is altered. Those who buy cheap/economy fares and wish to redeem in premium cabins are usually worse off. Elite status can be much easier or much harder to achieve depending on what kind of paid fares you use.

Inherent problem with a revenue basis

While a revenue-based frequent flyer program may appear attractive to beancounters at the airlines (by rewarding proportional to the "worth" of a customer), there is a fundamental inherent problem. FFPs work as a loyalty device in large part because they give rise to an appearance of getting something for nothing. The program rules are deliberately set to muddy the value equation for consumers - ie allow FFPs to appear to give more value than they cost the airlines, overall. A true revenue-based FFP with earning, status and redemption as functions of revenue makes the value equation transparent. This is not good for airlines.

Each FFP that has moved to a revenue or hybrid basis has tackled this problem in slightly different ways.

Revenue with fixed earning & variable award cost

The one I'm most familiar with is Air New Zealand Airpoints. They reversed the way traditional programs work by making earning fixed amounts (based on zones and class of travel) and redemption variable amounts based directly on fares. Both earning and redemption have a greater spread than the traditional FFPs - for example the amount earned in first class is typically is 4 times (or more) the amount in full (ie expensive) economy class. Awards on Air New Zealand cost the same as the fare, and on partner airlines a high fixed amount. The fixed amounts for earning and partner redemptions are loosely based on typical fares. Status is loosely revenue based in line with earning.

Analysis: Spending for awards on their own flights is simple & requires no chart. In common with all revenue based FFPs, you don't know how much you need until you look. The partner awards is complicated and very expensive. Hopefully in time this can be simplified.

Revenue with variable earning and fixed award costs

Virgin Blue started Velocity Rewards after Air New Zealand converted Airpoints from a mileage basis to a revenue one. With Velocity Rewards you earn a multiple of the fare and the award cost is a fixed amount based loosely on the fares available at the time you wish to redeem. Here earning is extremely simple but the cost to redeem is unknown as is just how much your points are worth (compared with Airpoints where you know your balance is good for a fare of the same value). Status is directly related to how much you spend.

Analysis: This program manages to be both transparent (in earning) and non-transparent (in redemption) at the same time. It would be more reassuring, and thus more attractive, if there was a commitment from Velocity Rewards as to the minimum worth of points (ie it will never cost you more than x points per $ fare).

Mileage-based but with additional revenue-based awards

While traditional mileage-based FFPs have long had additional awards available at double the mileage cost, some programs have gone a step further. These hybrids have added variable cost awards to their traditional fixed cost awards. In general the variable cost awards are more expensive (sometimes by a large multiple), but not always.

For example Qantas Frequent Flyer has Classic awards (mileage based) and also Any Seat awards. Any Seat award cost is function of available fares, but they are not restricted to high fares, and so if a sale is on the award cost can be less than for a Classic award. The rate is set so that on non-sale cheap fares the Any Seat award will generally cost a little bit more than a Classic award.

Analysis: The rate for variable cost awards is such that generally poor value. When the mileage cost is relatively low the fares are super low. Good only for those who can accumulate vast sums of miles (eg through business credit card spend).

Singapore Airlines

Singapore Airlines are difficult to categorise because they have the PPS status recognition for business and first class passengers, and also have a traditional mileage based FFP in Kris Flyer. The PPS status has been purely revenue based for a couple of years. Arguably it is even more extreme than any of the other programs because only spend in premium cabins are counted, and then only on Singapore Airlines flights. Kris Flyer looks a little like an enhanced mileage based program in that there are 3 levels of fixed awards depending on availability of certain booking classes. However, earning rates are not similarly "enhanced" with the exception of 300% earning in A380 and 77W Suites (first class).

Round-up of revenue based frequent flyer programs

There are also other FFPs which are revenue based. I've categorized some below:
  • enhanced mileage based - Air France/KLM Flying Blue, bmi Diamond Club, British Airways Executive Club, Lufthansa Miles & More
  • Singapore Airlines - see above
  • fixed earning & variable award - Air New Zealand Airpoints
  • variable earning & fixed award - JetBlue trueBlue (new version), Virgin America eleVAte, Virgin Blue Velocity Rewards
  • mileage based with additional variable awards - Qantas Frequent Flyer

I may have missed other revenue based programs. Please let us know in the comments.

Updated 14 October 2009.

Emirates has announced Skywards will move to a revenue basis from 1 January 2010. For more information check out my post discussing the Skywards changes. The revised program can be categorized as fixed earning and fixed award.

Monday, June 29, 2009

Airline lounges - my second home

As I have been asked about airline and airport lounges a lot lately, I figure it is time for another blog post about them. Airline lounges can generally be accessed by:

  • paid club membership - of the specific airline's club or a partner airline's club with reciprocal useage rights
  • pay per use membership
  • frequent flyer elite status
  • airline class of travel

So far, I have never bought club membership or paid for day use of a lounge. Despite this I have used over 260 lounges in over 120 airports worldwide, several of them over 100 times. The quality of lounge varies widely from the luxury of the Lufthansa First Class Terminal with dozens of fine single malt whiskies, to a peaceful oasis of calm in what is otherwise a horrid airport (lounges in Dhaka and Lahore spring to mind), to the downright nasty crowded rooms (such as the LAT Lounge at Beirut which makes the Red Carpet Club at Los Angeles look good!).

What do I look for in a lounge?

Showers

Most airline lounge users do not shower in the lounge. However, for me it is an invaluable asset and I wish more lounges had them. Whether it is because I'm in the middle of 2 or more days constant flying, or because I'm rushing straight from work to flight to work with no time to visit home or hotel in between, I use airline lounge showers very frequently.

Of course not all showers are equal. Most have towels, soap and other amenities. Some do not. I bring my own towel just in case. Some have toilet and basin in the shower room, others do not. Some are heavily used and require lengthy waits (eg Lufthansa Frankfurt nonschengen B lounge in the morning and evening).

The best airport showers I've had are in the Los Angeles Air New Zealand lounge. It is great to wash away the hassles of security (and often lengthy immigration queues too) in the middle of 30 odd hours of flying. Oh yes, the cabanas at Cathay Pacific Hong Kong The Wing First Class lounge are also pretty nice.

Business facilities

I'm in the minority here amongst business travelers, but a lot of the time I travel without a laptop. Downtime in transit is an opportunity to catch up on messages and get some work done. For this reason I wish every airline lounge had free internet computers, preferably with printers and photocopiers available. Free local calls are a nice bonus if available.

The best airport lounge business facilities I've used are the bookable rooms in the Melbourne and Sydney Qantas First Class lounge. Not only do they have all of the above, but also little things like office stationery (pens, pencils, paper even a stapler & sellotape). To keep any meetings confidential there are also privacy blinds and enough space and chairs for a few people to use the room at once.

Lounge agents

When things go wrong, as they are bound to from time to time, having good airline agents in the lounge who are authorised to fix things is invaluable. Not only does it save time queueing at a desk in the main part of the terminal or on hold on the phone, but by getting quick access you sometimes can take advantage of fleeting opportunities.

One example is in the United San Francisco Red Carpet Club (RCC) a few years ago. I had one of those tricky itineraries flying to Anchorage via Portland and Seattle, having just arrived from New Zealand. The weather along the west coast was bad with many flight delays. My flight to Portland was delayed a couple of hours which would likely mean misconnecting with the once a day flight from Seattle to Anchorage. I spotted the issue when a delay announcement was made at the gate and headed straight back to the RCC with it's service desk inside. The nice agent in the lounge quickly saw the problem and rebooked me on the nonstop flight to Seattle that was just about to board. If I'd tried calling or heading to the landside service desk I wouldn't have even reached an agent in time to take this option.

The extras

Showers, computers and good agents are the 3 things I really look for in an airline lounge. Other stuff, however, may be the difference between a good lounge and a great one. Here are some examples of lounge extras I like. See if you can pick which lounges I am referring to?

  • children's play room, complete with playstations - less noise in the main part of the lounge and keeps kids away from the computers
  • air hockey table - for the inner child
  • special lounge security and immigration to bypass the regular ones - faster and less intrusive
  • great picture windows overlooking tarmac, runway and scenery
  • wide selection of magazines and newspapers
  • great restaurant quality food and drink with proper meal service
  • Fauchon green tea ice cream
  • spa or massages
  • sleeper rooms, complete with wakeup service so you don't miss your flight
  • bar tenders that remember my order and have it ready when they see me coming

Monday, March 02, 2009

Flyer Tip #1 - Seat Maps

This is the first in a series of blog posts on tips for flyers.

Why might this post be useful to you?

Seat comfort is important, especially on long flights. A more comfortable seat can be a big help to make the flight more enjoyable.

Airlines have different seat layouts (called configurations) for different aircraft types (eg the layout for a 737 is different to the layout for a 747), and sometimes a single aircraft type can also have different layouts (eg Qantas currently have half a dozen layouts for 747 aircraft). Different airlines have different layouts (eg Singapore Airlines and Lufthansa have different layouts on 747 aircraft).

This post covers how to find the seat layout on your flight, and how to select a good seat and avoid a bad seat. It also covers some useful tools for travellers that are related to seat maps, how to use them, and some limitations.

Seat map type 1 - configuration

The first type of seat maps are those showing seating configurations. Many airline websites have seatmaps available online, although in some cases airlines have multiple seating configurations for the same aircraft type, when it can be difficult to deduce which applies for a given flight. An example is given below from British Airways.While these may show the seat layout, they generally do not provide much information on the best and worst seats, other than by location of emergency exit rows, toilets and galleys. Some airlines show the seat pitch, but many do not.

Seat pitch is the distance between the same part of the seats but one row apart, and thus is an indication of legroom.

More useful configuration maps

There are some websites that provide much more useful information to assist travellers in selecting good seats and avoiding bad seats. Two examples are Seatguru and SeatExpert. These sites are easy to use and generally reliable, but do not cover minor airlines and may take some time to fully update for new configurations.

These sites allow you to work out which seats you want, or want to avoid, based on your own criteria (for instance some people wish to be a distance from the galley to avoid noise whereas others have a stronger preference to be as forward as possible). However, the sites do not tell you which seats are free on a particular flight or allow for factors such as whether or not you might get a row to yourself.

Seat map type 2 - available and unavailable seats

All airlines that offer online check-in, and some that offer manage my booking, display seat maps with seats marked off as available or unavailable (and in some cases as missing due to being reserved for a codeshare partner if booked on the operating airline or vice versa). Sometimes some seats are marked as preferential, which means only passengers who qualify can select those seats. Qualification for preferential seats may depend on airline frequent flyer status, paid club membership, fare paid, or possible a surcharge.

However, even when these type of seat maps are not available at the airline website it may still be possible to access via a CRS website such as checkmytrip.

For information on CRS websites including which one to use for which airlines, please see my previous blog post on airline CRS.

Where you can online check-in or request seats before check-in opens, simply have the other seat map (eg SeatGuru or SeatExpert) open in another window. With many airlines you can also call to select a seat (but not all airlines do this eg Qantas domestic). Failing that, you could take a note of good seats and ones to avoid and ask which seats are available at check in.

Seat availability fallacy

It is commonly thought that a seat availability map showing lots of unallocated seats indicates an empty flight or low load. This is not generally correct. Some airlines do not allow passengers to pre-select seats. Or they may allow pre-selection only for half of passengers in order to maintain flexibility in seating families and groups together. Even when airlines do allow seat pre-allocation, many passengers simply do not bother.

The converse is also a fallacy - that a seat availability map implies a full flight. It might, but is not necessarily so. Airlines may block off sections of seating for a potential group sale, or if they think another flight may be cancelled. They may also block seats for their codeshare partners to allocate (eg on LAN flights between Santiago and Auckland/Sydney some seats are specifically for LAN passengers and some for Qantas passengers).

More tips

I'll cover some other tools which provide a better indicator of whether a flight may be full or empty (and why this matters) in another post.