Now Cathay Pacific has a new way to gobble up your Miles

CX has just announced revisions to its mileage redemption programme. Flying economy to Europe used to cost you 60,000 miles. Now economy and premium economy classes have been split into Standard, Priority Tier 1 and Priority Tier 2.

The theory is it will be easier to get award seats at the new Tiers. In practise, they will reduce the number of seats and flights for Standard economy with that availability being moved into the higher tiers. Now Standard Economy to Europe in Tier 1 will cost 120,000 miles - in Tier 2 175,000 miles!! Premium Economy in Tier 2 hits you with a whopping 310,000 miles.

Business class is not yet affected by the changes. So if you can find an available seat, it will still cost you just 120,000 miles to/from Europe and 145,000 to/from JFK. However, CX is revamping its entire awards programme - so more changes are coming.

Mileage programmes look ever more like an outmoded scam.
Just looking for the best possible ticket price for a given quality of service seems to be the best way.

Since many mileage programmes are in the process of major changes, it may still be worth checking around to see if you can get flights before the changes take effect. I am in the process of getting rid of almost all the miles in the two programmes I have used. Already booked a biz ticket to Sydney and would have booked another to Tokyo but there are just so many cheap fares now to Japan, it seems a waste.

Fuel and tax surcharges on Star Alliance flights from Europe to SEA are about $800 (payable in cash) - which is equal (about) to some cheap option available in the market. Only makes sense to book business (at 120,000 miles).
In general airline loyalty programs are not worth it anymore. Most now calculate your miles depending on the price you paid for the ticket and not distance traveled.

Although they're called "loyalty" programmes because they "reward" your loyalty, in fact they're just a way of getting discounted air fares. The programmes themselves are one of the more lucrative business units within the airline because partners, such as credit cards, have to hand over real money in exchange for the airline points you accumulate courtesy of your credit card. Since they are a discount, the airlines will manipulate the T&C of the discount to their own advantage. Any "loyalty" is entirely one way - from you to them. It is not reciprocated.

Quote:

---

Originally Posted by kommentariat

Although they're called "loyalty" programmes because they "reward" your loyalty, in fact they're just a way of getting discounted air fares.

---

That is certainly the way they are going, but till just a few years ago I reckon the mileage schemes did work in favour of many passengers - provided you analysed the cost/benefit ratio of what you spent and the 'value' of the miles you gained. For example, the benefit of using a CX/Citibank credit card issued in Hong Kong for purchases overseas provided double miles and a lower conversion rate. This was more cost effective as long as the premium charged by the bank was 1%. Then came the financial crisis and a doubling of the premium. At that point, overseas spending lost its advantage.

Generally, the schemes only worked for business class tickets or upgrades. Mileage programmes - at least in this part of the world - have never been worth it for economy tickets. But there were other ways of working the system to one's advantage. For example, to achieve Gold status on BA you had to fly less than half the number of miles compared to the same Gold status on Cathay Pacific. Once in Gold, BA always credited double miles (CX did not) plus cabin bonuses and always provided access to first class lounges even on an economy ticket. Since your free tickets could also be booked on CX, for anyone based on the CX network the BA mileage scheme was certainly a lot more "valuable".

Now of course the bean counters are ensuring that most "rewards" are just not worth it - unless someone else is paying for your tickets. And the irony is that the changes are being introduced just as airlines are benefitting massively from new more fuel efficient aircraft and a halving of the oil price.

Cathay Pacific is my favorite airline on the planet. I fly with them for business and pleasure and for many years I've had a great business relationship with them on the Cargo side as well. I've had an Asia Mile's account for quite some time and have only great things to say, especially about their Hong Kong office. I've always viewed my mileage program with them more as leverage and they've always been good to recognize me as a customer when I book or check in and to give me the best that they have available without me having to ask. I've often wondered over the years why they've given customers such a generous partner's deal for points from when they flew with any other One World carrier. I know I never had the same advantages from my other One World LAN or Mexicana airlines cards...and this generated a lot of Asia Miles points over the years when I used to fly Mexicana frequently (before they went under). So, my bf and I have been able to fly to NYC frequently for free with Cathay's excellent connections between YVR and JFK.

Surfcrest

CX used to be my favourite airline. I've been in the Marco Polo Club since 1986 (although this will likely be my last year) and enjoyed lots of perks over the years. In the late 80s and 90s their service was amazing with wines in business class that you'd rarely see in any first class now. But I really don't like their regional cabins. Why take CX to Hong Kong when you can get the Emirates A380 with far superior seating etc. and a cheaper price?

For long haul when I go to Europe, I have generally preferred BA or the Gulf Airlines - again partly for price reasons. For the US and Canada, I would probably take CX, but only as part of a One World RTW ticket. Horses for courses!

I do think with many major airlines you get better service and attention if you live away from home base. Until about 3 years ago, BA's regional office for "loyalty" customers was in Sydney. I can't recall ever having more helpful service from any airline over a dozen or so years! Yet BA's reputation in the UK is pretty poor.