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#432198 by miopyk
20 Jan 2008, 10:30
Originally posted by Scrooge
But can we all agree, even if you are only flying once a year it is still worth it, sure it may take you a few years to get that free flight (plus taxes) but it is worth it right ?


It is providing that VS are providing a competitive product and you feel satisfied with the experiance. It isn't if you're paying more than what's on offer elsewhere and the product fails to meet your expectations. It's pointless getting something free if what your buying is more expensive in the first place and you feel dissapointed with the experience.

Right now I feel VS sit somewhere in the middle but if you are using them or their partners you'd be stupid not to collect the miles. On that point I think we would all agree.

The other thing you have to take into consideration is the overall value or more importantly perceived value of loyalty cards. How many of us remember the days when petrol companies offered loyalty schemes where you could earn points to get a stereo or TV. It works up until the point that you realise that the things you are saving for are unattainable unless you are a commercial traveller or moon rocket pilot.

Supermarkets are in the same boat. They started off with a good idea but as more people join, the benefits are reduced because the overheads of the scheme become too expensive. And of course the canny British shoppers realise that if they have a card for every supermarket they can save points with everyone. My wife's purse is full of loyalty cards and when I asked why she said 'because they're free'.

And there's the rub. How many commercial organisations do you know that provide anything for free. All these schemes have a cost and this is built into the overall cost base of the business. So that free can of beans from the supermarket or the free glasses from the petrol station or that free flight in UCS has been paid for somewhere. It might be a penny on a litre of petrol or a pound on a Y class ticket but it has been included somewhere.

The only real difference with airlines is that their product has a unique 'shelf life' since each empty seat on a plane represents lost revenue so giving to a FC member for free does not increase their costs. But even this isn't strictly true. The extra weight burns more fuel, and additional meal and drinks have a cost and of course you have to include the administration.

So I guess in the end the moral is join every loyalty scheme you can because why shouldn't you get some extra value from it. But remember to buy from the business that's offering the best deal that meets your requirements. Paying more for for something because their loyalty scheme is better just doesn't stack up, does it?

Miopyk[8D]
#432200 by Juliet
20 Jan 2008, 11:58
Of course, you can also spend those miles on a partner.... money off a case of wine, or money off car hire...... which are NOT subject to availability, from 12500 miles for a £50 voucher!
#432203 by chrisV
20 Jan 2008, 13:10
If you want, you can keep on saving upto 2000000 miles which will get you a Virgin Galactic ticket ;)
#432204 by sickbag
20 Jan 2008, 14:15
I've never managed to use one of the companion reward tickets. The ticket on which it was valid was always dearer than just paying for 2 seats outright.
#432208 by catsilversword
20 Jan 2008, 16:00
Originally posted by AtlanticFlyer
I agree with many of the sentiments here regarding the relative value of FC miles for infrequent flyers. But I look at it in a slightly different way. I am currently arranging a rtn from the east coast to LHR in March. Total Y fare is USD563.15. Of that, taxes etc are USD343.15 so the actual fare is USD220.00.
Now, I could use 36k miles instead (45k outside the current sale period), but I'd still be paying $343.15 for the taxes. Therefore my 36k miles are worth USD220.

Alternatively I could use my miles to redeem a UC ticket, which comes in at 90k miles plus USD421.42 in taxes.
The cash fare for this ticket would be USD4158.42 - so my 90k miles are worth USD3737.00 to me.

Simplistically, I can either fly two economy roundtrips with my 90k miles being worth $550 or fly one Upper Class return and have my miles be worth $3737.00.

In general for the infrequent traveller, who wants to be frugal with their money but get the most out of their miles, saving them all for UC travel is the way to go. I consider MpM to be a very inefficient use of miles, and upgrading using miles requires me to spend more for the qualifying fare than the standard fare, so it doesn't meet my criteria of frugal travel! (Though of course I can still earn miles on that part of the ticket).

From a pure value position, I won't be able to use my miles as often, but when I do I can get far more value (and enjoyment hopefully) from them by only using miles for UC flights. PE provides greater value than Y but not as great as UC ofcourse.

AF


Totally agree with your comments. We fly twice a year, at most and have sat and worked out MPM fares versus saving miles for UC - there really is no contest, but for those of us who don't get the chance to regularly fly, it takes one helluva time to accumulate the necessary number. That's even with having a Virgin Amex credit card....
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