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khull

1245 posts

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#160526 9-Jan-2015 21:54
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Airpoints are useless to me as they run into the 4 digits easily with plenty of options to earn them (credit cards/transfer partners etc)

Instead, this is an open discussion about the 'best' way to retain status tier levels (status points). The whole obvious statement of "flying more" still applies but given that Air NZ have revised their earn rate for status tiers since March last year, the earning power is lower as they now reward people with what the industry terms as 'mileage runners' over people who actually do travel at a specific time slot and likely paying more.

Thus, the burn rate of a flexible time person who travels on the cheapest return flight (without checked in luggage) will earn more status points per dollar spent over someone who has to travel at a specific time slot (with checked in luggage). 

Trans tasman, to slightly lesser extent, favouring mileage running. A more expensive direct flight to OZ can earn LESS status points per dollar spent over a cheaper 1 hour stopover flight (with a longer duration).

In short, it is better to book two cheap return trips (and include a stop over) than to book just one return leg (direct) while spending close to the same amount of money.

To add insult, using Airpoints earned and subsequently spent don't count towards the status points.

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sbiddle
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  #1211504 10-Jan-2015 08:54
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This discussion reminds me of a blog post about this very issue I've still got to finish.

Air NZ's new scheme is so confusing the rumours are even Stephen Hawking can't work it out. Air NZ certainly can't even build the booking system to match what you should probably earn under the new system and there are scenarios where SP earn still doesn't match what it's supposed to do. I don't think it's possible to create a more complex system if you tried, as there are up to (and in some situations there could be more than) 16 different SP earn rates on a single plane.

Air NZ tried to move from a loyalty based system to a revenue based system. The concept was the more you spent, the more SP you earned. This means somebody who is takes 50 return flights per year domestically is considered as loyal as a customer who takes 1 return business class flight to London.

Despite the move to equate SP to $ spend, it's not exactly how the model is based. SP earn also factors in the yield on a route and who it's operated by, ie you could spend $329 for example on a main trunk jet service between Wellington and Auckland and get 29 SP, but book a $338 flight from Whangarei to Wellington and you'll get 17 SP.

SP earn also excludes tax, so flights to AU have a much reduced earn rate from the old model because tax starts to make up 50% of the fare once you start getting down to $169 fares.

As for flights booked with reward points not earning SP - this is something I do agree with. You shouldn't really be rewarded with SP for booking reward flights, but when the model was changed to equate 1APD with 1 NZ$ I can see the point of view from people who believe they should earn SP.

I've had Gold for the last couple of years and based upon my predictions for travel before October this year I will hopefully requalify for this again. Last year I flew somewhere around 40 flights on Air NZ.






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