The Times They Are A-Changing -- In the past two years, industry watchers have noted that more and more frequent flyer programs are interested in tying their benefits to revenue spent - in 2003, for example, Delta SkyMiles caused an uproar by limiting elite-qualifying miles on cheap fares.
Way down under in New Zealand, one program has finally taken the leap. Effective Nov. 16, Air New Zealand's Airpoints program will change completely to reflect a new emphasis on money spent, not miles flown.
Points are out, and dollars are in.
Gone are the days of points and class-of-service bonuses. Airpoints' formerly complex system of awarding various fractions of a point for various fares are no more.
Instead, beginning this month, members will be awarded one "Airpoints Dollar" for every New Zealand dollar they spend on airfare. (A similar system will be set up for Australian customers to reflect the value of the Australian dollar.) A one-way Smart Saver fare between Auckland and Wellington costing $81, for example, will earn 81 Airpoints dollars.
Existing Airpoints balances will be converted to Airpoints Dollars, at a rate of 75 Airpoints to 1 Airpoints Dollar. A converter is available on ANZ's Web site to make the math easier for existing customers and liberal arts majors.
And a more recent review...
That said, Airpoints continues its partnership with numerous credit card partners, and while the details have not yet been worked out, one can safely assume that earning will simply become reflective of the 75-to-one points-to-dollar conversion. In other words, if a card currently earns one Airpoint per dollar spent, it will soon earn 1.3 Airpoints "cents," instead.
Award choices...
Capacity controls are gone.
Blackout dates are gone.
If there's a seat, and you have enough Airpoints Dollars to pay for it, it's yours.
New award charts, outlining both ANZ and Star Alliance award requirements, have been available on the Web site for weeks now.
The general thinking is that while some routes will "cost" more than before, the most popular routes will actually drop significantly. For example, Airpoints members can use their Airpoints Dollars to go from Auckland to San Francisco for 560 dollars in coach, 1,260 in business, and 1,600 in first.
But that's not all.
Airpoints has made some other changes to the award system, most of which have been met with acclaim.
One-way awards will now be available and "top-ups" - the purchase of up to 20 percent of the points needed to redeem an award - will be eliminated.
Upgrades will become confirmable on Tasman Fully Flexi and Pacific Fully Flexi fares, or on full price economy-class or business-class long-haul fares. For instance, an upgrade to London (standby only) is 30,000 points under the old system. Under the new system, not only will that upgrade be confirmable, but its "cost" won't go up (30,000 divided by 75 gives you 400 - the new "dollar" amount).
Members will still have the opportunity to spend Airpoints Dollars on retail awards, but beginning Nov. 16, wine rewards and Holiday Passes will no longer be available.
Partnerships..
Hotel partners include Accor, Mercure, Novotel, Sofitel, All Seasons, Carlton, Grand Hotels International, Chancellor, Hilton, InterContinental (Priority Club), Millenium & Copthorne and Kingsgate, Mirvac, Marriott, Pan Pacific, Starwood and Thistle.
Until the end of the year, members can transfer American Express Membership Rewards points into ANZ currency. This particular partnership ends on Dec. 15, but the overall AMEX presence is not disappearing. In fact, the Global Plus American Express Card from the Bank of New Zealand has just recently been launched.
ASB BANK True Rewards, the Bank of New Zealand Gold Card, Diners Club NZ, GlobalPlus Gold, Westpac New Zealand (Classsic and Gold), and Wrightson Rewards cards all offer currencies that can be converted to Airpoints.
Car rental partners include Avis, Budget, Hertz and Maui & Britz Campervans.
Other partners include GlobalPlus Home Loans, Travelex, New Zealand's Leading Attractions, Rest Assured Worlwide Travel Insurance, and Telecom New Zealand.
And their tough elite level program... bah!
Under the new Dollar system, instead of status credits, tier status will be based on Airpoints Dollars earned over a 12-month period. Earn 450 Airpoints Dollars for Silver, 900 for Gold, and 1,500 for Gold Elite (at least 900 of which have to be earned through travel on Air New Zealand ticketed and operated flights).
Current elite members need not worry about the transition: The first time status is reviewed under the new rules (between November 2004 and December 2005) ANZ will be using both the old and new criteria, and use whichever gives its members the highest status.
Silver status offers a one-time lounge pass for any of the Auckland, Wellington, Christchurch or Dunedin Koru Club Lounges, or any of the ANZ-operated international lounges; one complimentary, one class, single sector upgrade from Pacific Class to business; and priority waitlisting. Silver status with Airpoints also comes with Silver status within the Star Alliance.
Gold members get all the benefits of Silver, with a few modifications and additions. Lounge privileges include full access to Koru Club Lounges within New Zealand, and to all ANZ international lounges, and entrance for one guest (subject to space) on the day of travel on Star Alliance-ticketed and operated flights. Access is also available for a member and one traveling companion to Star Alliance Gold Lounges, when departing on any Star Alliance carrier-operated flight.
Gold members also receive two complimentary, single sector, one class upgrades for international travel on ANZ; and one hotel/rental car voucher for either a complimentary room or car upgrade. Gold members are entitled to check-in at the Star Alliance Gold counter; priority boarding; and priority baggage handling.
Regardless of your class of travel, priority boarding is offered to Star Alliance Gold members and an extra 20kg more than the standard baggage allowance.
Gold Elite members claim additional benefits, including the opportunity to "gift" rewards to two nominated friends or family members each year; access for five guests (subject to space) at Koru Club Lounges, and at all ANZ-operated international lounges; priority check-in, and five complimentary Koru Club valet parking vouchers.
Rules.... u gotta pay to be a member if u don't fly!
Both Airpoints and Airpoints Dollars have a four to five-year expiration period.
Service - can't beat em in NZ!
To that end, it should be mentioned that ANZ and Airpoints consistently win praise for customer service. The program's apparent exclusion from Freddie Award contention is due only to its relatively small size, not a lack of enthusiasm from members.
Online...
Online award booking has been added, and is something to look into if you want to avoid service fees. A new Service Centre booking fee of $15 per one-way domestic flight award, and $25 for international awards, kicks in on Nov. 16.
So.... what other things?
No capacity controls, no blackout dates, same-day awards if available - can you beat that? We applaud Airpoints' decision to move in this bold new direction, and are eager to see customer reaction once the new system has been in place for a while
We don't like expiring miles, points or dollars. Never have. 'Nuff said.
We're also disappointed that certain discounted fares are not eligible to earn Airpoints Dollars, even at a reduced rate. Not everyone can afford expensive seats, and since today's penny-pincher may become tomorrow's high-roller, it couldn't hurt to gain their loyalty now
