Browsing Posts published in August, 2009

Yesterday I talked about earning points in JetBlue’s new TrueBlue program, and today it’s time to talk about redemption, elite status, and partners. Fortunately, I was able to have a call with Dave Canty, JetBlue’s Director of Loyalty Marketing to try and straighten things out for me. I now understand the program much better. I think there’s no question this is better than the previous program, but I’m not completely sold just yet.

In the last program, 100 points got you a roundtrip ticket. That was it. So what is it now? I can’t answer that. It starts at 5,000 points for a one way ticket, but it can vary depending upon the route, the date, the time, the fares, etc. They’re trying to revenue manage this just like a paid ticket, so if there’s a cheap seat available, you’ll probably be able to get it for 5,000 points. If you want to travel on the Sunday after Thanksgiving, it’s going to be more than that.

Just how much, I’m not sure, but you will be able to use points to redeem every single seat. The point levels go up by increments of 100, so it’s tough to know exactly what you’ll JetBlue's Magic TrueBlue Boxneed to spend because they can raise and lower the requirement by a relatively small amount. It’s not like it’s either 5,000 or 10,000 here. It could be everything in between.

Unlike Virgin America’s program, the redemption levels aren’t linear, so you won’t be able to calculate what you need to spend. You’ll just need to go on and see what the magic box tells you.

So will we ever see a 5,000 point flight on a transcontinental flight? According to Dave, “it’s quite likely. You may very well find a lot of transcon availability at 5,000 . . . . Let’s say there’s, I don’t know, a $75 transcon, that very well may fall into the 5,000 point realm.” But how high can it go? Is there a highest point level? Dave says no. But if you book way in advance on a Tuesday in February, your chances of finding a cheap seat are good.

This kind of drives me nuts, because I like to save up miles for a trip. I can’t really do that here, because I won’t know if I have enough miles until I know the flight I want to take. I asked Dave if they would at least be considering a cash+points option so that you could still use your points even if you don’t have enough for a full ticket. He confirmed that this will be happening in the first quarter of 2010, so that makes me feel better about the utility of the program.

Dave assured me that what gets announced now is just the start. “TrueBlue is going to be coming out in a phased approach. What we come out with in late September is basically your introduction and it’s just gonna get better from there.”

They are currently in discussions with partners, and they expect to have these start joining the program by the first quarter of 2010. The most obvious partners are part owner Lufthansa and codeshare partner Aer Lingus, but they are talking to many more than that.

They will also be introducing elite status into the program with a soft launch at the end of 2009 and a full launch in the first quarter of 2010. I asked if this would include complimentary seating in the Even More Legroom section of the plane, and he said it would, along with much more. “All of what you can possibly imagine is coming. We are going to bring out an elite level within TrueBlue.”

So this is turning into a real frequent flier program with some significant benefits. There are no more blackout dates, and you can redeem points for every single seat on the airplane. The points no longer expire at the 12 month mark but continue to be active as long as you have activity once every year.

But how is the value here? Are we getting more for our money than in the past? Well, it’s tough to know since we don’t really know what redemption levels will be. But let’s just use the lowest 5,000 point one way award/10,000 point roundtrip award as a minimum for comparison. (Dave says, “I think people are going to be very very very pleasantly surprised at the actual volume of seats that are gonna be available in the 5000 point [range].”)

So, how about a couple examples? Most people will have a mix of different types of flights, but I’ll just pick extremes as an example.

Example 1: Long Beach – San Francisco
Previously, you would get 4 points per flight for booking online. That means you would have needed 25 flights to get a roundtrip ticket.

Now, we need to get to 10,000 points. Let’s assume that the average fare is $75 each way. That means we’ll get 450 points for one flight. After 7 flights, we’ll earn a 500 point Go Big Bonus. After 14 flights, we get a 1,000 point Go Big Bonus. We need another 5 flights to get to 10,000 points, so that means we’ll need a total of 19 flights for a roundtrip ticket. We don’t get any Go Long Bonuses because the flights are too short.

Example 2: Long Beach – New York/JFK
In the previous program, 9 flights on this route got us a free roundtrip ticket.

Let’s assume we average $250 for a one way in this market. That means we get 1,500 points for a single flight. After a roundtrip, we get a 500 point Go Big Bonus. After two roundtrips we get another 1,000. After our fifth flight (2.5 roundtrips), we’ll have 9,000 points, so we need another on way which triggers another 2,000 Go Big Bonus points. So we need 6 flights to get past the threshold but then we’re actually up around 11,500 points. So it is more generous, assuming that we expect to get an award for 10,000 points.

So is this program better than before? It’s hard to say because we don’t know what redemptions are going to look like just yet. But it is more flexible and it will have greatly expanded options. It’s just the complexity that makes my head hurt, and that’s what bothers me here.

Check out The Wandering Aramean for another look

[Original photo: http://www.flickr.com/photos/bohman/ / CC BY 2.0]

While Southwest’s acquisition attempt of Frontier was getting all the press last week, JetBlue quietly started emailing their TrueBlue members about a relaunch of the program on September 27. When I spoke with CEO Dave Barger in March, he assured me that it would be “a best-in-class frequent flier program. It’s going to be very customer relevant.” Is he right? I’m not sure, but I do know that it’s really complicated.

I was planning on writing about the program in one post, but it started getting long and unruly. So, I’ve broken it down. Today I’m writing about the earning side of the program and tomorrow I’ll talk about the redemption side.

Let’s start with the old program. As a reminder, the last program gave you 2 points for a short haul trip, 4 points for a medium haul trip, and 6 points for a long haul trip. You got double points if you used jetblue.com and the only award was a free roundtrip ticket for 100 points. Pretty simple, yes, but pretty restrictive as well. Your points expired in 12 months regardless of your activity, and there were blackouts, inventory controls, and other restrictions.

The new program looks a lot like Virgin America’s in that it’s a spend-based program with varying redemption levels. You now earn 3 points for every $1 you spend on JetBlue or 6 points if you book at JetBlue.com. Well, sort of. It’s based on the amount of money you spend on the base fare, so taxes are excluded. Uh, well, some taxes are excluded. When you go to JetBlue.com, this is what you see:

JetBlue Availability Display

That number at left is $39 and that’s what they consider the base fare. Technically, that’s the base fare plus a federal 7.5% excise tax that you rarely see broken out, but JetBlue will use that to determine points. You’ll end up paying $49.60 for that ticket once all the other taxes and fees are added in, but the $39 is what the earning will be based on. That means you get 234 points if you book on their site or 117 if you book elsewhere.

That’s not too tough, right? But now we have to talk about the bonuses. When I was first doing the math, this didn’t seem to be even remotely generous but that’s when I noticed that they have two types of bonuses you can get.

First they have the Go Big Bonus. This one rewards those who spend a lot. Instead of trying to explain it, I’ll just show you the grid they put out:

JetBlue Go Big Bonus

There’s also the Go Long Bonus. If you take 5 long haul roundtrip flights (each segment must be over 2,000 miles) within 12 months, then you get a 10,000 point bonus. So this one is to reward those who fly long hauls a lot, regardless of how much they spend.

Oh, and by the way, if you use the JetBlue Amex card, then you earn 1 point for every dollar you spend, but you earn 2 points when you buy JetBlue flights. So if you use your JetBlue Amex to buy tickets at JetBlue.com, you earn 8 points per dollar. Whew. My head just exploded.

Do you see how ridiculously complicated this is? I like to pride myself on breaking things down into more manageable explanations, but I’m having a lot of trouble here. Heck, I’m having trouble just understanding it myself.

Tomorrow I’ll talk about the redemption side. We actually know very little about it so far, but I’m hoping I’ll be able to get some more info before the post goes live.

I’m changing the name of my usual Saturday “This Week on BNET” posts starting this week. Instead of just focusing on my BNET posts, I’m going to also post other places where I might have written or been mentioned during the week. That may or may not be a frequent thing, but I thought it was at least worth a name change. This week, I had a piece for the New York Times and more, as you’ll see below . . .

A Look at John Tague, New President of United AirlinesBNET
John Tague is now president of United, but will that mean any changes are on the way?

United Launches Intra-Europe FlightBNET
United is going into the London to Brussels market. Why the heck are they doing that?

How Air Travel Can Be Made Less AnnoyingNew York Times (Room For Debate)
The title says it all. The asked four of us what could make air travel less annoying, and I wrote about setting expectations.

Kayak Asks Microsoft’s Bing Travel to Stop Being a CopycatBNET
Kayak thinks Bing is copying it. Bing says no. Fun fight ensues.

Booking the Hot Seat on AirlinesChicago Tribune RedEye
RedEye writes about those who don’t just look at price and schedule when they fly. I was happy to participate in this one.

Who Will Fill Delta’s Space at Chicago/O’Hare?BNET
Delta is leaving its old gates at O’Hare to join Northwest in November. Who will take those over?

Why Does Southwest Want to Buy Frontier?BNET
Southwest is bidding for Frontier, but why exactly do they want to do that?

Frequent Flyer Friday #2Musings of the Global Traveller
The Global Traveller interviews me about my flying habits.


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