QUOTE(kit615 @ May 27 2017, 09:07 AM)
I would say devalue is perfectly normal, although the magtitude at enrich is hugely devalued especially on partner or oneworld redemption, given that the consumers could easily deposit their points to asiamiles and redeem the same MH flight which much less points needed, so its perfectly normal for people to switch over to other program.
QUOTE(gommm @ May 28 2017, 06:39 AM)
Exactly, devaluations are perfectly normal and expected but, in the case of Enrich Miles, they've had two big devaluations in two years and right now are almost worthless compared to competing airlines.
It's a pity because Malaysia Airlines used to be my favorite airline and I would try to fly them but between this, them cancelling their direct flight to France and the overall service going downhill I almost don't fly them any more and I certainly don't convert my treatpoints to Enrich Miles.
In the short term, I think this devaluation will save them money by allowing them to decrease the liability they have due to members having miles. The problem is that airlines earn money whenever customers convert treatpoints or other credit card points to miles (or on each transaction of credit cards that directly give miles to the airline).
This can be a significant revenue stream. Some airlines in the US earn more than half of their revenue by selling miles to credit card companies or other credit card partnership.
In this case, by devaluing Enrich Miles to effectively be worth much less than Krisflyer Miles or Asiamiles, they become less competitive and it's likely that this revenue stream will dry up. Especially since Singapore Airlines is unlikely to have a new devaluation in the next couple of years since they've already had one (which was relatively minor). So, in the long term, this seems like a bone headed move but that seems to be the norm for Malaysia Airlines in the past couple of years.
QUOTE(msa9696 @ May 28 2017, 05:41 PM)
Well said. Airline do earn money from bank on sales of their miles. Major part also comes from unutilized and expired miles.
Totally disagree with some that devaluation is common so nothing to shout about. If one spend a little more time to compare or read more online, Enrich is easily one of the worst in value for ticket redemption, further devaluation means they are no more competitive at all. Guess they couldn't be bothered now and willing to sacrifice their loyalty program and frequent fliers. Yes redeeming with other airlines are harder, but with a little bit of time spent, securing a ticket is still possible, unless many out there prefer to pay double the miles for the little extra convenient of redeeming through MAS which has higher ticket availability. Again don't forget they only fly to very few destination now, so redeeming through One World Alliance can be as painful
My point exactly. Devaluation is a normal process but 2 devaluations in 2 years is abnormal. Someone said we'll keep on being unhappy. well, we are not. we just moved on and away from mas/enrich