Redeeming PAL Mabuhay Miles
In the face of stiff competition from Cebu Pacific, PAL has succumbed to the pressure of offering promo flights to match the prices of its rival. Apparently, it has also adjusted the rewards policy of its Mabuhay Miles loyalty program, making it less attractive to its loyal customers.
A week ago, I accompanied my friend to the PAL office at SM Cebu to redeem her miles for a Cebu-Manila-Cebu flight. She had a reservation ready, and since she was an Elite member she directly proceeded to the customer service desk for her transaction. She asked how much it would cost her to redeem a reward ticket for a domestic flight. The woman at the counter bluntly said, “You have to pay Php4,000 for fuel surcharges.” We were shocked. Php4,000 for a roundtrip Cebu-Manila-Cebu flight? It’s like buying a normal ticket at Cebu Pacific! Not that I like Cebu Pacific, but with this situation it was definitely the better option for my friend. She’d rather pay for a normal flight with Cebu Pacific, than reduce her Mabuhay Miles and pay relatively the same amount at PAL.
A week later, I went to PAL office to purchase a Manila-Cebu flight. It cost me around Php2,900 only. It’s Php900 more expensive than a reward flight with their Mabuhay Miles program. What puzzles me is that PAL opted to revise their rewards program to jump at the low price bandwagon. I personally thought it was PAL’s winning edge over its budget counterparts. Many people I know opt to pay for PAL flights since they know they could benefit from the miles they’re earning. Maybe times are really hard that PAL had to choose a bigger market over a few loyal customers. It’s ironic because a lot of companies would pay to have customers stay loyal to them. It’s harder to retain a customer than to get a new one, as the marketing books say. I hope PAL made the right move with this one.
Filed under: Business, Reviews | 1 Comment
Tags: budget airlines, cebu pacific, loyal customers, loyalty rewards program, mabuhay miles, PAL, philippine airlines, rewards policy
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thestylishtycoon
hi,
someone i know had the same experience. you could actually save a lot more by choosing cebu pac or pal express (!!!) as opposed to redeeming your miles.
pal is really alienating its customers with this move.
but im surpised you actually got a cheaper deal than the one your friend got