jamesteroh

Would be interesting to see how American Express charges would equate into this program if it ever happens.

Southwest went to this type of system a little over a year ago, and I haven't flown a revenue flight with them since then that I have paid for. There were some other issues with WN, but that was the final thing.

On the WN board though, a lot of the people that pay higher fares prefer this program. I could see revenue based being popular for business travellers who buy last minute higher fare class bucket tickets.

I am sure there are some people who are FO's from segments who spend more a year than I do as a PM (especially those with something like 50 segments a year).

SamuelS

Wow.

This would be a huge game changer.

Of course, it largely depends on what they award for SM for RBMA. Is it 10 SM per dollar, 20 per dollar, etc. etc.

Regarding the Fare Based Award Ticket Redemption (FBATR) project , DL already does this to an extent with "Pay with Miles". It's typically a terrible deal.

If DL moved all awards to FBATR, a J class award redemption to Asia could shoot up from 120,000 if you can find space on a low award currently, to something in the millions if it's based on spending miles to get $6,000+ r/t fares.

It would be such a massive change, both on accrual and redemption levels, that the effects could not be understated as to how this would dramatically change the landscape of frequent flyer programs in N. America.

With FCM and less upgrade opportunities in the mix, I'd probably still fly DL on occassion, but give up any specific loyalty to DL. While I do really like their product and am overall very happy with DL, there would be no real motivation at that point to spend more money on DL and take circuitous routings etc. in an effort to stay loyal. Cheapest fare/best flight times and schedule on whomever would prevail, whether that's DL or someone else.

I think the big losers would be small business owners/self-employed/smaller business employees/high frequency leisure travellers all of whom look for reasonable fares (not necessarily just sLUT, but also K/Q type flyers) whereas the big corporations or consultants that are able to bill back full-Y or paid-F purchases will likely do quite ok out of such a move.

Whether DL would do well in the long run offering a very rewarding program to a very limited group of HVC (perhaps as little as 10-15% of the current Medallion base?), and be "ok" with alienating the rest... I don't know.

Tower18

I was in a focus group over a year ago discussing this exact topic...so yes, they're considering it. Have been for some time, obviously. The group was made up of Delta AMEX cardholders. I was the only medallion among the group. Take that however you want, but it was clear that I was the only actual frequent flyer in my group...the rest were just Joe Schmoes with an AMEX that flew Delta sometimes.

Winkdaddy

[QUOTE=SamuelS;18230757]Wow.

This would be a huge game changer.

Of course, it largely depends on what they award for SM for RBMA. Is it 10 SM per dollar, 20 per dollar, etc. etc.

Regarding the Fare Based Award Ticket Redemption (FBATR) project , DL already does this to an extent with "Pay with Miles". It's typically a terrible deal.

If DL moved all awards to FBATR, a J class award redemption to Asia could shoot up from 120,000 if you can find space on a low award currently, to something in the millions if it's based on spending miles to get $6,000+ r/t fares.

It would be such a massive change, both on accrual and redemption levels, that the effects could not be understated as to how this would dramatically change the landscape of frequent flyer programs in N. America.

With FCM and less upgrade opportunities in the mix, I'd probably still fly DL on occassion, but give up any specific loyalty to DL. While I do really like their product and am overall very happy with DL, there would be no real motivation at that point to spend more money on DL and take circuitous routings etc. in an effort to stay loyal. Cheapest fare/best flight times and schedule on whomever would prevail, whether that's DL or someone else.
I think the big losers would be small business owners/self-employed/smaller business employees/high frequency leisure travellers all of whom look for reasonable fares (not necessarily just sLUT, but also K/Q type flyers) whereas the big corporations or consultants that are able to bill back full-Y or paid-F purchases will likely do quite ok out of such a move.

Whether DL would do well in the long run offering a very rewarding program to a very limited group of HVC (perhaps as little as 10-15% of the current Medallion base?), and be "ok" with alienating the rest... I don't know.[/QUOTE]



Was thinking the same thing..I am no airline business model expert, but it seems crazy to reward just your top few people who buy FC and high last minute fares and completely alienate the other 85% or whatever it might be..

There are plenty of people like me that are GM's, fly 50-50 pleasure and work and buy primarily LUT fares with maybe occasional K fare. This group is loyal to Delta and will pay more per ticket in general to enjoy upgrades, sky priority, a couple BE award tickets to Europe every year or so etc.

If people like me no longer receive these benefits, then all all that matters will be price/schedule. If tons of loyal customers like me staryting thinking that way and price shopping each ticket, wouldnt it just put downward pressure on prices in general?

SCMConsult

Delta called me to be in a focus group. Only problem was I was going to be gone on travel during it!

I believe they were holding it on either the 14th or 15th of this month. That would make the timeline that was posted earlier realistic...

YtravelF

Ths is happening. Definitely later this year. Apparently the entire contract with AMEX is being re-worked, so there is a lot of time and effort being put into this.

I think I may end up flying AA once we get the details.

javabytes

I can't wait for the bid for awards system. I can see it ending up like the SkyMiles Auction, where people bid 103,438 miles for a $100 Outback Steakhouse gift card...

Winkdaddy

I wonder what the benefits will be to the majority of customers who typically buy LUT fares. How would Delta spin it so these customers would see value?

javabytes

Same way you convince someone that dihydrogen monoxide is a major component of acid rain and should be outlawed.

DHalltheway

Well UA has done it with their FFP to a degree by lowering Gold bonus mileage. So we just need to wait and see how DL deals.

jsmith50

Keep in mind that if history repeats itself, in the airline business once one airline treads down this slippery slope, the others are very likely to follow. Could be that DL becomes the pace setter for future FF programs that none of us like!

javabytes

This is an order of magnitude away from tweaking elite mileage bonuses...

SFO777

Enhanced meal service.

RealHJ

When other *A FFP members fly on NZ, do they still earn regular miles based on distance though (as part of their program, which I'd think states that for all *A airlines they earn miles based on distance)? Or do they earn these "airports dollars" instead (even though not NZ FFP members, and their FPP is not set to earn this way)?

And NZ FFP members flying airlines other than NZ, presumably still earn based on mi distance.. or?

Wingtipflyer1

I think for many the decision will be why bother.

If they want to "reduce liability" of unused miles why did the marketing department come up w/ miles that never expire?

Maybe DL pushes this through and says "accept Mr or Mrs FF. Then again, it could become SLUT fares 2.0.