Thinking of switching from DL to AA? Check today's changes to AA's FF program
#61
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Join Date: Apr 2001
Location: NYC
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When I do fly transcon, I will most likely opt for the K fare which can be had for $695 and upgrade with miles. To me, thats still a better deal then paying $1200 for a MINT ticket on JB.
#62
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Location: Minneapolis: DL DM charter 2.3MM
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That's just so disingenuous. Five(ish) years ago the opposite was true. DL was *years* from getting rid of all the horrible recliner seats while AA had pretty quickly gone to nearly flat angled beds on its entire fleet. The fact is that if you tied your loyalty to whichever airline had the best seats at the time you'd be switching airlines every few years.
Not sure how many miles you need for a DL transcon upgrade, but assuming it's 30k r/t, you're saying you value the 30k miles at under $500. Wow, perhaps SkyPesos is a well-deserved name. I guess not being able to redeem for any 3-class F international awards really limits the value...
Not sure how many miles you need for a DL transcon upgrade, but assuming it's 30k r/t, you're saying you value the 30k miles at under $500. Wow, perhaps SkyPesos is a well-deserved name. I guess not being able to redeem for any 3-class F international awards really limits the value...
Using 30,000 miles to save $500 isn't a great redemption, but it's almost twice the value of pay with miles which would be the fallback way to use miles without any effort for those who qualify.
#63
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Join Date: Sep 2012
Programs: DL FO/KM, AA PLT
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Never said it was very practical. Just said it was possible, and probably not as hard as you think to program.
In terms of marketing and value, yes. In terms of the programming required for the software. No.
Again - I never said such a move would be smart, or play out well for DL. Most people probably do check alternate sources (3rd party sites) and may also browse fares without logging in. I don't always login when I'm starting to look at tickets. My point was that such a move would be, from a technical/programming/IT standpoint, very much possible, which is contrary to your point of:
The mechanism is very much there. It's just not employed.
In terms of marketing and value, yes. In terms of the programming required for the software. No.
Originally Posted by pbarnette
And again, since you don't have a mechanism to charge the elite more money than the non-elite for a ticket
And again, since you don't have a mechanism to charge the elite more money than the non-elite for a ticket
#64
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Just speculation, but I could envision DL charging personalized prices for award tickets before doing it for regular paid tickets. It's not a big step from the enhanced coach award availability for different elite tiers and award ticket prices in miles that are more closely associated with the cost to purchase the ticket.
#65
Join Date: Jun 2005
Location: Charlotte, NC, USA | CLT, formerly LHR & AMS (with just a bit of PSP)
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Just speculation, but I could envision DL charging personalized prices for award tickets before doing it for regular paid tickets. It's not a big step from the enhanced coach award availability for different elite tiers and award ticket prices in miles that are more closely associated with the cost to purchase the ticket.
Many complaints about SkyMiles would go away, if they used customer value ranking to determine award availability and mileage redemption levels. Of course, once you go deep into this type of system things become very opaque with regard to understanding (cracking/investigating) award redemptions.
#66
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Location: SEA
Programs: UA Silver, BA Gold, DL Gold
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So? I have been choosing on seat and schedule (with some consideration for price) for years. Loyalty need not be the primary driver of purchasing decisions and stating such is hardly disingenuous.
#67
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Join Date: Jun 2009
Programs: Delta skymiles DM + 1MM
Posts: 8,144
That's just so disingenuous. Five(ish) years ago the opposite was true. DL was *years* from getting rid of all the horrible recliner seats while AA had pretty quickly gone to nearly flat angled beds on its entire fleet. The fact is that if you tied your loyalty to whichever airline had the best seats at the time you'd be switching airlines every few years.
Not sure how many miles you need for a DL transcon upgrade, but assuming it's 30k r/t, you're saying you value the 30k miles at under $500. Wow, perhaps SkyPesos is a well-deserved name. I guess not being able to redeem for any 3-class F international awards really limits the value...
Not sure how many miles you need for a DL transcon upgrade, but assuming it's 30k r/t, you're saying you value the 30k miles at under $500. Wow, perhaps SkyPesos is a well-deserved name. I guess not being able to redeem for any 3-class F international awards really limits the value...
#68
Join Date: Jun 2013
Programs: DL Plat, Hilton Diamond, Marriott Plat, IHG Plat, Hertz Prez Circle, National Exec
Posts: 1,357
One suspects that many FFers don't check prices of other carriers for most trips but rather just go to the DL website (or call DL) and book DL flights. Others might check and decide that the price difference is small enough that they're willing to pay a bit more for DL. These factors, and getting people to choose DL when fares are equal, were the original reasons for FF programs.
If DL offers upgrade possibilities or other benefits, this is a form of product differentiation. Again, the purpose is to make people more likely to pick DL at the same or somewhat higher prices.
Price discrimination would mean being able to sell to some customers at higher prices, for example through the classic airline business versus leisure aspects such as advanced purchase. However, arguably we should instead think of these as different products, so that the description of the product includes the fare rules, etc.
If DL offers upgrade possibilities or other benefits, this is a form of product differentiation. Again, the purpose is to make people more likely to pick DL at the same or somewhat higher prices.
Price discrimination would mean being able to sell to some customers at higher prices, for example through the classic airline business versus leisure aspects such as advanced purchase. However, arguably we should instead think of these as different products, so that the description of the product includes the fare rules, etc.
#69
Join Date: Sep 2009
Programs: UA GS>1K>Nothing; DL DM 2MM; AS 75K>Nothing>MVP
Posts: 9,341
2. On top of that, I suspect you will find a large percentage of people prefer the UA J product: less privacy but more space. (as a poll showing PMUA/PMCO J preferences show....those who like the privacy are vociferous but necessarily in a majority.)
3. On time performance when normalized for ATC and weather is 2 to 3 percentage points..... maybe a 45 minute time saving for a EXP, DM or 1K. International is an entirely different kettle of fish with much higher on time percentages for all airlines.
4. Hospitality is better? That's a grey donkey versus brown donkey argument. All American carriers are extremely mediocre.
That said, DL has been improving while UA, for example, has been going downhill.... however..... DL still has a long way to go. For international premium traffic, they are still (IMHO) a terrible choice unless you live in DTW/MSP/ATL.
#70
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I also don't understand why so many people are upset about not getting complimentary upgrades in the Business Elite seats. We don't get those upgrades in Business Elite for international flights either. We only get them for the recliner seats for both international and domestic flights, so I don't see why it should be different for domestic vs international Business Elite.
#71
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He claimed most people will lose under the new system.
He showed that the average price paid per mile is around $0.16, and breakeven for the new system is a price over $.20. Therefore, there will be fewer miles given out for the same tickets. Therefore, from the viewpoint of passengers, there's more losing than winning.
This is a value for "wrong" with which I am not previously acquainted.
He showed that the average price paid per mile is around $0.16, and breakeven for the new system is a price over $.20. Therefore, there will be fewer miles given out for the same tickets. Therefore, from the viewpoint of passengers, there's more losing than winning.
This is a value for "wrong" with which I am not previously acquainted.
#72
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Join Date: Jun 2004
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If I want to buy a ticket today, all I have to do is go to ITA or Expedia or Google Flights or whatever. I can see what every carrier is charging, save WN. Even if I take the effort to go to WN, then I've spent maybe 120 seconds to search for airfare. The notion that elites pay more, on average, for their purchased tickets is ludicrous in such a world.
I won't argue about whether or not my existence is ludicrous.
#73
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This, this, this. Doubly so because every corporate travel policy allows a little bit of wiggle room to take a flight that isn't the absolute cheapest in order to fly a preferred airline, but doesn't allow complete freedom to buy a more expensive ticket. If the Delta flight is $80 more than the AA flight people can buy the Delta ticket, but not if it is $200 more. And having status on Delta makes that worthwhile for someone even if the routing is slightly longer or less convenient. That's the point of a FF program. To get people to prefer your airline even when, for an individual flight, there might be slightly better options.
I once worked for a place where if the Amex engine found a flight option that was $0.01 cheaper, you had to get a multi-layered pre-approval to book a more expensive one, even if the cheaper one added two connections and 8 hours of travel time. It was a very basic and idiotic policy - you must book the cheapest option that is returned by your search results (which could be no narrower than a 4-hour departure window). Period.
#74
Join Date: Jun 2013
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Not *every* corporate travel policy, but most.
I once worked for a place where if the Amex engine found a flight option that was $0.01 cheaper, you had to get a multi-layered pre-approval to book a more expensive one, even if the cheaper one added two connections and 8 hours of travel time. It was a very basic and idiotic policy - you must book the cheapest option that is returned by your search results (which could be no narrower than a 4-hour departure window). Period.
I once worked for a place where if the Amex engine found a flight option that was $0.01 cheaper, you had to get a multi-layered pre-approval to book a more expensive one, even if the cheaper one added two connections and 8 hours of travel time. It was a very basic and idiotic policy - you must book the cheapest option that is returned by your search results (which could be no narrower than a 4-hour departure window). Period.
#75
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But back on topic, I haven't read through all of this thread yet, but when I saw the AA news come out a few days ago, it definitely had me chuckling at all the folks who said they were status matching over to AA after the DL changes.
Personally, I'm one of the guys who will net benefit from the new DL system (pending, of course, what the new award availability looks like), and as an ATL-captive, schedule and product are going to keep me in their court anytime their fares are less than 1.5x their competition.