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Delta's Greed and MQDs.

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Old Sep 17, 2014, 5:37 pm
  #1  
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Delta's Greed and MQDs.

I officially hit Diamond again today (over 125k MQMs and $12.5k MQDs). Yet, I am quite unhappy that in reality I spent $17k of MY MONEY and Delta doesn't acknowledge it. Over $4k of MY MONEY was spent in taxes that Delta refuses to qualify as MQD.

I'm ok with Delta implementing a spend requirement. But, to punish Skymiles members for paying taxes (as if we had a choice) is borderline retarded.
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Old Sep 17, 2014, 5:42 pm
  #2  
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Why? While DL collects the taxes, the money doesn't go to them. The whole point of MQD is recognizing what customers give DL. This is why the rules are setup the way they are. All having them recognize taxes would do is drive up the MQD requirements for each level.
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Old Sep 17, 2014, 5:47 pm
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I have a feeling we will both be flamed like crazy, but I totally agree...

The spend requirement is fine, but the MQD system not including taxes is not very transparent. Trying to keep track of and plan MQDs ends up being a pain in the butt.

PLUS, international fares end up amounting to almost half of the bottom line of what was actually paid.

It is what it is, I guess.
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Old Sep 17, 2014, 5:52 pm
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Originally Posted by flyerCO
Why? While DL collects the taxes, the money doesn't go to them. The whole point of MQD is recognizing what customers give DL. This is why the rules are setup the way they are. All having them recognize taxes would do is drive up the MQD requirements for each level.
^ Hotel programs don't give spending credit for hotel taxes. It all seems rather reasonable.

I don't recall how it was announced, but I would rather expect that next year's revenue based miles program also will exclude taxes.

David
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Old Sep 17, 2014, 6:05 pm
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Originally Posted by flyerCO
The whole point of MQD is recognizing what customers give DL.
MQD is just an arbitrary metric used to devalue the FF program. The true value to Delta is profits and profit potential and doesn't necessarily have anything to do with revenue generated (If DL Shareholders could get more net profit operating 1/2 the planes, it would happen). Disposable income, influence in business decisions, preferred class of service, etc. that can measure high potential profits is what matters. Money spent on base fares is off topic.

Direct to OP's point, the exclusion of "fees", taxes, etc. from MQD is quite idiotic. Since these "fees" are high profit, DL should be fighting to attract customers who pay them.

All other ancillary purchases or fees including but not limited to checked baggage fees, Priority Boarding, Delta Sky Club® memberships, Wi-Fi passes, in-flight food and beverage purchases, in-flight entertainment, unaccompanied minor fees, pet travel fees, Mileage Booster™ or mileage purchases, ticket change fees, Direct Ticketing Charge (DTC), same-day confirmed or standby fees, Administrative Service Charge (ASC), External Reissue Charge (ERC) and Standby Upgrades purchased at the gate, do not count toward earning MQDs.
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Old Sep 17, 2014, 6:10 pm
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I agree that it would much easier for us to plan and manage if every dollar spent counted toward the MQD requirement. Understand however, if that was the case the DM requirement would be $17k, not $12.5k. In the end, what's the difference?
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Old Sep 17, 2014, 6:11 pm
  #7  
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If someone were to spend $50,000+ on Delta would it not just be better to get a Delta Private Jet Card since it includes DM status? Then you could just use the card to pay for your flights and not have to worry about any program rules. Good idea?
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Old Sep 17, 2014, 6:18 pm
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Originally Posted by readywhenyouare
If someone were to spend $50,000+ on Delta would it not just be better to get a Delta Private Jet Card since it includes DM status? Then you could just use the card to pay for your flights and not have to worry about any program rules. Good idea?
It's $100,000 minimum now. If you're spending that much in 2 years, you really don't care about MQD.
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Old Sep 17, 2014, 6:24 pm
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I fly only domestic, so of the total paid my % that goes to Delta is greater than that of many of the International destination, with fees, taxes and surcharges that are far greater than those of the domestic ticket. IMO, much more fair to the entire group of fliers
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Old Sep 17, 2014, 6:27 pm
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I blame our greedy government. 7.5% US excise tax plus $4 segment/tax plus $5.60 per direction TSA tax, plus $4.50 PFC (usually) for each airport you transit. That's just domestic tickets. International ones have customs and entry/exit taxes (albeit no 7.5% excise tax or segment tax, so it tends to even out). http://www.delta.com/content/www/en_...-and-fees.html

That said, it would be pretty unusual for someone who hits the MQD thresholds to pay more than about 10 - 15% in taxes/fees. This is due to the fact that taxes make up a lower percentage of the higher fare tickets (particularly international tickets where the taxes are fixed amounts). Although traveling to the UK and back frequently could bump that up due to their relatively high taxes. I suspect some of your flights may have not have been eligible for MQD's or may have not credited correctly or you have math error somewhere in your spend. Perhaps you are including changes fees or flights you purchased, but did not fly as those don't count towards MQD's.

Last edited by xliioper; Sep 17, 2014 at 6:35 pm
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Old Sep 17, 2014, 6:29 pm
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I hit MQD spend over a month ago and I don't have any issues with them not including taxes. I do have a huge issue with them not including fees because that is almost pure profit for them.
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Old Sep 17, 2014, 6:46 pm
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Originally Posted by yohanson
I hit MQD spend over a month ago and I don't have any issues with them not including taxes. I do have a huge issue with them not including fees because that is almost pure profit for them.
This...^^^.

There is no profit in the taxes and mandated fees, Delta has to remit that money to either the Federal gov't or some other authority. However, for fees like change fees, standby fees, baggage fees, etc. Those should be counted as they are part of Delta's operating revenue.
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Old Sep 17, 2014, 6:53 pm
  #13  
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Originally Posted by readywhenyouare
If someone were to spend $50,000+ on Delta would it not just be better to get a Delta Private Jet Card since it includes DM status? Then you could just use the card to pay for your flights and not have to worry about any program rules. Good idea?
$50k of private jet time doesn't go nearly as far as $50k in commercial aviation spending. I imagine those who spend $50k on Delta do so because they have places they need to be and that same $50k in a private jet would only get them to a fraction of their required destinations.
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Old Sep 17, 2014, 6:58 pm
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Originally Posted by TTT
$50k of private jet time doesn't go nearly as far as $50k in commercial aviation spending. I imagine those who spend $50k on Delta do so because they have places they need to be and that same $50k in a private jet would only get them to a fraction of their required destinations.
True, the cost per mile is much higher flying by private jet.
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Old Sep 17, 2014, 6:58 pm
  #15  
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Originally Posted by TTT
$50k of private jet time doesn't go nearly as far as $50k in commercial aviation spending. I imagine those who spend $50k on Delta do so because they have places they need to be and that same $50k in a private jet would only get them to a fraction of their required destinations.
It may have changed but from what I understood you could use the funds on the jet card to pay for DL flights. I was just thinking it was a good way to get immediate DM status if one desired it.
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