Delta's Greed and MQDs.
#1
Original Poster
Join Date: Oct 2005
Posts: 190
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.
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.
#2
FlyerTalk Evangelist
Join Date: Sep 2003
Location: San Antonio
Programs: DL DM, Former AA EXP now AY Plat, AC 75K, NW Plat, Former CO Gold, Hilton Diamond, Marriott Titanium
Posts: 27,042
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.
#3
Join Date: Oct 2009
Location: RNO, PHL, SLC
Programs: DL Platinum, AA EXP
Posts: 214
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.
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.
#4
Join Date: Jun 2005
Location: Huntsville, AL
Programs: DL DM 1.929MM, Hilton Lifetime Diamond, IHG Platinum, Avis CHM, Marriott Titanium (lifetime gold)
Posts: 7,860
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
#5
Join Date: Nov 2012
Location: Minutes from ATL
Programs: DL
Posts: 436
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.
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.
#6
Join Date: Mar 2011
Location: CVG
Programs: DL DM, DL MM, Marriott Gold
Posts: 75
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?
#7
Suspended
Join Date: Jul 2010
Location: Orlando, FL Area
Programs: Delta SkySponge ExtraAbsorbent, SPG Gold
Posts: 29,988
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?
#8
Join Date: Jan 2008
Location: NYC, MSY
Programs: DL DM, 1.5MM, NEXUS, Sky Club Lifetime, Admirals Club Lifetime, LowValueCustomer everywhere
Posts: 6,447
It's $100,000 minimum now. If you're spending that much in 2 years, you really don't care about MQD.
#9
Join Date: Dec 2002
Location: MHT, CHS
Programs: DL DM, Hilton Dia, Avis Pres Club
Posts: 1,248
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
#10
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,056
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.
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
#11
Join Date: Jan 2010
Location: Twin Cities
Programs: Delta DM MM, IHG Plat, Hilton DM, Marriott SE, Emerald EE, Oakdale Gun Club, NRA & GOA Life Member
Posts: 3,870
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.
#12
Join Date: Aug 2013
Location: DTW
Programs: DL PM, Natl-Exec Elite, Hertz-President Circle, Marriot/Starwood-Gold, HHonors-Gold
Posts: 678
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.
#13
FlyerTalk Evangelist
Join Date: Nov 2004
Location: 45° North
Programs: DL DM MM, HH Diamond
Posts: 10,196
$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.
#14
Join Date: Aug 2013
Location: DTW
Programs: DL PM, Natl-Exec Elite, Hertz-President Circle, Marriot/Starwood-Gold, HHonors-Gold
Posts: 678
$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.
#15
Suspended
Join Date: Jul 2010
Location: Orlando, FL Area
Programs: Delta SkySponge ExtraAbsorbent, SPG Gold
Posts: 29,988
$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.