Here's the response I received to an email I submitted via the DM page: Note the odd contention that the program changes are intended "to continue to deliver the best benefits to our DM members." Problem is they won't have many left after this shortsighted stunt. Equally odd is the contention that this will "simplify" the "accrual policy" - awarding 500 min miles, period, was quite simple if you ask me
Thank you for contacting US Airways.
We can understand your concerns about the changes in our mileage accrual
for short haul flights. Beginning May 1, 2008, you will begin earning
the actual number of miles flown rather than a 500 mile segment minimum.
We periodically review our program and make changes to offset rising
airline expenses and to continue to deliver the best benefits to our
Dividend Miles members. By awarding the actual number of miles flown,
US Airways will reduce costs and simplify its accrual policy to help
ensure the long-term viability of the Dividend Miles program.
Although fuel prices continue to increase, our award travel requirements
have remained largely unchanged. Looking forward, we will be adding
more award destinations on US Airways and our Star Alliance partners.
Thank you for taking the time to share your thoughts about our program
changes. Your business is important to us and we feel confident that US
Airways can meet your future travel needs.
Programs: CO Platinum Elite; US Gold; *A Gold; HH Silver
Posts: 4,191
Quote:
Originally Posted by donnmein
Although fuel prices continue to increase, our award travel requirements
have remained largely unchanged. [/color]
Is this for real? 4 months after they increased the domestic mileage upgrade award from 10,000 to 15,000 AND revoked the 10,000 mile transatlantic upgrade award for Y/B fares AND increased the minimum upgradeable fare to $1,200??? This statement is completely FRAUDULENT!
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We caused such an uproar over Black Tuesday in 2002 that CCY reversed course in a matter of a week. And guess what? NO OTHER CARRIERS matched CCY's bone-headed move!
technically Continental did, in part anyway-- acquiring full elite credit for cheap fare classes requires booking via their web site.
but that's neither here nor there.
what's really driving this? as was pointed out earlier, redemption asymmetry, it has to be.
US carries its mileage liability at something like 100 to the penny, and justifies doing so because their yield management can prevent redemptions from displacing revenue tickets. they thus book the "cost" per redeemed US ticket at the marginal cost of the flight which might be $10 or so. if that were the sole story, no amount of minimum cutting would save them a dime.
the catch has to be in partner redemptions. as long as partners have similar cross-redemptions, the airlines call it even and everything is good. when a pair of partners has unequal redemptions, cash has to change hands. it must be the case that lots of folks are spending US miles on LH or SQ, and (surprise surprise) relatively few LH or SQ flyers are spending their miles on US flights. US is having to pay for that difference, and they are tiring of it.
they don't touch non-flight partner miles, because they're already paid cash for those. it's the "earned" flight miles that are the target.
I would predict they'll turn a deaf ear to folks using mins to elite qualify on miles and haughtily tell them to simply try harder and qualify on segments
instead.
Programs: UA 1P (soon to be 1K) SPG Gold, Hertz 5*Gold
Posts: 200
In Southern California markets (such as mine, SNA & LAX) I would expect elite Dividend members to make a switch to UA, AA or even WN.
This new rule simply doesn't make sense in a loyalty driven business. Leisure travelers probably won't care less about the new policy, as miles are miles to them, but business travelers (and other elites) are going to be outraged!
For someone like myself who flew several short segments in 06 and 07 (ie. lax-phx and sna-las) that was my means of elite qualification! Yes, I understand that I can still qualify by segments flown, but this new rule won't be well received! Let's hope the others don't follow suit, and perhaps US will change their mind on this one!
Saw the email on my Blackberry in SFO while waiting for my flight back to CLT. I just shook my head...Every chance USAirways has they find a new way to disappoint. I have flown 12 segments this year on US and have gotten ZERO upgrades as a SP. There is no food on 5 hour transcontinental flights other than the $5 -$7 BOB, which is smaller than the free meals on CO. There is no glassware in F, not that I expect to get an unlimited free upgrade anymore to see it. The audio didn't work at my seat today, so I couldn't watch the movie. There is less room in coach, my tray table and seat today were filthy. When I got home, I did something I haven't done in years. I booked my next trip (for 4 passengers) on Continental. I don't even have a FF# on CO, but the thought of giving US another dollar on the day they announce yet another service reduction made me decide that something had to change. At some point in an abusive relationship, the victim has to decide to stop hoping that things will improve.
Location: Newport Beach, CA (SNA) Ex MAD Ex SJC Ex ORD
Programs: US Platinum, AA Lifetime Gold, SPG Platinum, HHonors Gold
Posts: 737
Quote:
Originally Posted by donnmein
Here's the response I received to an email I submitted via the DM page: Note the odd contention that the program changes are intended "to continue to deliver the best benefits to our DM members." Problem is they won't have many left after this shortsighted stunt. Equally odd is the contention that this will "simplify" the "accrual policy" - awarding 500 min miles, period, was quite simple if you ask me
Thank you for contacting US Airways.
We can understand your concerns about the changes in our mileage accrual
for short haul flights. Beginning May 1, 2008, you will begin earning
the actual number of miles flown rather than a 500 mile segment minimum.
We periodically review our program and make changes to offset rising
airline expenses and to continue to deliver the best benefits to our
Dividend Miles members. By awarding the actual number of miles flown,
US Airways will reduce costs and simplify its accrual policy to help
ensure the long-term viability of the Dividend Miles program.
Although fuel prices continue to increase, our award travel requirements
have remained largely unchanged. Looking forward, we will be adding
more award destinations on US Airways and our Star Alliance partners.
Thank you for taking the time to share your thoughts about our program
changes. Your business is important to us and we feel confident that US
Airways can meet your future travel needs.
This is not a very encouraging response...although I am very irritated by this entire situation, I feel it is hardly worth the effort to send emails only to receive this form letter in return.
I fly SNA to LAS and PHX regularly and this change will negatively impact my mileage accrual, but I really have no use for award tickets on WN. I am looking forward to 100% success on my US upgrades, due to the elite defections caused by this announcement. I only fear that the next step will be elimination of F, since there will be no elites left to upgrade to it and of course nobody is paying for it.
And BTW, I will quit flying TUS-PHX-SNA...I'll just drive back to PHX.
It will be interesting to see if US flights credited to UA MP accounts continue to accrue 500 miles/segment...if so that might be a decent option.
Programs: AS MVPG, Delta Gold, US Gold, SPG Gold, HHonors Diamond, Hyatt Diamond
Posts: 318
Victims of Data Mining
I specialize in IT business intelligence and predictive analytics. I believe this poor decision is due to this cruel and infantile area of complex data driving business decisions. Somewhere there is some pure geek analyst sifting through data cubes to discover that total mileage earned from routes < 500 miles heavily outweighs those earned from > 500 mile routes from a flight segment percentage perspective. You can easily see that 10 flights of 49 miles per segment, earning 500 miles each quickly outweighs that single 510 mile segment flight. Now just compound that by the huge amount of small segment travel that takes place. I wouldn't be surprised if 80% of all flight miles earned are sourced from the < 500 mile category. This analysis has probably forgotten to take in the dollars per segment perspective for comparison. The truly sad thing is the fact that in most cases these decisions are made based more on data rather than customer impact.
The proper response is taking place with feedback by you. Tell them you will take your business elsewhere, but most of all act on it and provide proof of lost revenue. At some point this will all catch up to them and serve as a model of what not to do.
Location: Ex-US CP, Ex-*wood Plat, Ex-MR Plat, Ex-HH Gold, Ex- Hertz 5*, now PC Plat, MR Gold, US Silver
Posts: 1,655
The only other logical reason I can think of why they would do this is that many members must be taking connecting flights when they could take a direct flight.
This will now make that less beneficial and could free up seats for more revenue passengers.
I think this is pretty dumb of US Airways. But, in a way, I can't blame them, because of Bush and his dumb war, it's costing everyone a lot of money and we're seeing everything becoming more expensive.
I think this is pretty dumb of US Airways. But, in a way, I can't blame them, because of Bush and his dumb war, it's costing everyone a lot of money and we're seeing everything becoming more expensive.
I agree that Bush is quite culpable in many ways for the times we are living in, but this is all US management!
