Originally Posted by
pmaddock
I have to ask then - why not just stop playing the game (do x to get EQMs) and just sell EQMs out-right and be done with it? Then we'd finally be at a bottom line.
USAirways has essentially done this in allowing customers to purchase the quantity of EQMs they needed to get to the status level of their choice. I think it would be wise for other airlines to do the same because it would simply provide transparency of what is already being done. This, perhaps, is the reason they aren't doing it openly... they might feel people are more willing to pay for EQMs through activities than directly. Just as some people view radio with ads "free" (despite the fact they are paying because they spend money with advertisers), others might view bonus EQMs from CC spending in a similar light.
Originally Posted by
jjglaze77
I enjoyed your post, mooper! I would just like to point out that things are in a pretty sad state when Delta Air Lines makes more money from CCs/Hotels/etc than it does from flying. If that is the case, perhaps they should stop making seats available for "revenue ($$$)" tickets and instead only allow ticket purchases with skymiles.
Well, it's not so much that it's sad, but that margins on tickets sold are *much* lower than margins on RDMs and MQMs sold. For example, it might be that a $400 BIS ticket yields $80 (20%) in profits while $400 in EQMs/MQMs sold to Amex yields $300 (75%) in profits (the cost being the marginal cost of extra benefits provided to the EQM/MQM holders).