FlyerTalk Forums - View Single Post - MQM Valuation Based on Fare Paid Now Showing on Delta.com
Old Sep 5, 2012, 1:12 pm
  #168  
ADLFO
 
Join Date: May 2008
Programs: DL AA UA
Posts: 2,359
Originally Posted by HongKonger
I usually buy M fares so I don't have much of a dog in this race. But I just don't see why DL cares if the elite ranks are "overinflated." What does it cost them? What are the benefits that elites get?

-- Complementary UGs: If DL wants to give out fewer they can FCM more aggressively, change to all BF UG or only give out early windows to higher medallions, etc.

-- No bag fees: Anyone who loses elite status can eliminate bag fees with an AMEX. AMEX pays DL so much those benefits aren't going anywhere. Will DL really get more fees this way?

-- Premium seats: Will people who lose elite status pay for the seats they used to be entitled to choose? Will it make much difference?

-- Discounted or free EC: only makes a difference international with the free alcohol. Additional cost or savings probably marginal.

-- Boarding zone: Makes no monetary difference unless they plan to offer higher zones for sale but what kind of sucker buys that unless seating is also going to be a free-for-all like WN? Anyway again AMEX offers this.

-- No mileage redeposit fees: Does it really make a huge difference? There is already T-72 so this benefit is already reduced.

I am not privy to DL's calculations I just don't see how it really makes them more money to thin the elite ranks.
Actually, bubashow is evidence, albeit small, that having elite inflation doesn't hurt DL's bottom line. bubashow wants a more elite medallion membership, but so far has not taken his business elsewhere. Instead, he chooses to stay put. A valid choice, but telling, I believe.
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