Originally Posted by
cerealmarketer
Interesting response analysis...
Agreed, it's well done, but here is one factor they mentioned, but did not explore:
% of miles flown on awards 8.0% 8.2% 8.3%
Compare that to Delta's
load factor:
2010 83.95% load 8.3% awards
2011 83.10% load 8.2% awards
2012 84.86% load 8.0% awards
The initial premise of frequent flyer programs was that airlines would use seats which would otherwise remain unsold. As the airline industry reduces capacity, and load factors rise, the space made available for awards becomes more valuable, and redemptions are pushed into less desirable times and routings. Can Delta continue to redeem ~8% of the seatmiles as the load factor climbs?