FlyerTalk Forums - View Single Post - First Class Monetization, or FCM: The Definitive Thread
Old May 15, 2015, 9:21 am
  #2332  
gooselee
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Join Date: Oct 2011
Location: ATL
Programs: DL Scattered Smothered Covered Medallion, Some hotel & car stuff, Kroger Plus Card
Posts: 10,745
Originally Posted by Esltroy
You are not taking a few things into account. 1)that the reason why it's so full is because of delta loyalists. One only needs to look at the huge upgrade lists in each flight. While most on FT travel a lot and maintain DM or PM status, just getting to silver is no small feat.

2) the cost of bags, C+, bennies, are more than made up by the loyal member who pays slightly more each ticket to remain with delta and not just take the cheapest flight and does not take up so much time with the GA/on-line support/marketing and advertising.

3) there is a balance that delta is dancing around. They tried it in NY and got the big hand slap on transcons.

I work with folks who have loyalty all over the board. I no longer suggest delta to new hires. I am going to see what they do to the program this year. If the devaluations continue....I'm gone. And I won't look back when the airlines get back into the red. Whomever I switch to, will also try and keep me as a frequent flyer when that day comes.
I do love the delta people...great airline with crappy ff program.
Excellent points, but there are also counterpoints:

1) I find myself quite frequently on flights that are full by only have 10 people on the UG list. It depends on time and market. I fully admit I don't know the larger trends across the board for all flight at all times, but I know that IME, the length of UG list varies greatly but the filled capacity of the flight seems to be consistent.

2) Again, I have no data to back this up, but I feel like many FTers greatly overestimate the number of travelers, even elites, who will pay more or take inconvenient routings/schedules just to maintain loyalty/status. I would actually venture that most elites in all programs get there "naturally" - that is, they simply travel enough or maintain consistent enough patterns that always choosing the best price/schedule/routing gets them status without them having to go out of their way to use one airline/hotel over another.

3) Agree that it's a balance. I don't have the information nor am I smart enough to know the answer. I'm mostly just trying to point out that there is a clear path of reasoning behind FCM and the airlines' choosing to give less attention to their elites these days. Whether that strategy pays off in the long run...I don't think any of us has that answer.

I think the difference here is that many FTers make purchase decision based on what gets them the best miles and path to status. Most others, including myself and most of the people I know, make purchase decision based on cost vs. product, where product primarily includes routing, schedule, and service.

In a situation where DL costs $5 or $10 more to fly vs. AA/US/UA for the same route, same # connections, and essentially same schedule, you end up with three types of people - from my experience, this is the order from biggest group to smallest:
1. People who just buy the cheapest fare and don't look back.
2. People who will buy the higher DL fare because they like DL's planes and people better and have had positive experiences in the past.
3. People who will buy the higher DL fare because they want those miles and status.

I believe that outside of FT, #3 is actually a very, very small group, which is why the airlines are focused on the people in 1 and 2.
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