Originally Posted by
gooselee
This has been said a few times, and I disagree. While I also think the devaluation sucks, Delta RDMs are still better than cash back cards when you do the math.
People with no status earn 5 RDM per MQD. Assuming that your MQD is about 80% of actual cash outlay, that's 4 RDM per dollar spent.
Even at a PWM rate of $0.01, that's a 4% rebate on your airfare, and you continue earning MQM on the "award" flights. As a PM with a DL Amex, I'm getting around 8% just using PWM, which is the current floor for redemption value.
Of course, DL could change the PWM structure, too. But until then, it's still a better return than any cash back cards, especially if you will continue flying DL due to better schedules, product, and service, which are the primary decision factors for most people not on FT.
The amount from the card is only 2 points/dollar though. The rest you still get no matter what you use to buy the ticket. And on all non Delta purchases you just get a straight up 1 point/dollar. There is an opportunity cost to use the Delta card vs something else so your rebate numbers aren't accurate.
Say someone spends $2,300 on tickets (assume $300 are taxes so not MQD) and $5,000 elsewhere in a month using a Delta card and you end up with
General member: 15,300 miles
Silver: 19,300 miles
Gold: 21,300 miles
Plat: 23,300 miles
Diamond: 27,300 miles
Now say someone spends that same amount in a month on the same things with a non-Delta card that gives 1% cash back
General member: 10,000 miles + $73
Silver: 14.000 miles + $73
Gold: 16,000 miles + $73
Plat: 18,000 miles + $73
Diamond: 22,000 miles + $73
And that assumes there are no bonus categories like groceries/gas or anything else where they can earn more than 1%. You could do the same calculation for any card with the $73 being replaced by whatever you get for spending $7,300 on that card.