FlyerTalk Forums - View Single Post - Delta increasing Diamond MQD Waiver to $250,000
Old Jul 31, 2017 | 12:56 pm
  #475  
MSPeconomist
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Originally Posted by hockeyinsider
Delta needs to make an enhancement for every change or elimination it makes. For example, more upgrade certificates when you hit 150,000 MQMs or 175,000 MQMs -- presuming they keep the MQM thresholds and don't move strictly to a MQD threshold. Or, providing complimentary elite upgrades intra-Asia (maybe with the exception of Singapore) and allowing for regional upgrade certificates to be used for international premium-economy.

This reminds me.

While the vast majority of Delta elites are U.S. Lower 48-based customers, I have to imagine there remains a sizeable number who are based elsewhere -- be it Europe, Latin America, Asia and the Pacific, and the non-contiguous parts of the United States like Guam, Saipan, Puerto Rico and the Virgin Islands. These customers go out of their way to fly Delta and many don't even receive complimentary elite upgrades because there are no "domestic" flights in their region. I know three diamonds in Guam. Their biggest complaint is the regional upgrade certificates they get at the platinum level are useless for them as are the complimentary elite upgrades because none of their flights to/from Guam and to/from Tokyo are upgradeable without miles or a global upgrade certificate. Presently, they're exempt from the MQD thresholds, which probably makes sense but I think Delta will have a difficult time preserving a separate system for them if a major overhaul/gutting (depending on your perspective) of the program is rolled out.

This gets me back to an earlier post.

Going 100% revenue-based for diamond qualifications penalizes those customers who fly routes that are not premium routes. These customers probably go out of their way to stay loyal to Delta when they don't have to do so.

It's probably why hotel chains haven't gone the revenue route because it would be deeply unfair to penalize a customer who stays 75 nights a year at say a Fairfield Inn -- the only Marriott hotel where he does business -- or a customer who stays 75 nights a year at a Marriott in Asia, where rates could be $50 a night.
If elites living in Guam cannot benefit from RUCs, they shouldn't select them as their choice benefit. Others choice benefit options would benefit Guam residents who are PMs.
Originally Posted by hockeyinsider
I've long thought that the difference in thresholds for platinum (75,000 MQMs) and diamond (125,000 MQMs) didn't make sense, especially with silver (25,000 MQMs) basically useless.

If Delta is going to fundamentally revamp the program then it might as well change the status tiers to something like:

Silver - 25,000 MQMs
Gold - 50,000 MQMs
Platinum - 100,000 MQMs
Diamond - 150,000 MQMs (or MQDs-based)
360 - MQDs-based

If you needed something between platinum and diamond, especially for those living outside the United States, you could have a "premier" status reserved for those with a genuine residence outside the non-contiguous United States that included global upgrade certificates.

I know three diamonds in Guam. Their biggest complaint is the regional upgrade certificates they get at the platinum level are useless for them as are the complimentary elite upgrades because none of their flights to/from Guam and to/from Tokyo are upgradeable without miles or a global upgrade certificate.
Again, you're talking about *choice* benefits. If a Guam PM cannot benefit from RUCs, he/she can pick something else as his/her PM choice benefit. Problem solved.

Originally Posted by jamesteroh
I know their interchange fees are higher than the competition and that's why some small businesses don't accept Am Ex.

And Am Ex originally started out as a charge card (you are REQUIRED to pay the balance in full in each month therefore no interest) not a credit card and the regular Am Ex Platinum and I'm sure some of their other cards are still charge cards and not credit cards. IIRC their first credit card was the Optima in the mid to late 80's.
The regular AmEx Plat and Centurion cards are indeed charge cards, not credit cards.

Originally Posted by BusTrav8yrs
You are confusing "loyalty" with "loyalty program". A loyalty program rewards spend that benefits the profit margin, not how often you use them. DL doesn't give a crap whether you fly them every week, just how much you spent.
However, spend isn't directly linked to profitability. One could spend a lot on tickets that are only slightly profitable for DL.

Originally Posted by RobertS975
Reserve cards not useless to me! For a $450 fee, I receive 30,000 redeemable SkyMiles, worth a minimum of $300 with PWM program, a companion certificate good in FC, 30,000MQMs which obviate the need for some potential mileage runs, and free SkyClub.
If you're spending $60,000 on your Reserve card to get the 30,000 MQMs, you should receive not only the 30,000 bonus RDMs but also an additional 60,000 RDMs when you charged the $60,000 to your Reserve card.

Originally Posted by MEMLawGuy
I'm gonna go out on a different tangent here: Why won't they eventually switch to a purely revenue elite system? I've had years where I've hit well over DM spend but been short on MQM's because most of my trips are regional or east coast; no international. But, for example, I've paid over $1,400 to fly to Birmingham, AL. Why wouldn't someone who simply spends the most be the most HVC, regardless of how many miles they fly? In fact, if you think about it, DL would theoretically make the most out of someone that pays a ton of full fare tickets on short routes. I only keep the DL Amex for the MQM boost, not the spend waiver.
Again, not every ticket on DL is equally profitable as a percentage of the fare. You could spend a lot and not be very profitable.
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