Originally Posted by RustyC
Bearing in mind the chance for unintended consequences and trying to look a step or two ahead, will Delta's 499/599 move, if it sticks, lead to bad news for FF programs as we know them?
The immediate predicted effects are forcing other airlines to match and, perhaps more significantly, implanting in consumers and business travel managers the notion that under no circumstances should they pay more than 499 coach or 599 FC each way in the 48 US or accept a Saturday stay requirement for that kind of money. And that's if everyone matches Delta without upping the ante.
Suddenly all the incentives and targeted awards for the formerly really hefty fares look questionable. Should F get all those bonuses if only $100 more than Y? Will anyone other than Ys have any chance at an upgrade? And with overall revenue expected to take a hit, at least at first, will we hear that that means more belt-tightening on the FF programs? Seems to me it could be used as a pretext for raising elite-qualification requirements and/or raising lowest award levels.
Seems like this will not only shake up the fares, but the way the programs give incentives and rewards for all fares. I think overall it's simpler and fairer, but have a hard time seeing it leading anywhere good for FF benefits. Thoughts?
I don't think that DL is going to raise elite-qualification (better not) or raise award levels, as they've just implemented Skymiles 2005 changes, which were pretty major. They want FF to believe in Skymiles, that it's a fair system, that the benefits are real. That was their goal in changing skymiles, and the same goal in lowering fares-to get more business through good PR. Just my thoughts.