First Class Monetization, or FCM: The Definitive Thread
Dec 10, 2018, 11:33 am
#4082
Join Date: Oct 2017
Location: BNA
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Dec 10, 2018, 12:08 pm
#4083
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I think it's interesting for two other reasons.
First, Delta must have hundreds of millions of unredeemed miles circulating. Obviously, corporate would rather customers use miles for upgrades, buying premium alcohol in lounges and so forth than using miles for flights. I presume because planes are so full that Delta would rather have cash revenue. As they say, cash is king. I can understand that position, but what's objectionable -- truly objectionable -- is devaluing miles. It's one thing if the award-redemption seats are never available. It's altogether something else if you're artificially devaluing the miles to the point where nobody in their right mind collects miles to redeem for that dream, aspirational trip to Bora Bora or wherever. I mean, seriously, 500,000-plus miles for under 8 hours in business-class to Paris is outrageous. At that rate, Australia and South Africa will be 1,000,000 miles.
Second, most of us presume that the number of Delta diamonds will drop in February since they've it more difficult to qualify for the top level of elite status without legitimately spending $15,000 or more on airfare and flying 125,000 MQMs. Presumably they figure there will be enough former diamonds willing to pay $50, $70, $125 or even $200 to get the upgrade they're no longer going to get.
Dec 10, 2018, 12:13 pm
#4084
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Here's the press release Delta just sent out to the media:
SkyMiles Members can use industry-leading delta.com function to pay for seat upgrades after bookingDelta SkyMiles Members wanting a little extra leg room or the premium Delta experience can now purchase that upgrade using miles instead of cash on Delta.com after booking their ticket. Delta is an industry leader in offering this simple self-service option via its website, with the same functionality coming to its award-winning Fly Delta app in early 2019.
Using miles for upgrades after booking builds on the functionality Delta pioneered with post-purchase upgrades last year that allows customers to buy a premium seat online using either the same or a different method of payment from the one they used to buy their ticket.
Sandeep Dube, Senior Vice President — Customer Engagement & Loyalty and CEO of Delta Vacations, said expanding the use of miles is about providing SkyMiles Members with more flexibility and an easier way to choose the experience that best meets their needs.
This new option, made possible by Delta's ongoing digital investments, will give Members traveling for business or leisure the ability to use their personal miles to upgrade their experience whenever they fly — and miles can be used to upgrade a single leg or multiple legs of a journey.
"Whether you're just starting to build your SkyMiles account, or you've been collecting miles for years, Delta is making all of our Members' miles more valuable by offering more ways to use them for Delta purchases, big and small," he said. "Our ultimate goal is for SkyMiles Members to have the choice to use miles anywhere they can use cash with Delta, and to be able to make those transactions available in digital channels."
Delta already offers SkyMiles Members the option to redeem miles for items digitally, including award travel, gift cards, Delta Vacations, SkyMiles Experiences and in Delta Sky Clubs.
Here's how it works after a ticket has been purchased:
A customer can log in to Delta.com to buy Delta Comfort+, First Class, Delta Premium Select, or Delta One as an add-on, or ancillary purchase, as available — regardless of where or how the original ticket was purchased. The customer can select a premium seat on any individual segment of their journey, or the entire trip, and use miles or a different method of payment for the transaction. Only flight segments operated by Delta are eligible for purchasing upgrades after booking a ticket, subject to availability.
Delta already offers customers the option to upgrade using miles or cash during the booking process on each leg of the trip, based on availability.
Dube added that with more customers than ever earning miles for activities other than flying - like using their Delta SkyMiles American Express Credit Card, grabbing a Lyft or staying at an Airbnb — even Members with lower balances will find their miles more valuable as the global airline expands the ability to use them.
This latest customer offering is part of the innovative investments Delta is making in its SkyMiles program, which was recently named a Best Travel Rewards program by U.S. News & World Report. Industry-leading partnerships with brands like Lyft and Airbnb allow customers to engage with Delta by earning miles for everyday activities, while the award-winning Delta Sky Club experience continues to be a reason Members choose to fly Delta.
How Delta is making it easier to upgrade using your miles
SkyMiles Members can use industry-leading delta.com function to pay for seat upgrades after bookingDelta SkyMiles Members wanting a little extra leg room or the premium Delta experience can now purchase that upgrade using miles instead of cash on Delta.com after booking their ticket. Delta is an industry leader in offering this simple self-service option via its website, with the same functionality coming to its award-winning Fly Delta app in early 2019.
Using miles for upgrades after booking builds on the functionality Delta pioneered with post-purchase upgrades last year that allows customers to buy a premium seat online using either the same or a different method of payment from the one they used to buy their ticket.
Sandeep Dube, Senior Vice President — Customer Engagement & Loyalty and CEO of Delta Vacations, said expanding the use of miles is about providing SkyMiles Members with more flexibility and an easier way to choose the experience that best meets their needs.
This new option, made possible by Delta's ongoing digital investments, will give Members traveling for business or leisure the ability to use their personal miles to upgrade their experience whenever they fly — and miles can be used to upgrade a single leg or multiple legs of a journey.
"Whether you're just starting to build your SkyMiles account, or you've been collecting miles for years, Delta is making all of our Members' miles more valuable by offering more ways to use them for Delta purchases, big and small," he said. "Our ultimate goal is for SkyMiles Members to have the choice to use miles anywhere they can use cash with Delta, and to be able to make those transactions available in digital channels."
Delta already offers SkyMiles Members the option to redeem miles for items digitally, including award travel, gift cards, Delta Vacations, SkyMiles Experiences and in Delta Sky Clubs.
Here's how it works after a ticket has been purchased:
A customer can log in to Delta.com to buy Delta Comfort+, First Class, Delta Premium Select, or Delta One as an add-on, or ancillary purchase, as available — regardless of where or how the original ticket was purchased. The customer can select a premium seat on any individual segment of their journey, or the entire trip, and use miles or a different method of payment for the transaction. Only flight segments operated by Delta are eligible for purchasing upgrades after booking a ticket, subject to availability.
Delta already offers customers the option to upgrade using miles or cash during the booking process on each leg of the trip, based on availability.
Dube added that with more customers than ever earning miles for activities other than flying - like using their Delta SkyMiles American Express Credit Card, grabbing a Lyft or staying at an Airbnb — even Members with lower balances will find their miles more valuable as the global airline expands the ability to use them.
This latest customer offering is part of the innovative investments Delta is making in its SkyMiles program, which was recently named a Best Travel Rewards program by U.S. News & World Report. Industry-leading partnerships with brands like Lyft and Airbnb allow customers to engage with Delta by earning miles for everyday activities, while the award-winning Delta Sky Club experience continues to be a reason Members choose to fly Delta.
Dec 10, 2018, 1:17 pm
#4085
Join Date: Feb 2017
Programs: DL DM, UA Gold, Alaska MVP, Bonvoy (lol) Ambassador
Posts: 2,994
It's altogether something else if you're artificially devaluing the miles to the point where nobody in their right mind collects miles to redeem for that dream, aspirational trip to Bora Bora or wherever. I mean, seriously, 500,000-plus miles for under 8 hours in business-class to Paris is outrageous. At that rate, Australia and South Africa will be 1,000,000 miles.
Dec 10, 2018, 1:55 pm
#4086
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There's no way I would fly economy-class, at least on miles, to Sydney. But if you had to there is lots of availability, including during Australian summer, for under 100,000 miles round-trip.
Dec 10, 2018, 2:42 pm
#4087
Join Date: Feb 2017
Programs: DL DM, UA Gold, Alaska MVP, Bonvoy (lol) Ambassador
Posts: 2,994
That's just insane. I had to do a search so I just went to Delta.com. According to what I saw there is only one day between now and June 1 when a round-trip award redemption between Detroit and Sydney is under 500,000 miles in business-class (440,000 miles on January 21, 2019). Meanwhile, there are only two or three days where a redemption is under 600,000 miles. There were quite a few days in February in the 610,000–740,000 range with all of the periods being around 930,000 miles. Outrageous.
There's no way I would fly economy-class, at least on miles, to Sydney. But if you had to there is lots of availability, including during Australian summer, for under 100,000 miles round-trip.
There's no way I would fly economy-class, at least on miles, to Sydney. But if you had to there is lots of availability, including during Australian summer, for under 100,000 miles round-trip.
Dec 10, 2018, 3:41 pm
#4088
FlyerTalk Evangelist
Join Date: Jan 2012
Location: Northern Calif./Eastern Ida.
Programs: Amethyst Premier Plutonium Medallion
Posts: 20,640
my strategy now is use the miles for domestic hops in coach, and spend the money on international PE and J. i won't make status anymore with that strategy, but don't really care since upgrades are going to basically disappear soon anyways with people redeeming their miles for "FCM" upgrades.
Dec 10, 2018, 3:54 pm
#4089
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Location: DCA
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Posts: 50,262
Can't compare miles any longer because they are not a mile-for-mile or dollar-for-dollar award. Until DL shifts to a simple points system where every $1 in spend gets you a point, the suckerspassengers will keep looking at what they earn, not what a ticket costs.
Dec 10, 2018, 4:53 pm
#4090
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The problem with the current system is Delta talks about rewarding customers who spend the most but then cap the number of miles you can earn on a ticket. If you buy the $7,000, $8,000, $10,000 tickets for Delta One you aren't actually getting all the miles you should be getting.
Dec 12, 2018, 8:35 am
#4091
Join Date: Jan 2011
Location: LAX
Programs: Delta Silver, Marriott Gold, HH Diamond, Ex-UA Gold, Ex-AA Gold , Ex-SPG Gold, Peon everywhere else
Posts: 616
Just saw this on my trips page: Is this normal for a 1200 mile/3 hour trip? Is it because maybe it is an international itinerary, FC is $787 to buy outright (difference between C + and FC is $275). I saw that most of econony is nearly full, but FC is 75% empty and Comfort + is 60% empty. My tickets are award tickets I got for 7K miles each in Comfort +.
Dec 12, 2018, 9:30 am
#4092
FlyerTalk Evangelist
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Just saw this on my trips page: Is this normal for a 1200 mile/3 hour trip? Is it because maybe it is an international itinerary, FC is $787 to buy outright (difference between C + and FC is $275). I saw that most of econony is nearly full, but FC is 75% empty and Comfort + is 60% empty. My tickets are award tickets I got for 7K miles each in Comfort +.
Dec 12, 2018, 1:54 pm
#4093
Join Date: Jan 2011
Location: LAX
Programs: Delta Silver, Marriott Gold, HH Diamond, Ex-UA Gold, Ex-AA Gold , Ex-SPG Gold, Peon everywhere else
Posts: 616
Is it normal? Not really, but nothing is normal with FCM. What you are seeing is more of a symptom of bad IT than anything else. I have a similar one right now, for travel next week SFO-JFK -- got award ticket for 9k one way, FCM offer is $965 but at the time I bought the ticket, a Z fare in D1 was only $749 one way.