Skymiles Change Rumor?
#826
FlyerTalk Evangelist
Join Date: Jun 2008
Programs: Formaldehyde Medallion DL DieMiles
Posts: 12,646
That's entirely up to them. But the point is that to successfully engage in social media, companies need to be participants and earn respect and authority. Not to control the message like many large corporations are oh so used to doing. That's why social media is such a difficult thing for large enterprises to take on successfully compared to smaller companies. You gain influence by having others give you influence because of your demonstrated expertise. And if DL chooses to engage in social media efforts, they need to grasp this concept better.
#827
Join Date: Sep 2003
Location: Long Beach, CA
Programs: DL DM
Posts: 5,292
That's entirely up to them. But the point is that to successfully engage in social media, companies need to be participants and earn respect and authority. Not to control the message like many large corporations are oh so used to doing. That's why social media is such a difficult thing for large enterprises to take on successfully compared to smaller companies. You gain influence by having others give you influence because of your demonstrated expertise. And if DL chooses to engage in social media efforts, they need to grasp this concept better.
#828
FlyerTalk Evangelist
Join Date: Apr 2009
Location: Bye Delta
Programs: AA EXP, HH Diamond, IHG Plat, Hyatt Plat, Marriott Plat, Nat'l Exec Elite, Avis Presidents Club
Posts: 16,264
What makes it difficult is the inability to control the message. You don't want a social media presence in which you are being slammed. Afterall, it is a marketing tool. I know where I work, we didn't have the resources to monitor our social media 24/7, so we eliminated the ability to blindly post to our Facebook - for two reasons 1) we didn't want a negative message to hold for any length of time 2) we didn't want uncompensated marketing messages. I am sure Dl doesn't have the human resources to sit and monitor FT when they have their own social media outlets. With the hostility that has been readily displayed on here, I can understand their unwillingness to even embark on communication.
If SMI had a history of hundred or thousands of engaging, informative, helpful posts, he would have a following. And that following would destroy the trolls themselves. No need for him to control the message, because the community already knows who they're going to trust and who they're going to ignore. Instead, Delta has very little social authority here because their presence is almost exclusively overt marketing. And that doesn't work in social media.
So while social media almost always falls within the domain of the marketing team, this is a whole new game and the old playbook doesn't work so well. Marketers who try too hard to market through social media will fail at it because they become too obvious. And people don't trust you when you have an angle. The other mistake companies make is to build a social media presence they don't have the people to maintain. This is a marathon, not a sprint. Too many companies go out and create Facebook pages, Twitter accounts, etc. because they think they have to be in social media, and then don't allocate enough resources to actually participate. What almost inevitably happens is that others will become the social authorities. The companies will not. And then they feel out of control. The natural tendency when a company isn't contributing enough to the discussion is to (where possible) control the tone of those who are participating because they are having too much influence, particularly if that influence is negative, and to withdraw from arenas where they can't control the tone. Companies will start to lock things down, require moderator approval for posts, scrub their forums/pages of any negative post, etc. At that point you might as well throw in the towel because your social media effort isn't doing you any good. A negative post is an invitation to convert a customer from a detractor to a promoter, not a reason to censor, ban, or ignore them. (A troll is, well, still just a troll.)
I'm not saying DL has to have a presence here, but they way they are choosing to almost hurts them more than it helps.
Last edited by javabytes; Mar 22, 2012 at 6:08 pm
#829
FlyerTalk Evangelist
Join Date: May 2008
Location: CHA, MAN;
Programs: Delta DM 1 MM; Hz PC
Posts: 11,169
and love them or hate them, WN is very good at use of Social Media
#830
Join Date: Nov 2010
Location: Planet Earth
Programs: | *G | STE | HGP ♦ | SPG Au | MR Au
Posts: 3,772
Being ATL-based, status on another airline is difficult but not impossible, assuming you value your life outside of flying and don't want to spend your transit time sitting in connecting airports. However, one of my employees, who also frequently posts to FT asked yesterday in our monthly meeting if, given this rampant speculation, it would be alright with us is he attempted a status match to UA or AA and began flying them exclusively from ATL. Historically, our firm has been more-or-less DL loyal but this could change especially if my employee finds that the it is not significantly more difficult and his overall cost of travel reduces by buying tix on a competing airline. You also have to recognize that much of our week is spent city-hopping so it is conceivable that this idea might work. A somewhat typical week in the past year for me (us) has been ATL-ORD-MSP-SFO-LAX-ATL so UA or AA may be reasonable alternatives.
Having been in the service industry, there is a fine line between loyalty to your best customers and look out for one's bottom line. You need to service them right to feel special, but you also need to make sure you are making a profit from them. I view DL's move as obviously one to reduce their Long Term Liability on their books by changing the valuation of FFM. Besides look at it from the long term demographic perspective. The US is an aging population, so I won't be surprised if all airlines start devaluing miles so that by the time the majority of the individuals want to use them, which is in retirement, it won't be worth much if not anything.
I used to have a very big FFM bank with another airline, but their constant devaluation has sobered me to the reality of the industry and I always try to keep my FFM bank low by helping family save cost. As far as a movement to stop flying one airline, many don't have the luxury of choice as airlines are merging or going bankrupt left right and center. It is a fact that the airline industry is going from bad to worst and the long term viability is at stake for the industry as a whole. Especially with energy prices being so volatile and many of them are heavily hedged in energy trading.
It really depends on what fare-based award ticket redemption means. If it's tied to the cash cost of a ticket, I don't think there's any conversion ratio that would avoid taking a TATL J from 100K current miles to a at least a couple times that in current miles converted to new currency.
Not only does DL change the price of M fares, it also makes them disappear.
I just took a look at 3 itineraries, all (non-stop) TLV-JFK-TLV:
The first leaves on April 8 (it gets into JFK on Easter Monday, when many businesses are closed) and returns on April 13 (arriving in TLV on Saturday, when everything is closed). Price for M fare: $2618.60.
The second leaves on April 16 (Monday) and returns on April 22 (the following Monday). No M fares are offered. The lowest available price is C at $4809.
However, if you want to leave TLV two days later (April 18 -- Wednesday), meaning that there are only two business days left in the week, and stay until April 25 (arriving on Thursday afternoon, giving you only 1 Israeli business day), M is available at $2543.00.
In short, reasonable M fares can be had, but you have to look for the days when businessmen don't want to travel.
I just took a look at 3 itineraries, all (non-stop) TLV-JFK-TLV:
The first leaves on April 8 (it gets into JFK on Easter Monday, when many businesses are closed) and returns on April 13 (arriving in TLV on Saturday, when everything is closed). Price for M fare: $2618.60.
The second leaves on April 16 (Monday) and returns on April 22 (the following Monday). No M fares are offered. The lowest available price is C at $4809.
However, if you want to leave TLV two days later (April 18 -- Wednesday), meaning that there are only two business days left in the week, and stay until April 25 (arriving on Thursday afternoon, giving you only 1 Israeli business day), M is available at $2543.00.
In short, reasonable M fares can be had, but you have to look for the days when businessmen don't want to travel.
Took the words right out of my mind,
To anyone from Delta who is monitoring:
As someone who has been flying Delta for decades, had top or next to top status for most of those years and sitting on millions of miles, I really hope you have thought through the different initiatives that you may be considering (and are being speculated upon here). My fare class/class of service purchases are across the board, so I've no idea how the specifics of any proposal will actually impact me. However, while in recent years there have been improvements in parts of Delta, there have been many negative changes to the Skymiles program. Each one may be annoying and unfortunate, but, and especially given the current (temporary) situations at UA and AA, have not been enough to get me to leave.
But, there is a tipping point, and I don't think I'm alone in that some of the changes speculated here could be the tipping point for many. It wouldn't happen right away, but as UA and AA get their act together and, overall, have a better alternative, you may be severely damaging the loyalty on which I would suspect a solid part of your business model rests.
As someone who has been flying Delta for decades, had top or next to top status for most of those years and sitting on millions of miles, I really hope you have thought through the different initiatives that you may be considering (and are being speculated upon here). My fare class/class of service purchases are across the board, so I've no idea how the specifics of any proposal will actually impact me. However, while in recent years there have been improvements in parts of Delta, there have been many negative changes to the Skymiles program. Each one may be annoying and unfortunate, but, and especially given the current (temporary) situations at UA and AA, have not been enough to get me to leave.
But, there is a tipping point, and I don't think I'm alone in that some of the changes speculated here could be the tipping point for many. It wouldn't happen right away, but as UA and AA get their act together and, overall, have a better alternative, you may be severely damaging the loyalty on which I would suspect a solid part of your business model rests.
The best way to speak is to give them empty planes
#831
Join Date: Nov 2010
Location: Planet Earth
Programs: | *G | STE | HGP ♦ | SPG Au | MR Au
Posts: 3,772
#832
Join Date: Sep 2003
Location: Long Beach, CA
Programs: DL DM
Posts: 5,292
The best way to speak is to give them empty planes
When you buy elsewhere...send them the receipt, your SM info, and the reason why.
For those of you that are true HVC, it won't take many of you to make a difference.
When you buy elsewhere...send them the receipt, your SM info, and the reason why.
For those of you that are true HVC, it won't take many of you to make a difference.
#833
Join Date: May 2008
Programs: DL AA UA
Posts: 2,359
I actually hope DL does go through with an all revenue scheme. Not because it would benefit me, but because if it failed miserably, and I think such a program would, there may be some house cleaning. In that house cleaning, I would hope that the customer unfriendlies inside DL would be shown the door. A good point earlier that DL management works for the shareholders. However, if the stakeholder customers are not happy, ain't nobody happy.
#834
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,619
A couple of quick thoughts from someone extremely familiar with Southwest's transition 1 year ago to a fare-based program:
1. A revenue-based program is fundamentally different from traditional programs. We can use that difference to our advantage by maintaining diversity in our program memberships. We can redeem for cheap short-haul tickets on cash-based programs and we can keep redeeming for expensive long-haul tickets on the traditional programs.
2. One hidden benefit of Southwest's cash-based program: When you redeem points for a flight, the point cost is based on the nonrefundable fare. Yet the ticket is fully refundable, for free, back into your points account. You get refundability and the nonrefundable price. DL will probably add obstacles and fees to make this refund option less valuable than it is on Southwest.
3. The biggest worry I have about this change is the transition. Typically companies attempt to increase breakage by forcing you to top off awards under the old program within a limited time frame. That would suck, but it would be par for the course.
4. Redemption for premium class awards would need to use a hybrid approach, not based solely on cash ticket price. The current 2:1 to 3:1 award price ratio of premium class to coach class would need to be maintained.
5. There will be some pleasant aspects to the change. About 10% of posters on the Southwest forum report that they prefer the new program because they regularly pay high fares. The general rule is that winners under the old program become losers under the new program and vice versa. Which brings me back to point 1, diversity. Use the new program when it makes you a winner. Use another airline when the new program would make you a loser.
1. A revenue-based program is fundamentally different from traditional programs. We can use that difference to our advantage by maintaining diversity in our program memberships. We can redeem for cheap short-haul tickets on cash-based programs and we can keep redeeming for expensive long-haul tickets on the traditional programs.
2. One hidden benefit of Southwest's cash-based program: When you redeem points for a flight, the point cost is based on the nonrefundable fare. Yet the ticket is fully refundable, for free, back into your points account. You get refundability and the nonrefundable price. DL will probably add obstacles and fees to make this refund option less valuable than it is on Southwest.
3. The biggest worry I have about this change is the transition. Typically companies attempt to increase breakage by forcing you to top off awards under the old program within a limited time frame. That would suck, but it would be par for the course.
4. Redemption for premium class awards would need to use a hybrid approach, not based solely on cash ticket price. The current 2:1 to 3:1 award price ratio of premium class to coach class would need to be maintained.
5. There will be some pleasant aspects to the change. About 10% of posters on the Southwest forum report that they prefer the new program because they regularly pay high fares. The general rule is that winners under the old program become losers under the new program and vice versa. Which brings me back to point 1, diversity. Use the new program when it makes you a winner. Use another airline when the new program would make you a loser.
#835
Join Date: Nov 2010
Location: BDL/HPN/JFK/FLL
Programs: DL Diamond Ham Sandwich
Posts: 1,051
And I agree, it's a shame you have to see people on the ignore lists posts when they're replied to... Picturing him as a Mike Savage wannabee PERFECTLY fits my mental model of that particular user.
#836
FlyerTalk Evangelist
Join Date: Apr 2009
Location: Bye Delta
Programs: AA EXP, HH Diamond, IHG Plat, Hyatt Plat, Marriott Plat, Nat'l Exec Elite, Avis Presidents Club
Posts: 16,264
I actually hope DL does go through with an all revenue scheme. Not because it would benefit me, but because if it failed miserably, and I think such a program would, there may be some house cleaning. In that house cleaning, I would hope that the customer unfriendlies inside DL would be shown the door. A good point earlier that DL management works for the shareholders. However, if the stakeholder customers are not happy, ain't nobody happy.
#837
FlyerTalk Evangelist
Join Date: Dec 2004
Location: MSP
Programs: Fallen Plats, ex-WN CP, DYKWIW; still a Hilton Diamond & Club Cholula™ R.I.P. Super Plats
Posts: 25,415
If SMI had a history of hundred or thousands of engaging, informative, helpful posts, he would have a following. And that following would destroy the trolls themselves. No need for him to control the message, because the community already knows who they're going to trust and who they're going to ignore.
Other major airlines (esp. WN & CO/UA & formerly NW) have a history of taking FT seriously and dealing opening with FT members. Delta's problem is uniquely Delta's and goes back years.
I actually hope DL does go through with an all revenue scheme. Not because it would benefit me, but because if it failed miserably, and I think such a program would, there may be some house cleaning. In that house cleaning, I would hope that the customer unfriendlies inside DL would be shown the door. A good point earlier that DL management works for the shareholders. However, if the stakeholder customers are not happy, ain't nobody happy.
DL could also take some lessons from WN in candor -- we didn't have to like the changes, but they sure were open & up front about it.
I expect they would lose enough customers to UA & AA that it would hurt, but that's not as sure a bet as it was ~11 years ago when they pulled the sLUT debacles out of a hat & gave birth to SaveSkyMiles.
Last edited by MikeMpls; Mar 22, 2012 at 6:13 pm
#838
Join Date: Nov 2010
Location: Planet Earth
Programs: | *G | STE | HGP ♦ | SPG Au | MR Au
Posts: 3,772
A couple of quick thoughts from someone extremely familiar with Southwest's transition 1 year ago to a fare-based program:
1. A revenue-based program is fundamentally different from traditional programs. We can use that difference to our advantage by maintaining diversity in our program memberships. We can redeem for cheap short-haul tickets on cash-based programs and we can keep redeeming for expensive long-haul tickets on the traditional programs.
2. One hidden benefit of Southwest's cash-based program: When you redeem points for a flight, the point cost is based on the nonrefundable fare. Yet the ticket is fully refundable, for free, back into your points account. You get refundability and the nonrefundable price. DL will probably add obstacles and fees to make this refund option less valuable than it is on Southwest.
3. The biggest worry I have about this change is the transition. Typically companies attempt to increase breakage by forcing you to top off awards under the old program within a limited time frame. That would suck, but it would be par for the course.
4. Redemption for premium class awards would need to use a hybrid approach, not based solely on cash ticket price. The current 2:1 to 3:1 award price ratio of premium class to coach class would need to be maintained.
5. There will be some pleasant aspects to the change. About 10% of posters on the Southwest forum report that they prefer the new program because they regularly pay high fares. The general rule is that winners under the old program become losers under the new program and vice versa. Which brings me back to point 1, diversity. Use the new program when it makes you a winner. Use another airline when the new program would make you a loser.
1. A revenue-based program is fundamentally different from traditional programs. We can use that difference to our advantage by maintaining diversity in our program memberships. We can redeem for cheap short-haul tickets on cash-based programs and we can keep redeeming for expensive long-haul tickets on the traditional programs.
2. One hidden benefit of Southwest's cash-based program: When you redeem points for a flight, the point cost is based on the nonrefundable fare. Yet the ticket is fully refundable, for free, back into your points account. You get refundability and the nonrefundable price. DL will probably add obstacles and fees to make this refund option less valuable than it is on Southwest.
3. The biggest worry I have about this change is the transition. Typically companies attempt to increase breakage by forcing you to top off awards under the old program within a limited time frame. That would suck, but it would be par for the course.
4. Redemption for premium class awards would need to use a hybrid approach, not based solely on cash ticket price. The current 2:1 to 3:1 award price ratio of premium class to coach class would need to be maintained.
5. There will be some pleasant aspects to the change. About 10% of posters on the Southwest forum report that they prefer the new program because they regularly pay high fares. The general rule is that winners under the old program become losers under the new program and vice versa. Which brings me back to point 1, diversity. Use the new program when it makes you a winner. Use another airline when the new program would make you a loser.
But more or less I agree with your point. That is why I am taking a wait and see approach.
+1.
#839
Join Date: Mar 2012
Location: DCA, IAD, BWI
Programs: National Parks Annual Pass
Posts: 316
1. We can redeem for cheap short-haul tickets on cash-based programs and we can keep redeeming for expensive long-haul tickets on the traditional programs.
4. Redemption for premium class awards would need to use a hybrid approach, not based solely on cash ticket price. The current 2:1 to 3:1 award price ratio of premium class to coach class would need to be maintained.
4. Redemption for premium class awards would need to use a hybrid approach, not based solely on cash ticket price. The current 2:1 to 3:1 award price ratio of premium class to coach class would need to be maintained.
4. I wish you were right. But sadly, nowhere does it say that there "needs" to be a hybrid approach. DL can do whatever it wants and I find it hard to believe that DL would go through all the trouble of changing the system for domestic coach redemptions, but would keep allowing people to leverage the program for int'l J.
I appreciate your insights from the WN program, which I am not very familiar with. I am just not as optimistic as you are.
Last edited by WAS; Mar 22, 2012 at 6:35 pm Reason: typo
#840
Join Date: Aug 2008
Posts: 61
I guess we can make a decision to switch/not once we understand full implications on roll-out