MQM Valuation Based on Fare Paid Now Showing on Delta.com
#526
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DC-9-50, 120
737-700, 124
A319, 126
MD-88, 149
A320, 150
737-800 & MD-90, 160
767-300ER (76T), 208
A330-200, 239
767-400ER, 246
777-200ER/LR, 269
A330-300, 298
#527
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Location: LAX/BOS/HKG/AMS/SFO...hmm, I need a life.
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Literally one seat at a time, no, not very often, but the Delta fleet fragmentation (for the great majority of routes/flights) makes the increments a heck of a lot smaller than 100 seats. A few selected seat capacities from delta.com:
DC-9-50, 120
737-700, 124
A319, 126
MD-88, 149
A320, 150
737-800 & MD-90, 160
767-300ER (76T), 208
A330-200, 239
767-400ER, 246
777-200ER/LR, 269
A330-300, 298
DC-9-50, 120
737-700, 124
A319, 126
MD-88, 149
A320, 150
737-800 & MD-90, 160
767-300ER (76T), 208
A330-200, 239
767-400ER, 246
777-200ER/LR, 269
A330-300, 298
I agree and when the ability to change gauge that easily becomes real then, like I said, FF programs will be near useless. That said, how often do they change the gauges above on specific routes? Not often because there are lots of other factors including Pilot ac ratings/bases, better utilization on other routes, AC efficiency, and even gate presence capability at certain airports. Your point is completely valid but I do not believe they can yet toggle like to the level above and of course there comes a time when gauge will not be enough..they need to add a new flight/ac and that is the chasm I am talking about.
#529
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
I agree. The only thing I believe that continues to keep FF programs alive is the very difficult inventory planning task and the balance of maintaining tight inventory control and growing the business. We have been in a downward inventory position for several years now. Under the CURRENT (flat to declining) inventory position the Airlines hold all the cards and the FF program appears to not add a lot of value. Once the economy turns and the Airlines are chasing more share by adding back in capacity/inventory THEN the FF programs are worth their weight in gold. Unlike most businesses, Airlines cannot add back capacity one seat at a time. It is 100+ or nothing (on longer routes) and that is when they need the FF'ers to fill those airplanes, particularly on business travel days. That is the whole idea of these programs but they were designed for a growing business not a declining (top line) one.
I will predict that we have one more cycle of FF program push before they eventually go away. The tools to manage inventory/capacity are getting VERY good (though the growth chasms still need to be crossed) and at some point will get so good at predicting demand (along with a good variety of AC gauge and reach) that the ALs who have the technology/capability to manage inventory will not need it.
I will predict that we have one more cycle of FF program push before they eventually go away. The tools to manage inventory/capacity are getting VERY good (though the growth chasms still need to be crossed) and at some point will get so good at predicting demand (along with a good variety of AC gauge and reach) that the ALs who have the technology/capability to manage inventory will not need it.
I don't think they'll ever go completely away, just become more like Southwest Rapid Rewards 2.0.
#530
Join Date: Sep 2003
Location: Long Beach, CA
Programs: DL DM
Posts: 5,292
I didn't like traveling that way. The unknowns were too great. I have a busy schedule, and can't afford to get stuck somewhere to save a hundred bucks. Buddy passes aren't a tremendous deal.
#531
Join Date: Sep 2003
Location: Long Beach, CA
Programs: DL DM
Posts: 5,292
#532
Join Date: Nov 2010
Location: Planet Earth
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Posts: 3,772
Literally one seat at a time, no, not very often, but the Delta fleet fragmentation (for the great majority of routes/flights) makes the increments a heck of a lot smaller than 100 seats. A few selected seat capacities from delta.com:
DC-9-50, 120
737-700, 124
A319, 126
MD-88, 149
A320, 150
737-800 & MD-90, 160
767-300ER (76T), 208
A330-200, 239
767-400ER, 246
777-200ER/LR, 269
A330-300, 298
DC-9-50, 120
737-700, 124
A319, 126
MD-88, 149
A320, 150
737-800 & MD-90, 160
767-300ER (76T), 208
A330-200, 239
767-400ER, 246
777-200ER/LR, 269
A330-300, 298
#533
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Posts: 15,408
#534
Join Date: Aug 2012
Location: Seat 2B
Programs: Charter/Former 4 time DL Diamond now Platinum, AAExecPlat, MM+ on three carriers, more ...
Posts: 94
I agree and when the ability to change gauge that easily becomes real then, like I said, FF programs will be near useless. That said, how often do they change the gauges above on specific routes? Not often because there are lots of other factors including Pilot ac ratings/bases, better utilization on other routes, AC efficiency, and even gate presence capability at certain airports. Your point is completely valid but I do not believe they can yet toggle like to the level above and of course there comes a time when gauge will not be enough..they need to add a new flight/ac and that is the chasm I am talking about.
#535
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Posts: 22,778
#536
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I believe Avid's point is that with enhanced abilities to predict capacity controls, and with more and more airlines moving in the direction of gutting their FF programs (i.e., less emphasis on competing in the FFP arena), we may well reach a point when the major airlines decide that they don't need to induce us to modify our behavior... they can dictate our behavior. Hence, no need for FFPs... at least as we have known them in the past.
For example, the day that DL management can convince themselves that, by reducing FC seats and filling the remaining seats with $10 FCM buy-ups, they can (at least in some spreadsheet) show they are coming out ahead, they won't need a FFP offering FC upgrades. In fact, such a benefit would be a net detriment, in their opinion.
Granted, all it would require for this to fail is for one major carrier to break ranks and emphasize a traditional-type FFP that actually values loyal customers, and treats them honestly and up-front. But, to one degree or another, aren't they all moving away from this paradigm?
At some point, DL management may feel they are in the position to look at your 4th-time DM (or, maybe by then, 5th or 6th time) and ask... "Yeah, but what have you done for us lately?"
#537
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FF programs will not be near useless. They modify customer behavior. I quite recently flew Delta in paid business class to Japan instead of ANA, even though ANA is both better and cheaper for business class, because of the FF program at Delta. My travel to Europe has been modified. I will consider a change of planes on Delta rather than a direct flight on another carrier because I will get an upgrade. Your point is that the plane will be full anyway, but you miss that it will be filled with passengers who pay less than I do. Load is one factor. Route maximization is the other. If Delta is reading this, they need to understand exactly what they say on that darn tape "I have a choice in air travel." I could just as easily take an earlier flight on American, a better flight on Emirates or a cheaper flight on Southwest.
#538
Join Date: Aug 2012
Location: Seat 2B
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Every business I know caters to their best customers, even the very best restaurants that sell out 30 or more days in advance. So, I expect that the programs will be far from near useless - and, while you may be right, we simply do not agree. Where I totally agree with you is that as the load factor increases, the rewards decrease. And, the benefits for those who pay lower fares will especially decrease.
Last edited by TripleD; Sep 7, 2012 at 12:39 pm
#539
Join Date: Dec 2000
Location: MA
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Posts: 8,907
That is actually a useful price point. Platinum for you = $9000. I looked and it appears I reach Diamond at about $12,000-$15,000 (which I often exceed). The cost for Delta is the loss of fees for use of the FF lounge from Amex Platinum and upgrades they might be able to sell (but I say might, as they usually cannot).
So if you chase the PM or DM away, that person will take his family to the competition as well.
#540
Join Date: Aug 2006
Location: DFW
Programs: Non-Affiliated
Posts: 7,436
Every business I know caters to their best customers, even the very best restaurants that sell out 30 or more days in advance. So, I expect that the programs will be far from near useless - and, while you may be right, we simply do not agree. Where I totally agree with you is that as the load factor increases, the rewards decrease. And, the benefits for those who pay lower fares will especially decrease.