MQM Valuation Based on Fare Paid Now Showing on Delta.com
#541
Join Date: Feb 2012
Location: Los Angeles, CA
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Originally Posted by james318:19273706
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.
#542
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Location: LAX/BOS/HKG/AMS/SFO...hmm, I need a life.
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Again, I LOVE FF programs and take advantage of them and in fact I use the benefits as overall cost aggregation for myself and my company. I am just stating that I think the idea of FF programs and status at current levels/benefits cannot last. Just a year ago I was not convinced they could control inventory EVEN IN A DECLINING climate (which is far easier) but they are doing a really great job and the tools will only get better.
#543
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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).
I knew us segment flyers spend more than the mileage elites, but I guess I never realized before that the discrepancy was that wide.
#544
Join Date: Jul 2010
Location: MKE
Programs: DL-MM-Diamond HH-Diamond
Posts: 3,218
Now I REALLY want a revenue-based program. I will end the year in the $8k-$9k range and barely make FO. Silly me, I thought that PMs and DMs were in the $25k-$30k range at a bare minimum.
I knew us segment flyers spend more than the mileage elites, but I guess I never realized before that the discrepancy was that wide.
I knew us segment flyers spend more than the mileage elites, but I guess I never realized before that the discrepancy was that wide.
#545
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Location: Toledo, OH
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Now I REALLY want a revenue-based program. I will end the year in the $8k-$9k range and barely make FO. Silly me, I thought that PMs and DMs were in the $25k-$30k range at a bare minimum.
I knew us segment flyers spend more than the mileage elites, but I guess I never realized before that the discrepancy was that wide.
I knew us segment flyers spend more than the mileage elites, but I guess I never realized before that the discrepancy was that wide.
#546
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Then again, it also would not result in status for some folks like Dovster, who spend the same amount and achieve PM. You said it yourself, everyone isn't meant to be a medallion.
But no matter what the thresholds are under a revenue-based program, it seems that my CPM is much higher than many others', which means that either it's easier for me to achieve status, or harder for others to achieve the same status.
Also, as I mentioned in the segment flier thread, if a cutoff were made at $10k/year, it'd be far easier for me to make that $1k jump than to make a 20 segment/26k MQM jump as I would need to do under the current system.
#547
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that is a lot to spend to be just silver. I am PM and looked at my Delta spending over the past twelve months and it's around $15K. But 20,0000 of my MQMs are from Am Ex and I had a few DTW/LAS and DTW/LAX trips that were business trips in paid first and when I flew Dtw/Fll I was forced to buy a full Y fare going and first returning and also had one LHR trip in that.
Not saying that you don't deserve your status, but for me, it definitely feels like a revenue-based model will better serve my interests. (And yes, I know that DL's interests, and not mine, are the driving factor for whatever ACTUAL change happens).
#548
Join Date: Jul 2010
Location: MKE
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Posts: 3,218
Has anyone thought of what will happen to the AMEX MQM's?
Will they count towards status? If so, they are now much more valuable =more people signing up for them to get status.
Also, what if they also count your AMEX spend towards your HVC rating? I do know when you call in to AMEX Customer Service they can see how many total current MQM's you have, they told me how many I had when I called to ask a question last week.
Just throwing it out there...I know nothing, just speculating.
Will they count towards status? If so, they are now much more valuable =more people signing up for them to get status.
Also, what if they also count your AMEX spend towards your HVC rating? I do know when you call in to AMEX Customer Service they can see how many total current MQM's you have, they told me how many I had when I called to ask a question last week.
Just throwing it out there...I know nothing, just speculating.
#549
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Has anyone thought of what will happen to the AMEX MQM's?
Will they count towards status? If so, they are now much more valuable =more people signing up for them to get status.
Also, what if they also count your AMEX spend towards your HVC rating? I do know when you call in to AMEX Customer Service they can see how many total current MQM's you have, they told me how many I had when I called to ask a question last week.
Just throwing it out there...I know nothing, just speculating.
Will they count towards status? If so, they are now much more valuable =more people signing up for them to get status.
Also, what if they also count your AMEX spend towards your HVC rating? I do know when you call in to AMEX Customer Service they can see how many total current MQM's you have, they told me how many I had when I called to ask a question last week.
Just throwing it out there...I know nothing, just speculating.
#550
Join Date: Jan 2010
Location: Twin Cities
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Just for the halibut, I added up my spend on Delta this year and I'm at $12,178.62. $9851.73 for business and $2326.89 personal. Not a lot and the personal MQMs earned this year account for about 45% of those MQMs earned. I've flown and booked about 124K MQMs (62 MQS) with just over 17K of that rollover. The rest are BIS.
I had a lot of gaps in my business travel this year but until recently, most of my flights were the less than 500 mile variety. The personal travel have all been cheap fares including one to CPT and another coming up to SIN.
Edited to add that the number of flown plus booked MQS is actually 74. Right at this moment I'm at 95,134 MQMs.
Edited a second time because I didn't include the spend for a personal trip I took to DC this spring. It was a weekly fare special so it was only about $200. I'm on my laptop in the SC and I don't feel like remoting into my pc at home to look at the exact amount. I may have missed some others but these numbers are really close.
I had a lot of gaps in my business travel this year but until recently, most of my flights were the less than 500 mile variety. The personal travel have all been cheap fares including one to CPT and another coming up to SIN.
Edited to add that the number of flown plus booked MQS is actually 74. Right at this moment I'm at 95,134 MQMs.
Edited a second time because I didn't include the spend for a personal trip I took to DC this spring. It was a weekly fare special so it was only about $200. I'm on my laptop in the SC and I don't feel like remoting into my pc at home to look at the exact amount. I may have missed some others but these numbers are really close.
Last edited by yohanson; Sep 9, 2012 at 4:01 pm
#551
Join Date: Jul 2010
Location: MKE
Programs: DL-MM-Diamond HH-Diamond
Posts: 3,218
It's all speculation anyway that Delta will go to a revenue based program. Delta is in debt to Am Ex big time so Am Ex spending will definitely still count towards status even if DL moves to a revenue based frequent flyer program. If spending on your Am Ex card doesn't help you achieve status with Delta, why would anyone pay the extra for the platnium Delta Am Ex fee each year, or pay for the Delta reserve am ex (the Platnium Am Ex gets you lounge access) if flyers aren't getting any elite benefits out of the spend?
This whole thing will be interesting to see how they handle it once it is rolled out.
#552
Join Date: Apr 2005
Location: Mid-Atlantic
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Currently, they modify behavior.
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?
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?
AA still has a fantastic "traditional" FF program by the way that works great to incentivize both primarily volume-driven and revenue-driven qualifying elite customers. And while UACO has driven down the benefits of elites the award ticket system is still far superior to Delta and UA status qualification is still possible for the customer that is unable or unwilling to ignore costs in their airline purchase decisions.
And directly to the topic at hand: I've personally found that in the current and past elite status frameworks, that starting out at a base of 1 elite mile per flown mile at the lowest fare classes is really the minimum for me to actually be driven to fly an airline more in order to achieve the Status I desire. So when this system is fully implemented by Delta it will probably be the end of flying more with Delta even when they don't provide the superior product / schedule for me. One benefit though: It will be a lot more fun flying some of those Asian airlines instead of Delta to and from Asia when I am set free by Delta.
Last edited by GrizShel; Sep 8, 2012 at 6:25 am
#553
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Now I REALLY want a revenue-based program. I will end the year in the $8k-$9k range and barely make FO. Silly me, I thought that PMs and DMs were in the $25k-$30k range at a bare minimum.
I knew us segment flyers spend more than the mileage elites, but I guess I never realized before that the discrepancy was that wide.
I knew us segment flyers spend more than the mileage elites, but I guess I never realized before that the discrepancy was that wide.
I've pretty much stopped flying DL, with only $3,000 this year. Even with 30K from DL Amex and some rollover, will struggle just to get to Platinum for next year. With cheap A/P fares, I just don't see the value in putting up with an inferior F product to maintain any DL status.
Last edited by SFO777; Sep 8, 2012 at 6:45 am
#555
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No one knows, but if revenue based just means more emphasis on different fare classes earning miles at different rates (regardless of actual fare paid, such as SQ uses or UA for GS), then DL just needs to change its partner earning rates accordingly. If it really counts money paid, presumably without taxes (and fees???), a guess would be DL metal and JV flights, perhaps including codeshares. This would be a fundamental change to the way the SkyTeam alliance has worked recently, with partner flights earning status miles as well as redeemable miles.