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Old Nov 9, 2012, 8:24 am
  #76  
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Originally Posted by sethb
DL doesn't lose on the $250 fare, that's a seat that would otherwise go empty.

DL is profitable at its current load factor. Imagine how profitable it would be if the paid load factor on some flights were 110% (and they didn't have to rebook anybody).
If Delta sells 5,000 MQMs for $495 and an itinerary where you will earn 5,000 MQMs for $250, DL is already coming out AT LEAST $245 ahead if you buy the MQMs instead of taking the MR for $250 r/t (esp. if that $250 includes taxes and airport fees, which DL doesn't get to keep). Your butt being in a seat still takes up more fuel than if the plane was empty. DL still provides you service on the plane (I was upgraded to F so I received a meal and booze and such), even if minimal, so was the price of my ticket. I then used four different SkyClubs during my mileage run, and the snacks and amenities I used will come out of DL's pocket for that. It doesn't take a lot before you realize what DL spent to transport my butt was more than the $250 I gave them, and that's why I think DL is very smart to offer these MQM options over MRs.

Last edited by FlyDeltaJets87; Nov 9, 2012 at 8:32 am
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Old Nov 9, 2012, 9:27 am
  #77  
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I didn't say anything about selling the MQMs being (or not) a much better deal for Delta than selling actual, used, seats; of course it is. I merely pointed out that selling the seat is more profitable than not selling the seat.
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Old Nov 9, 2012, 10:17 am
  #78  
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Originally Posted by sethb
DL doesn't lose on the $250 fare, that's a seat that would otherwise go empty.

DL is profitable at its current load factor. Imagine how profitable it would be if the paid load factor on some flights were 110% (and they didn't have to rebook anybody).
Yes, and imagine how completely devalued the Medallion program and our banked RDM's (yes, it could get much worse than it is now) would be if DL allowed these virtual MR's. Further, how would DL know how many will no show and how much they can oversell?? It would completely throw their inventory management systems out of whack. Come on folks, it's just a plain bad idea.
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Old Nov 9, 2012, 10:34 am
  #79  
 
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Originally Posted by sethb
...selling the seat is more profitable than not selling the seat.
Totally depends on if you get upgraded. Woodford's not free.
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Old Nov 9, 2012, 10:34 am
  #80  
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Originally Posted by LBJ
Yes, and imagine how completely devalued the Medallion program and our banked RDM's (yes, it could get much worse than it is now) would be if DL allowed these virtual MR's. Further, how would DL know how many will no show and how much they can oversell?? It would completely throw their inventory management systems out of whack. Come on folks, it's just a plain bad idea.
Actually according to an earlier post from MSPEconomist in this thread, this promo only gets you MQMs, not RDMs. So the miles are actually becoming less inflated through the allowing of virtual MRs than through actual MRs where RDMs are earned in addition to MQMs. Now you can argue the ranks are becoming inflated, but I argue that's not the case. Someone earning status through doing a real MR or a virtual MR ends with the same result: one more person among the ranks. Which route - real MR or virtual MR is better for that someone depends on the person and their circumstances. The latter route is most likely better for DL.
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Old Nov 9, 2012, 10:50 am
  #81  
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Originally Posted by LBJ
Yes, and imagine how completely devalued the Medallion program and our banked RDM's (yes, it could get much worse than it is now) would be if DL allowed these virtual MR's. Further, how would DL know how many will no show and how much they can oversell?? It would completely throw their inventory management systems out of whack. Come on folks, it's just a plain bad idea.
DL could easily require advance notification that a purchase is a virtual MR, and just apply the RDMs and MQMs to the customer's account without allocating anything to the flights.
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Old Nov 9, 2012, 10:59 am
  #82  
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Originally Posted by sethb
DL could easily require advance notification that a purchase is a virtual MR, and just apply the RDMs and MQMs to the customer's account without allocating anything to the flights.
That addresses the inventory management somewhat, but not the Medallion inflation and mileage value devaluation. At any rate, I'm fairly confident has put more thought into such issues and would not actually create such a thing.
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Old Nov 9, 2012, 11:07 am
  #83  
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Originally Posted by FlyDeltaJets87
Actually according to an earlier post from MSPEconomist in this thread, this promo only gets you MQMs, not RDMs. So the miles are actually becoming less inflated through the allowing of virtual MRs than through actual MRs where RDMs are earned in addition to MQMs. Now you can argue the ranks are becoming inflated, but I argue that's not the case. Someone earning status through doing a real MR or a virtual MR ends with the same result: one more person among the ranks. Which route - real MR or virtual MR is better for that someone depends on the person and their circumstances. The latter route is most likely better for DL.
I was not referring to this promo, I was referring to the made up virtual MR idea where people presumably believe you should get both MQM's and RDM's. Virtual MR's would potentially be far, far cheaper to earn MQM's than the rate being charged in the current program. Throw in no limit on earnings, and a huge RDM giveaway, and you have a real recipe for disastrous devaluation. There are many differences between a real MR and a virtual one that keeps the real MR's less frequently used and abused (I've already mentioned the various other expenses and issues). They are not the same at all, nor are virtual MR's similar to the current promo which is MQM capped, price managed, and does not include RDM's. Very different.
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Old Nov 9, 2012, 11:11 am
  #84  
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Originally Posted by FlyDeltaJets87
Someone earning status through doing a real MR or a virtual MR ends with the same result: one more person among the ranks. Which route - real MR or virtual MR is better for that someone depends on the person and their circumstances. The latter route is most likely better for DL.
Same result perhaps, but there certainly are far fewer people who will do a real MR vs. a virtual one. If DL (or any airline) opened the floodgates to do virtual MR's I think they would be shooting themselves in the foot. They cap any buy MQM's for a reason.
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Old Nov 9, 2012, 12:48 pm
  #85  
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Originally Posted by fti
Same result perhaps, but there certainly are far fewer people who will do a real MR vs. a virtual one. If DL (or any airline) opened the floodgates to do virtual MR's I think they would be shooting themselves in the foot. They cap any buy MQM's for a reason.
My answer to your statement is this:
http://www.usairways.com/en-US/divid...preferred.html

Could you imagine if DL let you buy Diamond? (Aside from the Jet card)
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Old Nov 9, 2012, 2:01 pm
  #86  
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Originally Posted by GRALISTAIR
At the end of the day the last 20 posts in this thread have given quite a few very valid points. I want a profitable airline. I totally understand DL selling MQMs direct, to Amex, Hertz, Hilton etc. I understand those who proudly have earned all their miles BIS. But don't forget many don't do MRs 100% for MQMs/status, there are quite a few on this board that actually really enjoy BIS miles i.e. FLYING. I am one of them. I still get a thrill when boarding an aircarft.
Me too!

But I don't begrudge others the opportunity to buy their status or DL for selling it. It makes them a lot of money. Those who want status to be based on spend should applaud DL selling MQMs.
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Old Nov 9, 2012, 2:54 pm
  #87  
 
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Ultimately everyone buys their status in one way or another. Delta needs to maximize their profit and if that includes selling MQMs they should.

I appreciate any offers Delta chooses to make to those who care to partake. Thanks Delta!
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Old Nov 10, 2012, 11:23 am
  #88  
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Originally Posted by LBJ
I was not referring to this promo, I was referring to the made up virtual MR idea where people presumably believe you should get both MQM's and RDM's. Virtual MR's would potentially be far, far cheaper to earn MQM's than the rate being charged in the current program.
What "current program"?
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Old Nov 10, 2012, 1:07 pm
  #89  
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Originally Posted by sethb
What "current program"?
I should have said the program that starts Dec 1.
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Old Nov 10, 2012, 1:10 pm
  #90  
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Originally Posted by goingnow
Ultimately everyone buys their status in one way or another. Delta needs to maximize their profit and if that includes selling MQMs they should.

I appreciate any offers Delta chooses to make to those who care to partake. Thanks Delta!
While I understand the desire for DL to maximize their profit and those who value the ability to simply purchase MQM's without flying, ultimately this is going to increase the size of the Medallion pool and make upgrades more difficult.
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