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Originally Posted by pbarnette
(Post 20071025)
Selling your product below cost is a better strategy?
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Originally Posted by cheesewhiz
(Post 20070399)
Wow, really?
I fly lax-nyc often. I buy a ticket when I know I need a ticket. I do not shop for prices, I shop for schedule. In other words, I do not cancel a trip because of price. I do, however, buy the lowest fare that fits my needs. As any rational person does with any product. Apparently, that makes me a low rent cheapskate gaming the system :rolleyes: I do not set the prices, Delta does. I have seen prices anywhere from under $300 to $700+, and have paid that entire range. Typically, it is in the 450 range. Is it somehow my fault that Delta has a published fare of say, $300 that fits my schedule? Should I be saying oh that is way to low, I am going to change my schedule or wait just so I can pay more for a ticket? Or are you suggesting that people should buy a more expensive ticket, just because it gives them a higher sense of self worth? Sorry if this post comes across as harsh. But the seeming elitism of a lot of people on here, who I suspect aren't even buying their tickets out of pocket, is grating to me. Now I fully agree with you. I buy tickets when I need, pay the price DL offers when I book, and don't pay more than I need to. I too am a "cheapskate" and put a price on being loyal. I will be loyal to DL within reason. It makes me laugh when some people will pay double or more the price of another comparable airline. Why pay $500 to fly Airline A when airline B is offering a ticket for $250 at the same time on a 1.5 hour flight? But for each person, "within reason" varies. That said, what some people can't seem to fathom is that their $2,00 a year of spend flying to Istanbul a few times at $500 and a couple $200 transcons isn't as valuable as someone else's $4,000 a year spend or someone else's $10,000 a year spend on short domestic hops. I recognize that DL sees its customers who spend $10,000 a year as far more valuable then the $2-3,000 a year I spend. And I don't blame DL one bit! In fact, I'm glad DL is finally adopting a system that takes into account how much money you spend rather than just how far you fly, because the former is a lot more valuable to DL. I'm perfectly fine being further down on the list than someone spending many times what I spend. Some of here can't seem to get that. "I spend $2,000 on T fares flying all over the world! Treat me the same as someone who spends $15,000! Waaaah!" Yea :rolleyes: |
Originally Posted by den1k
(Post 20071057)
I have read most of this thread and the FAQs that Delta published. But still have figured out if the MQDs will be based upon the date you purchase your ticket and your card is charged, or the date you use the ticket (fly)
I'd imagine it would be easier on the bookkeeping side to make it the date of purchase, partially because trips straddling two years--especially multi-city itineraries--would be difficult to parse out into which segment costs what. What makes sense to me might not make sense to DL, though. |
Why is the dollars an employer spends on travel less important than the dollars one spends out of their own pocket? Both are finite and both have rules for use (employer paid travel usually has very specific rules while my pocket has rules about how much I spend on travel.)
Those who have made comments about employer paid travel dont show a good understanding of how corporate america travel has changed in the last couple of years. |
I find it interesting that they chose 10 cents per MQM as the baseline. On at least one TCON route I fly regularly you can usually buy a P fare for under 10 cents per MQM ...
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Originally Posted by Medeski
(Post 20071113)
Why is the dollars an employer spends on travel less important than the dollars one spends out of their own pocket? Both are finite and both have rules for use (employer paid travel usually has very specific rules while my pocket has rules about how much I spend on travel.)
Those who have made comments about employer paid travel dont show a good understanding of how corporate america travel has changed in the last couple of years. |
Originally Posted by pbarnette
(Post 20070781)
There is no theoretical tax liability except if you deduct the expense or if it is paid by your company. It would have no tax impact on leisure travelers.
Even if Delta goes to a purely revenue based earning system (which they have not done yet) I think it will be quite a while before switch to a purely revenue based redemption program. All the past uproars would pale in relation to what you'd see in the unlikely event they said whomever paid for the ticket got the points. |
Really, the worst part of this for some is the major reduction in MQM earnings on partners. For those who travel internationally a lot, this will hurt and make it much harder to qualify.
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Originally Posted by FlyDeltaJets87
(Post 20071129)
What do you mean? Are you referring to the application of the MQDs? If so, it sounds like, just as with MQMs and RDMs, they'll be applied to the person traveling, regardless of who paid. Or are you referring to putting travel expenses on the DL AmEx?
Everyone I know in small and large companies has to either book through their travel agency or show a cost comparison as to why the airline they are flying is the cheapest option. |
Originally Posted by TheMadBrewer
(Post 20071135)
But how many here are 100% leisure?
But as to your question, while I don't think a majority of elites are 100% leisure, I wouldn't be surprised if the vast majority of members of SkyMiles are 100% leisure or close to it. |
Originally Posted by Medeski
(Post 20071143)
All these folks who are discounting employer paid travelers as not being as frugal with their employers money.
Everyone I know in small and large companies has to either book through their travel agency or show a cost comparison as to why the airline they are flying is the cheapest option. |
Originally Posted by pbarnette
(Post 20071158)
I was merely responding to your comment that "It gets especially dicey when the company is paying but the employee gets the rebate." I was noting that this was the only time you would have a potential tax liability. For leisure purchases it simply isn't dicey at all.
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Originally Posted by FlyDeltaJets87
(Post 20071160)
Gotcha. Yea I will try to fly Delta when I can for gov't travel when possible, but only if it's at the same cost or reduced cost to my unit and the government (and the taxpayers). Otherwise I have to suck it up and fly another carrier. I'm sure the taxpayers appreciate that.
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Originally Posted by itsaboutthejourney
(Post 20070709)
You are missing the point: DL will still sell you those "lets fill some seats" low low fares. However, what they are saying is that you won't earn top tier status buying them exclusively. In fact, you'll still earn the Pesos and be eligible for upgrades, bag waivers, etc. but you may be down an elite tier from what you reach now if your spend is often low. Makes sense to reward the HVCs.
To all other posters, I echoed your argument. Why would I wanna get higher fare bucket when I can get a lower fare bucket to go to the same destination? This just doesn't make sense. I get LUTs when the routes and schedules make sense, and I do get P, I, S and Z when the prices are reasonable. I just don't see the point of sticking with high fares with all these lower-than-average aircrafts when better competitors are right at the corner. Mind you, you could get a lot of Z and P fares and jack up 200k but you can still be just a kettle if they are not DL-plate or not issued as DL eTicket Number, making you less than $2500 MQDs. I really don't think this means loyalty. This means self-isolation. |
Originally Posted by bennos
(Post 20071009)
Well, to your specific example, that route will never get a $200 buy up, with paid J starting around $1800. Beyond that, I think FCM (which is basically what you're describing) generally comes in at > 10cpm.
MQD provides Delta the opportunity to go all-in with FCM with greatly reduced FFer program tail. IMO Delta will go all-in with buy-ups to international J which is what the M fare MQM debasement is all about. |
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