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Originally Posted by dieuwer2
(Post 20089357)
It seems to me the MQDs threshold for FO status does not make sense. Suppose we have to pax, 1) Mr. FO and 2) Mr. Low-cost.
Mr. FO spends 12 cpm (total cost) on flights, and earns FO status for next year with 25,000 MQMs and $3,000 (total cost). Perhaps to get there, Mr. FO buys slightly higher fares such as Q or K fares. Mr. FO has been lucky and always was able to sit in exit rows for free. No upgrades though due to Diamond, Plat and Gold medallions. Mr. Low-cost instead only buys LUT fares at 5 cpm (total cost). After flying 25,000 Mr. Low-cost has spend $1,250 (total cost). For each flight, Mr. Low-cost had to pay a bag fee at $25 each. For 10 one-ways this comes to $250. Now, the total cost is $1,500. Additionally, on all of those flights Mr. Low-cost spends money on EC for $50 average. Now, total cost is $2,000. Comparing Mr. FO with Mr. Low-cost, Mr. Low-cost comes out ahead as Mr. Low-cost has spend $500 less than Mr. FO for the same things. That is actually a really cool example. Maybe that will give solace to those that wont cut it. Then on top of that....ANYONE can buy the FCM fare. They should raise the MQD for all levels...then explore an increase in ancillary fees for those that were elite and are no more and developed a taste for the perks....dieuwer...good for you....u can save 500 bucks |
Originally Posted by bubbashow
(Post 20089374)
That is actually a really cool example. Maybe that will give solace to those that wont cut it. Then on top of that....ANYONE can buy the FCM fare.
They should raise the MQD for all levels...then explore an increase in ancillary fees for those that were elite and are no more and developed a taste for the perks....dieuwer...good for you....u can save 500 bucks Then again, some people place a $$$ amount on IRROPS help and the chance at an upgrade. |
Originally Posted by dieuwer2
(Post 20089426)
Of course, the calculation depends on whether you check bags and/or pay for upgrades. If you don't, the calculation is even more in favor of Mr. Low-cost.
Then again, some people place a $$$ amount on IRROPS help and the chance at an upgrade. |
EC is paying extra money for a better seat. The same could be said about F (plus some food and drinks).
My guess is there would be an uproar if your MQD didn't include the full price paid for F/P/A but only the amount of a corresponding Y fare (same purchase date, similar restrictions, etc.). Not quite an exact comparison, but similar. I am actually surprised they put a MQD limit for FO. The benefits don't cost that much to provide and I bet it gets a few people to take that last flight of the year on DL (rather than somebody else) to put them over the top. After all, today's FO might be next year's GM and the following year's PM. GM is where the real benefits start so have a MQD limit there. |
Originally Posted by Deltahater
(Post 20089187)
Of course everybody has the same thresholds, but not everybody has the budget you do.
So, since EC, bag fees, etc, etc do not count towards the threshold, somebody who spends $2500 on DL, will not qualify because these categories are excluded. So, these passengers have to up their spend on qualifying purchases to make silver. The bottom line is that the $2500 threshold is more like a $3000 threshold on all delta related travel expenses. Most people don't care how their $500 ticket is divided up. They just care that they spent $500 on a flight from A-B. |
Originally Posted by bubbashow
(Post 20089236)
Then they can't afford it, and for the very same reason I'm not driving a Lotus, they aren't elite. It shouldn't be for everybody. It should be exclusive.
This is about fairness in offerings. Why do those of us who are not flying on business have to pay more? I know it's easy to say "you only purchase cheap tickets" but there is much more than that. It is about having access to wider seats, because the seat cost for a wider seat is exorbitantly high. The only way to get that is to trade off for flying only on one carrier. It's about being able to keep your bags, instead of getting stuck at the end of the queue and having your bags taken an put in the hold. Its about luggage fees that increase your ticket cost by %10-%20 percent. It is about not being stuck for an extra night in an airport because you can switch your ticket proactively. And the thing that everyone conveniently forgets is that the reason that we buy the lower fare classes is because those are the "undesirable" flights that they have to discount. People aren't paying higher fares for those flights, that is why they have to offer the lower fare. I think we need to get the elite exclusive bit out of this. |
It is not about being fair. It has never been about being fair. DL had a program that was designed to earn them more money. Now they are changing the program in a way that they think will earn them even more money. If you are surprised that DL cares about money more than your feelings you are pretty naive.
Does it suck for those who benefited more under the old program than they will under the new program, yes. (That group includes me btw). Should we whine about it for 80 pages, no. |
Originally Posted by Cloudship
(Post 20089740)
No, it ISN'T about being exclusive. You want exclusive, join Delta Jets.
This is about fairness in offerings. ... Your emotional arguments are irrelevant. Without the data DL had in making its decisions, you cannot make a rational business argument that DL should offer status to everyone presently enjoying status. You just don't know the facts necessary to state DL is doing the wrong thing here. |
Originally Posted by Cloudship
(Post 20089740)
No, it ISN'T about being exclusive. You want exclusive, join Delta Jets.
This is about fairness in offerings. Why do those of us who are not flying on business have to pay more? It's a completely fair system and being rolled out with plenty of advance warning. If you don't like it, you can choose another airline, or alter your travel in whatever way you choose. But it is FAIR.... everyone has the same thresholds. |
Originally Posted by CJKatl
(Post 20089831)
It's not about being exclusive, nor is it about DL being fair. It't about DL maximizing profits. Offering benefits to everyone obviously is not maximizing DL's profits. DL thinks it has figured out how to maximize profits by only offering benefits to those customers for whom it makes financial sense to offer benefits. Fairness is nowhere in that equation. Market data, to which DL is privy and we are not, drives these decisions.
Your emotional arguments are irrelevant. Without the data DL had in making its decisions, you cannot make a rational business argument that DL should offer status to everyone presently enjoying status. You just don't know the facts necessary to state DL is doing the wrong thing here. What I will say is that historically U.S. carriers have not had a very good track record of making the best management decisions. Their thinking has tended to be short-term and has not resulted in very desirable outcomes. The future remains to be seen, however, given the past I would not hedge any bets that management is focused on the long-term interests of the company. |
My entirely personal 2 cents worth:
1) I'm happy. I have 400K Skypesos and I earn about 100K a year. I was afraid they'd actually make me fly on DL to use them, something I only do once or twice a year. Thanks, DL, for keeping the gravy train of my various credit-card related schemes intact. 2) I do feel like most people who will make Medallion probably spend $25K on credit cards a year. As is obvious from item #1, I'm one of those people who loves my credit card points (although I've actually started flying again and will make Gold on US this year), and everybody is out there trying their card to be your go-to card. So DL is basically telling people that if you want the benefits of their loyalty program, you can get them by being loyal to their credit card. That doesn't seem so unreasonable. If the group disagrees with me that spending $25K on an Amex in a year is that high a bar for elite-level flyers, that's a valid point. I do note though that the threshold doesn't vary by elite level. If you had to spend over $50K on a cc to make elite, my attitude would be different. |
Originally Posted by redtop43
(Post 20090073)
My entirely personal 2 cents worth:
1) I'm happy. I have 400K Skypesos and I earn about 100K a year. I was afraid they'd actually make me fly on DL to use them, something I only do once or twice a year. Thanks, DL, for keeping the gravy train of my various credit-card related schemes intact. 2) I do feel like most people who will make Medallion probably spend $25K on credit cards a year. As is obvious from item #1, I'm one of those people who loves my credit card points (although I've actually started flying again and will make Gold on US this year), and everybody is out there trying their card to be your go-to card. So DL is basically telling people that if you want the benefits of their loyalty program, you can get them by being loyal to their credit card. That doesn't seem so unreasonable. If the group disagrees with me that spending $25K on an Amex in a year is that high a bar for elite-level flyers, that's a valid point. I do note though that the threshold doesn't vary by elite level. If you had to spend over $50K on a cc to make elite, my attitude would be different. Hilton gives away gold status by simply having one of their credit cards and with just $40K a year in spend you get diamond status and on top of that you get two free weekend nights the first few months with a low spend and a free weekend night each year after with a low spend So Delta isn't nearly as bad about rewarding credit card holders as Hilton. I am surprised Hilton isn't requiring your credit card spend based on status. i.e. waiving the MQD requirement for silver with $25K in spend, requiring $50K in credit card spend for gold and $75 for Plat instead of just $25k for everyone |
Originally Posted by LegalTender
(Post 20085388)
Hardly. They covered up a blunder with a bright, shiny object called MQDs.
Delta may be the picture of health, but it doesn't mean incompetence should be rewarded or that a paternalistic culture didn't survive its 2007 bankruptcy. These moves - and I think pruning the Medallion ranks is smart - were necessitated by a predictable failure.
Originally Posted by sbjnyc
(Post 20087305)
The total revenue used to obtain the so-called $225 average fare includes the deferred revenue from award redemptions which run at about 1cpm. If you exclude award travel I'm pretty sure the real average fare is significantly north of $225.
Originally Posted by StayingHomeIsBetter
(Post 20087504)
So, to be clear, how much of DL's improved performance (subsequent to the bankruptcy... recall that?) do you attribute to inspirational leadership, rather than generally improving market conditions?
Even AMR, which is still in bankruptcy, turned a profit last quarter: http://www.dallasnews.com/business/a...th-quarter.ece |
Originally Posted by Cloudship
(Post 20089740)
No, it ISN'T about being exclusive. You want exclusive, join Delta Jets.
This is about fairness in offerings. Why do those of us who are not flying on business have to pay more? I know it's easy to say "you only purchase cheap tickets" but there is much more than that. It is about having access to wider seats, because the seat cost for a wider seat is exorbitantly high. The only way to get that is to trade off for flying only on one carrier. It's about being able to keep your bags, instead of getting stuck at the end of the queue and having your bags taken an put in the hold. Its about luggage fees that increase your ticket cost by %10-%20 percent. It is about not being stuck for an extra night in an airport because you can switch your ticket proactively. And the thing that everyone conveniently forgets is that the reason that we buy the lower fare classes is because those are the "undesirable" flights that they have to discount. People aren't paying higher fares for those flights, that is why they have to offer the lower fare. I think we need to get the elite exclusive bit out of this. |
So let me get this straight... If DL has flights that aren't filling up, they should sell fares for below cost and shower benefits on those who purchase the tickets???? It seems to make more sense to cut the flights. That seems to have been the strategy lately; fewer fuller flights.
Maybe, and again, we don't have the actual data, but just maybe DL has figured out selling seats below market price and showering benefits on those who wind up costing them money doesn't make as much business sense as just not flying those flights, or flying those flights using smaller planes. |
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