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Will $12,500 MQDs have an impact on Diamond Medallion?

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Will $12,500 MQDs have an impact on Diamond Medallion?

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Old Oct 26, 2013, 9:32 am
  #1  
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Will $12,500 MQDs have an impact on Diamond Medallion?

Will $12,500 MQDs have an impact on Diamond Medallion? (or shall I say, impact on the total number of Diamonds)

or perhaps, since $25,000 spend on AMEX is an alternative; not really?

As one who is squarely in the Platinum Medallion category (around 80-100K MQMs per year); it doesn't really bother me much, but I was wondering if there are a significant number of Diamond Medallions that will (eventually) be impacted.

Personally, I've always been one for associated "spend," with value (on the high end aka highest tier); so I see this as a positive, if it really does enable Delta to bring "higher value" to their (definitely NOT ME) top travelers.

But, with the mention of the Delta360 "high value" program, sort of makes me wonder why they didn't just make Diamond 200K+ MQMs and/or a significant spend; but "subject to approval."

As one who loves to "game systems," I understand the concern (by Delta) of savvy (FlyerTalk) travelers who with the wit and time can accomplish top tier with little spend. I seem to recall, back in the Northwest days, some who achieved Platinum for less than $3000 annual spend. (which always impressed me)

Of course, this could make it more difficult as a Platinum, since Diamonds who fall short on MQDs (and don't use AMEX) will wind up increasing the number of Platinum Medallions (not sure I love that idea ).

On a personal note, I am exempt from the eventual MQD requirement. I'm also not really certain why Delta allows for these exemptions. I guess, my thought is, if you are going to make something more exclusive (aka higher spenders) why limit it to a certain group of people. My only observation, is that perhaps, for those residing outside of the US a Delta-AMEX is not as likely; so they didn't want to totally alienate non-US SkyMiles (Medallion) members.
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Old Oct 26, 2013, 10:06 am
  #2  
 
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I don't think it will make an appreciable difference. I am sure there are some DM's that were retaining status from MQM rollover that might not spend the dollars, but out of the 75,000+ (estimated) DM's out there, its probably not that many.
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Old Oct 26, 2013, 10:15 am
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I dunno, from a lot of the panic over MQD on this site, you'd think that DM is about to return to the exclusive program DL originally purported it to be :-)
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Old Oct 26, 2013, 11:56 am
  #4  
 
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In the original hoopla, I remember someone saying that DL's figures state that 20% of then current DMs didn't spend $7,500 to reach that level. If that's true, there will have to be some DM erosion, since it won't be worth +$5,000 to some of them to fly extra flights or buy more expensive fares.
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Old Oct 26, 2013, 11:57 am
  #5  
 
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Originally Posted by baccarat_king
But, with the mention of the Delta360 "high value" program, sort of makes me wonder why they didn't just make Diamond 200K+ MQMs and/or a significant spend; but "subject to approval."
That is a failing strategy. Far better to have unpublished requirements than publish requirements with an asterisk. It will alienate anyone who meets those requirements and isn't accepted into the program. And if it is a 'significant spend' you don't want to send those people elsewhere.

Last edited by CPMaverick; Oct 26, 2013 at 12:32 pm
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Old Oct 26, 2013, 12:06 pm
  #6  
 
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Originally Posted by Ysitincoach
I dunno, from a lot of the panic over MQD on this site, you'd think that DM is about to return to the exclusive program DL originally purported it to be :-)
In many cases it was excitement.

In any case, there will be fewer medallions solely because this is an additional requirement to be met and at least a few will fail. I don't expect a lot of impact, but there will be some.

Those with large rollover MQM balances take a hit as they must now spend substantial money each year, live outside the USA, or spend the $25K on a Delta Amex card.

David
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Old Oct 26, 2013, 12:26 pm
  #7  
 
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I for one, (no offense to anyone) was shocked that the MQD for Diamond was so low. If you've actually flown that many miles; you typically are a business traveler who travels nearly ever week. Most of us who shared what our MQD's were so far (in the last few weeks) were hovering around the $20k-30k range. I'm at about 25k; and my company is notorious for buying cheap fares...insomuch that they once rescheduled a 2 week South Africa training to avoid paying an M fare! Allowing you to only spend half that and make Diamond seems rather counterproductive.
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Old Oct 26, 2013, 12:31 pm
  #8  
 
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Originally Posted by AeroWesty
In the original hoopla, I remember someone saying that DL's figures state that 20% of then current DMs didn't spend $7,500 to reach that level. If that's true, there will have to be some DM erosion, since it won't be worth +$5,000 to some of them to fly extra flights or buy more expensive fares.
in 2014 ...as long as one spends $25k on a DL AMEX card ...or spends $12.5k MQDs .... plus travels or earns 125k EQMs .... will make DM for 2015.

All doable!

I sincerely do hope that the medallion ranks are trimmed.

But given DL's habits of selling EQMs at year end .... doubt that!
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Old Oct 26, 2013, 12:38 pm
  #9  
 
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I work for a small company and I do my best to choose the lowest fare possible. I was DM in 2012 but PM this year and I will make DM this year with a couple of Mileage runs from BNA/SEA ($286 at $0.059) btw, but my total spend will be less than $10,000 which includes to two trips to China, a trip to Sao Paulo and a trip to Zurich. Unfortunately for the cheapskates out there like me, it'll make DM impossible from now on. Not sure what I'll do at the end of 2014. I do like the level of service (generally) that I get with Delta and for some reason Nashville is very cheap to fly in an out of compared to Memphis or Atlanta. I hate to give that up and I don't think AA or UA/CO are going to be any better.

Last edited by dpspindler; Oct 26, 2013 at 12:39 pm Reason: extra word
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Old Oct 26, 2013, 1:03 pm
  #10  
 
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Originally Posted by dpspindler
I work for a small company and I do my best to choose the lowest fare possible. I was DM in 2012 but PM this year and I will make DM this year with a couple of Mileage runs from BNA/SEA ($286 at $0.059) btw, but my total spend will be less than $10,000 which includes to two trips to China, a trip to Sao Paulo and a trip to Zurich. Unfortunately for the cheapskates out there like me, it'll make DM impossible from now on. Not sure what I'll do at the end of 2014. I do like the level of service (generally) that I get with Delta and for some reason Nashville is very cheap to fly in an out of compared to Memphis or Atlanta. I hate to give that up and I don't think AA or UA/CO are going to be any better.
If you don't have a DL AMEX Credit card, suggest you get one and spend $25k on it in 2014.
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Old Oct 26, 2013, 1:26 pm
  #11  
 
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Originally Posted by JulienMSP
I for one, (no offense to anyone) was shocked that the MQD for Diamond was so low.
That's because you are based in MSP. Seriously.

Hub captives that usually take direct flights will find the MQD threshold easy. In cities with very competitive fares like ORD, BNA, MCO, heck even LAX where connecting is the norm on DL (and therefore more miles per trip typically) will struggle to reach those MQD thresholds. West coast cities like LAX and SFO where there are Skyteam options that won't earn MQD make it even more difficult. Being based in MSP or DTW your company won't be considering man other airlines for international travel, but they will be in cities with more competition.

Last edited by CPMaverick; Oct 26, 2013 at 1:40 pm
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Old Oct 26, 2013, 1:31 pm
  #12  
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Originally Posted by CPMaverick
That is a failing strategy. Far better to have unpublished requirements than publish requirements with an asterisk. It will alienate anyone who meets those requirements and isn't accepted into the program. And if it is a 'significant spend' you don't want to send those people elsewhere.
Seems to work well for CZR-Entertainment (and they have been adding an asterisk for years, and are the "most successful" loyalty program in the world). Now, I know, it's not parallel; and a lot has to do with making sure your credit is "clear," but really, how many people really notice the asterisk anyway. Some might say, if you really didn't think you were "high value" (or didn't think you had the "worth") it might scare you from attempting the level (since you might not be "accepted" into the club)

Originally Posted by JulienMSP
I for one, (no offense to anyone) was shocked that the MQD for Diamond was so low. If you've actually flown that many miles; you typically are a business traveler who travels nearly ever week. Most of us who shared what our MQD's were so far (in the last few weeks) were hovering around the $20k-30k range. I'm at about 25k; and my company is notorious for buying cheap fares...insomuch that they once rescheduled a 2 week South Africa training to avoid paying an M fare! Allowing you to only spend half that and make Diamond seems rather counterproductive.
Sort of my thought also. I'd be interested in hearing some details of current Diamonds' who have spend that is below $10K; and how they did it.
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Old Oct 26, 2013, 1:39 pm
  #13  
 
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Originally Posted by baccarat_king
Seems to work well for CZR-Entertainment (and they have been adding an asterisk for years, and are the "most successful" loyalty program in the world).
Never heard of them, so I question how successful they actually are in the context of frequent travelers.

Originally Posted by baccarat_king
but really, how many people really notice the asterisk anyway. Some might say, if you really didn't think you were "high value" (or didn't think you had the "worth") it might scare you from attempting the level (since you might not be "accepted" into the club)
That is exactly the point; they don't notice the asterisk and then get angry when they work hard to acheive the goal but fail, or they do notice it and decide it isn't worth trying (less revenue to the airline). Both negatives to the 'published but not quite' approach. It is maddening to the customer and not helpful to the airline. Either be transparent or be opaque but in-between is the worst of both worlds.


Originally Posted by baccarat_king
Sort of my thought also. I'd be interested in hearing some details of current Diamonds' who have spend that is below $10K; and how they did it.
Considering you can make DM now with 0 MQD, there are lots of ways to do it for less than $10k.
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Old Oct 26, 2013, 1:45 pm
  #14  
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Originally Posted by CPMaverick
Never heard of them, so I question how successful they actually are in the context of frequent travelers.
Loyalty programs are loyalty programs. If you can convince a customer to spend a large sum of money to achieve the highest status level; I'd say you have a rather successful program.

Originally Posted by CPMaverick
Considering you can make DM now with 0 MQD, there are lots of ways to do it for less than $10k.
OK, so how do you get 125K MQMs with no spend on Delta flights. That is definitely a curiosity of mine. I'm guessing multiple credit cards with significant (25K MQM bonuses), but 125K seems a bit extreme. Very interesting. Unless, there is some significant flying opportunities that reward lots of MQMs but not MQDs under the future system. (but, that would be disingenuous, since you are still paying for flying with someone, just not Delta or Delta applicable MQDs)
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Old Oct 26, 2013, 2:14 pm
  #15  
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I expect up to 50% reduction in the number of USA based DMs. Many of them will be downgraded to PM/GM unless they have DL Amex card with sufficient spending.
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