Will $12,500 MQDs have an impact on Diamond Medallion?
#1
Original Poster
Join Date: Jun 2005
Location: Charlotte, NC, USA | CLT, formerly LHR & AMS (with just a bit of PSP)
Programs: BAEC Gold, Hilton Diamond, BonVoy Titanium, (soon former) Caesars7*, (former) Wynn Black, HR "Icon"
Posts: 8,172
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.
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.
#2
Join Date: May 2009
Location: Flying to a boat
Programs: DL DM/2MM, Bonvoy Titanium, Hertz PC
Posts: 823
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.
#4
Join Date: Oct 2004
Location: PDX
Posts: 2,284
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.
#5
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,242
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
#6
Join Date: Jun 2005
Location: Huntsville, AL
Programs: DL DM 1.929MM, Hilton Lifetime Diamond, IHG Platinum, Avis CHM, Marriott Titanium (lifetime gold)
Posts: 7,860
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
#7
Join Date: Feb 2013
Location: No longer in MSP; now in Portland, OR USA :)
Programs: Diamond Medallion, Kryptonium Medallion, Hilton HHonors Diamond
Posts: 543
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.
#8
Join Date: Dec 2009
Location: MSP
Programs: DL GM, AMEX Business Platinum, AMEX Delta Reserve, DL SkyClub Member, Choice PM
Posts: 2,218
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.
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!
#9
Join Date: Mar 2011
Location: BNA
Programs: DL DM, HH Diamond
Posts: 58
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
#10
Join Date: Dec 2009
Location: MSP
Programs: DL GM, AMEX Business Platinum, AMEX Delta Reserve, DL SkyClub Member, Choice PM
Posts: 2,218
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.
#11
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,242
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
#12
Original Poster
Join Date: Jun 2005
Location: Charlotte, NC, USA | CLT, formerly LHR & AMS (with just a bit of PSP)
Programs: BAEC Gold, Hilton Diamond, BonVoy Titanium, (soon former) Caesars7*, (former) Wynn Black, HR "Icon"
Posts: 8,172
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.
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.
#13
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,242
Considering you can make DM now with 0 MQD, there are lots of ways to do it for less than $10k.
#14
Original Poster
Join Date: Jun 2005
Location: Charlotte, NC, USA | CLT, formerly LHR & AMS (with just a bit of PSP)
Programs: BAEC Gold, Hilton Diamond, BonVoy Titanium, (soon former) Caesars7*, (former) Wynn Black, HR "Icon"
Posts: 8,172
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)