yohanson

How are you getting more MQMs under the new program?

BenA

Honestly, two months in, it's actually kind of liberating. I rolled over enough MQM and have enough booked for this year that I'll make diamond for 2016, so at this point I'm playing the field on each trip rather than staying loyal to Delta like I would have done in the past. Specifically, that's resulted in more segments booked on Alaska and Korean Air for me.

I've mentioned before that I now choose AS more often, because even at a 50% credit rate I often come out ahead on RDM - whenever that happens, it's a no brainer. I'm really liking the AS service - and my fiancee is too. They've improved a lot in the last few years and the new seating, Alaska Beyond entertainment and buy-on-board food is all excellent.

In fact, she's likely going to switch to crediting her DL flights to AS on trips she's accompanying me on, since their miles are more flexible and she'll earn more on the flights we typically take together without giving up any benefits. On an upcoming transpacific economy itinerary, for example, she'd earn 60% more miles crediting to AS as a nobody than to DL as a gold. And for our next transatlantic business class itinerary, it's the same story: crediting to AS nets 33% more miles. (The difference gets larger if she achieves or matches to MVP, of course.)

The wacky part is that once you've broken this seal, it starts to drive behavior Delta really doesn't want. For example, now we have incentive to book as many miles of our journey as possible on AS-operated connecting flights to earn more, even on 006 tickets with DL fares. So SEA-PDX/SFO connecting flights now automatically go to AS by default, when previously we'd go out of our way to fly DL metal. Even some SEA-LAX flights may make sense to choose AS, if the alternative is a DL flight where upgrades seem unlikely.

The flip side of earning so few miles on DL now is that I also am freed to choose a different operating carrier now when I expect better service. For an upcoming trip to Taipei, I booked SEA-ICN on Delta followed by ICN-TPE on Korean Air. I earn a couple fewer miles than routing through Tokyo, but getting to fly KE on the intra-Asia segment and spending an elective 23 hour layover in Seoul more than makes up for it. And since it's on an 006 DL ticket with all DL fares, Delta is paying Korean Air to fly me there. Without the devaluation of the mileage program, I never would have picked this over the DL-operated NRT-TPE flight.

I can't imagine that the intent of the new program was to incentivize behavior like this, but that's been the effect, at least for me. If the goal was to drive me to spend my money elsewhere, it's not working - in many cases, it's just resulting in Delta giving a larger portion of the revenue they collect from me to partner carriers.

I haven't gotten crazy enough to start booking other carriers on the transpacific segments yet - Comfort+ and the allure of spending my global upgrades is still sticky, for now - but I've stopped scoping my searches to DL only, and the first time an itinerary involving one of my bucket list carriers like CX or SQ pops up in my searches, it might be time to further play the field...

MLCJ

My employees are very happy and safe in their jobs and will remain that way. I think you might need to do a re-eval of yours, especially considering the next post of yours highlighted that your employees get to "keep and enjoy" their miles, like you're being a good guy for doing that. Mine keep theirs and at the end of the year we evenly split our Sky Bonus points in the office, including with the three that don't travel often.

Never did I say that we changed our travel spend to fit the new Delta program, we are just getting more RDMs for the last minute BE flights, which constitutes most of our travel (please no lecture on my bad fiscal policies for flying BE, again I'm asking them to travel short notice often and only for a day or two, so I'll absorb the costs to keep them happy and productive). We are therefore getting rewarded by Delta as the valuable customers we are, which was my original point regarding who they should take care of and again, if you have to do mileage runs, you're not really that valuable.

One last point based on the bold comment above, Delta gave you notice that they were changing the program for 2015, so I'm not sure how you can act like it's a surprise or think that a program, which is free, could never change the rules. Don't like it, enjoy AA.

GUWonder

The DL SkyPenny program is not depressing -- it's just predictably poor on the flight redemption side, and it's predictably miserly on the flight earning side.

JBJ2435

2014
RDU-LAX
Base = 2239
Bonus = 2239

2015
Base = 910
Bonus =728

Ouch

Adding 3000 rdm = $59

Priceless.

yohanson

Where does he say he is surprised? If one of your vendors changed the terms of your contract to give you less for more money, wouldn't you at least shop around for another vendor?

FF524

I'll give the Delta changes until June to decide on whether I stay or quietly go away. The SM benefits have decreased, the costs different between DL and other carriers at my home airport is roughly a 40% premium towards Delta. What use to be a reasonable justification for driving my business to a single source vendor, is now not such a cut and dry decision. Upgrdes are hit/miss, in fight experience is OK when you are on mainline aircraft - pretty tough on RJ service, and the value of miles earned and miles required for redemption have been significantly altered in favor of the airline. My sense is that the changes being put in place on airline flyer programs in general are a natural evolution - right now, airlines have control of their inventory and little reason to seduce their premium fare paying passengers beyond their current efforts at appealing to the vanity of individuals with bag tags. The time will come when the customer analytics start showing that they aren't capturing the level of spend that they use to be from a set of their high volume, high margin customers and their revenue on previously profitable routes comes under pressure - that will in turn drive a tweak to the program.

avidflyer

Exactly and thank you. The only surprise in this thread is how there are so many people talking out of both sides of their mouths. It is "the right business move" for DL and for their shareholders but trying to squeeze more (or at least the same) value out of our spend gets "see ya later" from folks here. As someone said, these are supposedly smart business people....

I still fly DL when it makes sense but I just flew to Asia and racked up a boat load more miles on AA and literally just now redeemed a FC award to go back to BOS next month at 50K. More return = good business move.

Esltroy

This happened to me with Hilton. I was a loyal Hilton DM. Then, they started devaluating a program that was not all that great to start with. I had great service from the employees and staff. It was the loyalty program that finally did me in. The special offers that were not offered at half their hotels, redemption rates and changes in classifications of hotels were a problem, but the final straw for me was the internet. I know it sounds odd, but they started to downgrade the internet for all people, honors members and all. If I wanted high speed internet, I would need to pay extra-low speed, free to all. Now where I work, if there is free internet, we could not expense internet. So, I could stay up until 1am waiting for files to download for my work, or I could pay out of pocket to download the work I needed to do my work. So, I made the choice to leave Hilton. I am sure hilton will be fine without me. I just voted with my feet and my wallet. It is liberating. Will the same happen to Delta for me? Not sure yet. There are so many things I love about delta. The people are the great, but I am giving them this year to see if they go the way of Hilton for me. It is not an emotional thing, just reality. Is delta for me or not?

MLCJ

Good point and my apologies. I took his comment that way but I guess I was wrongly lumping avidflyer in with the OP who was depressed two months in as if they didn't know it was coming. My issue with avidflyer's comment is the suggestion that everyone is losing, when that is clearly not the case. I fully recommend people shopping around that are losing out, then it will truly thin out the herds, if they actually do as they say, which I have my doubts.

MLCJ

This is where I don't think you understand some of our positions. I haven't changed my spend, I'm actually paying the same for tickets but I'm getting almost double miles from last year. This is why the new program works for my firm. All but one of us are 360's this year, so why shouldn't we continue to use Delta and earn more, again on the same last minute or refundable BE tickets? If I were in your position I'd shop around too but I'm not sure what good miles spread out over several programs is going to get you.

flyingweekly

+1

BusTrav8yrs

Yes, your firms travel policy of reckless spend on travel works for you and is understandable that you would like the results. The problem is DL thinks all business travelers want to spend as much as possible and that is not the case.

Of course it makes more sense for DL to tie miles to actual spend and it gives a reliable metric to the ratio of award mileage liability to revenue. It also will reduce the number of miles overall they give out because as I said your firms spending is not the norm.

But being the only airline doing revenue based RDM's will result in a larger group of former loyal fliers to look at other airlines, only when the other carriers adopt this model will it be an even playing field.

avidflyer

Yes, get it and it totally makes sense for you. My comments were only directed at the remarks up-thread questioning the business acumen of those who are pushing back. Agreed that DL is doing what DL needs to do but pushing back and questioning it (for those not in the position of NEEDING to fly last minute) is not a sign of bad business but rather just the opposite. That was my only point. If I were in your shoes I absolutely would love the changes and would do exactly what you are doing. I just think the concept of "firing" those customers who must be as careful as possible with their spend is, in the long run, a losing proposition unless all the airlines do it.

CMK10

It's frustrating here too. Not only the mileage losses, but the fact that Silver Medallion is worth even less than it used to be (if you can believe that). A $389 GSO-AUS r/t plus $19 for EC on one flight netted me around 2,200 miles. That's 700 less than I even flew. Plus, I realize I won't get within sniffing distance of any upgrade.

Just five years ago as a Silver Medallion I had an upgrade percentage in the mid-80's. Now, I'm hoping for a decent FCM offer.