Reactions to SkyMiles 2016 Program
Mar 4, 2015 | 6:43 am
#31
Join Date: Aug 2013
Location: DTW
Programs: DL PM, Natl-Exec Elite, Hertz-President Circle, Marriot/Starwood-Gold, HHonors-Gold
Posts: 678
There is no way the waiver is going away.
The benefit to Delta's gross margin/net sales (sales less cost of goods sold) from people meeting the waiver instead of MQD is probably equal to or better than if you meet the status requirement through MQD. Plus you still have to meet the MQM requirement regardless of whether you make MQD or earn the waiver. So in the end, it costs Delta nothing to offer the option of meeting the waiver versus MQD.
The benefit to Delta's gross margin/net sales (sales less cost of goods sold) from people meeting the waiver instead of MQD is probably equal to or better than if you meet the status requirement through MQD. Plus you still have to meet the MQM requirement regardless of whether you make MQD or earn the waiver. So in the end, it costs Delta nothing to offer the option of meeting the waiver versus MQD.
Mar 4, 2015 | 8:13 am
#32
Join Date: Sep 2006
Location: LAX
Programs: Fallen DL DM (PM) 2MM
Posts: 4,783
Individual is just you, no free guests (can bring in up to 2 at $29/per). Executive is what we used to have with guesting privileges.
Mar 4, 2015 | 8:56 am
#33
FlyerTalk Evangelist
Join Date: Jul 2003
Location: KARB
Programs: DL 2MM
Posts: 26,984
There is no way the waiver is going away.
The benefit to Delta's gross margin/net sales (sales less cost of goods sold) from people meeting the waiver instead of MQD is probably equal to or better than if you meet the status requirement through MQD. Plus you still have to meet the MQM requirement regardless of whether you make MQD or earn the waiver. So in the end, it costs Delta nothing to offer the option of meeting the waiver versus MQD.
The benefit to Delta's gross margin/net sales (sales less cost of goods sold) from people meeting the waiver instead of MQD is probably equal to or better than if you meet the status requirement through MQD. Plus you still have to meet the MQM requirement regardless of whether you make MQD or earn the waiver. So in the end, it costs Delta nothing to offer the option of meeting the waiver versus MQD.
Mar 4, 2015 | 9:12 am
#34
A FlyerTalk Posting Legend
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 102,617
The margin may be better for Silver's, but I doubt it for any of the other levels. Assuming DL is getting .01/mile from AMEX, the waiver is only generating $250 for DL. Plus it adds a liability of 25K miles (or more) to the books. I believe the waiver is likely due to the total value of the AMEX relationship and has little to do with the amount of income it actually generates from individual Medallions. Given that DL and AMEX just recently renewed their relationship, I'm going to bet that AMEX has contractually embedded the MQD waiver and agree that it is unlikely to go away.
Mar 4, 2015 | 9:32 am
#35
FlyerTalk Evangelist
Join Date: Jul 2003
Location: KARB
Programs: DL 2MM
Posts: 26,984
It's actually $3000 this year. I'm sure DL is probably fine with a Silver with $2000 in MQD and $25K in AMEX spend vs. a Silver with $3000 in MQD. However, I doubt a Diamond with only $5000 in MQD makes up the difference in margin with $25K AMEX spend vs. a Diamond with $15000 in MQD.
Mar 4, 2015 | 9:36 am
#36
A FlyerTalk Posting Legend
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 102,617
It's actually $3000 this year. I'm sure DL is probably fine with a Silver with $2000 in MQD and $25K in AMEX spend vs. a Silver with $3000 in MQD. However, I doubt a Diamond with only $5000 in MQD makes up the difference in margin with $25K AMEX spend vs. a Diamond with $15000 in MQD.
Mar 4, 2015 | 9:42 am
#37
Suspended
Join Date: Dec 2009
Location: HKG
Programs: DL FO, UA, AA, AsiaMiles, SPG, HHonors
Posts: 7,982
The margin may be better for Silver's, but I doubt it for any of the other levels. Assuming DL is getting .01/mile from AMEX, the waiver is only generating $250 for DL. Plus it adds a liability of 25K miles (or more) to the books. I believe the waiver is likely due to the total value of the AMEX relationship and has little to do with the amount of income it actually generates from individual Medallions. Given that DL and AMEX just recently renewed their relationship, I'm going to bet that AMEX has contractually embedded the MQD waiver and agree that it is unlikely to go away.
I could see the required waiver amount going up, or being set higher for higher medallion levels, but it makes DL $$$ hand over fist and isn't going anywhere.
Mar 4, 2015 | 9:43 am
#38
Suspended
Join Date: Dec 2009
Location: HKG
Programs: DL FO, UA, AA, AsiaMiles, SPG, HHonors
Posts: 7,982
Mar 4, 2015 | 9:55 am
#39
Join Date: Nov 2004
Location: Somewhere today, somewhere tomorrow!
Programs: Delta DM
Posts: 6,767
Already done with Delta for the year, taking my $$$ to the best fare for the rest of the year. All flights from now till May are on AS and AA. We shall see after that. Already Diamond till end of 2016 with roll over and spend. Not happy with changes already but what can you do. Spend your money where it bests fits your schedule.
Mar 4, 2015 | 11:42 am
#40
Join Date: Sep 2009
Location: HNL
Programs: DL PM/1MM, BW DE (lifetime), HH DE, Marriott PE (lifetime), IHG PE, National Emerald Executive
Posts: 7,306
Already done with Delta for the year, taking my $$$ to the best fare for the rest of the year. All flights from now till May are on AS and AA. We shall see after that. Already Diamond till end of 2016 with roll over and spend. Not happy with changes already but what can you do. Spend your money where it bests fits your schedule.
There is very little reason for anyone (unless hub captive or similar, and even then - be adventurous vs. be stuck on the same ol' DL!) to keep giving any recurring, consistent business to DL, which only serves to enable DL to keep lying and screwing over its pax over and over again.
Mar 4, 2015 | 1:15 pm
#42
FlyerTalk Evangelist
Join Date: Jul 2003
Location: KARB
Programs: DL 2MM
Posts: 26,984
There was a $145 upgrade option, but that ended on March 1st. There was a recent post about someone who tried to do it prior to the deadline. Can't recall if he was successful, I just remember he had great difficulty finding anyone who knew about it. Edit to add that a recent post indicates that they found someone at Delta who says you can upgrade for $245 now (the current price difference between an Individual and Exec membership).
Mar 4, 2015 | 1:19 pm
#43
Join Date: Jan 2012
Location: ATL
Programs: DL DM/2.7MM, HH Diamond, Bonvoy Lifetime Gold
Posts: 260
There is no way the waiver is going away.
The benefit to Delta's gross margin/net sales (sales less cost of goods sold) from people meeting the waiver instead of MQD is probably equal to or better than if you meet the status requirement through MQD. Plus you still have to meet the MQM requirement regardless of whether you make MQD or earn the waiver. So in the end, it costs Delta nothing to offer the option of meeting the waiver versus MQD.
The benefit to Delta's gross margin/net sales (sales less cost of goods sold) from people meeting the waiver instead of MQD is probably equal to or better than if you meet the status requirement through MQD. Plus you still have to meet the MQM requirement regardless of whether you make MQD or earn the waiver. So in the end, it costs Delta nothing to offer the option of meeting the waiver versus MQD.
The margin may be better for Silver's, but I doubt it for any of the other levels. Assuming DL is getting .01/mile from AMEX, the waiver is only generating $250 for DL. Plus it adds a liability of 25K miles (or more) to the books. I believe the waiver is likely due to the total value of the AMEX relationship and has little to do with the amount of income it actually generates from individual Medallions. Given that DL and AMEX just recently renewed their relationship, I'm going to bet that AMEX has contractually embedded the MQD waiver and agree that it is unlikely to go away.
Mar 4, 2015 | 1:19 pm
#44
FlyerTalk Evangelist
Join Date: Sep 2007
Location: BOS
Programs: DL DM 2MM, Marriott LT Titanium, Hertz PC, Avis PC
Posts: 17,198
The so-called $145 upgrade option was never an option, just DL false speak. Agents never knew about it or how to process it. Its difficult enough to find somebody to process paying for an individual to exec upgrade.