Sep 26, 17, 2:09 pm
Last edit by: Renes Points
On 26SEPT17 Delta changed the MQD AMEX exempt requirements. $25,000 only exempts you to Platinum or lower. $250,000 spend needed across ALL the DL AMEX cards you hold (personal and business in your name) for Diamond exemption for 2019 elite year.
If all you are interested in is the discussion starting when the announcement occurred on Tuesday, September 26, 2017, start here.
The Delta announcement is here https://www.delta.com/content/www/en_US/skymiles/news-and-updates.html
There are many data points that Delta will allow a one time exception under the 2017 qualification rules if you request this for the 2019 Medallion year.
If all you are interested in is the discussion starting when the announcement occurred on Tuesday, September 26, 2017, start here.
The Delta announcement is here https://www.delta.com/content/www/en_US/skymiles/news-and-updates.html
There are many data points that Delta will allow a one time exception under the 2017 qualification rules if you request this for the 2019 Medallion year.
Delta increasing Diamond MQD Waiver to $250,000
Jul 17, 17, 12:07 pm
#61
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 22,071
There is almost certainly a substantial class of flyers who primarily fly paid D1 (on company dime) and have no problem hitting DM revenue requirements, but also fly once or twice a year on their own dime and would value the GUC's (due to not being able to afford D1 on their own dime). I think you are ignoring a very large market segment here.
Jul 17, 17, 12:10 pm
#62
Join Date: Jun 2006
Posts: 2,419
Jul 17, 17, 12:21 pm
#63
Join Date: Nov 2014
Programs: DL DM, UA, AA EXP, AS MVP75K GOLD, HHonors Diamond, BW Diamond, SPG Gold, Hyatt Diamond
Posts: 377
As high spenders with these credit cards, the value to the cardholder and loyal flyer on Delta is rewarding for a mutually (Delta/AmEx/Passenger) beneficial relationship.
GUC's are only cleared when they are not sold; revenue management has taking the reigns in that department. So, a 'perceived value' of thousands, but in reality often a seat that might have flown empty otherwise...so a fixed cost of a premium meal (minus cost of coach meal) to Delta and and amenity kit?
American Express should be calling for an emergency meeting with the top Execs at Delta before their cardholders melt the phones...
In 2016, we were successful in getting Delta to reverse their Platinum/Diamond flying with a companion Comfort+ seat policy. They DID listen to their elites....why not now?
Here is a great video on this revenue component of American Express to Delta.
Last edited by laptoptravel; Jul 17, 17 at 12:22 pm Reason: spelling, grammar
Jul 17, 17, 12:23 pm
#64
Suspended
Join Date: Aug 2009
Location: Look up - On a ✈ DELTA ✈ jet NOW!
Programs: Blogger & Delta Diamond Medallion Million Miler
Posts: 4,174
It is worth noting that 50-60% of Delta earnings comes from miles. See: http://www.msn.com/en-au/video/finan...BEkOK6?ocid=st
Jul 17, 17, 12:27 pm
#65
Join Date: Sep 2016
Location: LON, PDX
Programs: DL PM, AS MVP 75K, HH/SPG/MR Gold, Amex Plat, PRG, CSR
Posts: 2,064
@Renes Points, Is there any indication of changes to the waived MQD requirement for non-US residents?
Jul 17, 17, 12:30 pm
#66
Join Date: Apr 2011
Posts: 3,394
Of course...you are forgetting the cash value component of the American Express relationship to Delta. Estimated to haul in more than $4 Billion thru 2021, Delta is reaping huge profits through sales of these miles to the credit card companies.
As high spenders with these credit cards, the value to the cardholder and loyal flyer on Delta is rewarding for a mutually (Delta/AmEx/Passenger) beneficial relationship.
GUC's are only cleared when they are not sold; revenue management has taking the reigns in that department. So, a 'perceived value' of thousands, but in reality often a seat that might have flown empty otherwise...so a fixed cost of a premium meal (minus cost of coach meal) to Delta and and amenity kit?
American Express should be calling for an emergency meeting with the top Execs at Delta before their cardholders melt the phones...
In 2016, we were successful in getting Delta to reverse their Platinum/Diamond flying with a companion Comfort+ seat policy. They DID listen to their elites....why not now?
Here is a great video on this revenue component of American Express to Delta.
As high spenders with these credit cards, the value to the cardholder and loyal flyer on Delta is rewarding for a mutually (Delta/AmEx/Passenger) beneficial relationship.
GUC's are only cleared when they are not sold; revenue management has taking the reigns in that department. So, a 'perceived value' of thousands, but in reality often a seat that might have flown empty otherwise...so a fixed cost of a premium meal (minus cost of coach meal) to Delta and and amenity kit?
American Express should be calling for an emergency meeting with the top Execs at Delta before their cardholders melt the phones...
In 2016, we were successful in getting Delta to reverse their Platinum/Diamond flying with a companion Comfort+ seat policy. They DID listen to their elites....why not now?
Here is a great video on this revenue component of American Express to Delta.
I think we all get caught in the FT bubble and really forget that we are a highly unrepresentative sample of the overall passengers on DL.
Jul 17, 17, 12:30 pm
#67
Join Date: Aug 2006
Location: SJC
Programs: DL PM MM, Marriott Titanium
Posts: 3,260
fwiw, last year I made > 145kMQM for <$10kMQD. I have no idea how common or rare I am.
I do enjoy DM and would be sad to see this implemented, but I'd not be very worked up about, or feel that DAL had shortchanged me. My 2016 flying is almost certainly _not_ who they want to reward with top tier status.
I do enjoy DM and would be sad to see this implemented, but I'd not be very worked up about, or feel that DAL had shortchanged me. My 2016 flying is almost certainly _not_ who they want to reward with top tier status.
I won't make DM this year anyway, but I will probably be PM and need the MQD waiver.
Last edited by SJC ORD LDR; Jul 17, 17 at 12:55 pm
Jul 17, 17, 12:32 pm
#68
Join Date: May 2009
Location: Seattle, WA
Programs: DL Diamond 1.7MM, Starlux Insighter, Bonvoy Titanium, Hilton Gold, Hertz PC
Posts: 3,935
Well, without the waiver I'm certainly not going to bother with the Amex anymore. I may keep a relationship with Amex, but it will be with a non-Delta branded card.
What will be really interesting is to see if partner MQD earning rules change along with this. I can still qualify if partner flying still counts, but if they close that as well and only incentivize flying on 006 tickets United style, it might be the final nail in the coffin that makes me a free agent - I simply don't fly $15k of only Delta metal. Living close to YVR, there are too many good international partners to limit myself like that...
What will be really interesting is to see if partner MQD earning rules change along with this. I can still qualify if partner flying still counts, but if they close that as well and only incentivize flying on 006 tickets United style, it might be the final nail in the coffin that makes me a free agent - I simply don't fly $15k of only Delta metal. Living close to YVR, there are too many good international partners to limit myself like that...
Jul 17, 17, 12:36 pm
#69
FlyerTalk Evangelist
Join Date: Sep 2007
Location: BOS
Programs: DL DM 2MM, Marriott LT Titanium, Hertz PC
Posts: 14,913
There is almost certainly a substantial class of flyers who primarily fly paid D1 (on company dime) and have no problem hitting DM revenue requirements, but also fly once or twice a year on their own dime and would value the GUC's (due to not being able to afford D1 on their own dime). I think you are ignoring a very large market segment here.
Because of the current policies of waiver and rollover, it generates longer term loyalty instead of jumping to the next carrier. Kill the waiver, and there is a good chunk who would dump Amex spend in a heartbeat for other cards with better return.
Jul 17, 17, 12:36 pm
#70
Suspended
Join Date: Aug 2009
Location: Look up - On a ✈ DELTA ✈ jet NOW!
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Posts: 4,174
@Renes Points, Is there any indication of changes to the waived MQD requirement for non-US residents?
Having said that, going into speculation mode, I would not be shocked if they look VERY closely at anyone who suddenly "moves" out of the USA this year and next and yet still keeps flying out of their old home town airports?
Jul 17, 17, 12:39 pm
#71
Join Date: Sep 2016
Location: LON, PDX
Programs: DL PM, AS MVP 75K, HH/SPG/MR Gold, Amex Plat, PRG, CSR
Posts: 2,064
My 3 sources only all shared what I have posted that is the change to DM waver. I have no facts on anything else.
Having said that, going into speculation mode, I would not be shocked if they look VERY closely at anyone who suddenly "moves" out of the USA this year and next and yet still keeps flying out of their old home town airports?
Having said that, going into speculation mode, I would not be shocked if they look VERY closely at anyone who suddenly "moves" out of the USA this year and next and yet still keeps flying out of their old home town airports?
Jul 17, 17, 12:46 pm
#72
In memoriam, FlyerTalk Evangelist
Join Date: May 2005
Location: PIT
Programs: DM life is over 2MM PM now & NW MillionAir Wyndham Rewards Plat -Hotels.com Silver -Accor Silver
Posts: 15,408
So, here'za specific 24 karat Diamond question . . . .
Am I worth more to Delta with $6000~ish MQDs and 2 Delta Amex cards & annual fees with $100,000 in spend
or
$15,000 in MQDs and NO Amex cards?
Am I worth more to Delta with $6000~ish MQDs and 2 Delta Amex cards & annual fees with $100,000 in spend
or
$15,000 in MQDs and NO Amex cards?
Jul 17, 17, 12:46 pm
#73
Join Date: Sep 2016
Location: LON, PDX
Programs: DL PM, AS MVP 75K, HH/SPG/MR Gold, Amex Plat, PRG, CSR
Posts: 2,064
Does anyone know how much money Delta gets from Amex spend? What is $25K spend worth to DL?
I know that full rate Amex merchant fee is 3%, which would be $750, though plenty of merchants pay less. If Delta gets half of that (and I have no idea what they actually get), plus some part of the $95/$195 annual fee, we are talking no more than $500 to Delta for $25K spend.
If people are actually getting away with spending much less than $15K, I can see why DL would want to eliminate the spend waiver from DM which comes with very valuable perks, especially GCU's and SC access.
I know that full rate Amex merchant fee is 3%, which would be $750, though plenty of merchants pay less. If Delta gets half of that (and I have no idea what they actually get), plus some part of the $95/$195 annual fee, we are talking no more than $500 to Delta for $25K spend.
If people are actually getting away with spending much less than $15K, I can see why DL would want to eliminate the spend waiver from DM which comes with very valuable perks, especially GCU's and SC access.
I always thought the Miles Boost DMs who fly like 25k a year made even less sense. Delta is basically selling DM for at most a few thousand dollars, it doesn't make sense.
Jul 17, 17, 12:50 pm
#74
Moderator: Hyatt; FlyerTalk Evangelist
Join Date: Jun 2015
Location: WAS
Programs: :rolleyes:, DL DM, Mlife Plat, Caesars Diam, Marriott Tit, UA Plat, Hyatt Glob, invol FT beta tester
Posts: 18,338
I've done this calculus myself before and always wondered how the MQD waiver really makes financial sense for Delta. I always assumed it was more about trying to get people into the habit of using the DL Amex cards well beyond the threshold as well as proving a hoop for some people to jump through to retain their loyalty if they'd otherwise defect.
I always thought the Miles Boost DMs who fly like 25k a year made even less sense. Delta is basically selling DM for at most a few thousand dollars, it doesn't make sense.
I always thought the Miles Boost DMs who fly like 25k a year made even less sense. Delta is basically selling DM for at most a few thousand dollars, it doesn't make sense.
