GregInMN

With all the discussion around the cancelling of the Delta AMEX CC, I wonder what the financial impact will ultimately be?
I was actually going to cancel my Plat card and get a Reserve card to help boost my MQM's - no longer a real need. That said, with fewer DM, maybe more upgrade space becomes available? The Reserve card help break a tie for upgrades IIRC?

justpassinthru

Being one of those odd PMs that flies to a PM level but spends to a DM level - I guess this is good. Always felt like these programs rewarded the wrong thing from the airlines perspective (flying not profitability) so this is just further motion in that direction. Now if they'll just drop that pesky miles component - just kidding....

gooselee

Nobody can predict the future, but clearly someone at DL with oodles of data crunched the numbers and was able to convince management that this move would a) decrease the number of lower-margin customers, b) increase the number of higher-margin customers, or c) both.

Balance that out with revenue gained/lost on the Amex side, and obviously DL thinks they will come out ahead in the end vs. status quo.

PV_Premier

it is quite shocking to me how limited the foresight is in this forum by those who say "I'm fine, I spend 15-20K, no worries here". Meanwhile, fares in general continue to rise while basic economy fares continue their scope creep, and I can virtually guarantee you that it's not going to be 15K MQD in 2020 for DM, maybe not even in 2019. Think 20-25K.

DL has made it very clear that loyalty is a one way street. Particularly for those who are flying roundabout $1000 trips to SIN or $500 west coast to EU TATL fares upgraded with GUCs on half full flights out of PDX. Unfortunately, DL also knows they're the best game in the USA domestic airline space, but don't for one second believe that their plan to continue to burn you isn't well thought out and closer to reality than you think.

The only people that have a more inflated view of DM status than those of us on FT are the ones in DL HQ.

josephstern

Hyatt basically did just that.

captaink

More proof that this change landed squarely on the customers delta was aiming for

Even allowing that all passengers who get an UG are freeloading mooches, my back of the envelope numbers suggest that passengers who spend $15k directly with Delta are doing less mooching than the ones who spend $2-3k and getting half their MQM from Amex spend (the vast majority of which goes to a merchant not named 'Delta Air Lines' or 'American Express Bank, NA').

The idea that Delta is rewarding customers that generate more revenue at the expense of customers who generate less revenue should not be controversial, but some people are lashing out like they're more wronged than anyone else in history, or terrified of going home and breaking the news to their spouse

jamesteroh

The more I think about it, the more I'm wondering if I'm better off just dropping to PM for 2019 and getting rid of all my Am Ex cards except a reserve for SC access/tie breaker and just doing FCM on the long routes I want.

Between the savings on the annual fees on the Am Ex cards and the extra income I'll get from using a better rewards card on all the spend over skypeso's will help pay for some FCM fares and will guarantee I'll have a seat up front.

I was chatting with a girl in my office whose husband can't get anywhere near $250K in spend on credit cards and is going to drop to PM for 2019 but she said he knows his upgrade changes will drop significantly and on trips to Vegas, SFO, SAN and LAX he is just going to buy FC fares instead and/or use his many miles he has banked to upgrade.

If others dropping to PM use the same reasoning that is going to be fewer seats available upfront even though there are fewer diamonds competing for them. Maybe this is an effect Delta was hoping for, fewer diamonds plus they will sell more FC seats this way and/or get miles off the books.

SLCEO

This is an interesting move for sure....but every customer matters, high margin or low margin (unless planes go out 100% full every time). The low margin customer could even be the difference in a flight turning a profit. So the tipping point here is: Does Delta condition customers to move up the value chain? Or does Delta repel those customers and condition them to comparison shop?

I think I am falling into the latter camp.

rwoman

And, unlike some I suspect, I'm not gaming the system with my foreign address. I reside here.

I see some mention AA or UA. On AA, EQD applies regardless of address. I earn .5x EQM and 20% of distance EQD. I'll be lucky if I hit Plat due to spend. And much of my ex-LHR AA fares are mostly taxes.

GRALISTAIR

I also love good business practice of which this is one

GRALISTAIR

I think that is a definite possibility.

bergamini

Using this logic are you simply saying that they are getting rid of DM?

Of course they aren't. They are aiming for a certain number. For now, I look to be in that number in 2019. If they change for 2020, then maybe not. At the end of the day it's still their business and they can decide how to run it.

For me if DM or even PM becomes unattainable, I switch to a Chase or other card that will get me the awards I want and resign myself to coach albeit on the best timed flight I can find.

CalebMCO

Good. Although this will not please everyone, this is a logical business decision.

MikeyZBT

So, to be clear, none of this matters if you spend $15,000 (MQDs) on Delta (or certain partners) in the course of a year, yes? Isn't that typically very easy to accomplish for most Diamonds?

I have to think that this change will affect probably 10% or less of the current Diamond membership. Not a big change.

MikeyZBT

Why "while it lasted"? Don't you spend at least $15,000 MQDs a year to get to Diamond status anyway? I don't see how this is a big issue at all...