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Delta increasing Diamond MQD Waiver to $250,000

Delta increasing Diamond MQD Waiver to $250,000

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Old Jan 6, 19, 12:54 pm   -   Wikipost
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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...d-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.
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Old Sep 26, 17, 1:46 pm
  #856  
 
Join Date: Jul 2011
Location: MSP Mainly
Programs: Delta PM & 2M+ Miles - Bonvoy - Lifetime Titanium - DL AMEX Reserve
Posts: 200
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?
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Old Sep 26, 17, 1:50 pm
  #857  
 
Join Date: Jan 2014
Programs: DL Diamond; HH Diamond; Avis Preferred plus
Posts: 19
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....
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Old Sep 26, 17, 1:51 pm
  #858  
 
Join Date: Oct 2011
Location: ATL
Programs: DL Scattered Smothered Covered Medallion, Some hotel & car stuff, Kroger Plus Card
Posts: 9,766
Originally Posted by GregInMN View Post
With all the discussion around the cancelling of the Delta AMEX CC, I wonder what the financial impact will ultimately be?
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.
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Old Sep 26, 17, 1:56 pm
  #859  
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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.
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Old Sep 26, 17, 1:57 pm
  #860  
 
Join Date: Jul 2006
Location: Upper Sternistan
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Originally Posted by justpassinthru View Post
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....
Hyatt basically did just that.
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Old Sep 26, 17, 1:58 pm
  #861  
 
Join Date: Jan 2008
Location: From MCI, now living in DFW
Programs: AA PLT, AC; Avis PP, Hyatt Plat
Posts: 897
Originally Posted by Halloweverybody View Post
Wow this is quite arrogant. So people who earn diamond based on mqd waiver are moochers and freeloaders?

The fact that you care enough to write that statement leads me to believe that #1 you are an @$$ but also number 2 you have something to benefit from there being less diamonds. If the former or likely both are correct, you would also be a "moocher" and "freeloader" yourself for trying to obtain non paid upgrades from delta.
Do you deny being a moocher yourself?
because it seems somewhat questionable that your qualifier for being "moochers" and "freeloaders" is much different from the very same thing you are doing - which is obtaining free upgrades.
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
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Old Sep 26, 17, 2:00 pm
  #862  
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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.
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Old Sep 26, 17, 2:00 pm
  #863  
 
Join Date: May 2017
Programs: Delta/Marriott/United
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Originally Posted by gooselee View Post
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.
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.
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Old Sep 26, 17, 2:04 pm
  #864  
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Originally Posted by TheMadBrewer View Post
Interesting. I guess low MQD DMs with a foreign address are the lucky ones here (not talking about you specifically)

I was joking last fall about moving to YVR - still joking but another incentive

(And I am dual US/Canadian citizen so that is not the stopper)
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.
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Old Sep 26, 17, 2:05 pm
  #865  
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Originally Posted by apodo77 View Post
Love you some Delta, eh?
I also love good business practice of which this is one
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Old Sep 26, 17, 2:07 pm
  #866  
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Originally Posted by jamesteroh View Post
---- 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.
I think that is a definite possibility.
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Old Sep 26, 17, 2:09 pm
  #867  
 
Join Date: Aug 2003
Location: MSN
Programs: Delta DM, Bonvoy LT Titanium, Hertz PC
Posts: 1,968
Originally Posted by PV_Premier View Post
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.
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.
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Old Sep 26, 17, 2:09 pm
  #868  
 
Join Date: Aug 2016
Programs: Delta
Posts: 43
Good. Although this will not please everyone, this is a logical business decision.
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Old Sep 26, 17, 2:10 pm
  #869  
 
Join Date: Jul 2006
Location: ATL
Programs: DL - GM (Sky Priority);HH - Gold; Marriott - Silver; National - Executive; DL Reserve AMEX
Posts: 5,050
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.
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Old Sep 26, 17, 2:11 pm
  #870  
 
Join Date: Jul 2006
Location: ATL
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Posts: 5,050
Originally Posted by TheMadBrewer View Post
Ouch! I expected a higher waiver spend but not 10x! Oh well, fun while it lasted.

Looks like Rene was right.
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...
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