xliioper

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.

OHDL1

Don't you mean.... There is a limited time to make voices known. This will become the new policy.

laptoptravel

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.

Renes Points

Sigh. Maybe. But I know from insiders they have "flinched" before out of fear of "what if".

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

C W

@Renes Points, Is there any indication of changes to the waived MQD requirement for non-US residents?

kop84

The real unknown for us is how many DM's only remain DM due to the AMEX waiver. Obviously DL has the numbers from the last several years, and it's a near certainty they've shared this information with AMEX. Perhaps there aren't all that many and this is really a rather negligible issue between DL and AMEX. And it's not like 100% of those using the Reserve or other DL branded AMEX cards are going to drop their cards instantly when/if this takes effect. It could easily only be a tiny drip in the multi-billion dollar bucket.

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.

SJC ORD LDR

I made DM on $8k MQD last year. I had like 46,000 MQM rollover last year and was able to fly 82k MQM last year. So, it would affect a few of us.

I won't make DM this year anyway, but I will probably be PM and need the MQD waiver.

BenA

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...

rylan

Yes, I did so on purpose to make a point in response to another poster. There are substantial mounts of high rev DM/D1 flyers, but there are also a substantial amount that has fluctuating travel that may make DM one year on straight up spend and MQM, and then relies on the Amex and rollover for another year.

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.

Renes Points

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?

C W

Thanks. Thankfully I am a legitimate expat.

davetravels

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?

C W

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.

Zorak

Also relevant is how much AMEX pays DL. Even 3% of $25K is only $750, and after subtracting AMEX's overhead how much is left to pay to Delta...

josephstern

I always wondered why the waiver was so low, or not graduated.

Why not make it $125K for DM, $75K for PM, etc.?