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
#211
Join Date: Dec 2008
Location: Mostly living in the basement
Programs: Newly minted free agent; MR LT(!)TE, HH SE, BA SECM, DL MM, UA PS, 2V Fanboi, CBP GE
Posts: 5,108
And let's realize the impact to Amex would be less than is being asserted here, as the waiver will still be effective for FO, GM, and PM, and there are a lot more of those people out there than there are DM. (And the spend requirement doesn't vary by Medallion level, so at most they lose a small number of DMs... certainly not a Costco level disaster.)
Also, FWIW, not everyone who is DM only values it for the upgrades. Sure, they're nice, but some of us who do fly 40+ weeks a year for business travel also value the other DM benefits like SkyClub access, the DM line, higher priority in IRROPs rebooking, higher priority for SDS...
#212
Join Date: Jun 2005
Location: Huntsville, AL
Programs: DL DM 1.929MM, Hilton Lifetime Diamond, IHG Platinum, Avis CHM, Marriott Titanium (lifetime gold)
Posts: 7,859
David
#213
Join Date: Nov 2014
Posts: 81
I would assume that Delta has a fairly involved contract with Amex given the amount it is supposedly worth. It would be surprising to me if Amex did not think about the repercussions of something like this and account for it in the contract. Shame on their lawyers if they did not.
#214
Join Date: Mar 2014
Location: ATL
Programs: DL DM, Hyatt LT DM, Wyndham DM, Hertz PC, HH Gold, SPG Gold, Marriott Gold
Posts: 2,038
Would be rough for me as this year will be first year as DM and planned to continue based on travel and the waiver. I also would be in the boat that I could alter my spending and still get PM with just a change in purchasing on Delta. I'd also likely switch off the card for as much spending. I might go to just the 25K MQD and then switch all spending away. Which right now it's all Delta Platinum or Personal Platinum.
I hope that the leak upsetting Delta and the internet/people/etc would change that.
I hope that the leak upsetting Delta and the internet/people/etc would change that.
#215
Join Date: Mar 2014
Location: ATL
Programs: DL DM, Hyatt LT DM, Wyndham DM, Hertz PC, HH Gold, SPG Gold, Marriott Gold
Posts: 2,038
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.
Many I would think would be in the spend all on one card/family of cards and get those benefits. I spend well over the waiver and multiple mileage boosts and go beyond that beacause it's easy to track my family's spending in one place. Waiver is nice and it's useful to me and it's one reason I have it. No waiver to DM I can just change spending to get PM but use another card completely.
So just the waiver is one thing but how many people are spending beyond that?
#216
Join Date: Mar 2014
Location: ATL
Programs: DL DM, Hyatt LT DM, Wyndham DM, Hertz PC, HH Gold, SPG Gold, Marriott Gold
Posts: 2,038
Yesterday I wrote to several top execs at AMEX to convey my intentions with respect to my card loyalty should Delta announce the move to eliminate the $25,000 waiver to qualify for Diamond status in lieu of flying $15,000 worth of MQD's. I got a call about 4 hours later from a number I did not recognize and let it go to VM. I listened to my VM and it was an Exec Secretary or Assistant to the Executive team that wanted me to call back. I did. She was very concerned and alarmed by my email. She said she consulted with their social media dept, fellow colleagues and some Execs and they had not heard anything about this. I explained that this was not an announcement but a rumor at this point, where it came from and how we, as customers of theirs felt about it. She was most interested in that so i gave her the name of several blogs where she could read the comments from their own customers about what all of our intentions are. I said specifically in my email what cards I had with them and where I would be transferring my spend to, (Chase) and implored them to do all they could to help change Delta's position should this rumor come true. I told her that we all vote with our wallets, and she can see how much I spend with them. She understood that my reason for spending all my money with them would go out the window if Delta pulled this move. Her apparent lack of knowledge about this and concern was either the greatest acting job in the world, or was a sad commentary on the communication between Delta and themselves. She was very appreciative of the info I gave regardless of whether it was a rumor or not. It was extremely interesting to talk with her as it showed a level of honesty and customer skill I would like to deal with at any company. But I feel sorry for them if they really did not know anything about this, and it does come true. How much of a partner can they be, if something like this leaked out to the blogosphere and not to the top brass at AMEX first?
And beyond that what are the proper channels to contact Delta?
I know back in the day sites like Consumerist provided the basic info to do an executive email blast(like to Comcast) and that worked well for me in the past with horrible horrible service. Literally had an executives assistant call me to schedule a call with said executive and the problem was fixed and more. Having an account with Comcast for almost 20 years seemed to have some benefit... and now new house they wouldn't price match AT&T on fiber internet and bye bye comcast!
#217
Suspended
Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
Interesting. Could you PM me the email addresses?
And beyond that what are the proper channels to contact Delta?
I know back in the day sites like Consumerist provided the basic info to do an executive email blast(like to Comcast) and that worked well for me in the past with horrible horrible service. Literally had an executives assistant call me to schedule a call with said executive and the problem was fixed and more. Having an account with Comcast for almost 20 years seemed to have some benefit... and now new house they wouldn't price match AT&T on fiber internet and bye bye comcast!
And beyond that what are the proper channels to contact Delta?
I know back in the day sites like Consumerist provided the basic info to do an executive email blast(like to Comcast) and that worked well for me in the past with horrible horrible service. Literally had an executives assistant call me to schedule a call with said executive and the problem was fixed and more. Having an account with Comcast for almost 20 years seemed to have some benefit... and now new house they wouldn't price match AT&T on fiber internet and bye bye comcast!
Chairman and CEO
200 Vesey Street
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Greg O'Hara
President, Global Business Travel
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[email protected]
Edward Bastian
CEO
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Gil West
Executive Vice President and Chief Operating Officer
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Sandeep Dube
Vice President, Customer Engagement & Loyalty
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Heidi Gould
Manager, Customer Care
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Atlanta, GA 30354-1989
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#219
Join Date: Nov 2012
Posts: 126
So if the DL Amex isn't the card with best returns, why do you charge anything more than the minimum required to get the waiver? ie, your ~$180 - $200k of spend should already have moved to other cards.
To max out all 4 cards to get all 4 bonuses you need to spend 50 + 50 + 60 + 60=$220K
To max out all 4 cards to get all 4 bonuses you need to spend 50 + 50 + 60 + 60=$220K
#220
Join Date: Jul 2014
Posts: 54
I think Delta is the one really calling the shots in this situation, not Amex. They really wanted to thin out the DM herd so this is the best way to do it. They want everyone to spend $15k. It won't be long before they start prioritizing upgrades by dollars spent.
That's probably coming for the upcoming year. I think AA's EQD upgrade priority makes a lot of sense from a business perspective. Big spenders get the most upgrades.
The problem with the US airline oligopoly now is that most of us have to fly somewhere. If we pick a new airline to fly, it's probably offset by someone else coming from another airline to take your spot on the cheapest fare. Airlines benefit from not having to pay out as much elite status bonuses for free agents.
The amex waiver will probably cause some to cancel the card. I know I was planning to get some amex delta cards but now i probably won't bother.
I know for AA miles, I feel they're pretty worthless. I'd probably focus on Chase UR, Amex MR and Citi Thank you points now. It's just so much easier to use those to pick the exact flight you want instead of trying to fit an award flight into your schedule. The rates are definitely coming down so I wouldnt get too comfortable with the current rates.
I also agree that Delta already ran the numbers. They should have already run every scenario. But given how full the planes are, they'll feel the pain during the next downturn. They'll probably just give away targeted elite status to get people onto the planes or increase bonus miles.
What we really need is more competition to drive prices down.
That's probably coming for the upcoming year. I think AA's EQD upgrade priority makes a lot of sense from a business perspective. Big spenders get the most upgrades.
The problem with the US airline oligopoly now is that most of us have to fly somewhere. If we pick a new airline to fly, it's probably offset by someone else coming from another airline to take your spot on the cheapest fare. Airlines benefit from not having to pay out as much elite status bonuses for free agents.
The amex waiver will probably cause some to cancel the card. I know I was planning to get some amex delta cards but now i probably won't bother.
I know for AA miles, I feel they're pretty worthless. I'd probably focus on Chase UR, Amex MR and Citi Thank you points now. It's just so much easier to use those to pick the exact flight you want instead of trying to fit an award flight into your schedule. The rates are definitely coming down so I wouldnt get too comfortable with the current rates.
I also agree that Delta already ran the numbers. They should have already run every scenario. But given how full the planes are, they'll feel the pain during the next downturn. They'll probably just give away targeted elite status to get people onto the planes or increase bonus miles.
What we really need is more competition to drive prices down.
#221
Join Date: Mar 2014
Location: ATL
Programs: DL DM, Hyatt LT DM, Wyndham DM, Hertz PC, HH Gold, SPG Gold, Marriott Gold
Posts: 2,038
#223
Suspended
Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
As for upgrades, Delta also already changed the upgrade priorities to give a higher standing to elites who have achieved the spending requirements.
Last edited by hockeyinsider; Jul 18, 2017 at 5:31 pm
#224
Join Date: Jan 2000
Location: ATL - DL DM/3MM - HH Lifetime Diamond - Marriott Lifetime Plat
Posts: 3,117
So if the DL Amex isn't the card with best returns, why do you charge anything more than the minimum required to get the waiver? ie, your ~$180 - $200k of spend should already have moved to other cards.
To max out all 4 cards to get all 4 bonuses you need to spend 50 + 50 + 60 + 60=$220K
To max out all 4 cards to get all 4 bonuses you need to spend 50 + 50 + 60 + 60=$220K
When this change is made, I'll reduce to 1 card and then decide if PM is worth the CC min spend. If not as we usually pay for FF as it's gotten so cheap, we will drop AmEx all together and go the a better option.
#225
FlyerTalk Evangelist
Join Date: Sep 2006
Location: Toledo, OH
Programs: Delta DM & MM, Hilton DM, Marriott gold, Hyatt Globalist, Alaska 75K, Wyndham Diamond,
Posts: 15,399
Many I would think would be in the spend all on one card/family of cards and get those benefits. I spend well over the waiver and multiple mileage boosts and go beyond that beacause it's easy to track my family's spending in one place. Waiver is nice and it's useful to me and it's one reason I have it. No waiver to DM I can just change spending to get PM but use another card completely.
So just the waiver is one thing but how many people are spending beyond that?
So just the waiver is one thing but how many people are spending beyond that?
Last edited by jamesteroh; Jul 18, 2017 at 6:49 pm