ithacxa

The original article appeared in thepointsguy.com: https://thepointsguy.com/2017/09/del...itch-below-31/

The part that got me was the following: “Delta realizes, Bastian said, that with MQDs, MQMs and MQSs — Medallion Qualifying Dollars, Medallion Qualifying Miles and Medallion Qualifying Segments — the loyalty program has become pretty complicated. The CEO said Delta “will get to a point where we simplify the structure” of SkyMiles.””

Is this DL saying they’re going to pure revenue accrual SOON?

javabytes

I think it's been clear that is DL's endgame ever since MQDs were introduced. Boil the frog slowly, and all... but I would not be surprised to see the final shift happen by 2019-2020. If it takes any longer than that, I would suspect something in the Amex contract that prevents this, in which case I'd expect it to hit whenever that contract ends.

Keith2004

That may be reading into it a bit, there is no way to tell from what he said, but I would not be surprised. It's pretty close to pure revenue accrual as it is.

Delta wants to reward customers who spend to fly on the airline......“We are going to sell our first class seats.” Domestic first class seats have gone from about 15% to 50%. Any business that gives away its product for free is going to fail, Bastian said — but he made sure to add that he still wants his loyal customers to ride up front sometimes.

That sounds like some things that many have said in the MQD Waiver thread LOL I'm 70% WFBF so I don't mind, I get plenty of utility out of the other elite benefits.

“As long as I’m CEO, Delta Air Lines is not reducing its seat pitch below 31 inches.” Delta is a premium airline and that it offers a premium product, Bastian said

Shots fired (UA, AA) But I tend to agree of US3 no question Delta would be the "Premium"

javabytes

Someone should tell Ed to sit in one of his Comfort+ seats on a CRJ and then weigh in on just how premium that product is.

KevinDTW

My favorite part:

Ed, did you ever know that you're my hero?

kop84

I would guess that a totally Revenue based elite program totally in the cards.

It's very simple, and pretty difficult to game.

If it does happen at least you never again have to worry about connecting backwards and double connecting to get extra MQM's, no more worrying about ORC, and I'm sure some other benefits.

The biggest thing I'd want to know at that point is how Partner flights would be accounted for

jrl767

straight from the horse ...

nice touch

I suspect a lot of FTers are going to be spending a lot more time in C+ and exit row seats after the first of the year, and a lot more (of both) a year after that

in whatever way benefits DL's bottom line the most

Often1

AA & UA won't be far behind. The carriers have to dial back the monster they created during the financial crisis, e.g., doling out freebie UG's and, at the same time, do something for HVC's.

Knowing that other carriers will follow suit in short order, it won't hurt DL's brand.

javabytes

It's not difficult at all, really.

Bicostal

The only gamer is delta. You can't game price, only they can. In the current MQS and MQM model I can get the same for a 500 per 700 dollar ticket. Under an MQD only model, I can't. Delta sets their profit margins but I can't game the margin and still get the same MQDs.

javabytes

Sure you can. Consider the ways where the MQDs you are awarded by Delta are not based on the fare you paid, and I think you'll start to see how.

FirstInFlight

I think Delta is making some calculated moves by adding a fair number of point-to-point routes. The old hub model worked when the frequent flier program encouraged people to fly through hubs because they wanted the extra miles and would suffer a connection to stick with "their" airline. But with the shifts underway and forthcoming the average customer will no longer tolerate a connection when a non-stop is available for the same price (or lower). I've been watching Delta add non-hub flights from various cities and I think that is in anticipation of passenger push back. For those in popular and growing cities that is all good news. For those in cities that are less popular that spells trouble.

Bicostal

Non-006? Give me a break. One fifth base miles means I need to buy a $1000 Y TATL and fly more than 5000 miles? How much gaming is that? Not anywhere near the MQM possibilities where you can double down with the difference of a X versus H fare. That and you give up a who.e lot of other perks not being 006 stock.

anon2k2

In my opinion, the real value of higher status is not upgrades or "freebies." It's cutting through the red-tape and making my ability to actually fly on an airline easier. Priority re-routing during IROPS, pre-emptive warnings when a flight is cancelled or significantly delayed, no nitpicking on add-on fees (which require getting out a wallet and all that) while talking on the phone for a schedule/route change.

If I've proven that I fly a lot with an airline by actually flying, not charging on CCs, etc., then make my life easier when I continue to fly with you.

bennos

Presumably how they are now, with MQD calculated as a % of distance (when not ticketed/marketed by DL).

You can do much better with discount premium (W and J) fares, but TBH it's not that much gaming.