My "Dear John" letter to Delta
Oct 5, 2017, 11:08 am
#76
Join Date: Jul 2006
Location: NYC
Programs: DL PM, Marriott Gold, Hertz PC, National Exec
Posts: 6,736
Huh? Now I really don't understand. This program change doesn't really impact people who are high rev/mile, but low volume. Even if you're getting 60k MQMs from the cards (personal and biz reserve), you'd still need 65k MQMs from flying to make Diamond, right? If you're not getting $15k MQDs from those 65k MQMs, then your revenue per seat mile is below 23c. For Delta as a whole, it's about 16c. So, you're not a particularly high profitability customer for them on a per-flight basis. Above average, but not super-high.
Oct 5, 2017, 11:24 am
#77
Join Date: Jun 2012
Location: Atlanta
Programs: Delta Diamond; HHonors Diamond
Posts: 655
Huh? Now I really don't understand. This program change doesn't really impact people who are high rev/mile, but low volume. Even if you're getting 60k MQMs from the cards (personal and biz reserve), you'd still need 65k MQMs from flying to make Diamond, right? If you're not getting $15k MQDs from those 65k MQMs, then your revenue per seat mile is below 23c. For Delta as a whole, it's about 16c. So, you're not a particularly high profitability customer for them on a per-flight basis. Above average, but not super-high.
Oct 5, 2017, 2:21 pm
#78
Join Date: Sep 2003
Location: Long Beach, CA
Programs: DL DM
Posts: 5,292
Above average sounds about right. I don't think I ever said "particularly high." I typically buy the middle fare classes, except on a couple weekend trips to Florida, when I buy the cheap ones. In short, I don't fit into Bubba's generalization that anyone who frowns on this change is a super-discount fare flying gamer who Delta would prefer to jettison altogether from the medallion ranks. That's not true for everyone affected, but I think he knows better and just likes to stir the pot.
Oct 5, 2017, 2:33 pm
#79
Join Date: Jun 2012
Location: Atlanta
Programs: Delta Diamond; HHonors Diamond
Posts: 655
I'm not trying to stir the pot and I am not trying to be rude at all. However, if a flyer it bit**ing about not getting Diamond benefits, and is unable to spend $15K annually with DL, that person (and it looks like DL agrees) isn't worthy of top-tier benefits. This matches AA and UA for their top tier as well.
Oct 7, 2017, 7:28 pm
#82
FlyerTalk Evangelist
Join Date: Jun 2008
Programs: Formaldehyde Medallion DL DieMiles
Posts: 12,646
I guess you missed the part where I specifically said it's a business. But you just can't help yourself from making misguided and childish assertions that those who are going to change their travel patterns are somehow pining for the airline like it's a "lover." To the contrary, the prior business incentives were enough to convince me to fly Delta and pay a premium to do so. The new incentives are insufficient for me to do so. So I'll shop based on price and schedule, drop my Amex card spending dramatically, and Delta will receive less profit from me. Maybe it makes it up elsewhere, maybe not.
Other people call that pining like the FF program is a lover.
I tend to find the former group to have a more logical basis for their opinions.
Oct 8, 2017, 7:43 am
#83
Join Date: Jan 2006
Posts: 129
I guess you missed the part where I specifically said it's a business. But you just can't help yourself from making misguided and childish assertions that those who are going to change their travel patterns are somehow pining for the airline like it's a "lover." To the contrary, the prior business incentives were enough to convince me to fly Delta and pay a premium to do so. The new incentives are insufficient for me to do so. So I'll shop based on price and schedule, drop my Amex card spending dramatically, and Delta will receive less profit from me. Maybe it makes it up elsewhere, maybe not.
Oct 8, 2017, 9:15 am
#84
Join Date: Apr 2013
Posts: 799
They'll make it up. There are some of us (like me) that hated the AMEX MQD waiver because my company doesn't allow them and we buy business class fares so our loyalty to DL wasn't that important - after all, my company puts me in biz class on any airline. It was total bull crap that some guys could spend $25k on 10,000 marbles (or anything) and be treated the same as me that spends over $25k on actual BIS tickets on DL. So the last couple of years I've shifted my spend over to competitors. DL still got $25k a year from me but now they'll start to see another $25k in spend because of this change. My guess is that DL will make more money off me than they would your $25k in AMEX spend. I would like to think DL reviewed the AMEX relationship and its impact on OM, not just top line revenue, and figured that they'd be better off focusing on getting guys like me to spend more directly with them.
Afterall, people who fly only business class and spend over $50k a year on airline tickets are super common right? And I am sure these same people's concern is overwhelmingly which airline they fly and not schedule.
Or perhaps the airlines are simply getting stingier. that does tend to happen when competition falls off and the perceived threat to the revenue base much smaller.
Ironically, you are a threat to elites on any airline you fly if you always fly F/J. You take those seats that they are looking for for an upgrade. If what you say is true, then the ugrade opportunties just got smaller for diamonds by this move as more and more people will just buy F rather than hoping for an upgrade.