laptoptravel

It is no secret that airlines are continuing to build up reserves of unspent miles in their frequent flyer programs. The airlines are well aware of the potential liability this places on them. The idea is always a topic at the earnings calls and investment analyst meetings.

As a result, Delta Air Lines has come out with another method to deplete those massive quantities of unspent SkyMiles.

I wrote an article about all the details, and the pro's & con's of this new redemption offer.

You can read it here, if you choose; no obligation to do so at all... Delta Air Lines Now Allows Purchase of Gift Card Using Your SkyMiles

Basically, Delta is allowing the sale of physical gift cards by redeeming SkyMiles. The redemption rate varies based on the denomination ($50, $100, $250, $500 and $1,000) but it roughly works out 7/10 cent per SkyMile.

It is a terrible redemption rate, however there are a few benefits.

Using the gift card allows the earning of MQD's whereas 'Pay With Miles' does not. In addition, paying with a gift card allows one to earn back redeemable SkyMiles (which is based off the price of the ticket.)

So, a new play. If someone has a ton of SkyMiles but wants to reduce their cash outlay, they could use this method.

It also allows the gist card to be applied towards tickets with partner-operated flights, whereas 'Pay With Miles' is not.

Thoughts?

yohanson

Is there an expiration date on the gift cards?

sydneyracquelle

To me the floor is always 1 cent per mile using pay with miles.

KDCAflyer

Anything less than 1CPM is an insult.

If DL is so desperate to get rid of excess miles on the balance sheet, release more award space and let people spend them. Especially on international flights. If a flight regularly pushes with D1 seats empty/filled with non-revs, there should be low-level award space.

ATOBTTR

laptoptravel

WWads, I totally agree with your argument. Diamond Medallions, although loyal to a flaw and self-destruction, to Delta have taken it on the chin. Delta is so afraid of ‘diluting’ their premium products they would rather do anything than give easy ability for their most loyal flyers decent opportunities to redeem this ever-growing bulk of SkyMiles.

Facing pressure from Wall Street, they are desperate to flush these miles. They are their own worst enemies by hiding the award charts and having some ridiculous redemption values! That adds to the hesitancy of many elites in redeeming their miles.

Flash sales are a symptom and attempt at a solution; but they really need to offer good ‘upgrade with SkyMiles’ options (that way they have cash and get some SkyMiles off the books) but they seem unwilling to make that easy for anyone. They have stated “This is the best real estate on the planet, and while we appreciate the loyalty of flyers, we couldn't continue to give it away.”

The Global Upgrade Certificate, Regional Upgrade Certificates and Non-Revs thrown in your face in DeltaONE seats just wreaks of arrogance towards their greatest asset; their Medallion members.

Here is one example: Remember the Delta Private Jet service? After one flight, highly touted in the press and Delta News Hub spin it’s disappeared!

PayItForward

Unfortunately, not available to non-US members.
(X) Pay With Miles
(X) Purchase Gift Cards

laptoptravel

But the benefit there is non-US residents are exempt from the MQD requirements for Medallion status.

3Cforme

Delta miles for gift cards is a function that has existed for years. A quick search turned up references back to 2013.

This thread is just a redirect to a blog that is full of sponsor hyperlinks, including to credit cards. I thought FlyerTalk's owners wanted all of that business to itself.

PayItForward

Well and I can go on with a whole list of Non-US vs US residents e.g. credit cards, promos, limited flight availability, real competition etc etc.
But the purpose of mentioning this "new" benefit is not an all-inclusive is just what it is, a heads up.
Delta assess and makes their own business decisions with regards to profitability / customer relations etc and we can either accept it or walk away from the program.

ATOBTTR

While not at the Pay With Miles rate, this method also gives those who don’t have or cannot qualify for a DL branded AmEx and thus can’t use “Pay with Miles” an option for “Pay with Mikes” in a round about way by buying gift cards.

xliioper

Nevermind. Responding to wrong post.

javabytes

Hasn't that always been part of the SkyMiles Marketplace in the past?

rylan

The issue was in the past, the gift cards were physical and you couldn't actually use them online... you had to go to the airport to buy a ticket with it. The gift cards becoming electronic is a relatively new thing.

FreakingFlyer

Why aren't you guys happy with this development?

Sure, to those in the know, it's an insult.

But if others want to take Delta up on this and therefor subsidize our better redemptions, what's the problem?