Will Delta follow United changes on Medallion Program
Jan 2, 2020, 2:00 pm
#211
Join Date: May 2003
Location: San Antonio, Tx
Programs: UA gold, AA Plat, HHonors diamond, DL DM
Posts: 705
The WSJ journal article from 12-31 includes this quote:
"United thinks the changes will thin out the ranks of its top tiers, which the airline says have become overcrowded. That should make it easier for top customers to land upgrades.
“It’s a fair bet that there will be a rebalancing of the top tiers in the program,” says Luc Bondar, United’s vice president of loyalty. While top tiers shrink, bottom tiers will get more populated, he says."
I moved from AA EXP to DL DM last year and I received a targeted offer to earn my EXP back this year by spending 24K. The problem of course is that AA will still have 15K EXP's competing with those who drop 24K or more.
UA's bet is that with a thinned herd at the highest elite levels, more of the high dollar expenditure, and hence higher revenue, flyers will shift to them. Revenue management already tries to maximize the number of paid F fares. UA may be thinking that if it must give away a seat for less than the applicable first class fare, they might as well give it to the passenger who rewards the airline the most by spending the most.
DL will undoubtedly be watching how this turns out this year. Conceivably, some of the AA and UA flyers who find themselves in steerage more, or fear ending up in steerage more, because the high spenders will eventually be jumping them on the upgrade priority. For DL this might mean more lower spenders competing at each level for qualification and upgrades, but more total passengers, which in turn leaves fewer seats available for upgrades, which are a revenue give away.
Also keep in mind that the process will take two years to shake out. Those who qualified at AA and UA in 2019 at lower levels of spending are golden, or platinum or whatever for this year. The benefit of a thinned herd to those who spend the most will not be apparent until. 2021 with far more elites at both carriers downgraded a level or two.
For those who are in the 15K to 24K level of spending at UA and AA and find themselves in steerage more starting in 2021, the DL grass might appear greener. Although I only have suppositions and speculation, I think DL made the right decision to wait and see, even though I would be far better off at DL if DM qualification were based on dollars spent. But as Often1 noted, any individual flyer's personal situation is irrelevant to the number crunchers.
"United thinks the changes will thin out the ranks of its top tiers, which the airline says have become overcrowded. That should make it easier for top customers to land upgrades.
“It’s a fair bet that there will be a rebalancing of the top tiers in the program,” says Luc Bondar, United’s vice president of loyalty. While top tiers shrink, bottom tiers will get more populated, he says."
I moved from AA EXP to DL DM last year and I received a targeted offer to earn my EXP back this year by spending 24K. The problem of course is that AA will still have 15K EXP's competing with those who drop 24K or more.
UA's bet is that with a thinned herd at the highest elite levels, more of the high dollar expenditure, and hence higher revenue, flyers will shift to them. Revenue management already tries to maximize the number of paid F fares. UA may be thinking that if it must give away a seat for less than the applicable first class fare, they might as well give it to the passenger who rewards the airline the most by spending the most.
DL will undoubtedly be watching how this turns out this year. Conceivably, some of the AA and UA flyers who find themselves in steerage more, or fear ending up in steerage more, because the high spenders will eventually be jumping them on the upgrade priority. For DL this might mean more lower spenders competing at each level for qualification and upgrades, but more total passengers, which in turn leaves fewer seats available for upgrades, which are a revenue give away.
Also keep in mind that the process will take two years to shake out. Those who qualified at AA and UA in 2019 at lower levels of spending are golden, or platinum or whatever for this year. The benefit of a thinned herd to those who spend the most will not be apparent until. 2021 with far more elites at both carriers downgraded a level or two.
For those who are in the 15K to 24K level of spending at UA and AA and find themselves in steerage more starting in 2021, the DL grass might appear greener. Although I only have suppositions and speculation, I think DL made the right decision to wait and see, even though I would be far better off at DL if DM qualification were based on dollars spent. But as Often1 noted, any individual flyer's personal situation is irrelevant to the number crunchers.
Jan 2, 2020, 2:11 pm
#212
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,900
The WSJ journal article from 12-31 includes this quote:
"United thinks the changes will thin out the ranks of its top tiers, which the airline says have become overcrowded. That should make it easier for top customers to land upgrades.
“It’s a fair bet that there will be a rebalancing of the top tiers in the program,” says Luc Bondar, United’s vice president of loyalty. While top tiers shrink, bottom tiers will get more populated, he says."
I moved from AA EXP to DL DM last year and I received a targeted offer to earn my EXP back this year by spending 24K. The problem of course is that AA will still have 15K EXP's competing with those who drop 24K or more.
UA's bet is that with a thinned herd at the highest elite levels, more of the high dollar expenditure, and hence higher revenue, flyers will shift to them. Revenue management already tries to maximize the number of paid F fares. UA may be thinking that if it must give away a seat for less than the applicable first class fare, they might as well give it to the passenger who rewards the airline the most by spending the most.
DL will undoubtedly be watching how this turns out this year. Conceivably, some of the AA and UA flyers who find themselves in steerage more, or fear ending up in steerage more, because the high spenders will eventually be jumping them on the upgrade priority. For DL this might mean more lower spenders competing at each level for qualification and upgrades, but more total passengers, which in turn leaves fewer seats available for upgrades, which are a revenue give away.
Also keep in mind that the process will take two years to shake out. Those who qualified at AA and UA in 2019 at lower levels of spending are golden, or platinum or whatever for this year. The benefit of a thinned herd to those who spend the most will not be apparent until. 2021 with far more elites at both carriers downgraded a level or two.
For those who are in the 15K to 24K level of spending at UA and AA and find themselves in steerage more starting in 2021, the DL grass might appear greener. Although I only have suppositions and speculation, I think DL made the right decision to wait and see, even though I would be far better off at DL if DM qualification were based on dollars spent. But as Often1 noted, any individual flyer's personal situation is irrelevant to the number crunchers.
"United thinks the changes will thin out the ranks of its top tiers, which the airline says have become overcrowded. That should make it easier for top customers to land upgrades.
“It’s a fair bet that there will be a rebalancing of the top tiers in the program,” says Luc Bondar, United’s vice president of loyalty. While top tiers shrink, bottom tiers will get more populated, he says."
I moved from AA EXP to DL DM last year and I received a targeted offer to earn my EXP back this year by spending 24K. The problem of course is that AA will still have 15K EXP's competing with those who drop 24K or more.
UA's bet is that with a thinned herd at the highest elite levels, more of the high dollar expenditure, and hence higher revenue, flyers will shift to them. Revenue management already tries to maximize the number of paid F fares. UA may be thinking that if it must give away a seat for less than the applicable first class fare, they might as well give it to the passenger who rewards the airline the most by spending the most.
DL will undoubtedly be watching how this turns out this year. Conceivably, some of the AA and UA flyers who find themselves in steerage more, or fear ending up in steerage more, because the high spenders will eventually be jumping them on the upgrade priority. For DL this might mean more lower spenders competing at each level for qualification and upgrades, but more total passengers, which in turn leaves fewer seats available for upgrades, which are a revenue give away.
Also keep in mind that the process will take two years to shake out. Those who qualified at AA and UA in 2019 at lower levels of spending are golden, or platinum or whatever for this year. The benefit of a thinned herd to those who spend the most will not be apparent until. 2021 with far more elites at both carriers downgraded a level or two.
For those who are in the 15K to 24K level of spending at UA and AA and find themselves in steerage more starting in 2021, the DL grass might appear greener. Although I only have suppositions and speculation, I think DL made the right decision to wait and see, even though I would be far better off at DL if DM qualification were based on dollars spent. But as Often1 noted, any individual flyer's personal situation is irrelevant to the number crunchers.
Jan 11, 2020, 2:20 pm
#213
Suspended
Join Date: Oct 2004
Location: Bay Area
Programs: DL SM, UA MP.
Posts: 12,729
Meanwhile DL is touting this great influx of fliers joining SM.
https://viewfromthewing.com/how-come...elta-skymiles/
https://viewfromthewing.com/how-come...elta-skymiles/