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2024 2024 Program Flaw…large gap b/ t Platinum & Diamond

2024 2024 Program Flaw…large gap b/ t Platinum & Diamond

Old Sep 19, 23, 4:47 pm
  #1  
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Join Date: Oct 2001
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2024 Program flaw…large gap b/t Platinum & Diamond

Having a week to digest the 2024 levels for 2025 status I believe 2 flaws exist first the gap between Platinum at 18,000 and Diamond at 35,000 is too large…second the $75,000 Amex Delta Reserve requirement to keep unlimited Skyclub visits is too high.
The program has priced me and I bet a lot of other medallions out of attempting to reach the level a lot of us were willing to strive for.

In my case I know Diamond is out of reach and so is the Amex $75,000
spend level….so now my point of this post…I now only have an incentive to strive for Platinum and probably less Amex spending since the goal is too unrealistically high…
End result is to probably stop earning MQD’s at the18,000
level since the next level at 35,000 is too far away (the large gap I was referring too)….the flaw lies in that a lot of us could end up flying Delta less and spending less with Amex since the 35,000 goal post is too far from the 18,000 goal post…so basically once I know I will hit the 18,000 and know I can’t get to 35,000 i can then fly First on other more convenient airlines and spend less on Amex and more on my cash back cards
Predicting consumer spending behavior is a difficult science but if you get it wrong it can backfire
The old program had more logical status progression levels so people were in mass able to strive to hit the level that if they pushed hard they could get too…that was marketing success ..this new program could have these flaws and end up being a marketing failure..In the old program Delta had a goose that laid golden eggs.
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Last edited by robnsfla; Sep 19, 23 at 6:19 pm Reason: Duplicate word
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Old Sep 19, 23, 4:53 pm
  #2  
 
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They've done this on purpose - an "elite program" in 2023 has too many members, so they're culling the herd.
Either we're too expensive to support, or we don't spend enough money.
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Old Sep 19, 23, 5:18 pm
  #3  
 
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There are flaws, but removing the "unlimited visitation" to 10 visits isn't one of them. The main purpose of removing "unlimited visitation" option is to bringing incremental sale as a new source of income. Because 10 free visit is unrealistically low for most members, members will be incentivized to purchase more visits for a fee.

Rather, the flaw I see, is Delta Hotels and/or Rental Cars. Most people prefer to booking their hotels and rental car via the normal channels where we get the best perks (early or late check/out, free breakfast or hotel lounge access, expedited check-in/check-out. By booking thru Delta Airlines version of Hotels and Rental Car, we sacrifice flexibility/status.

Jiburi
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Last edited by jiburi; Sep 19, 23 at 5:39 pm
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Old Sep 19, 23, 5:23 pm
  #4  
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from the thread with the partial transcript of the Morgan Stanley presentation:

note particularly the first highlighted passage — basically translates to “we want to get more $$ from the folks who can easily afford to give us more $$”

(and simultaneously implies “we don’t give a <choice of expletive/s> about the rest of ‘em!”)
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Old Sep 19, 23, 5:26 pm
  #5  
 
Join Date: Apr 2005
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The flaw isn't that DM is too far away from PM. It's that by doing away with Rollover, they've completely disincentivized any marginal cobranded card spend. If you hit $18k MQD and DM is out of reach, there's zero reason to now get an extra $2-3k MQD with card spend to get a head start for next year.

The only thing that makes sense is flying the cheapest itineraries to take advantage of status, and to not use the cards. Neither of which, I imagine, they were trying to encourage.
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Old Sep 19, 23, 5:37 pm
  #6  
 
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A flaw would seem to imply that it was something they did not intend to do. It’s very apparent they did intend to do this. It is not a flaw. It is a planned change.
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Old Sep 19, 23, 6:09 pm
  #7  
 
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Originally Posted by jiburi
There are flaws, but removing the "unlimited visitation" to 10 visits isn't one of them. The main purpose of removing "unlimited visitation" option is to bringing incremental sale as a new source of income. Because 10 free visit is unrealistically low for most members, members will be incentivized to purchase more visits for a fee.

Rather, the flaw I see, is Delta Hotels and/or Rental Cars. Most people prefer to booking their hotels and rental car via the normal channels where we get the best perks (early or late check/out, free breakfast or hotel lounge access, expedited check-in/check-out. By booking thru Delta Airlines version of Hotels and Rental Car, we sacrifice flexibility/status.

Jiburi
I agree. Also, cars and rooms booked through Delta tend to be more expensive than other channels.

Is a Sky Club "visit" worth $50? Unless you drink a lot of alcohol, probably not.
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Old Sep 19, 23, 6:10 pm
  #8  
 
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Quote: "End result is to probably stop spending at 18,000"

You mean stop spending with Delta on at 18,000 MQD's?
if you're talking about AMEX spend the announced ratio is 1 MQD per $10 or $20 AMEX spend depending on which AMEX card you have.
Platinum you need $360,000 on amex spend alone to reach 18,000 MQD's for platinum.
Reserve card is $180,000 to reach Platinum.
obviously some combination of both flights and amex spend will get you there. but still it's a LOT of spend.
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Old Sep 19, 23, 6:13 pm
  #9  
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Originally Posted by robnsfla
...the gap between Platinum at 18,000 and Diamond at 35,000 is too large...
It's no flaw (except to those whose whose chances at Diamond are affected). Delta is doing exactly what UA is doing with their 1Ks - making it disproportionately harder to attain and giving them more of the benefits. United's PQPs are 5k/10k/15k/24k (not 20k as the progression would run). The 1Ks remaining get a larger proportion of upgrades vs fighting it out with more 1Ks if the hurdle was only 20k. That's how you make your bigger spending customers happy.

Last edited by IAH-OIL-TRASH; Sep 19, 23 at 6:27 pm Reason: speling
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Old Sep 19, 23, 6:18 pm
  #10  
 
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Originally Posted by jiburi
There are flaws, but removing the "unlimited visitation" to 10 visits isn't one of them. The main purpose of removing "unlimited visitation" option is to bringing incremental sale as a new source of income. Because 10 free visit is unrealistically low for most members, members will be incentivized to purchase more visits for a fee.
Wasn't there language saying that cardholders can NOT purchase individual visits after they use up their allotment of 10?
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Old Sep 19, 23, 6:27 pm
  #11  
 
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Originally Posted by IAH-OIL-TRASH
It's no flaw (except to those whose whose chances at Diamond are affected). Delta is doing exactly what UA is doing with their 1Ks - making it proportionately harder to attain and giving them more of the benefits. United's PQPs are 5k/10k/15k/24k (not 20k as the progression would run). The 1Ks remaining get a larger proportion of upgrades vs fighting it out with more 1Ks if the hurdle was only 20k. That how you make you bigger spending customers happy.
But if the greater benefit they're getting is upgrades, there's a point at which that is wholly irrelevant so they're not incentivizing anyone. Someone who spends $60k on airline tickets for themselves annually - I think we can assume they only buy F so upgrades are irrelevant. Delta thinks people who spend $35k buy coach.

The reason, IMO, why the gap is relevant is because: let's say DMs are never on the ug list because they buy F anyway, almost by definition. So then the PM who spent $25k is on the same level as the one who spent $18k. Is the upgrade enough to incentive them to spend $10k more?

I just don't think DM status will incentivize people at all. People say "well I already spend $35k and I like the changes". And it makes sense. But this change is unlikely to incentivize those people to spend more.
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Old Sep 19, 23, 6:32 pm
  #12  
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Originally Posted by jetsfan92588
But if the greater benefit they're getting is upgrades, there's a point at which that is wholly irrelevant so they're not incentivizing anyone. Someone who spends $60k on airline tickets for themselves annually - I think we can assume they only buy F so upgrades are irrelevant....
You're underestimating value of status and upgrades for traveling companions and for personal travel. Believe me, people with high business spend (often OPM) want to be able to upgrade friends and family. Delta (and United) don't just give upgrades to people just because they know a high-spending Diamond

So, yeah - the 2025 DMs are probably going to get more of their companions upgraded at expense of those who were (and earned) DM previously.
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Old Sep 19, 23, 6:32 pm
  #13  
 
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Originally Posted by ty97
Wasn't there language saying that cardholders can NOT purchase individual visits after they use up their allotment of 10?
​​​​​​That can be interpreted as not being able to rock up to the club and pay $50 to get in. It doesn't necessarily preclude DL making offers where a cardholder can access without burning a visit, or offering a bundle of extra visits (e.g. an associate membership for $800 that adds 20 visits).
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Old Sep 19, 23, 6:36 pm
  #14  
 
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Originally Posted by Dick Ginkowski
I

Is a Sky Club "visit" worth $50? Unless you drink a lot of alcohol, probably not.
As an Amex Delta Platinum cardholder, I've exercised the single visit lounge option a few times a year (I remember when it was $25, then it was $29, then it was $39, then it was $50). But, I'd do it only under the circumstances that:
(1) I'd be in the lounge for at least two hours
(2) I'd eat a meal in the lounge.

I rationalized it by telling myself that a non-fast-food meal at an airport restaurant would most likely hit $20 and probably $25-$30 after tax and tip, and a drink or two would another $20.
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Old Sep 19, 23, 6:41 pm
  #15  
 
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Originally Posted by jiburi
Rather, the flaw I see, is Delta Hotels and/or Rental Cars. Most people prefer to booking their hotels and rental car via the normal channels where we get the best perks (early or late check/out, free breakfast or hotel lounge access, expedited check-in/check-out. By booking thru Delta Airlines version of Hotels and Rental Car, we sacrifice flexibility/status.
nothing requires you to use Delta to book your hotel or car. book it however you want.
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