Loyalty or Rebate??
Mar 12, 2003 | 12:36 am
#1
Original Poster
Join Date: Sep 2002
Location: mystic island, nj, USA
Posts: 2,377
Loyalty or Rebate??
My understanding is that the current programs offered are considered "Loyalty" based. also my understanding of a loyal customer is one who gives you the overwhelming portion of his/her business in exchange for some pretty nice perks. In a normal B to B relationship that loyaly could consist of special terms, discount and of course entertainment. And in both situations you take the low margin with the high margin and at the end of the day you are OK profit wise. In a loyalty program you take the good with the bad price wise because the aggregate is substantial and help keep a steady revenue stream.
When you base the rewards on a transactional basis you them have what amount to a rebate program. Miles have value so the more you spend on each transaction the more (or less) miles you earn. So in creating a Delta style "rebate" program there is a disincentive to retain your loyalty. Why bother for half the miles and no upgrade opportunity? I take my low fare pre planned business to AirTran and leave the high fare upgradable with DL. Would seem to be exactly what DL wants right? WRONG! what happens to my loyalty to DL in this case? Why stay? Speaking for me only my company will not force me off the big six, I can go off on the discounters but I don't have to. So if there is a $100.00 difference in fare and no upgrade and no tier milae or segment value why book the flight? So I can maintain Platinum? At least if I fly AirTran I know I get FREE ticket after so many flights.
These arrogant morons have it in there head that we are freeloaders, cockroaches one and all. I guarantee if I have ANY say this stuff they are trying to pull will come back to haunt them. Personally I love seeing them scramble to keep the doors open. I think there is a verse in the bible of all places that sums it up for me nicely.
"What ye sow, so shall ye reap!"
When you base the rewards on a transactional basis you them have what amount to a rebate program. Miles have value so the more you spend on each transaction the more (or less) miles you earn. So in creating a Delta style "rebate" program there is a disincentive to retain your loyalty. Why bother for half the miles and no upgrade opportunity? I take my low fare pre planned business to AirTran and leave the high fare upgradable with DL. Would seem to be exactly what DL wants right? WRONG! what happens to my loyalty to DL in this case? Why stay? Speaking for me only my company will not force me off the big six, I can go off on the discounters but I don't have to. So if there is a $100.00 difference in fare and no upgrade and no tier milae or segment value why book the flight? So I can maintain Platinum? At least if I fly AirTran I know I get FREE ticket after so many flights.
These arrogant morons have it in there head that we are freeloaders, cockroaches one and all. I guarantee if I have ANY say this stuff they are trying to pull will come back to haunt them. Personally I love seeing them scramble to keep the doors open. I think there is a verse in the bible of all places that sums it up for me nicely.
"What ye sow, so shall ye reap!"
Mar 12, 2003 | 1:21 am
#2
Original Member
Join Date: May 1998
Location: Austin TX
Programs: AA PLT, ICH Plat
Posts: 1,974
The FF program as relates to miles is a REBATE PROGRAM.
The FF program as relates to ELITE STATUS is a LOYALTY PROGRAM.
I hope the airlines learn this after all these years.
The FF program as relates to ELITE STATUS is a LOYALTY PROGRAM.
I hope the airlines learn this after all these years.
Mar 12, 2003 | 8:44 am
#3
Join Date: Jan 2002
Location: atlanta, GA
Posts: 2,040
All good points.
However, DL is not competing with AirTran. They are competing with the other majors, who largely don't attempt to compete with DL in ATL. Sure, Airtran is there but it does not have the routes or schedule of DL so most business travelers fly DL. Absolutely fly Airtran if the routes and schedule suit you.
However, DL is not competing with AirTran. They are competing with the other majors, who largely don't attempt to compete with DL in ATL. Sure, Airtran is there but it does not have the routes or schedule of DL so most business travelers fly DL. Absolutely fly Airtran if the routes and schedule suit you.