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The end of frequent-flier programs?

The end of frequent-flier programs?

 
Old Oct 30, 2007, 9:47 am
  #1  
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The end of frequent-flier programs?

From USATODAY and Joe Brancatelli

Although Northwest Airlines and US Airways have already attacked the basic concept that you can always get any seat you want with your miles as long as you're willing to pay enough for it, Delta SkyMiles is the first trend-setting, market-moving program that has told its frequent fliers that miles are, essentially, worthless whenever the airline decides not to honor them

Here's the whole thing....

http://www.usatoday.com/travel/colum...programs_N.htm
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Old Oct 30, 2007, 10:02 am
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As I interpret this, what Delta will be doing December 1st brings it into line with NW's present policy.

The "end of world" scenario envisioned by the author will certainly be mitigated by the airline's necessity not to anger or chase away its best customers.
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Old Oct 30, 2007, 10:03 am
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Although DL's decision is pretty disheartening and will likely lead to similar moves by all the other majors, that fact alone does overcome the fact that the author's basic premise is completely illogical. Taking away a fully unrestricted option does not "make miles worthless," it simply reduces their value.
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Old Oct 30, 2007, 10:58 am
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Originally Posted by humanoid94
Although DL's decision is pretty disheartening and will likely lead to similar moves by all the other majors, that fact alone does overcome the fact that the author's basic premise is completely illogical. Taking away a fully unrestricted option does not "make miles worthless," it simply reduces their value.
Well, yes, but it makes the future value of those miles much less certain, and if past history predicts future performance, eventually these miles will be worth next to nothing. If you have an award level that is good for any seat, you know these miles will always be good for that, and will have whatever value you associate with that type of seat.

There is a point for everyone at which miles devaluation makes status hunting more trouble than it is worth.
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Old Oct 30, 2007, 11:04 am
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Does anyone have any idea what mileage devaluation at NW the author is referring to?
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Old Oct 30, 2007, 11:41 am
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No idea. The policy at NWA is that if there is a seat available, you can get it at PerkPass levels.
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Old Oct 30, 2007, 12:44 pm
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Originally Posted by humanoid94
Does anyone have any idea what mileage devaluation at NW the author is referring to?
From Delta website

"Also, effective December 1, 2007, SkyChoice Award Ticket Reservations will no longer be available on every Delta flight in which a seat is available for sale. SkyChoice Award Ticket Reservations will continue to be available on most Delta flights, but seats will be limited and possibly unavailable on some flights. Our SkySaver Award Ticket Reservations will remain unchanged"

I believe the author believes that the FF miles will be devalued because less flights will be available, so therefore less seats will be available, therefore more miles will be required to eventually book an award seat.
He also thinks that if it works it will be inevitable that NW will follow suit.

I almost always book an award to Europe on a Monday/Tuesday because a weekend is almost never available at 50K.
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Old Oct 30, 2007, 12:50 pm
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Originally Posted by jimc_usa
From Delta website

"Also, effective December 1, 2007, SkyChoice Award Ticket Reservations will no longer be available on every Delta flight in which a seat is available for sale. SkyChoice Award Ticket Reservations will continue to be available on most Delta flights, but seats will be limited and possibly unavailable on some flights. Our SkySaver Award Ticket Reservations will remain unchanged"

I believe the author believes that the FF miles will be devalued because less flights will be available, so therefore less seats will be available, therefore more miles will be required to eventually book an award seat.
He also thinks that if it works it will be inevitable that NW will follow suit.

I almost always book an award to Europe on a Monday/Tuesday because a weekend is almost never available at 50K.
I agree that his premise is that another devaluation is coming (I totally agree that one is likely on the horizon), but he says that US and NW have already had major devaluations and I was just trying to pin down what the author was referring to. My best guess is that he is talking about NW's reputation for having fewer award seats than many of the other majors, thus resulting in a de facto increase in average mileage cost, but I am not sure.
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Old Oct 30, 2007, 4:45 pm
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Originally Posted by james318
No idea. The policy at NWA is that if there is a seat available, you can get it at PerkPass levels.
this is not true

NWA block out popular times for perkpass by only allow J inventory
Perkass won't get you into J only C
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Old Oct 30, 2007, 6:00 pm
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Originally Posted by SteveinA2
this is not true

NWA block out popular times for perkpass by only allow J inventory
Perkass won't get you into J only C
I was restating what the GE line had told me. I hadn't specifically asked about J class, but did ask about WBC.
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Old Oct 31, 2007, 10:02 am
  #11  
2mg
 
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Doesn't this mean we need to plan our travel?

Don't we need to simply plan ahead for travel and not try and use our miles during prime travel periods? Instead of just hooping on board whenever we can - granted that's not what we expected, but we also didn't think all the big guys would go bankrupt and have to dig themselves out of holes (by whatever means necessary)

I get what the dude is saying - but if you're trying to get to Europe at Christmas on miles, of course it makes sense to double the miles needed. Do I agree with it? Nope, because I do remember the old days, but if he's saying that on December 1 the almost 200K miles I have are going to be void and useless, well that's a different story.

I feel he a little too the sky is falling for me to want to listen.
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Old Oct 31, 2007, 5:53 pm
  #12  
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Originally Posted by 2mg
I feel he a little too the sky is falling for me to want to listen.
That is the Brancatelli way. The guy is a hack. He latches onto something, blows it out of proportion, and somehow gets paid for it. I would have to hand it to him - he makes money with the same incoherent ramblings I make here for free - if he didn't drive me up the wall. The worst part is his "I'm a road warrior just like you, and am reporting on things that matter to business travelers schtick." I mean, exactly why does he have to travel to write stories about news you can get from Flyertalk?
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