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Delta Air Lines Changes Mileage Program, Budget Travelers Lose
The announcement came quietly last week, amid bigger, louder clamor over another airline's new branding. Delta Air Lines will be changing its mileage program for the 2015 status year, and in a very big way. Coming up, passengers will soon be required to spend a minimum amount of money on the airline per year in order to reach elite status. So, for example, for one to reach Platinum status, it will soon be required to earn either 75,000 miles or 100 segments and spend a minimum of $7,500 on the airline per year. The full qualification table pulled from Delta's announcement is below|
MEDALLION QUALIFICATION |
||||
|
Silver |
Gold |
Platinum |
Diamond |
|
|
MQDs |
$2,500 |
$5,000 |
$7,500 |
$12,500 |
|
and |
and |
and |
and |
|
|
MQMs |
25,000 |
50,000 |
75,000 |
125,000 |
|
or |
or |
or |
or |
|
|
MQSs |
30 |
60 |
100 |
140 |
Delta's spin on the change, for their part, is that they need to make room for their most valuable customers. From their release last week, they state:"[Delta]... rarely has the seats to begin with. It's of such limited utility to me that anytime I see even the most mundane 25,000-mile award within the U.S., I'm tempted to grab it."
Delta would never release data on the ranks of their Skymiles program, but this suggests that their stables may be bloated with elite (and thereby costly) travelers and that they need to be thinned. It makes reasonable business sense: reward the travelers who spend the most money on the airline."These changes are a result of considerable research that we've conducted including conversations with hundreds of customers, many of whom expressed a desire to see the Medallion program truly target our best customers"
But what about the budget traveler? Delta is effectively moving its focus to high-paying passengers with this change, and budget travelers – some of whom are the biggest fans of the airline – will be left in the cold.
Proof will come when the budget travelers shift their business away from Delta and the costs of running their elite program drop over the next two years. If elite ranks stagnate and the frequent fliers keep coming, the airline can move forward with a smaller, more robust and profitable mileage program. And if membership spirals down to a handful of deranged loyal fliers, they'll know that their mileage program is officially dead. In the end, that may have been part of the plan.
[Photo Credit: Flickr user redlegs21]
Filed under: Business, United States, Airlines, News
Reader Comments (Page 1 of 1)
pam Jan 23rd 2013 11:12AM
Last year I passed through AMS on an upgraded first class ticket and they would not let me use the Delta lounge. Why? Apparently Delta only lets you hang out there if you're flying first on an OUTBOUND ticket. The KLM agent at the desk could not be convinced to let me in anyway, and I have yet another story of being iced out by Delta in spite of my status and longevity.
It makes me miss NWA.
Emme Mar 18th 2013 7:00PM
My husband has been a Platinum level flyer on Delta who recently became Diamond. NOT ONCE have they upgraded him to an open Business Class seat. The flight attendants have multiple times chosen a Delta employee over him on his flights between Singapore - Tokyo - Minneapolis. Inspite of huge bright yellow Priority tags, they have lost our luggage twice in the past 8 months. When we try to get information about our bags, we are treated rudely by Delta employees who could care less what level flyer you are.
Nowhere in this article did it mention how or what Delta is doing or planning to do for their "most valued customers". NOT ONE TIME has Delta made us feel like a "valued customer". Based on our Platinun/Diamond Delta experience, this entire article is a joke.
Tony Jan 24th 2013 9:45AM
After reading the two negative comments, I felt some balance was in order. As a diamond/multi-million miler, I am provided with a sky club membership that is recognized by the partner airlines and access to the partner lounges is afforded whether flying business outbound or not. I still have to use miles or certificates to upgrade on international flights. Having flown 300,000 miles last year and having spent 10s of thousands of dollars, the changes present themselves as a baby step forward. Why should I be treated with the same priority as someone who made diamond only by rolling over miles from a previous year? There are more elite level fliers than there are first class seats and diamond has become the new platinum. The only additional hurdle will affect those rolling miles over. If one flies more than 125,000 miles in a year, it is hard not to spend $12,500. But, flying 90,000 miles and rolling over 35,000 miles, a budget traveler might not make the cut.
Grant Martin Jan 24th 2013 9:53AM
Right, I think this change was built for folks like you (and the bottom line). Everyone has to start somewhere though, and I worry that the program will turn away those just starting or building status. I certainly spend more than 12.5k/yr as an EXP, but I also started by spending much much less as an NW silver.
Al Gray Jan 24th 2013 10:32AM
We (my wife and I) are at the opposite end of the spectrum. As loyal fliers of Delta, we built up over one million miles, were promised lifetime Silver status, and now, that is being taken away from us next year. Almost every time we fly on Delta, something bad happens (delays, schedule changes, baggage problems, etc.) and we feel totally betrayed by this airline.
In addition, when using frequent flyer miles for travel, Delta is totally uncompetitive, often required DOUBLE the miles of United Airlines for the same itinerary.
We agree with the notion of giving benefits to those who fly Delta often, but reject being cheated out of promised benefits because we fly less often
Bobh Jan 24th 2013 11:02PM
It is easy to handle, drop your delta credit cards and use cards like Chase that give you a discount or points to take flights.
American Express will love these comments.
carolyn Jan 24th 2013 12:48PM
If Delta wants to cater to the elite class then they should upgrade their planes to wider seats and just have a few seats for the economy traveler. If I were one of those with many miles and thousands of bucks invested I'd expect more comfort and room for me and all my fellow elite travelers.
tony Jan 25th 2013 12:49PM
Delta is quickly becoming an airline to go belly up with its constant screwing its loyal passengers....The planes are dirty, food is barely fair, and crew always disinterested in the passenger....THE WORST thing they have EVER done was to team up with American Express....I have finally cancelled my AMEX card and no longer fly Delta...I have sold my points, got good money and i am finally done with this PIG HUNGRY MEANS OF TRAVEL
Cathie Jan 24th 2013 3:17PM
Delta use to be our first choice for our business and personal now I only fly Delta when it's the last choice. I am a budget traveler and need to get the best deal for my money. their sky mile program is a joke, try and get a seat for 25,000 miles! I travel about 6 times a year business and personal. Since the luggage charge, seat charge and any other hidden fee I choose not to fly Delta. If people stop paying they wouldn't do it! I flew American last week and took a carry one (since they charge $25 each way for luggage) I think everyone had a carry on so they had to make an anouncement to check at no charge. Just be the last on the plane and I will guarantee you will get your luggage checked free. Now if everyone would do this, they would stop charging because it causes delays getting your luggage checked at the end of the ramp. My first choice is southwest. I feel like a valued customer there. Everyone is so nice and love to joke around and make you smile. traveling can be fustrating and southwest keeps you smiling. some may say, you don't get a seat, but...that's the best part. You get to pick who you sit next to. You will find since they don't charge for luggage not many people carry on luggage, which makes loading and unloading quick! So, Delta, keep going on the road you're going and you will only have the clients who can afford you. You lost our personal and business travel.
cat Jan 24th 2013 9:15PM
I prefer to fly SouthWest -- more relaxed, enjoyable and their flight attendants have a sense of humor. The atty I worked with would fly SWA over any other airline -- easier to change flights and because she traveled light (we'd overnight files, etc to her hotel and she would overnight them back to the office--I picked up that tip when an 80 plus woman told me that her son would fed ex her suitcase to wherever she was going and all she had to do was lock it up and slap the new return shipping slip on it and they'd pick it up and back to her home -- good idea huh? and can be sent on a cheaper basis ahead of time also.
memphismom Jan 24th 2013 9:21PM
I so miss NWA. I avoid flying Delta whenever possible and no longer have "status".
Sadly, Delta staff have won my personal "Nastiest Employees In The Air" award for at least 4 years (a distinction that historically belonged to United). These folks have ATTITUDE in a most unpleasant way. Most recently I have several minorish items go missing from my luggage and was told in a very nasty tone "We cannot do anything for you as we do not know if these items were ever in your luggage. You could tell us you are missing a $25,000 ring and how would we verify you ever had a $25k ring in your luggage?" A few months ago, I waited in the BAGGAGE check-in line for over 2 hours (I was already checked in). As I came close to missing my plane, I complained and was told "You should have gotten to the airport earlier." What the night before my flight??? Grrrrrrrrrrrrr.
Throw in the fact that I live in Memphis where Delta charges $1,000 to fly to Chicago but if I drive 150 miles to Little Rock, Arkansas the fare is only $300, I only fly Delta as a last resort.
frank Jan 25th 2013 6:09PM
I have been a loyal Delta customer for over a decade. I would endure layovers, longer durations, older planes, no personal TVs, older and less attractive female flight attendants just to fly Delta or SkyTeam members. Although to make the same status for me means an extra 1-2 domestic short-haul flights a year depending on the MQD. After reading some official information on the restructuring of MQM calculations, MQD calculations, I no longer see the benefit of Skymiles and will seek alternative programs. Delta took away a lot of benefits and added more rules to make status, but they didn't even bother to strengthen the status benefits.
Bob Feb 10th 2013 12:12AM
As an Atlanta Delta flyer this is good news... Now I will be free to fly what ever airline I wan't without having to worry that it might impact my Delta status.. I can also save that money I was spending on my Delta Amex card.. Amex loss is Visa's gain.. Hello Southwest Airlines (where the wifi is only $5).. Delta see you in Chapter 11..
DLT Mar 21st 2013 3:38PM
Living in Salt Lake City (one of Delta's main hubs) we almost have no choice but to use Delta. I have over one million FF miles earned. I am in total agreement with all of the negative comments about how Delta treats their passengers. Horribly!!! These people sure have "attitude" and, get away with treating us, the flying public any way they choose,whichi is awful. They have zero incentive to treat us with respect! How do I "sell" my miles??? I didn't know I could.Advise me if anyone out there knows. I DON'T need Delta's dirty planes, bad attitudes, and a zillion excuses!