It will take some time for all of the changes, 1.0 and 2.0, that Delta announced the past few months to wash out and see just how many frequent Delta flyers stick with the airline and how many say enough is enough and cancel their Delta Amex cards when the yearly fee bills (you have 30 days to get it back btw). While I have been somewhat brutal in my posts recently in regard to the airline I think Delta has a real chance to win a number of folks back – but it will take some work – maybe a LOT of work. See what you think.
First there are two groups to focus on, those who matched other airlines and those who are simply booking whatever is best for them. Executing on my suggestions will be critical to win them both over. The first group will rarely be flying Delta so when they do it matters that the experience is the “premium” the airline keeps drumming on about over and over and over. The second group will likely fly Delta more and a reliable and consistent experience matters to get them back to the unquestioned loyalty they once had.
Skymiles. Let’s go there right off the bat. Delta has pegged, for now, the value of a Delta point at 1 cent. We all know this. This is just ridiculous when you can get any number of cash back cards at twice that value and so many airlines offer much higher value for their points. Here is an ultra simple fix that would be BOLD and instantly make the currency have great value to many again. Delta needs to go FULL revenue based awards and peg a SkyPenny at 2 cents. So for example a trip to Europe from wherever is say $5000 round trip in Delta One then the Skymiles price for an award ticket would be 250,000. Still not amazing value but this would be so simple and you are then just searching for price and getting value from your points. If you then join this with the Amex card 15% offer you are at least nearing real value for your Delta points.
GUC and RUC certs (Global and Regional Upgrade). Make them guaranteed and get the stupid revenue management team out of the equation. That is, if a seat is open for sale then we can use a cert. It really is that simple and should be this simple. Imagine the few times either of the groups go to spend what they look at as their last elite perks and they clear no fuss no muss – then geee maybe we need to rethink the choice to dump loyalty.
Amex card BOGOs. Like the above – same thing. In this case if there are two seats open for sale then let us use them. If they are guaranteed then everyone sees the value of holding cards year after year for this perk alone (well ok the $2500 MQD credit per Delta Amex card is a nice perk too but this would cement the value of holding the cards).
Service onboard. It is time for Delta flight attendants to “show up for work” that is, to provide a premium experience for everyone onboard. This is a big ask for the few who are not, like so many at Delta, showing the “Delta Difference”. I really think most of the Delta flight attendants do work very hard to impress but the problem is those who do not are costing the airline big time! They need to educate their fellow FAs what needs to happen to win folks back.
Delta still is much better than other airlines in a number of ways. For example, even with it’s faults the Fly Delta App is light years ahead of others (looking at you AA). Having no change fees builds trust and flexibility. Free Wifi is still a leg up over most airlines. Consistent product and in-seat entertainment (on mainline jets) is another big win. I could go on but I think I have made my point that Delta is a better airline than many others but not “the best” they once were.
Would I be shocked to see Delta do all of the above (or at least most of the above). Probably. But just maybe they can pull it off. Heck, Delta folks reading this, if you want my help I am ready to step up and be on call to help you if you want it! – René
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My fear is DL has swung the pendulum too far in the opposite direction and many people who have accumulated 700k++ of MQMs will be cashing them in for 7(!!) years of guaranteed DM….even if they rarely fly. So the elite glut continues.
I’m not worried about people who rarely fly having Diamond status, they get their metal luggage tag and fly a handful of times a year they’re not filling up SkyClubs or scooping up all of the upgrades.
What upgrades? As a Diamond 2MM for the last 4 years, I rarely (<10%) get an upgrade on a mainline Delta flight. The available seats are purchased in the last few days/hours before the flight. This is the biggest reason I am not pursuing Diamond in 2024 and beyond. WFBF
Those are a good start, but they miss what is the core issue that I have with the l loyalty program changes: there has been a fine line drawn between historically loyal customers and future loyal customers, particularly with the million miler status.
Even in the latest version of the program changes, it will become more difficult to achieve million miler. But to those that have already reached it? That group gets upgraded perks indefinitely.
The fix is, of course, to keep the MQM system but Delta is not willing to do this. As such, this divide will remain.
Delta marketing claimed that Diamonds felt that they received fewer benefits in that everyone could easily become a Diamond and watered down their upgrade potential. So what do they do away with any loyalty metric and make an easier path to upper medallion status, much of the headstart without even flying Delta. $800 in annual fees gets you 5,000 MQDs and Silver status, $1600 in annual fees gets you 10,000 MQDs and instant Gold status. ALL without even flying $800/$1600 in annual fees saves $5000/$10,000 in flight spend on Delta. Platinum now is a slam dunk and with the 10,000 MQD headstart Diamond become more in range for amny more people.
The only change they made was to sell more credit cards and anyone that isnt taking them up on this strategy doesnt understand basic math.
Those are a good start, but they miss what is the core issue that I have with the loyalty program changes: there has been a fine line drawn between historically loyal customers and future loyal customers, particularly with the million miler status.
Even in the latest version of the program changes, it will become more difficult to achieve million miler. But to those that have already reached it? That group gets upgraded perks indefinitely.
The fix is, of course, to keep the MQM system but Delta is not willing to do this. As such, this divide will remain.
The certificates are the biggest deal for me. They really need to change it to using for any open seat. That would make the program valuable
Completely agree. Right now they’re basically $ capped vouchers and not real UCs. When you have to use a GUC for ATL:LGA because the difference in fare is $400 it’s not a GUC, it’s a $400 voucher. When that fare gap gets down below $250 the RUCs kick-in, but you’re not getting much value out of the voucher. Agree with Renee that the Rev Mgmt team is at fault for turning these into a joke thus eliminating the value for their most valued customers.
I agree with everything you said, plus the companion certificates should be good for all 50 states, and there should be meal service for all classes on flights longer than 4 hours. Until that happens, they should set aside a special meal for anyone on the waitlist for Delta One who is likely to get upgraded at the gate, if they have a special meal requirement.
Well they have already provided a path for many to climb on board by giving them Silver or Gold medallion status, without even needing to step on an airplane! Their statemens about thinning the herd and if everyone has status, no one has status were just marketing speak. In the new “simplified” system in holding the AMEX Reserve and Delta AMEX Platinum, I start out each year with Silver medallion status just for paying their annual fee, without even flying. $800 in annual fees vs. $5,000 in Delta Flights…Easy decision. Now I expand my strategy and I am getting the AMEX Business Reserve and DELTA AMEX Business Platinum and will start out each year as Gold medallion, again without even flying. Once again $1600 in annual fees vs. $10,000 in Delta flights…basic math and easy decision. I have yet to jump on a Delta plane and each year I will have 10,000 MQDs which makes Platinum a slam dunk with just a couple of flights and Diamond very reachable.
Basic new strategy and guess what Diamonds the herd is coming, move over and thanks for the upgrades
I can never use the RUC’s as they want me to give up my GUC’s!!!And then there are the companion certs!!!! I’m at 1,960,000 do MM and almost 2 MM but won’t get the 40,000 to get to 2MM before they mess with the system. So not sure what will happen but probably not good news.
Yeah my past dozen FC flights have had about 33% pre-flight drinks offered even when everything is going operationally ontime. It’s not “premium” when it’s just that mini bottle of water…..
I’ve been tracking PDBs across AA and DL (EP and DM this year, though that’s soon to change) and AA serves them 76% of the time plus. I concur that delta gets them out about 1/3 of the time. It’s not premium!
I flew American Eagle from PHX to Yuma last year and sat up front. PDB and full beverage service upfront (including refills for those who wanted them) for all 25 or 30 minutes or whatever.
Your idea of full revenue based awards is just the current Pay With Miles (PWM) feature, except that you want double the value (don’t we all!). Wouldn’t having a fixed monetary value for redeemable SkyMiles create a tax liability as SM would now be considered a rebate? This has been discussed on and off over the years.
@keeton – I am no tax expert so don’t take this to the bank but since we do not own the points they could value them at any value and there would still be no tax results.
Southwest’s rapid rewards points pretty much have a fixed value of 80pt to $1 pre-tax fare. I don’t see anyone paying income tax while redeeming rapid rewards points. We have already been earning redeemable SkyPesos by how much we spend for years, I don’t see why we can’t have a fixed value of it.
Rene, as one who has been a Delta enthusiast all of my life, I unfortunately agree with the points you make in your article.
Bit by bit, over the years, Delta’s “premium” service style has slipped and continues to slip away!
With regard to PDBs, it’s certainly hit and miss! On a recent flight and on a plane fully provisioned before boarding ever began, two flight attendants were standing in the forward galley, greeting passengers, with not even an attempt made to provide a beverage service.
Also, so often in the air, the first beverage on a 6/7 hour flight (sometimes D1) shows up on the meal tray, and after the trays are taken away, the flight attendant is seated, and on the cell phone. There need to be some checks and balance! A friend who is a DL FA could hardly believe when I told them the stories above.
When GUC’s and RUCs were first invented, as long as there was space available, the certificate could be applied/cleared. Little by little the benefits of these instruments has been whittled down. The other day I was noticing it would take a GUC to clear an upgrade at booking from MIA – ATL. SAD!!
I could/we could all go on about common sense attention to making Delta’s service model, both in the air, and on the ground the “premium” product Delta hopes it to be. IT ONCE WAS!!! Frankly, I want Delta to succeed! RENE, if you have the ability to set up a couple hour meeting with Delta officials, a few fliers like you and me could share concerns, and make suggestions in a very supportive way to help bring back the Delta so many of us have known and loved. I would be game to join you!
@Gary – Thanks. If they reach out I will let you know and great idea.
Didn’t you say DL Rep told you DL was changing the spend conversion from $20-1 to $10-1?
I rec’d a Change in Terms notification from Amex yesterday and it said $20-1 starting 1//1/24.
Thanks,
The MQM to MQD conversion is going to be 10:1. The DL Plat Amex will still earn $1 MQD every $20 spent on the card.
Former Diamond for many years, but I’m done with Delta. Believe their marketing if you want, but they aren’t a premium airline anymore; just last week, I waited 45 min for my checked bags. They’ve shown me that my loyalty is worth about a skymile to them, so I’ve moved on. They won’t rip the rug out from under me again.
Everything. They need to build a premium product and offer a differentiated service or become much less expensive than others. I’m still cancelling my cards and won’t pursue status with them (even though my 600K MQMs allow me to extend my Diamond status, but I’m not interested). Quite frankly their D1 sucks, service is rigid and zero concept of hospitality. I’m grateful for these changes because they did break a bad addiction after 2MM in the past 10-12yrs.
Have to disagree on the DL vs AA app. Have you tried to do a same day change recently? AA is miles ahead there and everything else is basically at parity.