Customers have been writing to Delta to express dissatisfaction with changes to their elite status program. Miles and segments don’t matter anymore – only qualifying dollars. And instead of spending a minimum $20,000 with Delta to earn top tier Diamond status, Delta now wants $35,000. Other elite levels require more spend as well.
Delta isn’t offering any more benefits than before. They’re just asking more of customers. And they’ll count every $10 in spend on Delta’s $550 premium co-brand credit card as worth 1 qualifying dollar. It takes $20 in spend on their Platinum card to earn a qualifying dollar. And every dollar spent booking hotels, rental cars, and vacation packages through Delta also earns a qualifying dollar (but you’ll give up hotel points and credit towards hotel elite status by doing so).
The airline wants customers to know that they can still earn status. All they have to do is move any ticket spending with other airlines over to Delta, and then spend more on their credit cards. Delta says that they’ll receive nearly $7 billion from Amex this year, and they have a vision to push that up to $10 billion. They need customers to do their part!
Here’s one response where Delta explains that, as a Diamond member, customers are already hitting $20,000 in spend on tickets. So just spend $150,000 on their $550 annual fee credit card and “You may not be that far off in your ability to reach Diamond status for 2025.”
SkyMiles members need to stop complaining, according to the airline, and do simple math. If they’d just see they only need to spend $150,000 on a credit card, all would be fine. Does that sound daunting to you? Just stop being poor. Delta has an American Express revenue goal to meet.
The thing is that customers should do the math like Delta says. If you put $150,000 of spending on a Delta credit card then you’re earning Delta miles with that spending. Those miles aren’t worthless, but they are worth less. Delta miles certainly aren’t worth more than about 1.1 cents apiece (a 1.1% rebate at 1 mile per dollar) and a no annual fee card can easily get 2% back.
And customers should consider whether loyalty to Delta has become too one-sided. Upgrades have gotten harder, with most first class seats being sold, and they’re expected to get harder still with the airline saying they have plans for greater ‘segmentation’ of the first class cabin, along the lines of what they did with coach (Basic Economy, Comfort+) to sell more seats and generate more revenue. Delta also says they aren’t done making changes to the program.
So even if you stop being poor, maybe you want to spend your money somewhere else? If you live in Atlanta or the Upper Midwest that isn’t easy of course. But in most markets customers have a choice. Delta is the marginally more reliable airline in most cases, but in many ways both American and United have improved. For someone that earns status purely by flying, United’s status is easier to earn. And for someone that earns status via credit card and other activity, American’s is far easier too.
(HT: H.G.)
Tim is busy arguing on OMAAT. Sorry. He’ll be here soon….
But it’s a premium product!!!!!!!!!!!
@ OCTinPHL — Has Tim Dunn ever actually flown on Delta? I find it interesting how he never comments about his own travel experiences, but instead about his bs DOT data. He just seems to be sitting behind his keyboard regurgitating DL’s quarterly earnings spin.
I canceled my business and personal SkyMiles Amex cards last week. 10 years as a Diamond, over 15 as an exclusive Delta flyer. That ended when the new rules were announced.
At this point Delta frequent fliers are the equivalent of a battered spouse in an abusive relationship. No matter how many times they get beat up, they still go back, look for the positives in the relationship, and convince themselves that next time it will be better.
And if you come close Delta now totally bones you with no rollover on spend that didn’t make it to the next higher tier. No, they didn’t rollover MQDs ever but your other status earning metrics DID. Now if our hypothetical diamond in the above scenario has to return a big ticket item end of year and only makes 149,000 on the reserve they forfeit almost $15,000 MQDs and spend another year at platinum. That’s dirty, Delta.
I am stuck. I live in Atlanta. American is somewhat of an option but it looks like it will be cheaper for me to continue to buy my first class tickets like I have been and go ahead and pony up for the sky club membership and close out my Reserve and Platinum Amex. I just need to find a good cash back credit card. Delta is shameful and unfortunately I think other airlines are going to follow suit.
Chasing airline status (esp. in the US3 programs) has been a mostly sucker move for much of the past decade, and definitely during the 2020s. Delta’s move confirms SkyMiles elite status cards are like the VIP cards doled out by casinos, a badge of idiocy for the cardholder versus some kind of positive flex.
Smart travelers have spent the 2020s focused on personal income growth and/or increasing flexibility in their travel spend. FFP changes don’t really mean too much to us. ♂️
It’s interesting that other businesses don’t get the same scrutiny. The grocery store doesn’t reward you for how much time you spent in the produce section, they reward you based on how many groceries you’ve purchased. Rental car companies don’t reward you if you drive their cars for long distances, they reward you for renting a lot of cars. Should they have made it easier?
@OCTinPHL, Mr. Dunn is having an infarction over on OMAAT. Not sure if there’s enough nitroglycerin to get him over here too. The truth can be a bitter pill to swallow.
I wonder when DL will install pay toilets…”but you can pay with your Delta SkyMiles AMEX Platinum card!”
Stop being poor and start being dumber. I’m having trouble with both, so my business went elsewhere. It’s all I can control, but I controlled it.
I’m not mad. I’m glad Delta has set me free from chasing status for 30+ years. Will be cancelling Delta Amex Platinum card when it comes up for renewal. I’m doing my own “simplifying.” Will choose airline with lowest fare from now on. As long as it’s not United. lol
I think the timing is terrible for Delta. I think we are going to see a slowdown in high fare travel as many consumer have bunt through their pandemic savings and charge off rates now top 3%. There was going to be natural attrition in the next 12-24 months anyway. Now they are alienating the majority of their customer base.
We are all now free agents who can stop chasing perks, many of which can be purchased a la carte for alot cheaper than $35k-$300k a year. Don’t be surprised if Delta change course again in 2-3 years as YOY revenue drops and new leadership wants to strike a happy medium with its loyalty programs.
We have the platinum reserve and will cancel it along with my platinum. No sense of keeping a card that does not give you what was promised when we signed up.
Just sold over $100k in Delta stock. Please write them and tell them you aren’t happy and you have options
I joined Deltas SkyMiles program a year prior to the pandemic. I started flying Delta out of DCA and noticed immediately the professional and courtesy that lack at American. Years ago I purchased economy which Delta stopped giving points for so I switched immediately to main cabin and premium purchases in order to gain points. Now, my choices, however how hard I try, no longer matter with this announcement. It’s a business decision for them of which I respect. It leaves me feeling that my business is not important to them.
I cancelled my Delta Amex Platinum business card on Monday. It was up for renewal next month. My personal Delta Amex Platinum is up for renewal in December, and I’ll cancel that one then also.
Last year I had a combined total of $125k on those cards and I’m close to $100k year-to-date for 2023.
I find premium hotel credit cards a.much better value than airline credit cards.
Question to the audience – if you agree with the premise that an airline has too many customers with elite status, and too many customers with access to their lounges – what is the *right* way to fix the problem?
Usually the flight is uneventful, It’s been a while since I’ve been treated like Delta Really cares about my business. I ve been upper level Medallion for years and it seems like it is harder and harder to meet the level goals. The CEO should spend more time thinking about the consequences of bad business decisions, and less time Bragging about how wonderful his company is and worrying about solving the world’s Social Problems. I’m going to continue Phasing Delta out from the Over 200,000 miles a year that I Fly!
@Anthony: if DL (or any other airline) is increasing fees, then something in return should be provided for those fees, ie, open more lounges. At some point business will have to accept they can’t do all the taking and give nothing back. That business model may work short-term, but long term it backfires. And if it cuts into corporate profits “a bit”, so what. Better to have a business with lower profits but a steady, consistent customer base, than an unpredictable and fickle base.
I was long-time typical PM post NWA merger, once DM, mostly via SEA-LHR or SEA-NRT.
DLs airfares have become increasingly non-competitive, so I generally can’t select DL.for business travel, which is only Domestic now. I end up on Alaska, which has a lot of Seattle directs.
So $6K MQD for Silver is a big deal now. I was scraping together $3K for several years to not lose rollover MQMs. But that rollover carrot will be gone.
Final insult is that it appears Million Miler will no longer get 50% bonus for First or Premium Select. I still held out hope of getting to MM – and Premium Select is my typical international vacation choice on my dime.
In response to Anthony, quit focusing on suckling the elite and providing a respectable service to all classes of travel. The problem is not that the elite are treated so much better. Problem is for that to occur economy class has to be treated like utter rubbish in the process. Forget the lounges, airborne food services, etc. Just provide a seat more than 5 percent of population can fit in and charge reasonably for it. Many people would pay more to be treated like human beings.
@Anthony without all the data I don’t think any of us could really answer that question; however, credit card spend would not be an answer and I would suggest credit cards in general have been part of the problem. The issue with that of course is the airlines now make too much money from them to do anything about it. How much you fly with the airline is what should matter most — what they are supposed to be getting at is customer loyalty/rewarding customers for repeated business. It’s become a business for the airlines — the programs in and of themselves are a huge revenue source for the airlines and it’s not what they were originally designed for. While we don’t have the data to know exactly what they should do we know they won’t do it anyway because they have become dependent upon the revenue of those programs from the banks and other third parties. The lounge issue is completely different in my opinion as it’s essentially a stand alone profit center where they sell memberships. They either need to limit memberships sold (you can define how that should be) or you increase the lounges. Again, they have become a revenue source for the airlines — in the case of this program I think it’s fine and makes sense but like any membership organization you have to either have a max membership level or you increase capacity.
Since about 2005, Delta’s slow but sure descent into a worthless program for me has now not only made my remaining miles marginally-worthless for my leisure travel (no flights at sensible cost), but has also made accruing further miles, using their credit card and seeking status all a non-starter.
Good job, amigos! Now, as a 2-3-times a year passenger, it will incentivize me to look at their product LAST for sure, instead of occasionally. I wouldn’t even factor in their “professionalism” (NO US airline provides a consistently superior product) or their “reliability” (really? Nonsense. Most of the airlines’ snafus involve weather).
Simply put: Delta just took themselves out of my purchasing decisions, and I fly somewhere 35+ times a year. They “SIMPLIFIED” themselves out of my life for the most part!
@Anthony – I *disagree* with the premise that there are too many elites. Lounges ARE crowded. They continue building more and imposing restrictions. Lounge crowding wasn’t because of their premium credit card (American and United have those too) it’s because they ALSO provide access to passengers with Amex’s premium credit cards ALSO.
I gave up chasing status a couple of years ago. Also gave up Pre Check. Best decisions I made. The stress of chasing status is so unbelievably stupid.
@Anthony: You wrote: “Question to the audience – if you agree with the premise that an airline has too many customers with elite status, and too many customers with access to their lounges – what is the *right* way to fix the problem?”
To help reduce the overcrowding problem, follow the lead of other airlines by consistently offering crappier food and sub-par customer service to passengers visiting a Delta Sky Club.
I’m a long time AA user (lived in DFW many years) that has flown Delta much more the past few years, due to family in the Atlanta area. Have been Platinum the past few years. You know how many upgrades I have received due to status on DL? None! The only benefit is Comfort plus, which i get on booking with AA automatically. On AA as a Plat Pro and now Exec Plat I’m batting 50-65% success with complimentary upgrades. My dalliance with Delta will be over soon, with no easier path to renew status (Gold next year, then done). The Amex Plat will be perfect for the occasional visit to ATL to use the Sky Clubs, otherwise done with DL.
The game has changed. Cash back cards are what the savvy traveler will start using. You can get 2% back instead of FF miles worth 1.0-1.2%.
Game over.
@Gene – good point. These blogs (like VFTW and OMAAT) are not meant to be analysts reports; anecdotes from users can be (not always are, but can be) just as useful as the CASM or fleet age or order book Tim spouts. For our purposes as readers. I’m an AA captive, but I have also flown DL, B6, and UA (all in 2023) and its hard to call one premium. I know AA is not great. But Delta is only marginally better. Just because DL makes more money doesn’t make it more premium; it may be better managed, but again, that does not necessarily equate with premium. Tim would have much more credibility if he ever, ever agreed once in a while that DL is not the panacea he thinks it is.
Robert Crandall AA who started the whole mileage program said his biggest mistake was to base it on miles, not dollars.
As someone who, until very recently, flew weekly, primarily on Delta for a company that made us book the cheapest seats, the changes are skewed to the firms that spend top dollar. The regular road warriors be damned. It’s a huge disappointment regarding my hometown airline.
Looks like Delta went woke. A lot of people don’t have $150,000. discretionary spend. Oh, well.
The Hollywood crowd can do this. No problem.
Someday people will understand what Zig Ziglar meant when he said that when you pay for sports, movies, non essential activities……you are making others rich, but not yourselves.
Don’t take me wrong I like ~ some sports. (actually track and field) But a million dollar outfielder? A CEO making 10-20 million while his workers make < $100,000. As time moves on there will be less and less people who can accommodate Delta’s standards.
@Anthony – a great point. Delta probably did have to do something like this. I would add though 1) Delta created this mess 2) they’re fixing it with all the subtlety of Elon Musk at Twitter ( I mean X )
“Other elite levels require more spend as well.”
No. They require more SPENDING. The word is SPENDING, not “spend.”
Literacy FTW.
The reality is airlines now make more money selling miles than flying people.
From Delta’s perspective, there’s really two groups of “customers” here – the ones spending $$ on Delta credit cards and the ones who are not.
If you held a Delta card for lounge access but never spent on it because you realized Delta miles aren’t worth earning, Delta isn’t making any money selling you a lounge membership and wants you out of their lounge.
And if you were putting money on Delta cards because you didn’t realize (or don’t care) that there are better options, Delta wants to encourage you to spend MORE money on their cards.
And when you do, you’ll get a much experience, because you won’t be competing for better treatment with everyone who isn’t forfeiting value to Delta’s bottom line by earning Delta miles.
So yes, lots of people are going to quit the Delta loyalty ecosystem. That’s intentional.
We have Tom Brady to thank for this
After 20+ years as either Diamond or Platinum, and a Million Miler, the new requirements for status will force me to another airline and another credit card. I’m losing ~125k rollover MQMs as well.
I’ll burn my 1.5M skymiles and move on.
Cry me a river. These changes are great. You folks that take 5-10 business trips a year and expect to hit the highest status with an airline crack me up. Please do move to united, American or any other subpar airline, more upgrades available for me.
People should stop spending on their Delta cards. Better to cancel them to send them the only message they will understand.
Credit card cancelled
Perhaps the ‘real’ question should be is this in-favor of Elites or actually leveling the service levels. Of course lounge-crowding matters (I’m Exec. SC so not about me); but think of their biggest customer of all: American Express. 7 Billion this year and goal of 10 Billion next year. THAT might be where the sensitivity will be, as you know Delta had to work with Amex management; which cares nothing about lounge access, but wants their 2.6 or higher percentage on every card-charged transaction (if you view miles as the lowest form of cash-back equivalent, you can see the point). So if Amex sees a lot of lost business because of the Delta move; it will benefit Amex to pressure Delta.. just a sort of random thought during a business day. Cheers! And hats-off to the JFK SkyClub VIP guys for real help on a ‘trip in vain’ to Barcelona the other day that had to be abandoned (by me not the flight).
Please get rid of the stupid popcorn machine in the Atlanta Sky Club,
It is simply inedible.
Do their executives ever try the food?
I’ve been a loyal Delta flyer for over 40 years. Most of them with some type of status but never higher than gold. I have enjoyed the Sky Club many, many times. No longer. I have been to all the ATL clubs and JFK. I never had to wait more than 10 minutes and always found a seat overlooking the tarmac. I always tipped bartenders very well. I feel bad they will be missing significant income, since not many people will qualify to enter. I will now only use the CSR since Skypennies are almost worthless.
Gary – plenty of longtime Delta flyers were complaining that there were too many Diamonds, especially out of ATL. This is my first year of Diamond, and upgrade percentages seem pretty good. However I do believe there are a ton of Platinums, probably too many. I think the idea that there were too many elites, at least at Delta, was “consensus” up until last week. Now all of the elites that are going to drop out of the program are upset.
To me, the changes were a wholesale, across the board message – we underpriced everything (elite status, club access, etc) and now we are going to charge more. The change impacts everyone from the most casual flyer to the most seasoned flier – to me, that seems like a fair solution, IF you agree with the premise that the elite pool needed to be thinned.
After flying United for 2 million miles, I left for Delta. I loved to brag about the better service and quality of product. Now, after almost a million miles and 8 years of Diamond status on Delta, that’s over. Back to United Airlines for me. I wonder how many there are like me. I’m selling my stock in Delta.
I quit chasing status years ago. My wife and I have now cancelled 2 plat Ax, 1 DL Ax, 1 DL Gold Ax and 1 Delta Reserve Ax. Will focus future spend on AS and AA
@Bill – there won’t be more upgrades available for you, Delta says they plan to do further segmentation of the first class category which will extract more revenue. Fewer upgrades for everyone!