Yesterday we learned that:
- American Express renewed their co-brand relationship with Delta
- Delta would not be implementing its cap on points transfers into the SkyMiles program from partners.
It struck me at the time that American Express should have negotiated better for itself, I was surprised that the cap wasn’t going to apply going forward to all partners except for American Express!
Of course I’m glad that’s not what happened, I don’t want to see caps on transfers, largely because I don’t want other programs to mimic the idea thinking that if Delta’s doing it then it must be smart.
There’s not a ton of public information on the extension of the Delta/American Express relationship out there. But here, via Joe Brancatelli whose newsletter I subscribe to, Delta included the following slide in their investor presentation.
Let’s blow up the text a little:
Bottom-line, Delta is sharing that American Express is paying them a whole bunch more money for their miles as well as their product. The product is indeed getting marginally better, although they’re giving Amex access to less of it:
- American Express Platinum and Centurion cardholders no longer get guest privileges at Delta Skyclubs when flying Delta same-day
- American Express Centurion cardholders, who receive Delta’s Platinum status, will no longer receive that status’ bonus miles for their flights.
From a business standpoint though I really do have to respect what Delta is doing: charging more for less, at the $2 billion price point. Impressive indeed.