Tag Archives for delta skymiles.
There was a 352% increase in negative online commentary about Delta following their announced changes, and that’s compared to the week of the Delta diarrhea plane.
What Delta forgot about its customers, but has since been reminded: if a frog is placed in boiling water, it will jump out immediately. However, if the frog is placed in tepid water that is then brought to a boil slowly, it will not perceive the danger and will be cooked to death. You’re the frog.
Bastian has previously said that the changes to elite status and lounge access are not the end of what members can expect (“over the next several years we’ll announce additional changes to qualification and to how a mile is awarded”). And, of course, even after those changes were announced they quietly devalued SkyMiles further by raising the price of Mexico-originating awards (one of the bets values that had remained in the program for use of miles). Mileage devaluations continue even as they talk about “modifications” to status and lounge access changes they’ve recently announced.
For years they’ve been taking away from the program, sometimes a little at a time and sometimes a lot. And they’ve been requiring more and more from customers to get less and less. Like the proverbial boiling lobster, SkyMiles elite members went along for the most part every step of the way. And that was very good to Delta, generating around $7 billion from American Express at around a 40% margin and accounting for the vast majority of the airline’s profit.
Delta wasn’t satisfied with that, and they got greedy.
American and United are in many ways rising. Delta isn’t as good as it once was, though that could change. Ultimately brand follows the underlying reality, even if imperfectly and with a lag.
Delta is not a good enough airline to keep doubling down on the path of low value miles, expecting more from the consumer, and seeing the consumer continue to respond.
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.”
This week Delta announced major changes to how SkyMiles elite status is earned, and to how people can access their club lounges.
There are consumer movements on Flyertalk and on Reddit to try to get Delta to reverse these changes. Similar efforts have worked before.
Typically when airlines make changes to their frequent flyer programs, they try to balance the bad news with something positive for customers. That may be new benefits, throwing customers a bone. Or it may be some rhetoric about how customers are actually going to be better off with the changes. Executives will say that they ‘listened to customers’ and are making ‘changes you’re going to like.’
There’s really none of that with Delta. Delta is demanding more from customers, and not pretending to offer anything new or more in return.
At the Morgan Stanley 11th Annual Laguna Conference, Delta was asked about changes to the airline’s loyalty program.
Delta is changing how elite status is earned, eliminating the use of three metrics (dollars, qualifying miles, and segments) to focus on only a single metric (dollars) while allowing some activities other than flying to count towards those dollars. And they’re restricting credit card access to their Sky Clubs – limiting the number of cardmember visits, and not allowing visits when traveling on a basic economy fare.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
