Are DEQM Promos a Thing of the Past?

Discussion in 'United Airlines | MileagePlus' started by NYCUA1K, Jul 3, 2012.  |  Print Topic

  1. NYCUA1K

    NYCUA1K Gold Member

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    As one who reached the 'pinnacle' of elite status in M+, i.e. 1K, for the first time thanks to a DEQM promo, I have been wondering of late whether we'd see anything like the un-targeted double DEQM promo of 3 years ago that elevated so many to elite status. Not that I wish to see more flyers achieve top elite status the 'easy way', but are such promos a thing of the past? Does UA feel that there may be too many elites already?
     
  2. Wandering Aramean
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    Wandering Aramean Gold Member

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    Highly unlikely in the near future is my guess.

    If the financial environment degenerates such that the company gets desperate, maybe, but probably not.
     
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  3. NYCUA1K

    NYCUA1K Gold Member

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    The notion of what prompts an airline to offer EQM promos has always been of interest to me:
    • Over at the other site, the view was that UA offered DEQM mainly in response to AA (which was fine by me because it meant AA got desperate first, and UA elites benefited!).
    • Another view is that DEQM promos are predatory -- meaning that a 'hostile' carrier is sweetening the deal to attract elites from another alliance/ carrier... so UA would have no choice but to counter.)
    • Finally, DEQM promos are meant to ensure that the ranks of top elites do not drop too low, because much revenue is obtained from top elites who cannot imagine themselves as lower quartile elites (I resemble that remark because I would do MRs , etc..., to make sure that I do not miss out on qualifying for top elite ever!)
     
  4. lhrsfo
    Original Member

    lhrsfo Silver Member

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    EQM promotions have always struck me as being an unsophisticated way of attracting business - principally because I should imagine it attracts the wrong sort of business (ie people who do low fare mileage runs and who turn out to be quite expensive to service). Also, I've never understood the need to swell the ranks of elites artificially - rather, the greater problem is too many elites all chasing too few upgrades.

    As software becomes more sophisticated, I should imagine that they will become increasingly able to judge the profitability of a customer to UA and introduce personalised challenges to bump individuals up to a tier that they might not otherwise achieve. Obviously GS is done on a crude assessment of profitability (principally revenue, we are led to believe). However, it's clear from the change in EQS that they are de-emphasising segments (presumably because short flights are less attractive / profitable to UA). Perhaps they might choose to look at spend per mile flown, or spend per mile flown less a certain amount to reflect the costs of take-off and landing. Perhaps they might want to reward those who fly off-season and therefore produce marginal revenue. Perhaps they want to reward those who book a long time in advance and provide forecasting certainty.

    There are so many factors in the measures of profitability, or desirability of an individual customer, that I suspect that they will be driven towards a system where there are basic, published metrics with an overlay of personalised incentives, based on unpublished metrics, to achieve a higher level.
     
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