Delta goes truly "dynamic" on award pricing

Discussion in 'Delta Air Lines | SkyMiles' started by Wandering Aramean, Jul 14, 2015.  |  Print Topic

  1. Wandering Aramean
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    Wandering Aramean Gold Member

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    Delta is getting even more dynamic in its SkyMiles trip pricing, announcing that some awards will officially be dynamic starting with June 2016 travel. And mileage upgrades are getting more expensive, too. There are a few bits of good news mixed in (regional u/g certs now valid again for JFK-SFO/LAX, some 7500 point awards) but these two main changes are decidedly negative for most passengers and likely dominate the other bits.

    http://blog.wandr.me/2015/07/delta-change-upgrade-dynamic-award-prices-policies/
     
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  2. redtailshark

    redtailshark Silver Member

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    DL goes more than truly dynamic...now, they go truly

    [​IMG]mejor en su clase[​IMG]
     
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  3. mattsteg
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    mattsteg Gold Member

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    Mejor dynamico!
     
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  4. newbluesea
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    newbluesea Gold Member

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    Based on what I seen/read so far I don't know why DL just doesn't go ahead and cancel their Skymiles Program they clearly really are not interested in having/running one and feeding this sort of BS to their members as " enhancements" appears be bordering on the pathological
    There just seems to be some sort of dramatic change coming out every two months... its just death by little cuts. :mad:

    Come on now??? One way awards ATL/JNB or SYD 375K miles (or higher) this stuff has gone waaay past crazy:rolleyes:
     
    Last edited: Jul 14, 2015
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  5. cliburn
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    cliburn Gold Member

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    Wow... they can legally communicate changes to redemptions 11 months out??? Sounds like a price change to me.
    I thought legally their hands were tied. :p
     
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  6. NYCUA1K

    NYCUA1K Gold Member

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    I'd predicted this was coming after WN and DL did away with their award charts and asked for speculations about what it all meant, and I'd said:
     
    Last edited: Jul 15, 2015
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  7. Pizzaman
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    Pizzaman Co-founder

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    Everyone figured they would go this way when they announced revenue-based earn and when the award charts went away. Saying that they will go dynamic next year isn't really new info. I still think they won't "show" everything dynamically as opposed to pricing it that way. I think there will be thresholds/price-banding based on historical sales info and they'll tweak otherwise for standard routing. For crazy routing like we enjoy booking, they'll use whatever math they feel like makes financial sense, especially with "partner awards".
     
  8. Wandering Aramean
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    Wandering Aramean Gold Member

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    The changes took effect immediately. Booking for June 2016 will get you the new rates today. They're still jerks in that context.
    Yes and no. Certainly the expectation of something closer to revenue-based awards has been predicted by nearly everyone (gleff has been a holdout on that front, a position which I find to be myopic) but this is something different, at least for now. It is neither totally revenue-based nor totally inventory based nor totally chart-based. And it also isn't even a change which affects the "crazy" routings. Using historical sales rates makes sense, of course, and the cpp numbers are not awful, even with the "outlandish" new prices which may or may not be the maximums,

    But admitting that the pricing truly is "whatever we want" rather than tied to either competitive or published trends/data is new and different. And it challenges the idea of a "loyalty" versus "rebate" program. That's where this really stings.
     
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  9. NYCUA1K

    NYCUA1K Gold Member

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    In hindsight, sure, it is not new info, but back in February it was still all speculative...

    So, will UA also adopt dynamic award pricing? Considering that they've been away for a while now on what has seemed like soul searching and not matching DL blow for blow, I would stay that in the short term, UA may be done mucking with the only thing -- their FF program -- that they might have finally realized they had going for them...
     
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  10. Pizzaman
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    Pizzaman Co-founder

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    Well, I think we'd both agree DL isn't in the loyalty business, though they may say so. At least I think we agree.

    They believe (I think) that the soft product and the way they treat their customer will keep them loyal. I think the hub captives will largely stay captive (MJ on Travel excluded) and the folks that sets currently DM or PLAT. Don't see anything that attracts someone who lives in IAD or MIA to change, though the reciprocal could be true if AA doesn't make radical changes.
     
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  11. Pizzaman
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    I guess you could call it speculation since it wasn't 100% proven, but I can't imagine a bunch of people woke up to the shock of DL going to a more dynamic pricing model for redemption.

    As to UA, your guess is as good as mine. Given the state of their product, I was genuinely surprised they went revenue based. Things don't seem to have gotten much better on the product front, nor do they seem to have gotten much worse. My wild guess (which I don't have any data to support) would be that it will depend on how much work they have to do on the tech front to get there. They may do something like AA/US where they start segmenting into more categories until they can get the tech in place to price dynamically.
     
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  12. Seacarl
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    Seacarl Gold Member

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    Seems to me that DL is convinced (maybe rightly so) that the vast majority of both Skymiles members and credit card holders don't understand the value of their miles and don't care about the cost of awards, and are willing to be treated like sheep in the regard. Or maybe that DL's target market is uninformed or lazy customers only. Even if DL feels they don't need to give much in the way of award value to fill their planes, they seem to be risking the value proposition of the credit card affinity programs.
     
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  13. Wandering Aramean
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    Wandering Aramean Gold Member

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    But what is the value of those points?

    The average redemption on non-travel goods is below a penny/point so any travel redemption above a penny/point - which even the "ridiculous" 375k o/w J LAX-SYD meets - suggests that the consumer does understand the value of the points and is getting better than average from them compared to the other options they can easily price.

    The argument is more challenging vis a vis a 2% cash back card, but not completely impossible as there are still many awards which meet that threshold, too.
     
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  14. skyvan

    skyvan Gold Member

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    F*** em. Simple as that. I used to give them about 10k of business a year...AA now has that business.
     
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  15. Davescj
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    Davescj Silver Member

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    I'm thinking of switching back to AA or UA as well. DL has consistently been getting worse.
     
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  16. redtailshark

    redtailshark Silver Member

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    Are you sure DL is getting worse? How can it be worse? DL have told us clearly in the past that their product is:

    [​IMG]mejor en su clase[​IMG]

    The OAL's are not that...
     
  17. Davescj
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    Davescj Silver Member

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    I will say one (very small) thing for DL: F prices not bad, SC getting marginally better. But I"m in MEM, so I'm stuck.
     
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  18. B1BomberVB

    B1BomberVB Silver Member

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    I'm glad I just used up my 12,500 miles on a domestic Y award, leaving me with a whopping :rolleyes: 3100 SkyPesos & a buddy with 2700!
    Given that DL is a convenient airline to fly ex-CHS with real non-Barbie jets (MD-88s & 90s) where shall I credit my future revenue DL flights, given recent shenanigans by AS?
     
  19. anileze

    anileze Gold Member

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    I thought, maybe wrongly, that there was a link in the delta.com, where it indicated that one could not longer do layovers on award ticket(s) internationally. Now, I cannot find that link. I normally have a stopover for 72 hours in AMS & CDG, when I go to India. I was looking for an award biz to DEL or BOM from NYC. Is it worth my while even trying the wayback machine ?
     

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