Other carriers likely to follow Delta loyalty program revamp

Discussion in 'General Discussion | Miles/Points' started by sobore, Mar 4, 2014.  |  Print Topic

  1. sobore
    Original Member

    sobore Gold Member

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    http://www.travelmole.com/news_feature.php?news_id=2010489&c=setreg&region=3

    As Delta prepares to revamp its loyalty program to one that better rewards big spenders, an industry figure believes it could be a game-changer that other major airlines will simply have to follow.

    Under Delta's new rewards policy announced last week, and due to begin Jan 1, 2015, points will be earned based on the actual cost of a ticket rather than miles flown.

    Each flyer will be eligible for between 5 and 11 miles per dollar spent, subject to the current SkyMiles status, and a further two miles per dollar if paying for a flight with a Delta SkyMiles credit card.

    Jay Sorensen, President of IdeaWorks, a consultancy firm working in airline loyalty marketing, expects Delta's competitors to make similar changes to their programs.

    "Why would you fly on United to Paris in business class to earn 13,000 miles instead of flying on Delta for more than 50,000 miles?" he said.

    Using a price-based model for loyalty programs is not a new concept - Southwest Airlines, JetBlue Airways and Virgin America all do this, but Delta is by far the largest carrier so far.

    Read More: http://www.travelmole.com/news_feature.php?news_id=2010489&c=setreg&region=3
     
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  2. uggboy
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    uggboy Gold Member

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    Yes, it's only a question of time until all other will follow this model. ;)
     
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  3. Blue Skye
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    Blue Skye Silver Member

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    i'd like to see the math involved in that 13K vs 50K mileage earning scenario. somehow i don't think the average vacationer is going to spend at minimum $10K on a flight. am i missing something?
     
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  4. LETTERBOY
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    LETTERBOY Gold Member

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    I don't think it's an absolute certainty that other airlines will follow the DL model. AA is in the midst of merging with US, so they'll have their hands full for a while. UA just devalued their program a few months ago. For the near future, what I think will happen is that AA & UA will wait to see how many DL flyers jump ship to one of them. If it's enough they may keep their programs substantially the same. OTOH, if the number of people who drop DL is insignificant, then they'll likely move that way eventually. Too early to know for sure.

    One thing to keep in mind is that DL isn't releasing the new redemption chart yet. So when they do, people will just get angry again. People who waited may decide to jump.
     
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  5. MSPeconomist
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    MSPeconomist Gold Member

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    Why would you fly on UA in business class anyway when you can use a better airline that doesn't do the 2-4-2 seating configuration in premium cabins?
     
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  6. gregm

    gregm Gold Member

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    I'm still angry about the last redemption changes! :mad:
     
  7. gregm

    gregm Gold Member

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    Not sure about the "average" vacationer, but I do know quite a few ppl who think nothing about dropping $10k on a long haul F ticket. (Not me. That's what miles are for. Or used to be.)
     
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  8. TheBOSman

    TheBOSman Silver Member

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    But I doubt they are flying UA, and obviously not DL ;).
     
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  9. Max M

    Max M Gold Member

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    So while these discount carriers may offer low fares from time to time, their priced-based frequent flyer model has inspired a further devaluation for an already devalued SkyMiles program.

    Mildly ironic.
    Majorly annoying.
     
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  10. misterbwong

    misterbwong Silver Member

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    Isn't Sorensen also the guy behind the recent Delta change?
     
  11. pointshogger

    pointshogger Silver Member

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    I think they will only follow if the Delta model works. It will highly depend on consumers. If business goes up even after the SkyMiles revamp, then there is a higher chance that other carriers will follow. If they loose a lot of business, I would hope that other airlines do not follow suit. So I think future changes will depend a lot on the consumers.
     
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