Delta breaks up with its loyal customers. It's not you, it's Delta. | Ep220 | 9-16-23
Sep 16, 2023
auto_awesome
This podcast discusses the massive changes to Delta's SkyMiles elite status program, American Airlines and Hyatt elite status offers, updates to Turkish Airlines website for booking award tickets, and the recent changes to Delta's loyalty program including the impact on elite status and access to Sky Clubs. They also explore the dilemma of booking a non-refundable hotel stay.
Delta is simplifying their elite program by basing it solely on Medallion Qualifying Dollars (MQDs), which measures how much money customers spend with Delta.
The new elite program will make it more challenging for customers to achieve and maintain elite status due to the increased spend requirements.
Delta has shifted its focus from rewarding loyal customers to rewarding high spending customers with the changes to its loyalty program and Sky Club access.
Deep dives
Delta simplifies elite program based on spend
Delta is simplifying their elite program by making it solely based on Medallion Qualifying Dollars (MQDs), which measures how much money customers spend with Delta. This move aims to make the program less complicated, but it also comes with an increase in spend requirements to reach each level of status, ranging from a 50% to 100% increase. For example, the spend requirement for bottom tier silver status has doubled from $3,000 to $6,000, while top tier diamond status now requires $35,000 in spend, a $15,000 increase. Rollovers will no longer be offered, and there will be a choice to convert existing rollover Medallion Qualifying Miles (MQMs) into either MQDs or redeemable miles. Despite the changes, Delta is still allowing credit cards to earn MQDs with high spend.
Impact on elite status and Sky Club access
The new elite program will make it more challenging for customers to achieve and maintain elite status due to the increased spend requirements. However, those who are already spending significant amounts with Delta may benefit from the rewards and perks associated with higher status. Sky Club access can now be obtained by spending on the Delta Reserve card or being an authorized user on someone else's card. Other options for Sky Club access include holding certain platinum cards or adding authorized users to those cards. Overall, customers will need to assess their spending habits and determine if the benefits of elite status and Sky Club access outweigh the increased spend requirements.
Greg's take on the changes and future plans
Greg correctly predicted that Delta would simplify the elite program based on spend, and he accurately guessed some details. However, he missed predicting the conversion ratio for rollover MQMs to MQDs. Greg plans to prioritize earning the highest cash back or cash-equivalent rewards on credit cards instead of focusing on elite status. He believes that earning high-value rewards and points can provide more flexible and valuable options for flights. Greg is undecided about whether to continue holding the Delta Reserve card, but he may consider it for the companion flight benefit for first-class travel. Overall, he believes that maximizing cash back or cash-equivalent rewards will offer a better return on his spending.
Delta makes changes to its loyalty program
Delta has announced changes to its loyalty program that may impact loyal customers. The program now requires customers to spend significant amounts to earn elite status, with the highest tier requiring $350,000 in spending. This change may deter some customers from pursuing elite status, as the cost is too high compared to the benefits. Additionally, Delta has made changes to its Sky Club access, limiting access for basic economy ticket holders and reducing the number of visits for certain credit card holders. These changes demonstrate a shift in Delta's focus from rewarding loyal customers to rewarding high spending customers.
Considerations for travelers
Travelers should carefully evaluate the new requirements and benefits of Delta's loyalty program before pursuing elite status. The increased spending requirements may not align with the expected benefits for many customers, leading to a decrease in loyalty. Furthermore, the changes to Sky Club access may impact the overall travel experience for Delta flyers. It is advised to assess alternative options and consider the value provided by other loyalty programs when making travel decisions.
Delta wants dollars: this week we discuss the massive changes coming to the Delta Sky Miles elite status program and what it means for flyers and cardholders alike.
00:00 Intro
01:24 Giant Mailbag
04:26 What crazy thing . . .did Citi do this week?
06:10 Mattress running the numbers
6:23 American Airlines elite status fast track for some Hyatt elites
