RUMORS FLY ABOUT BIG CHANGES TO SKYMILES. Everyone (except Delta) is talking about the rumors of a major overhaul of SkyMiles program underway at Delta. From what we’ve picked up from various blogs, boards and emails from alarmed TICKET readers, Delta could be changing SkyMiles from a program based on how many miles you fly to one based instead on how much money you spend—a “revenue-based” program. Generally, these programs award “points” instead of “miles” based on the price of your ticket. When it comes to redemptions, points are used to “buy” tickets based on the fare available at the time of booking.
TIGHT LIPS. The rumors about SkyMiles changes are replete with “leaked internal documents” and links to job postings related to the new program. When The TICKET queried our Delta contacts, the response was stone cold: “As a rule, we don’t comment on rumors. Thanks for your email.” Delta’s reticence and stonewalling on the rampant rumors leads us to believe that something may indeed be up down on Virginia Avenue.
INDUSTRY TREND? We think that this could be the continuation of an industry-wide trend that’s been in the making for years. For example, last year Southwest Airlines’ Rapid Rewards moved to a revenue-based model, which ticked off members who fly on cheaper fares, but pleased those who pay more for last minute, less restricted fares. And when fellow bloggers queried US Airways executives last week about the Delta rumors and any similar plans for its program, the answer was eerily similar: “No Comment.”
DELTA’S TERMS. When faced with rumors like this, its important to remember the terms you agree to when you sign up for SkyMiles: “Delta and its program partners reserve the right to change program rules, benefits, regulations, Travel Awards, fees, mileage Award levels, and special offers at any time without notice. This means that Delta may initiate changes, for instance, impacting partner affiliations, rules for earning mileage credit, continued availability of Awards, or blackout dates…Such changes to Delta’s frequent flyer program may include modifications that (i) govern mileage credits or other benefits earned on or after the date of change, (ii) change the value of already accumulated mileage credits or other benefits or (iii) govern mileage credits or other benefits earned on or after the date of change and change the value of already accumulated mileage credits.”
STAY TUNED. Any change of this magnitude will require coordination from SkyTeam airline partners as well as American Express, so if it does indeed occur, we’ll be writing all about it here on The TICKET.
So what do YOU think? How would a change to a revenue-based SkyMiles program influence your choice of carriers or your flying habits? How do you think this will all play out? Is it just a rumor or reality? LET US KNOW what you are thinking—leave your comments below.
DELTA SNUBS ELITES. Delta has introduced a new “E fare” bucket (known as the Basic Economy fare) in certain markets (not at ATL…yet) to compete with ultra-low-fare, no-frills carriers like Spirit Airlines. The new fares allow no changes (not even for a fee—use it or lose it) or advance seat assignments until check in (even for elite members). Luckily, the fares are still eligible for first class upgrades and mileage despite the rumblings about Delta’s purported transition to a new revenue-based loyalty program. The new E fares are typically about $10 less than the cheapest LUT fare– essentially meaning that Delta is charging the slightly higher fare for a seat assignment. The markets where Basic Economy fares are in place include between Detroit and Florida (Spirit Airlines’ stronghold) indicating this could be an experiment to expand it further.
AUTOMATED GATES. Thought gate agents seemed busy when your last flight was boarding? Well, on your next flight from Atlanta, wander over to gate T-3 to see the automated boarding gates Delta is testing that operate much like a subway machine entrance gate. You simply scan your boarding pass, and the door opens to allow you to enter the jetway. This is similar to what Continental tried recently in Houston (although it chose not to expand to other airports at the time) and what Lufthansa currently does at some gates in Frankfurt and Munich. It seems efficient and hassle-free giving gate agents more time to handle passenger requests. What do you think about the idea? Please leave your comments below.
TERMINAL F GUINEA PIGS? ATL authorities are searching for 1,500 volunteers interested in testing out the new terminal F on May 2 in a simulated day of operations. This will test the baggage, security, gate operation, and even facility (think bathrooms and electricity) functions of the building before it opens officially on May 16. Participants must complete a questionnaire, and the airport will choose those who meet appropriate criteria by April 15. Packing a bag or two and taking the MARTA or using a rental car shuttle to reach the terminal may also be requirements for the simulation. More details on how to participate.
NEW LOOK FOR SKY PRIORITY. Remember when The TICKET reported that Delta’s version of Sky Priority would be rolling out across the SkyTeam network? Well, part of that involves rebranding the Sky Priority logo so that it maintains a worldly look that is airline-neutral across the alliance. The benefits remain the same, but the look is a bit different—just look for the big red box.
SHOP FOR FREE. Amazon is now available for free on Delta and Delta Connection flights with Gogo wi-fi. There is no need to purchase a wi-fi session as the shopping website can be reached directly through the Gogo portal page. In addition to Amazon, content from The Wall Street Journal and People magazine can also be accessed free of charge through the portal page.
DELTA.COM CHANGES FRUSTRATE. To help make it easier for flyers to compare apples to apples when searching for fares, the DOT now requires airlines to include all taxes and fees when displaying fares on their websites. The resulting changes to Delta.com take some getting used to. We’ve heard from readers who are saying that Delta has changed things were working rather than fixing things that were broken—such as the clunky award calendar or the buggy upgrade list on the mobile app. Another frustrating change is that the new fare display is difficult to read because it omits the connection city and layover times forcing you to click on a drop down menu for that crucial information. What do you think about the changes to flight search on Delta.com? For better or for worse? Please leave your comments below.
Simple. I would have more choices, meaning that I would no longer be loyal to Delta. If Delta looks at the price paid for a ticket as the qualifier for Medallion status, then I will be looking at price as well, as in the lowest price when it comes to choosing the airline that I fly. I have been loyal to Delta as long as I can remember. For the miles that I fly I expect to be rewarded for that. If Delta wants to penalize me for always getting the best deal on the ticket that I buy from them, then I will go with the least expensive airline ticket that is available. As everyone knows, Delta is rarely the cheapest.
I am one of those fools who went out of his way to value points and status over genuine, quality service. This is the reason I put up with DL,rather than fly CX for example, whenever I go back to US. It’s an addictive, harmful, and increasingly expensive drug. As an Atlantan, I’ve brainwashed myself to think that I need to maintain my Diamond for when I have to travel domestically again when I return to the US. I hope…heck, I pray!…that Delta would go ahead and officially change the program so customers will finally realize how much they’ve been duped. By then, there will be no reason to stay loyal to one alliance over another, and airlines would have to compete based on value and service once again…rather than overindexing of fluffs we are being served.
Excellent comment!
Answer is simple to me – the more Delta looks like Southwest, the more I’d rather fly Southwest – no change fees and no baggage charges.
I almost always purchase flexible fare classes so I will likely benefit from the change if any. That said, I agree with the other posts that Delta is not interested in loyalty but this is following US corporate cultural trends over the last few decades. However I don’t see this as excuse – for Delta or anyone else. As stated so well previously, airline miles are a bought/sold commodity that is only an extension of operating an airline, not a truly integrated element (e.g., a “benefit” frequent flyers). With the institutional inertia this will not change in the airline industry. I am becoming aware that my primary motiviation for my maintain status will Delta is focusing on maximizing my upgrade opportunities. That has become my only real benefit and my primary reason to search out delta flights. The thought being if you have to experience air travel nowadays, it should be in first class. At some point, as this benefit diminishes and I suspect it will with more and more elite customers (created either by actually flying segments or not) competing for those seats) I may realize that this benefit is not worth the hassle or cost. At that point I will become like most other flyers and search out the lowest cost option, not the one with the best upgrade options.
Sky Priority? I lost my Medallion status due to a job change a couple years ago, but should get Gold back this year. Imagine my surprise when returning from Boston two weeks ago to receive Zone 1 boarding status. Even though I’m a Delta AmEx holder, it’s usually Zone 2 at best since I am no longer Elite. Well – at the gate, the agent calls for Sky Priority boarding (which included about 50 people). OK – so I felt like I was really in Zone 3.
Item #2: Booking on Delta.com this week, I was given the option to pay up to $60 for a “bonus” of 3,000 extra miles on a flight. Another indication that if you are willing to pay, they are willing to reward.
Both of these separate incidents left a rather cynical taste in my mouth.
I realize airlines have the right to change programs but I certainly hope that they will at least give enough time for those who were under the impression they can make certain levels, allow them to continue.
If the airlines would stop giving instant Silve Medallion for transferring 75K AMEX membership reward points or giving MQM’s for spending on the credit card. It’s a FREQUENT FLYER PROGRAM, not a FREQUENT BUYER PROGRAM….let is be based on air travel. I have a colleague who makes Platinum not by flying but by spending on AMEX…
Again, if Delta opts to change, I think the fair thing to do would be have it go in effect at a future date….let everyone absorb the change…doing it drastically will allow myself and many to go to another program.
WHY SPITE THE PEOPLE WHO ARE YOUR BREAD & BUTTER !! Why upset them ….I never understood it….you make SIlver Medallion’s feel like step-children….
HEY, without us there’s no airline….I think the airline needs to understand that for starters and also, base on flying not buying and getting MQM’s or transferring amex points and getting instant silver…
COME ON ..place nice !!!
I can’t tell you what the changes might be. I can tell you that if Delta can come up with a way to extract more money from their customers for less service, Delta will do it. Back in the 1970’s, ’80’s and even ’90’s, when Delta was still a real airline, they recognized and worked to build customer loyalty by giving great service, going the “extra mile” when warranted. Back then, Delta’s customers were Delta’s best salespeople. Somewhere, Delta lost that sense of being worthy of customer loyalty. Now, customers are simply sheeple, to be fleeced for all they are worth. The Frequent Flyer program is a good example. Delta claims that they can do anything they wish since there is no consideration for the miles. That is not necessarily true. I am curious about the possibility of fraud with respect to mileage for which consideration has been tendered and Delta, in a variety of ways, has not lived up to their end of the bargain. Could be interesting, I’ll let you know.
Meanwhile, the only thing that a Delta customer can count on is getting screwed by Delta. Most airlines of any size have representation in Atlanta. Some of the alternatives are not as convenient as Delta, but are workable. Make a statement, fly anything but Delta. That’s the only way to get the message across to Delta. Our surveys and customer comments mean nothing to Delta. Delta doesn’t care because Delta doesn’t have to care. Not as long as the sheeple keep coming no matter how closely they are sheared. If one has a Delta branded credit card, cancel it in favor of one which gives good rewards which can be used on a variety of airlines. Make a statement, quit supporting Delta.
At some point, Delta will get the message and hopefully go back to bing the outstanding company that they once were.
From an industry and investment standpoint , I think all the US airlines are preparing to drastically pare back their frequent flyer programs in all areas except for international first and business class. Everyone is still putting the finishing touches on their new programs and hoping the other guy takes the plunge so they can follow. Why not ? No one really enjoys air travel that much and many pax are vocally harsh now when the programs can’t offer much more, so why not cut the resources and the programs now and just weather the same remarks and save money.
If I were the airlines, why not shift more of the frequent flyer program expense to the credit card companies and banks that reap as much or more benefit from the frequent flyer programs than the airlines in the end.
I could easily see using an Amex or Chase or Citbank lounge instead of using a Delta or United lounge in the near future.
The frequent flyer programs have become a burden to airlines, they’re just waiting for the other guy to blink to start the changes.
It has been extremely frustrating trying to book free tickets on delta the last couple of years and, regardless of how points/miles are awarded, I don’t expect that to change. What makes me the maddest is that i haven’t been able to get an economy class ticket for my wife for less than 40000 miles since I don’t know when. Then you look at the award calendar and it says the dates I’ve chosen are the “lowest” mileage requirement. I thought the lowest requiirement is supposed to be 25000 miles for economy and 45000 for first class. It also doesnt matter if i try to book months in advance or at the last minute. Given that I have over two million miles, I have plenty of miles to waste, but it still irritates me. You’re absolutely right that the new booking engine stinks. Didn’t think it was possible for booking at delta to get worse, but it has! I’d give anything to have someone else to fly but delta has such a monopoly from Atlanta, it is virtually impossible.
If Delta would start changing their program drasticly from 1 mile = 1 mile flown to a $ spent model, I would immediately go to the Star Alliance or Oneworld where they still give you 1 mile flown 1 mile credit – i am a loyal Republic/Northwest/Delta (2.24 Million miles flown on their system & Diamond since they started that program) customer since the early 1990’s and it pains me to see that they would treat customers in this way in future. I hope they keep the old system.
The only reason I have kept Delta is because of their frequent flyer program. Continental/United has usually a much lower fare to Asia, but I have been loyal. So if Delta changes their program, then I will change too.
Chris – from the business side of life, one can understand why Delta has moved to the spending side over the past several years. Awarding points for everything and having MQM added, too, for both De;ta and Hilton credit card holders has pushed the mileage requirement to the moon! Where we could get a business class ticket for 90K miles three years ago, it now takes 250 – 350K — IF you can get it.
The really sad part of the equation is that loyalty is out the window and it’s now a “Show me the Money” equation. It’s also hard being in Atlanta where there’s not all that much competition. Sure…there’s Air Tran/Southwest but the routes are not really competetive since Delta pretty much matches the fares and if one has any status with Delta — even the most basic – it’s all even by the time you pay for choosing a seat and getting any sort of boarding priority on the “other guys.” But…we’ve been down that road before, too! And you KNOW that Delta has that all figured out as well. So, in Atlanta, loyalty is not that important to Delta since you’ve got to fly them in almost any situation.
(Delta’s bottom line should be a lot better after our last flight: great price on the original tickets ATL-DEN but we had to change to a week earlier since the grandbaby decided to show up earlier. Cost ended up being $432 for the two initial tickets plus $546 in change fees and added charges. The kid’s really cute however!)