> The part of the equation that I think the article is missing is that air travel is an industry with an extremely high level of substitute options. Rewards programs are there to try and combat the fact that their products are 100% interchangeable and create some level of loyalty.
I agree - but thought of it a different way.
Delta has a reputation among frequent flyers for having the best operations of any domestic carrier. AKA, if you need a flight that gets there on time, Delta is your best bet.
So, I expect these changes to their frequent flyer program (which pretty much all frequent flyers have reacted to with universal hate) are a recognition of that. AKA, we're offering a good product, so why should we be generous with our mileage/reward program.
Delta were already regarded as having one of the least valuable award points of any program.
As to why the changes are so hated, take this example.
Imagine you're flying economy 1x a month from Los Angeles to Amsterdam on Delta. Each flight would cost around $800, and earn you 11,120.
Under the current program, you could have Silver Medallion halfway through your 3rd trip, Gold by your 5th and Diamond by the end of the year.
(Some caviats that you wouldn't make it that far without a waiver for MQD spend you could get with a credit card).
Under the new program, it'd take you 7.5 months to earn Silver, and you'd never make it past Gold Medallion flying that same route every month.
I agree - but thought of it a different way.
Delta has a reputation among frequent flyers for having the best operations of any domestic carrier. AKA, if you need a flight that gets there on time, Delta is your best bet.
So, I expect these changes to their frequent flyer program (which pretty much all frequent flyers have reacted to with universal hate) are a recognition of that. AKA, we're offering a good product, so why should we be generous with our mileage/reward program.
Delta were already regarded as having one of the least valuable award points of any program.
As to why the changes are so hated, take this example.
Imagine you're flying economy 1x a month from Los Angeles to Amsterdam on Delta. Each flight would cost around $800, and earn you 11,120.
Under the current program, you could have Silver Medallion halfway through your 3rd trip, Gold by your 5th and Diamond by the end of the year.
(Some caviats that you wouldn't make it that far without a waiver for MQD spend you could get with a credit card).
Under the new program, it'd take you 7.5 months to earn Silver, and you'd never make it past Gold Medallion flying that same route every month.