Delta leads US network industry with Skymiles overhaul
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WorldTraveler
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and again, given that DL is expecting a higher margin and yield than either AA or UA, they are obviously capable of continuing their increases to improve their current strategies.
Also, are you saying that your status is coming heavily from Amex? I thought you were complaining of others doing that. maybe I missed something and if so let me know.
Also, are you saying that your status is coming heavily from Amex? I thought you were complaining of others doing that. maybe I missed something and if so let me know.
Yes. Not complaining about it just saying that your assertion that DL doesn't give things away isn't true. You realize NWA was the king of customer giveaways? They regularly upgraded elites at the gates on non-oversold flights to WBC on long haul flights and did things like rub 16 FC seats on small DC9 and 319s for the purpose of maintaining complimentary UGs. NWA was also very liberal in compensation and yes I believe it ultimately was abused by many but I think that's more a function of them lacking adequate CRM capabilities.
Josh
Josh
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I didn't say that DL doesn't give anything away... just that do it less so than their peers and are still increasing their yields higher and faster.
and, yes, NW had their own other airline market raiding strategy that was not a whole lot different in principle - although at higher prices - than HP/US' strategies.
NW was too small to compete against AA, DL, and UA at the time and offset their relatively small network footprint by discounting esp. in regions where they were not strong.
as for the Amex relationship, DL clearly has calculated that increasing revenue from some customers via the Amex relationship is worth more than from some DL passengers who fly on lower value tickets.
it's worth a reminder that ancillary revenue from any carrier involves SUPPLEMENTING revenues that come from non-passenger sources. Upgrading your own passengers and other perks requires displacing some of your own potential to grow revenue INTERNALLY.
DL has linked its Amex program to changes that increase ancillary revenue with the ability to grow its own internal revenue, including by providing amenities that help create loyalty while still allowing DL to increase its own revenues via what airlines do best - expanding its network where the greatest opportunity to increase revenue exists and not by incentivizing passengers solely for the sake of making new routes work.
and, yes, NW had their own other airline market raiding strategy that was not a whole lot different in principle - although at higher prices - than HP/US' strategies.
NW was too small to compete against AA, DL, and UA at the time and offset their relatively small network footprint by discounting esp. in regions where they were not strong.
as for the Amex relationship, DL clearly has calculated that increasing revenue from some customers via the Amex relationship is worth more than from some DL passengers who fly on lower value tickets.
it's worth a reminder that ancillary revenue from any carrier involves SUPPLEMENTING revenues that come from non-passenger sources. Upgrading your own passengers and other perks requires displacing some of your own potential to grow revenue INTERNALLY.
DL has linked its Amex program to changes that increase ancillary revenue with the ability to grow its own internal revenue, including by providing amenities that help create loyalty while still allowing DL to increase its own revenues via what airlines do best - expanding its network where the greatest opportunity to increase revenue exists and not by incentivizing passengers solely for the sake of making new routes work.
DL gives away status with two Amex products.
1) Amex Reserve card awards MQMs in lieu of redeemable miles but comes with benefits like priority boarding, free bags and SkyClub access
2) Amex Centurion (black card). Formerly it gave Gold Medallion (along with CO, US, and NW). As those partnerships have ended and the value of the card has eroded AMEX has strengthened their relationship with DL and given us Platinum. It was a great way for USAIR to gain premium customers that otherwise wouldn't fly them.
DL Medallions also get to use choice benefits and among the selections is the ability to nominate anyone for DL status upto Gold. Make no mistake this isn't a means to thin out the elite ranks and provide a more exclusive experience but rather to get people to spend more than they otherwise would on DL
In my circles it seems every man and his brother have DL status even if they rarely/never fly DL.
Josh
1) Amex Reserve card awards MQMs in lieu of redeemable miles but comes with benefits like priority boarding, free bags and SkyClub access
2) Amex Centurion (black card). Formerly it gave Gold Medallion (along with CO, US, and NW). As those partnerships have ended and the value of the card has eroded AMEX has strengthened their relationship with DL and given us Platinum. It was a great way for USAIR to gain premium customers that otherwise wouldn't fly them.
DL Medallions also get to use choice benefits and among the selections is the ability to nominate anyone for DL status upto Gold. Make no mistake this isn't a means to thin out the elite ranks and provide a more exclusive experience but rather to get people to spend more than they otherwise would on DL
In my circles it seems every man and his brother have DL status even if they rarely/never fly DL.
Josh
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and again, all of that revenue is coming to DL above what they get from their ability to sell seats for higher revenue.
DL's passenger RASM has been above average for its peers for years; DL clearly has a high enough quality product that they can afford to be more selective about what they give away to their own customers.
The ancillary revenue that DL gets from their Amex relationship is ABOVE and BEYOND what they get from their own passenger revenue.
As much as you and others may not want to admit it, AA and UA are locked in an ongoing fight for customers that often involves competing for many of the same customers. DL has long been able to grow in other carriers' markets far more than AA or UA has been able to do the same in key DL markets.
the loyalty programs of each airline reflect those network and revenue dynamics
Old news. DL gives away status like candy why bother actually flying DL and spending MQD requirements if you can just get comp status each year? This scheme has nothing to do with thinning out the elite ranks but rather everything to do with getting people to spend more money.
Josh
Josh
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and again if DL's customers walk away then that will provide evidence that DL is asking too much or forcing people to spend more than they are willing to spend.
The fact that DL continues to grow its network faster than any of the big 4 and at the same time is increasing its RASM shows that DL is properly pricing its product, including for the services including Skymiles that are part of DL's revenue stream.
And the chances are very high that UA will do the same thing given that they have followed DL's other FF program changes and are also reporting strong RASM growth.
The fact that DL continues to grow its network faster than any of the big 4 and at the same time is increasing its RASM shows that DL is properly pricing its product, including for the services including Skymiles that are part of DL's revenue stream.
And the chances are very high that UA will do the same thing given that they have followed DL's other FF program changes and are also reporting strong RASM growth.
OP
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and if DL and UA can increase their mileage requirements and still report superior revenues to AA, then it says that they have a superior product.
consolidation in the industry was bound to result in an increase in fares and a decrease in benefits. passengers like you who are looking for the most service for the cheapest price may not be happy but employees and stockholders subsidized service for way too long. It is time they now get paid what they are worth even if it means the freebies aren't as generous as they once were.
consolidation in the industry was bound to result in an increase in fares and a decrease in benefits. passengers like you who are looking for the most service for the cheapest price may not be happy but employees and stockholders subsidized service for way too long. It is time they now get paid what they are worth even if it means the freebies aren't as generous as they once were.
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