Part of me masochistically hopes that United Airlines will follow Delta Air Lines and make obtaining top-tier status so prohibitively hard that I will finally be liberated from the status hamster wheel.
Delta SkyMiles Changes Make It Easier Than Ever Before To Become A Free Agent
I’m working on a post that showcases how United Airlines can capitalize on Delta’s big changes to the SkyMiles program to build loyalty and permanently poach Delta customers alienated by the punitive changes announced yesterday.
But I do have to wonder if United will use this opportunity to implement something similar or maybe just slightly less punitive to all but the biggest spenders. United lounges do not suffer nearly the same amount of crowding as Delta lounges do (I’ve never seen a line outside the door, except in Denver, which is now resolved) and I’ve sensed that the top-tier MileagePlus elite ranks have been thinned out quite nicely this year, perhaps in part because United does not offer rollover elite miles.
But with Mr. Comcast running MileagePlus, I do have to wonder what United has up its sleeve.
And if United did decide to double the spending necessary for top-tier status and delete the PQP + PQD combination that reduces the spending necessary to obtain 1K status from $25,000 to $18,000, I would become a free agent and start flying the routes and at the times that made the most sense to me, regardless of carrier.
That’s what Delta seems to be missing here. In a sense, to meet the $35,000 minimum spending requirement through flying, you have to buy only premium cabin tickets. But if you do that, what do you need status for? Shorter hold times? A shiny luggage tag? There actually is no compelling reason.
Loyalty programs are valuable to customers on the margin, those who have discretion in their spending and often spend their own money, and are willing to funnel their spending into one carrier if the cost/benefit analysis make sense. These changes at Delta eliminate the marginal benefit of choosing Delta over other carriers when there is so little benefit for loyalty measured by actual miles or segments flown (loyalty is not just dollars spent…it never has been and the insistence that it should be the sole metric is misguided).
If this is the new way forward for the Big 3, I may well try Alaska Airlines, but the more likely outcome is that I will finally be liberated from airline status and probably be thankful for it looking through the rearview mirror.
CONCLUSION
I really hope United does not follow Delta and thereby remove any incentive for me to pursue top-tier elite status, but it would be somewhat of a relief if it does. I’ll spend about $20,000 on United/Star Alliance travel this year… sometimes that is inconvenient, but the PlusPoints and domestic upgrades make it worthwhile. But double the requirement and I’m out. And probably all the better for it…
How about you? Same boat?
image: Delta
I just don’t remember everybody having so much disposable income. No price tag for anything seems too high. I honestly have no idea how my behavior would change. If $350K cc spend or $35K flights is what it takes, it seems to me that so few people would meet that threshold, that publishing it isn’t even worthwhile… but what do I know?
Many small business owned can run client product spend through their personal or business card.
Installing HVAC. Pay the supply house on your Delta Business Amex.
Run a company with shopping. Put the same card in your UPS account.
They can roll hundreds of thousands through a card.
Personally I ran a big trip for friends. They each sent me Venmo. I paid for the hotel on my card. That got a MQM boost.
When I started flying for business in the mid 1990s I stuck with AA. The only way you could get status was having your butt in a seat. Back then you could fly to Europe on an economy ticket and upgrade to business for 40k miles round trip. As a simple Platinum flyer I got upgraded routinely. Now as a platinum million miler I can’t get anywhere close to an upgrade. What’s the point? I’ve switched to flying whatever is better and don’t care about the miles. This is not a FF program. It’s a frequent spend program and it reflects that airlines are now banks and club operators and devalue those who actually spend hours on their planes flying.
Correct.
I think the reality is that top level elite status had become too easy to attain – especially at Delta. If these airlines actually do succeed reducing elite numbers, what is wrong with Platinum at Delta (or Platinum at United, Platinum Pro at American, etc)? Not everyone can, or should, be a top tier status. This is from a Delta Diamond who will likely drop to Platinum in 2025 – and who has little interest in schlepping out to Newark for United regardless of loyalty program.
How is flying 125k miles per year easy to attain? That is a lot of mikes even with bonuses for status. You have to fly a lot and long distances to get to that number. Not considering the $ spending needed. Not very easy in my opinion.
Santastico – in the specific case of Delta, you have (or had, now that they changed the program)
1) MQM bonuses by class – which AA and I believe UA had gotten rid of
2) Years of pandemic rollover, which gave some people hundreds of thousands of rollover MQM
3) The ability to earn 15,000 MQM per $30,000 of Delta Reserve spending
4) The ability to earn MQM on award travel
A business traveler flying paid J from JFK to LHR got 10K+ MQM and probably 6K or 7K MQD. Two of those a year, maybe three J paid transcons, you are at 45,000 MQM on five round trip tickets. Add on your 15,000 MQM from card spending, maybe 20K or 30K rollover, and it adds up before you get into your domestic flying. And Platinum is that much easier.
I think you missed my point. I am talking going forward. If Delta had kept their program as it was, 2024 would be the year of reset. Those pandemic rollover would be gone. Agree that if you travel overseas like you described it is easier to get to 125k miles but that is not the norm.
I’ve seen this argument, and there’s plenty of merit to it, aka less elites=more special. There’s still this issue of F cabin being completely sold out, no chance of upgrading even as a 360 in coach. Doesn’t happen on every flight but it’s been happening a lot lately.
Yes and No. Given how Delta (and others) change their programs, it will be basically premium cabin flyers that still get status and perks. But they get the perks anyways thanks to their premium cabin booking. So there isnt even any use for them to go all the way except for higher multipliers on Dollars spent.
Just as consumer spending hits a brick wall and a recession begins. Looking forward to some backpedaling next year.
You, “Liberated” from the status hamster wheel? what a joke. Please. You live for status.
And you seem to live to make stupid comments.
I would be quite happy to be a free agent. It still makes sense for me to pursue top-tier status – I like the chase and the rewards. Not if the price of entry doubles…
Citicards Double Cash is worth consideration. If you spend $100k, you get $2k back. Which would you rather have, 10,000 miles or $2,000. I pick $2,000.
Perhaps airlines should create two new lower levels of elite, such as:
Plastic elite (lower than silver): 2 round trips per year. Benefits: not the last to board
Urine elite (lower than silver or plastic): just buy a ticket. Benefits: they won’t hurt or punch you in the jaw
1. $100k spending is 100k SkyMiles (baseline)
2. Yes I will pick $2k over 100k SM
3. I will pick 200k Flying Blue or KrisFlyer over $2k by using Venture X
BodA Preferred Rewards would get you $10k back if they was travel dining or hotels.
How would you get 10000 for 100000 spend on BOA Premium rewards card. I thought travel/dining was 2 points per dollar then .75 of 2 is 3.50. Wouldn’t you get 3500 for 100000? Am I missing something?
I’m not too worried. I’m a Platinum Medallion with a stash of MQMs, I guess I’ll stop putting the spend on my DL AMEX in 2024 if the waiver is gone, and just enjoy the Platinum experience until Jan 2025. Plenty of things can happen between now and that time.
I’m sure DL and AMEX has the data that says they can get there $30k DL card spenders can be pushed to spending $75k. We’ll see.
their* dammit I hate making that mistake
I’m hoping some of the remaining full service airlines come out with a status match. I’m sure Jet Blue would be thrilled to have my $30k in spending and make me a top tier member.
What really sickens me about Delta’s decision is that my 40 years of loyalty, now means nothing to them.
Especially with the changes to the MillionMiler program!
I have been Delta Diamond since its inception and have flown 2.7 million miles on Delta. I saw the writing on the wall with last year’s downgrades in benefits and increased hurdles. I cancelled my Delta Reserve and switched to Chase Sapphire. Now I just book with any airlines that are most convenient. I think Delta has been progressively worse since Ed Bastion took the helm. I could go on about poor customer service experiences but won’t bore anyone.
As I mentioned before, my strategy will change dramatically with this change. I will continue booking Delta for domestic flights. I live in a hub and spending time with family if my priority #1 so non stop with Delta is the way to go. Also, I still think Delta Beats AA so UA in many areas so no need to change. Now, international business class is over for me with Delta. I choose Delta because of status since they never have a non stop to places I go to Europe, Latin America or Asia from my hub so I have to connect in those places to reach my final destination anyway. So now I can connect in the US in a larger airport and fly non stop to my final destination on a European or Asian airline and have a way superior service and cheaper flights. Bye, bye Delta One!!!
United won’t seize the opportunity, you almost need a new airline to emerge and disrupt the current trend… but that won’t happen in the US.
As you suggested the solution is for a large number of us to become free agents. While these airlines are morphing into travel agencies with credit cards, soon they will realize that they have seats they need to fill. We will see capacity adjustments and layoffs… and then eventually they will go back to miles based loyalty. Simply if you are on the road all the time, you deserve benefits and they should work hard to earn our business.
It seems that they are not only making it harder to achieve status, but devaluing EVERYTHING else.
They want customers to book hotels and experiences through them, which would prevent them from earning hotel loyalty points and status.
They want customers to shift more spending to their cobranded cards, which earn earn MQDs at a miserable 1 per $10 spent. You could spend $125,000 and still be only half way to diamond medallion. On top of that, you’d earn only worthless skypesos.
The vast majority of customers are relatively new to miles and points. I feel like there has been a significant increase in social media postings about various influencers getting “free” premium travel through cards and miles since 2021 and that has coincided with surging crowds in card accessible lounges (SkyClub and Centurion especially) and in top tourist cities worldwide . I think the airlines have seen the willingness of newbies to spend more on travel to get on the hamster wheel of status and benefits and they believe that they can replace the lost business travel revenue with this new source of money, but I doubt it will last more than another 8-12 months. I think it is already dropping off.
When the newbs figure out how much the loyalty benefits have been devalued and how hard the best benefits are to actually get they will start to figure out that it’s a shell game. And if airlines keep pumping up tourist numbers June-August people are going to realize after a couple trips that the travel experience sort of sucks when every place you go is overwhelmed with people. At that point, passenger numbers will drop off, airline credit card signups may drop off, and people will decide there are better uses for disposable income.
Agree 100% Matthew. $25K is not chump change. Even though I end up spending more on sheer volume with United some years, there are other years I just barely hit the threshold. If they would raise the requirements even more I would stop caring about loyalty as I can’t predict in January what my travel will be. I would stop caring and book the cheapest and most convenient flights with any carrier (even WN) and pay for premium seats when it’s affordable and offered. Which is pretty much what I do now BUT with United exclusively.
I wonder what Delta will do with all their new lounges. They just opened a massive one at MSP. Now with 3 lounges, they are barely full. With all the new restrictions, they will be empty. I agree with your strategy. Before the pandemic and on a different job, I spent over $100k per year on Delta which got me their 360 status. Now, there is no way I spend $35k with them.
Isn’t someone else doing that $100k miles spend job now?
Not really. How many corporations dramatically reduced their travel by working remotely and using video calls? My wife works for a Fortune 100 company and they moved 95% to remote work and are closing offices everywhere. Why will you travel to an office overseas if there are no more offices? Read my other post about my trip to London last week. 16 business class seats empty. That never happened before the pandemic.
My brother flew LHR _ Ord and booked Premium Econ last December on United. He was upgraded to Polaris each way. He doesn’t have any status either. There were a lot fewer business traverls during the pandemic so there weren’t as many miles being earned by these people so they didn’t have the miles to purhcase business class for vacations either.
100% agree with this article. As a platinum medallion member for 7 years or so theirs absolutely no reason for me to chase this.
I for one look forward to booking flights that make sense for my schedule vs booking with Delta on inconvenient routes for the points and potential upgrades.
I’ll spend 2024 enjoying what’s probably my last year of platinum status and spending down this huge bucket of miles I’ve accumulated.
I never understood the company loyalty. I’ve always flown with the airline that had the best route and then price, except I won’t fly Spirit, Frontier, or the like. Over the past 15 years , that’s put 25% of my flights on Delta and 22% on American. The marginal benefits of picking one all the time never appealed to me
I became a free agent in 2019 after years of AA EXP, Delta Platinum and Diamond after it became apparent that: 1. I was rarely getting upgrades on flights over 1000 to 1500 miles and; 2. first class fares were dropping and I was paying for the seat I wanted and; 3. I have plenty of miles and pursuing status just led an ever increasing mileage balance sheet because I was paying for tickets to get the status rather than redeeming the miles I had already earned. My experience aligns with your first point, if I am going to get status because I am paying for first class, then I don’t really get much from the status except more miles, and it’s harder to use the miles when you are pursuing status.
I am all over the place now, Delta, Alaska, United, Air Canada, BA, LH – just picking the best premium class fare and best route/schedule. Still getting some status incidentally but as anticipated it has little value to me.
While I know it still makes zero sense, now would be the time if any to start the SE United Hub everyone has been harping about. I agree with a few comments above, I am 1K with United but enjoy Delta’s service and have been flying them a few times this year internationally up front because I’m just meh with Polaris. I think we’re all headed to free agent. a few years back I wouldn’t think fly Delta or American and now I do, especially internationally. When you’re spending $$$ you want a decent experience and usually connecting is cheaper.
You hit the nail on the head Matthew. My use case for status is that long haul coach flying is much more tolerable with status (baggage, shorter lines for check-in, security, boarding, seats etc.). Upgrade certificates/Plus Points were amazing too (when upgrade seats were available). I don’t care about flying FC on short haul flights (FC fares are often reasonable on domestic flights).
But status is pointless for me if I’m flying business class anyway. If I have to spend $35,000, it means I have to buy a lot of FC/Business class flights. At that point, I’d rather spend my money on the airline which has better prices/seats etc. than spend $35,000 on Delta.
I used to be UA 1K several years ago when that still meant being able to get a business class upgrade on a fair number of international flight gets. That was a reward worth some loyalty. I think the airlines are selling all their seats now, so why give any material reward for loyalty?
Just buying the best international discount business class or first class domestic that works gives you elite treatment and you will enjoy flying airlines with far better products than UA, DL or AA.
These changes hurt people who only use Delta to fly. Delta’s revenue is incredibly diverse, and flying passengers is a loss leader; thus, those who fly a lot and don’t engage Delta in other part of their travels aren’t really that good of customers to them in a holistic sense. This affects me personally as well – and the sky club changes are particularly abhorrent; however, the real reason they are making this change is to have you engage Delta in the rest of your travel – not just flights. You book a few full lux vacations or end-to-end business trips with Delta’s booking channels and then they’re right – it’s easier to earn. Admittedly, it’s a tough pill to swallow as an incredibly frequent flier but less frequent traveler.
Ironically, with how much Delta is building up its LAX operations, some of those flights will probably move from United to Delta.
Matt refers to a corporate executive taking over the Mileage Plus program which, as someone who worked in corporate America discovered, most changes made by executives looking to “make one’s bones” is to either cut benefits from the customers or their employees (while playing golf and sucking up to the boss). Can’t we just get an AI algorithm to do this and spend the executive’s salary on a pizza party?
The way The Free Market was supposed to work, I was raised during the Reagan era to believe, was that instead of reducing benefits they should be expanded. EVERYONE can get a mobile phone or nice car, not just a few elites, and if more people are qualifying for lounge access, just build more lounges or make them bigger.
I have lounge passes for United Club but rarely use them because the location of the lounge was too far away at a major airport (Dulles) for my wife and small child to make the flight so we didn’t bother. Aren’t there enough perfume stores in airports that one can be torn down and turned into a lounge?
It would be great if Free Market Capitalism worked as it claimed and, say, United simply made their (boarding passs required) gate areas themselves into mini-lounges including free coffee and cheap alcohol, snacks, and comfy chairs.
You want to be “elite”? Prepare to pay MORE for the privilege.
100% agree. I have the Delta Amex Reserve card and I’m one of the people that funnels discretionary spend to Delta because I achieve platinum status and more often than not get upgraded to Comfort+ or First when I’m traveling. Under the new scheme, I’ll be lucky to break into Gold.
There is now zero incentive to exclusively select Delta.
There is also zero incentive to put $30k of spend on my Amex to get the bonus MQMs – I can re-direct the spend to another point-earning card (the likely winner would be the Chase Sapphire Preferred where I can spend the travel points agnostically).
I don’t see how Delta or Amex win in this at all. Do they honestly think their brand is strong enough that people are going to double-triple- and quadruple=down to get their status? Not. Likely.
Amen. I stopped worrying about Skymiles last year already and credit my Skyteam flights to KLM now. Much better. And you can collect miles across your family account. Much better.
Family pooling is another great point in favor of Flying Blue.
Have long given up on airline loyalty. I simply exploit credit card offers and fly free, in business up to 3 times a year, and it is so much better than trying to stay loyal to an airline, particularly the US3, which are all at their core, mediocre.
Free Agent here .. I used to carry top status on the three major alliances (and Alaska pre OneWorld) … in the past – while attaining status – I used to spend a ton of time within these Airlines ecosystems. In their lounge or my butt in a seat. The shift towards attaining status through spend – justifies my free agency. I spend far less money and – as a result – spend a lot less time butt-in-seat and in their lounges.
TBH – i haven’t noticed any difference between having status/strategizing for status and simply paying outright for an F/J ticket with the carrier of my choice. Putting my spend on transferrable points/miles has been – in my case- a superior strategy. JMMV
It feels like all of the majors are either knowingly or unknowingly entering a phase of loyalty mutually assured destruction which will all turn out fine for them. If more people just decide to fly the most convenient airline for the the price and route the outcome for all will be roughly the same. To all of the Delta fliers, things aren’t any better at AA. It may not be easier to attain top tier AA status but when they try to sell every premium cabin at basement prices it means that you rarely score an upgrade any more. My flight to LAX from Miami last week had 10 open seats in first 3 days out. AA was selling the upgrade for $242 to any customer. Low and behold almost all of the upgrades gone.
This is all a function of the oligopoly that has been created over the last 10 years in the airline industry. They really have no financial incentive to reward loyalty.
Look, I’m consistently been UA Silver or Gold over the last 15 years (since I moved to the US) – more recently silver. So anything United does is not going to affect my ability to hit 1K – it was never going to happen anyway.
I do think in a way, the qualifiers have become too easy. However, I do think PQF has a role for reason, and should. As an ex-spoke person, it made getting status possible. Why would I have flown UA based in CVG, where I was for 10 years, vs. DL, where I could get nonstops to many places? I think they’ll find, if the execs take a second to take a look five seconds down the road, they’ll see that getting rid of that will be short-sighted – they’ll lose more in both the short- and long-term than they’ll gain.
That said, as a now UA hub-captive (in SFO), and where flying UA and *A has always made more sense, even when in non-UA hubs (family in YYZ and India, so that’s where a lot of our travel is, so *A makes the most sense to get those places), I hope they don’t make it too hard. As a CC-holder, I’d love to see UA match with better CC-spend benefits toward status, especially if they increase the PQP needed. 500 PQP/$12K spend on cards is pretty low – and it’s not that easy even to justify using that now (I don’t need it many years, but always want to have that as a backup). I don’t need it to go to AAs level, where it almost becomes easy to earn status exclusively on card spend, but since the winds seem to be sailing that way, let me at least take advantage of it on UA