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Tag: skyclub

  • Delta SkyMiles Rollbacks: A Step in the Right Direction, but Is It Enough?

    Delta SkyMiles Rollbacks: A Step in the Right Direction, but Is It Enough?

    Last month, Delta Airlines made some significant changes to its SkyMiles program that left many frequent flyers less than pleased. The alterations included a shift to fully revenue-based status, imposing steep thresholds for Medallion status, and severe restrictions on SkyClub access. Unsurprisingly, the blowback from Delta’s loyal customer base was swift and severe, with many elites defecting to rival airlines; American reported record cobranded card signups on their earnings call, while requests for United status matches have gone up “dramatically,” presumably driven by disgruntled Delta elites abandoning ship.

    CEO Ed Bastian’s Acknowledgment

    In the midst of this intense backlash, Delta CEO Ed Bastian, now often not-so-affectionately referred to as “Fast Eddie,” admitted that the airline might have gone too far. He hinted at potential rollbacks to the contentious changes. While these changes didn’t come to light during Delta’s recent investor call, it turns out that my predictions about some adjustments were quite accurate.

    Adjustments to Elite Status Requirements

    One of the most significant SkyMiles changes was the switch to a fully revenue-based system, with Medallion Qualifying Dollars (MQDs) as the sole qualifying metric. However, Delta has now reduced the initially announced steep thresholds for the 2024 membership year, though they’re still a far cry from what customers were used to:

    • Silver Medallion: Reduced from $6,000 to $5,000 (compared to $3,000 in 2023).
    • Diamond Medallion: Reduced from $35,000 to $28,000 (compared to $20,000 in 2023).

    SkyMiles Credit Cardholders Catch a Break

    While the MQD earn ratio on co-branded AmEx cards remains unchanged, SkyMiles Platinum and Reserve cardholders (both personal and business variants) will benefit from a $2,500 MQD boost per card. Holding two of these cards is now an efficient way to attain Silver Medallion status immediately, and holding all four would grant Gold Medallion (though the opportunity cost would be significant, taking most of your “slots” with AmEx). Those signing up for new Delta AmEx products should be aware of new “waterfall” restrictions and plan application strategies accordingly.

    SkyClub Reprieve for AmEx Cardmembers

    SkyClub access for AmEx cardholders will still transition from unlimited access to a capped system, but the caps on visits have been raised slightly:

    • Delta Reserve cardmembers now get 15 visits per year, up from 10.
    • AmEx Platinum members now enjoy 10 visits annually, up from 6.
    • After reaching the visit limit, travelers can purchase additional visits for $50 per day. Previously, this was not an option.
    • A subtle yet significant change is that a subsequent same-day entry to a club no longer uses up a “visit.” Instead, each visit allows unlimited entries for 24 hours after the initial entry, a boon for those on connecting itineraries through multiple airports.

    Enhancements to Lifetime Status

    To retain lifetime status members, Delta is improving lifetime status-earn and making it a more significant upgrade tie-breaker. The new thresholds for lifetime status now align more closely with United:

    • 1 Million Miles: Lifetime Silver (matching United).
    • 2 Million Miles: Lifetime Gold (matching United).
    • 3 Million Miles: Lifetime Diamond (matching United).
    • 5 Million Miles: Lifetime 360 Status (United offers Global Services at 4 million).
    • Million miler levels will be calculated using flight miles going forward, but they’ll honor existing totals earned via qualifying miles.

    Looking Ahead to 2025

    For 2025, Delta has announced new Choice benefits, including the ability for Diamonds to pick $2,000 MQDs and for Platinums to choose $1,000 MQDs. This should make earning status a little easier in the absence of other benefits. Additionally, Diamonds can again select Sky Club membership for two choice selections.

    Assessing my Predictions

    Many of my predictions about the SkyMiles rollbacks were quite close, with MQD thresholds dropping between 16.67% and 20% (I predicted between 20-30%) and visit allowances increasing by 50% and 66.67% (my prediction was 40-60%). As predicted, the $75,000 spend threshold for unlimited visits remains intact. While I partially got it wrong about the MQD earn ratio on cobranded AmEx cards being upped, cardholders of select cobranded products are getting a flat boost of 2,500 MQDs annually.

    Delta’s Uphill Battle

    Despite these rollbacks, Delta still faces an uphill battle to win back the trust of its elite customers. CEO Ed Bastian even hinted when the initial changes were announced that more could be on the horizon. Many have already jumped ship to competitors American and United. As the future remains uncertain, loyalists to the airline will continue to closely watch the evolving landscape of Delta’s SkyMiles program.

  • Delta SkyMiles Changes: Could a Partial Rollback be Announced Tomorrow?

    Delta SkyMiles Changes: Could a Partial Rollback be Announced Tomorrow?

    Last month, Delta Airlines made some significant changes to their popular SkyMiles loyalty program, and the response was far from positive. The sweeping alterations sent shockwaves through the airline’s loyal customer base, with many longtime Delta aficionados expressing their frustration and disappointment. The changes were anything but customer-friendly, and the backlash was swift and fierce.

    Disclaimer: I do not earn any stock in Delta, nor do I have any inside knowledge. This is all educated speculation.

    Here’s a quick recap of the alterations that left many Delta customers reeling:

    1. All About the Benjamins:
      Delta went all-in on a revenue-based status system, effectively making Medallion Qualifying Dollars (MQDs) the only metric for determining your elite status. The problem? The new thresholds were incredibly steep. To attain even the lowly Silver Medallion status, you’d need to spend a substantial $6,000. And for those aiming for the coveted Diamond Medallion status, prepare to shell out a whopping $35,000.
    2. SkyClub Access:
      Delta also scaled back access to its SkyClub network. Effective from February 1, 2025, Delta SkyMiles Reserve and Reserve Business American Express Card Members, who previously enjoyed unlimited visits, would be capped at just 10 visits per Medallion year. The Platinum Card and Business Platinum Card from American Express saw a reduction from unlimited to just 6 visits per year. There was a carve-out, however, for those who spent over $75,000 a year on their card, allowing them to retain unlimited visits. Also announced was the discontinuation of the $50-per-visit SkyClub access for Delta SkyMiles Platinum and Platinum Business American Express Cardholders starting from January 1, 2024; on the same date, the current carve-out allowing Basic Economy passengers to access the SkyClub when using an eligible AmEx card for access would be removed.
    3. Fast Eddie and His Regrets:
      Delta’s CEO Ed Bastian, now affectionately nicknamed “Fast Eddie” by some, acknowledged that the airline may have gone too far with these changes. He made this admission during a speech at an Atlanta Rotary Club event, where he promised that Delta would address the concerns and make modifications to the changes they’d announced. This was late September, and he promised an announcement “in the coming weeks…” Well, it’s been a few weeks, and Delta’s Q call is tomorrow.

    So, here’s the big question: what can we expect tomorrow when Delta Airlines announces these potential rollbacks? Let’s take a look at a few likely scenarios:

    1. Revenue-Based System Stays:
      It’s almost certain that Delta won’t reverse its course on the revenue-based status system – that’s been a long time coming, and follows competitors United and American. However, they might reconsider the steep thresholds that have drawn so much criticism. I expect an adjustment between 20-30%.
    2. MQD Earn Rate Adjustment:
      We might see a slightly improved MQD earn rate on Delta Platinum and Reserve American Express cards. This could be a step in the right direction to appease their loyal customers. Again, look for a change in the ballpark of about 20-30%
    3. SkyClub Access Tweaks:
      While we shouldn’t expect a return to unlimited access, Delta could make some changes regarding SkyClub access. This could come in the form of either an increased visit allowance (my guess is 40-60% more than the previously announced caps) for American Express cardholders or a lower spending threshold to “earn back” unlimited visits (currently set at $75,000 per year). I think it’s more likely we’ll see a higher number of complimentary visits than a lower spend threshold, as $75k happens to also be the magic number to unlock complimentary guest access to the Centurion Lounge.

    But the big question is, will these modifications be enough to rebuild the trust that has been broken with loyal Delta flyers? Many have already jumped ship to American or United, with American Airlines, in particular, having a great year under their new CEO, Robert Isom. Isom’s quiet success in fixing operational issues and improving service quality has not gone unnoticed. Meanwhile, Delta seems to be moving in the opposite direction, with increasing delays, cancellations, and declining service quality.

    As we eagerly await Delta’s Q call tomorrow, one thing is clear: the airline will need to make significant changes to win back the loyalty of their once-loyal customer base. Whether they can successfully navigate these challenges remains to be seen, but it’s clear that the ball is now in Delta’s court.

  • Delta SkyClub Access Faces Severe New Restrictions

    Delta SkyClub Access Faces Severe New Restrictions

    The rumor mill has been churning for months, and now it’s official – Delta Air Lines is tightening the reins on its Delta SkyClub access once again, in addition to other serious devaluations to the popular SkyMiles program. If you thought the previous restrictions were stringent, brace yourselves for even more changes that might leave frequent flyers a bit disillusioned.

    Delta SkyMiles Reserve Card Members:

    Starting from February 1, 2025, Delta SkyMiles Reserve and Reserve Business American Express Card Members will only be eligible for 10 Delta Sky Club Visits per Medallion Year. Card Members can earn Unlimited Delta Sky Club Access after they’ve dished out a hefty $75,000 on their eligible Card within a calendar year (though the opportunity cost of not placing that spend on a more valuable card is huge). Once that milestone is reached, they’ll enjoy unlimited Delta Sky Club Access for the remainder of the current Medallion Year and the following one. Just to keep things clear, spend tracking for this new rule kicks off on January 1, 2024, for the 2025 Medallion Year.

    The Platinum Card® from American Express:

    For those carrying The Platinum Card and Business Platinum Card from American Express, there’s also a change in the wind. Starting February 1, 2025, Card Members will be granted a mere 6 Delta Sky Club Visits per Medallion Year. However, like their Reserve counterparts, they can earn unlimited Delta Sky Club Access after reaching that same $75,000 spend threshold within a calendar year. The same spend tracking timeframe applies, kicking in on January 1, 2024, for the 2025 Medallion Year.

    Delta SkyMiles Platinum Card Members:

    Now, for those of you holding the Delta SkyMiles Platinum and Platinum Business American Express Cards, here’s the bad news – effective January 1, 2024, you’re out of luck. These cards will no longer provide Card Members with the ability to purchase access to Delta Sky Clubs. Previously, cardholders could purchase access for themselves and up to two guests at a rate of $50 per person. Unfortunately, that option is being shown the door, joining the ranks of day passes for the general public, which were eliminated years ago.

    Basic Economy Travelers:

    Lastly, for American Express Card Members who often find themselves in Basic Economy seats or their equivalent on partner airlines, prepare for disappointment. Effective January 1, 2024, you won’t be receiving Delta Sky Club Access. While those who purchased SkyClub memberships were previously barred when flying on Basic Economy tickets, those using eligible AmEx cards to access the SkyClub had enjoyed an exemption. However, that loophole is now closed.

    These changes might leave some Delta loyalists feeling a bit shortchanged, especially when coupled with the devaluation of the SkyMiles loyalty program. For now, all we can do is adapt to these new realities and make the most of the perks that remain. Remember, in the world of travel, the only constant is change.