Delta SkyMiles Shakeup: Ed Bastian, the chief executive of Delta Air Lines, faced a swift and significant response from SkyMiles members when the company unveiled substantial changes to its loyalty program. These changes emphasized dollars spent over actual travel, making it more expensive to achieve the highest status categories. In response to the discontent expressed by SkyMiles members, Mr. Bastian conceded that the changes, originally scheduled for 2025, “probably went too far” during a speech to the Rotary Club of Atlanta.
However, Delta has recently taken steps to address these concerns. In an email to SkyMiles members, Mr. Bastian acknowledged their dissatisfaction and announced adjustments to the program. These changes include reducing the amount travelers need to spend to reach various status levels, loosening restrictions on the use of Delta’s Sky Club lounges, and granting some members a boost in status through Medallion Qualification Dollars.
The changes initially proposed by Delta aimed to manage the surge in elite members during the pandemic and address overcrowding in airport lounges as travel rebounded. Mr. Bastian recognized that these decisions did not fully reflect the loyalty demonstrated by SkyMiles members.
Loyalty programs, a fixture in the travel industry, have evolved over the years. In the late 1970s, achieving elite status typically involved a straightforward combination of money spent and time spent in the air or in hotels. However, more recently, loyalty credit cards have become the primary means for travelers to earn points and elite status, bringing various perks.
Delta’s SkyMiles, one of the Big Three airline loyalty programs, has placed greater emphasis on credit card spending and dollars spent on flights. Through co-branded credit cards with American Express, Delta has generated substantial revenue, with spending on these cards approaching 1 percent of the U.S. GDP.
Also Read: Delta and American Airlines Expanding Flights to China Amid Growing Demand
Delta’s changes prompted other airlines to compete for SkyMiles members, with JetBlue Airways offering a status match and Alaska Airlines following suit.
The adjustments introduced by Mr. Bastian at Delta reduce the number of Medallion Qualification Dollars (M.Q.D.s) needed for all status tiers, making it more attainable for travelers. Additionally, some credit card members will benefit from increased access to Sky Club lounges.
However, traditional methods of earning status, such as Medallion Qualification Miles and Medallion Qualification Segments, are not returning. Basic economy fliers will also not regain lounge access in 2024.
Loyalty programs are undergoing changes throughout the travel industry, emphasizing the emotional connection between travelers and airlines. While some may not entirely defect from their favorite programs, experts predict that the future of loyalty might involve an “à la carte” approach where travelers pick the benefits they value most.
Some travel companies are introducing new twists on loyalty, such as programs where members pay a nominal fee for access to rewards. Frontier Airlines offers a GoWild program, allowing travelers with flexible dates to pay a modest fee for last-minute flights without earning miles or elite status.
Ennismore, the hotelier behind boutique brands like Delano and Mondrian, offers a membership program that focuses on discounts rather than points and elite status.
Even online travel agencies like Expedia are entering the loyalty space with programs that offer savings on bundled flight and hotel bookings.
In this evolving landscape, Bilt has introduced a credit card program targeting renters. Cardholders can earn points when paying their monthly rent, which can be used for hotel stays or flights. Unlike traditional rewards cards, Bilt does not offer sign-up bonuses but instead aims to provide ongoing value to cardholders by addressing their regular expenses and helping build their credit history.
Loyalty programs are undergoing significant transformations in response to changing traveler preferences and the evolving landscape of the travel industry. As these changes continue to unfold, travelers may increasingly look for more flexible and tailored loyalty options that align with their specific needs and desires.
Our Reader’s Queries
What is going on with Delta SkyMiles?
Starting January 1, 2024, SkyMiles Members will experience a change in their earning structure. The program will no longer award MQMs or MQSs. Instead, Members will only earn MQDs as they work towards achieving Medallion Status. This new structure aims to simplify and streamline the earning process for Members.
What is the backlash of Delta?
Delta’s recent announcement comes just over a month after the airline faced significant backlash for its loyalty program changes. In response, other airlines have tried to attract Delta’s unhappy customers with enticing status matches. However, Delta remains committed to providing the best possible experience for its loyal customers.
Does Delta MQMs rollover 2023?
Starting February 1, 2024, SkyMiles Members with a Rollover MQM balance can choose to convert their remaining balance earned up to December 31, 2023, at 11:59:59 PM CST into miles, MQDs, or for balances of 100,000 MQMs and above, into something else.
Can you boost miles on Delta?
With the Mileage Booster initiative, SkyMiles members can increase the number of miles they earn on their Delta Air Lines marketed flight by purchasing additional miles. To qualify, tickets must be purchased using Delta’s two letter DL designator code. This program is a great way for members to boost their mileage and get closer to their next reward.