Delta Makes Radical Change to Frequent Flier Program

Delta Air Lines is making a radical change to its frequent flier program, one that’s already causing turbulence among customers and current SkyMiles loyalty members.

Beginning Jan. 1, 2015, Delta’s frequent flier program will be revamped to reward members not by how many miles they fly, as in the past, but on how much they spend on airfare. The move is seen as Delta’s way of rewarding its premium customers and to entice more business travelers, who not only fly more frequently, but often pay higher fares because of last-minute bookings.

Some see it as similar to ‘pay to play.’ Instead of being accustomed to earning miles to then cash in for free tickets, the leisure flier is seen as being penalized.

Others see it as something far worse – a mile-high caste system where passengers who previously sat in coach and paid less than a passenger in business class yet still earned the same amount of miles, no longer will.

 

@Delta your new Skymiles program isn't innovative; it's elitist, exclusionary and downright insulting. Start planning how you'll undo it now

— His Royal CarlNess (@carl_ness) February 26, 2014

 

Delta released the news at midnight Tuesday night.

According to the press release, “Today's method of earning redeemable miles based on the distance a customer flies will change to a model of earning redeemable miles based on the price of the ticket purchased. Delta is providing 10 months advance notice of the upcoming program changes so that customers have ample time to make travel plans. Customers will be able to earn between five and 11 miles per dollar spent based on their SkyMiles status, and continue to earn up to an additional two miles per dollar when using their Delta SkyMiles Credit Card, for a total of up to 13 miles per dollar. The updated program will better reward the customers who spend more with Delta and give them improved mileage-earning opportunities.”

On its Facebook page, Delta had both its detractors and supporters of the plan. David Troup wrote, “Diamond + multi-million miler here checking in - I hate to say it, but I'm glad you announced this early in the year so I can build status on other airlines. Delta - you just jumped the shark and I'm jumping ship. ;-(“

But Ron Allen posted “Let me get this straight. The guy who spends $500 on a one-way JFK-DCA (213 flight miles) will earn more miles, and is more valuable to DL than the guy who spends $300 one-way JFK-LAX (2475 flight miles). To me, that makes perfect sense. Too bad so many people who suck up available seat-miles at the lowest prices think they are somehow more loyal or valuable to DL than someone else who spends more $$$ with DL, no matter how many miles they fly. It's just plain old common sense people."

Jeff Robertson, Delta’s VP of SkyMiles, said “The introduction of a new model for earning miles will increase rewards for those who spend more as well as differentiate the SkyMiles frequent flyer program for our premium travelers."

The new plan has tiered levels within SkyMiles that offer varying degrees of rewards. A General Member earns five miles per dollar spent; Silver Medallion members earn seven miles, Gold earns eight, Platinum earns nine and Diamond Medallion Members earn 11 miles per dollar spent.

How does it impact travelers? Well, as Fortune pointed out, “For that customer who flies twice a year from New York to Los Angeles on a $650 fare, reserved months in advance, it's a downer. Today, he or she would book 5,000 miles. Under the new program, the credit is just 3,250 miles, or the $650 fare multiplied by five.”

I'm just going to buy and fly my own jet. The airlines have perfected the art of extracting physical and mental pain. http://t.co/sL0mlw6Soh

— Herb Carmen (@HerbCarmen) February 26, 2014