Wednesday, February 26, 2014

More Airlines Turning "Frequent Flyer Programs" to "High Pay Programs"

More airlines are telling travelers that it is not the frequency you fly but how much you pay that will determine mileage credits and status.

Since the publication of this article, United Airlines has joined the "party" and "frequent flyer" will soon be an invalid and outdated term.

From Delta Airlines:
Delta Continuing to Improve the Travel Experience

(February 26, 2013) - Delta Air Lines has taken another step in its ongoing commitment to improve the travel experience by unveiling changes to the SkyMiles program. The 2015 SkyMiles program will introduce a shift from today’s current model in which customers earn redeemable mileage based on distance traveled to one based on ticket price. The program updates will be effective Jan. 1, 2015 and will also include a new mileage redemption structure that will improve Award Seat availability at the lowest mileage requirement levels, offer One-Way Awards at half the price of round-trip, provide Miles + Cash Award options, as well as make significant improvements to delta.com and Delta reservations Award shopping tools.

Today’s announcement is the latest innovation in Delta’s continued effort to rethink and reshape the airline business. During the past five years it has made strategic investments in Virgin Atlantic Airways, AeroMexico and GOL; invested in the newly opened $1.4 billion Terminal 4 at New York’s John F. Kennedy International Airport and the Maynard H. Jackson Jr. International Terminal in Atlanta; built a hub at New York-LaGuardia; made facility improvements at Los Angeles International Airport and Seattle-Tacoma International Airport; created Monroe Energy to provide 80 percent of its annual domestic fuel needs; transformed its fleet strategy including significant reduction in 50-seat aircraft; and invested millions of dollars to improve the customer experience.

A New Mileage Earning Model

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.

Under the new 2015 SkyMiles Program, customers will earn between 5 and 11 miles per U.S. dollar* spent on Delta flights 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.

“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,” said Jeff Robertson, Delta’s vice president – SkyMiles.

The updated mileage earning plan, for travel beginning Jan. 1, 2015, will better recognize frequent business travelers and those less frequent leisure customers who purchase premium fares. The move is consistent with a trend in the travel industry of rewarding customer behavior based on spending. Customers will continue to earn additional miles for purchases with a Delta SkyMiles Credit Card+.

Mileage Earning Chart

 
SkyMiles program status
Miles per dollar*
Miles earned with Credit Card*+
Total miles per dollar*
General SkyMiles member
5
Up to 2
Up to 7
Silver Medallion
7
Up to 2
Up to 9
Gold Medallion
8
Up to 2
Up to 10
Platinum Medallion
9
Up to 2
Up to 11
Diamond Medallion
11
Up to 2
Up to 13
+ on Delta spend

For travel marketed and ticketed by Delta’s partner airlines, members will earn a percentage of miles flown as determined by the fare class purchased and will also earn Medallion mileage bonuses on eligible fares.

Mileage Accrual for Exception Fares
 

Tickets where the fare is not disclosed are those that are issued with a BT, NT or IT indicator (discount fare type code). These tickets (including those issued in international regions) will earn miles based on a percentage of distance flown and the fare class paid as published at delta.com/exceptionfares at the time of travel.

New Redemption Options
 

Up to a Five-Tier Structure for Wider Variety of Awards

SkyMiles members will gain even more redemption options with the introduction of up to a five-tier structure to give them a wider variety of Awards and improve overall availability at the lowest price points. The lowest level for SkyMiles Saver Awards will remain at 25,000 miles plus government-imposed taxes and fees for an Economy Class Award Ticket for travel within the U. S. and Canada excluding Hawaii. All of Delta’s worldwide redemption charts will be updated to reflect the new options in the last quarter of 2014 and will be effective for new Award bookings beginning Jan. 1, 2015.

New One-Way Awards, Additional Miles + Cash Award Options and New Award Shopping

In addition to offering multiple new redemption levels, the SkyMiles program will also introduce One-Way Award Tickets starting as low as 12,500 miles plus government-imposed taxes and fees within the U. S. and Canada excluding Hawaii and will offer customers the ability to redeem Miles + Cash to provide more Award booking options for tickets purchased at delta.com or through Delta reservations.

Access to Every Flight with No Blackout Dates

Customers will continue to have access to every Delta flight for Award travel with no blackout dates. In 2013, frequent flyers redeemed more than 271 billion miles in the SkyMiles program for more than 11 million Award redemptions.

Medallion Status Qualification Requirements Remain Unchanged

The way members qualify for Medallion status is not changing. The redeemable miles earned toward Award Travel differ from Medallion Qualification Miles (MQMs). MQMs are used to calculate Medallion status and will continue to be based on distance flown.

Medallion members will continue to enjoy the same benefits they do now, like Unlimited Complimentary Upgrades, waived baggage fees and Priority Check-In.

Members with Million Miler™ complimentary Medallion annual status and Choice Benefits gifted Medallion status will earn the Medallion mileage bonus for their respective complimentary tier. Members with any other complimentary Medallion status will  not earn a Medallion mileage bonus, so they will earn 5 miles per dollar spent on Delta-marketed or -ticketed flights.

Additional Information and FAQs

Click here to view the complete news release with additional details.

Click here to view answers to frequently asked questions, including corporate, group, meeting and incentive, SkyBonus and leisure bookings.

To view a list of FAQs available on delta.com, please click here.

About Delta and its SkyMiles Program

Delta is the only major airline that offers elite perks such as no mileage expiration, no Award redemption fees, a published Diamond Medallion tier and Rollover Medallion Qualification Miles.

Now in its 33rd year, SkyMiles is one of the longest-running and most successful loyalty programs in the travel industry. Delta offers many ways to redeem frequent flyer miles, including airline tickets on Delta and 28 partner airlines, mileage upgrades, car rentals, hotel stays and Delta Sky Club® memberships, and is the only major airline with miles that don't expire. For more information on the SkyMiles program, Medallion status and mileage redemption options, visit delta.com/skymiles.

Terms and Conditions

For full terms and conditions, please visit delta.com/skymiles2015. All SkyMiles program rules apply. To review the rules, please visit delta.com/skymiles. Other restrictions may apply. Offers, prices, rules and benefits subject to change without notice.

* Ticket price eligible for mileage accrual includes base fare and carrier-imposed surcharges, but excludes government-imposed taxes and fees. Additional miles earned for purchases with a Delta SkyMiles Credit Card from American Express will be based on the total ticket price, including base fare, carrier-imposed surcharges and government-imposed taxes and fees.

Miles on Delta Purchases with U.S. Delta SkyMiles Credit Cards from
American Express:


This offer applies to qualifying Delta, Delta Connection® carrier and Delta Shuttle® flights taken with the purchase of a fare that is eligible for SkyMiles mileage credit. Offer applies to any Delta-branded purchase where Delta is the merchant of record via delta.com or in flight such as upgrades, miles, seat selection, Delta Sky Club membership or passes, pre-purchased meals, food, beverages and in-flight entertainment. Offer applies to Delta Vacations® packages but not other all-inclusive packages. The chart reproduced here is not valid for Delta SkyMiles Options Credit Card Members who only earn a maximum of one additional mile per dollar spent on Delta purchases with their Card. The additional miles offer is subject to change without notice. Bonus miles will be posted to your Delta SkyMiles account 8 to 12 weeks after the end of each month.









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