Delta’s recent elimination of SkyMiles accumulation for ticket purchases in the premium cabin of the Airbus A380 is an insult to their customers and an astonishing assault on their own brand.
Delta has been under fire lately for some of its lesser known perks, perks some people say devalue the miles from the from the carriers. In a move that further displeases some customers, Delta has announced that its new partnership with American Express will see the value of its SkyMiles account dramatically reduced.
Delta is known for value and service, but lately they’ve been doing their best to title themselves as ” Delta Sky Fanatics! ” by giving nearly all award seats away to their loyalty programs (SkyMiles and Rapid Rewards) and even to the cheapest non-SkyMiles paying passengers. It’s a move that’s not only short-sighted, but values their most loyal customers at a fraction of their actual worth, and it’s not surprising to see them backsliding.
Delta SkyMiles are being devalued once again in the most petty way possible.
on September 3, 2021 by Gary Leff
As if Delta SkyMiles couldn’t be any worse than it was before the epidemic, they took advantage of the chance when no one was looking to completely destroy the value of their points for partner airline travel.
In September 2020, business class travel between the United States and Europe cost 75,000 miles each trip. The fee was then increased to 120,000 miles each trip, a 60% increase. Delta increased the price of a one-way business class flight from Los Angeles to Southeast Asia to 165,000 miles. American Airlines, on the other hand, will charge you 140,000 miles roundtrip.
They’ve depreciated even utilizing Skypesos in Delta Air Lines Sky Clubs, maybe because they’re worried that someone really traveling the airline would gain value from the SkyMiles program.
According to One Mile at a Time, the cost of spending points for alcohol in their clubs has increased by 30%.
SkyMiles used to be redeemable in their lounges for premium alcoholic drinks at a rate of 2 cents per mile when compared to menu prices. They’ve now lowered the value of a mile to 1.5 cents.
Sure, that’s better than redeeming miles for travel, but alcohol sales may have a larger profit margin, and when you purchase alcohol in a club, you’re not drinking their free booze, so the club saves money as well. To put it another way, expect to go 30 percent farther for a great drink in their clubs than you would previously.
Austin’s Delta Sky Club Bar
The SkyMiles program is so lucrative that it was able to raise $9 billion in liquidity against it last year, so this is hardly a cost-cutting exercise. From American Express alone, the program generates $4 billion a year and is rising.
It should come as no surprise that the program will be devalued. When they went out to raise money, they assured investors – and the SEC – that this was the sort of “flexibility” they had.
In 2019, Delta received 97 percent of redemptions, giving the airline the flexibility to control expenses by adjusting inventory levels and value…. SkyMiles may change the value of a mile depending on demand on any particular day, for as lowering the redemption value on a high-demand day before a holiday.
We’ve learned to anticipate the value of a SkyMile to continue on its decreasing trend, which it has done for the last 15 years. But do they have to add salt to the wounds of members who are drowning their sorrows at the Sky Club by pouring a lovely drink?
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