Delta’s New Three-Layer Cake

September 2008
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Less satisfying, more expensive

When carriers revise award programs these days, it’s usually a case of demanding more for less. That generalization was reinforced on July 30, when Delta announced a new worldwide three-tier frequent-flyer award program, replacing its existing two-tier structure. The carrier’s designations for the new tiers are “Discounted,” “Expanded,” and “Last Seat.”

“It’s all about Award Travel with flexibility – something our customers have been asking for,” said Jeff Robertson, managing director of Delta’s SkyMiles, describing the new program. Have those customers also been asking for confusion and increased award levels? That’s what they’ll find with this update of the same old Three-Card Monte game.

“Last Seat” means an Anytime Award. The in-between option, “Expanded,” is a costly version of saver awards, offering more award seats but requiring more miles than before. “Discount” pretty much means “impossible to get” at a rate that previously was nearly impossible to get.

Examples of new award levels for First Class seats on routes within the continental United States, Alaska, and Canada are: “Discounted,” 45,000 miles round-trip; “Expanded,” 80,000 miles round-trip; and “Last Seat,” 100,000 miles round-trip. As consumer-hostile as Delta’s changes are, the program could be worse. It could be similar to the flex program Qantas just announced (FCF, Aug. ’08), in which mileage redemption rates vary depending upon demand. (An “Any Seat Award” on Qantas from Los Angeles to Sydney for travel mid-September will set you back 1,906,957 points under the carrier’s new system.)

Two-tier plans were basically schemes to get members to pay more for the “Last Seat.” But eventually the last seat was unavailable, even at upper-tier rates. The three-tier system addresses that by charging more for the last seat, making the big middle available at slightly lower rates, and making the bottom tier the world’s most difficult Easter egg hunt. The worst part about it is that it’s being offered by one of the US majors. If it flies, the others might follow suit.

Less satisfying, more expensive

When carriers revise award programs these days, it’s usually a case of demanding more for less. That generalization was reinforced on July 30, when Delta announced a new worldwide three-tier frequent-flyer award program, replacing its existing two-tier structure. The carrier’s designations for the new tiers are “Discounted,” “Expanded,” and “Last Seat.”

“It’s all about Award Travel with flexibility – something our customers have been asking for,” said Jeff Robertson, managing director of Delta’s SkyMiles, describing the new program. Have those customers also been asking for confusion and increased award levels? That’s what they’ll find with this update of the same old Three-Card Monte game.

“Last Seat” means an Anytime Award. The in-between option, “Expanded,” is a costly version of saver awards, offering more award seats but requiring more miles than before. “Discount” pretty much means “impossible to get” at a rate that previously was nearly impossible to get.

Examples of new award levels for First Class seats on routes within the continental United States, Alaska, and Canada are: “Discounted,” 45,000 miles round-trip; “Expanded,” 80,000 miles round-trip; and “Last Seat,” 100,000 miles round-trip. As consumer-hostile as Delta’s changes are, the program could be worse. It could be similar to the flex...

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