Delta Airlines has announced changes to its frequent flier program that will make it vastly more revenue driven.  Their intent is to get a minimum spend from a flier before granting status in the program.

There are others who can discuss the nuances of the changes.  I want to talk about what is more of a fundamental change than I think most appreciate.

This is a statement by a major airline, the second such statement to be made, that says your status is going to be connected more strongly to how much you actually benefit us (the airline) on an annual basis.

Southwest Airlines did this with its new, much more complex points system in its own program.  If you buy full fare tickets and fly long distances (which are presumably more expensive than short distances), you’re going to be awarded far more points.

Delta didn’t quite go this far but it is saying that it wants a minimum amount of revenue from a customer before it grants status in its program.  It’s no longer about how many points you’ve earned, not entirely anyway.  Points aren’t that hard to acquire (although I would argue that acquiring is silly in the first place in most cases) and airlines are granting upgrades and free tickets to many people who fly quite infrequently and at the lowest economy fare possible.

Not only do I think Delta will stick with this change, I think we’ll see other airlines edge towards similar changes over the next 2 to 3 years.

Why?  Because our airlines have made a clear decision to ensure that they are earning the cost of their capital and they don’t want or need anyone bleeding them of freebies without some basic level of revenue being paid.

Filed under: Airline Service by ajax
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