The Delta 2024 Investor Day is taking place today, and as usual, executives at the airline shared some details about the direction the carrier is headed. There was one statistic that’s particularly interesting, which should really make consumers think twice before being loyal to an airline.
In this post:
Delta selling a vast majority of domestic first class seats
As flagged by View from the Wing, Delta executives have today highlighted just how much progress the airline has made when it comes to selling premium seats. Specifically, nowadays just 12% of Delta’s first class seats are going to passengers getting upgrades.
It’s absolutely wild to think how that number has changed over the years. Going back to 2011, Delta only sold 14% of its first class seats. So in 13 years, we’ve seen a more than six-fold increase in the percentage of first class seats sold.
It’s clear in which direction things are headed, as complimentary first class upgrades are increasingly becoming a thing of the past. First class domestically has gone from a cabin that loses money, to one that’s incredibly profitable.
It’s also worth emphasizing how quickly this is changing. Just over a year ago, Delta executives claimed that around 74% of first class seats were being sold, so that increase is continuing, and it sure feels like Delta won’t stop until that number is close to 100%.
Presumably the statistics about the number of first class seats being sold includes cash upgrades, mileage tickets, etc., with just complimentary elite upgrades contributing to that 12%.
Delta attributes a lot of the premium growth to millennials, who have more wealth than prior generations at the same age, and are also willing to splurge more on luxury travel.
Will SkyMiles members be more loyal while receiving less?
I don’t think anyone faults airlines for trying to sell as many first class seats as possible. That’s only logical. I also think Delta in particular does the best job of any US airline when it comes to pricing its first class reasonably, in a way where a leisure traveler could find it to be worthwhile.
Just take the below flight from Tampa to Boston as an example, and you’ll see the reasonable fare premium for each product “upgrade.”
But here’s the challenge, as I see it. In the United States, airlines make a large percentage of their profits from their loyalty programs, and in particular, from their co-brand credit card agreements. Airlines want their loyalty program members to not just be loyal when they book a flight, but also when they pull out their credit card, book a hotel, etc.
Airlines only seem to see upside in this area, and Delta hopes to increase its revenue from Amex by around 50% in the coming years.
If you ask me, those goals are kind of at odds with one another. The airline wants more people to pay for first class — which is totally fair — but also wants more people to be loyal to the airline, when one of the primary perks of elite status is complimentary upgrades.
We’ve seen Delta continue to increase elite requirements, arguing that there’s just such high demand for the carrier’s premium services. But at some point that just becomes pointless, when almost no seats are being “given away” to upgrades.
How does Delta justify this, and think the airline will keep increasing wallet share, while offering less? Well, Delta views SkyMiles as “a manifestation of [the] brand.” In other words, you won’t be loyal to SkyMiles because it offers the most value, but rather because you like Delta as a brand, and therefore you’ll want the company’s credit card.
Is there a certain point at which consumers will stop showing more loyalty to companies while continuing to receive less? Will people vote with their wallet, and look at the overall value proposition of what they’re receiving?
Call me a cynic, but I think Delta management is probably right, and the answer is “no.” The reality is that most consumers aren’t particularly savvy, and aren’t doing much to maximize their rewards. They spend on a credit card that’s connected to an airline or hotel group that they travel with a lot or like, without crunching the numbers and considering if they’re actually getting the best value.
A vast majority of consumers would be best off as “free agents,” not being loyal to any airline, and instead flying the airline with the best value and schedule. They’d also either use a lucrative cash back card, or a card earning transferable points, rather than investing in a program to earn status, only to be disappointed when they don’t get upgraded. But that doesn’t seem to be how most consumers approach things.
Bottom line
Delta is reportedly selling 88% of its first class seats. That’s not surprising, and is roughly what I would have expected. Airlines have gotten much better at monetizing premium cabins, so we’re a long ways off from just over a decade ago, when a vast majority of first class seats went to upgraders.
What’s even more interesting is that the percentage of first class seats being paid for continues to increase by the year, as last year we were told that 74% of first class seats were being sold.
There’s nothing wrong with Delta (or any other airline) selling most of its first class seats. The issue is only that airlines expect their loyalty revenue to continue to increase considerably, while offering members less and less.
What’s your take on the number of first class seats Delta is selling, and what it means for SkyMiles?
After giving up on complimentary upgrades (I am a Platinum) I have started experiencing pretty poor experiences trying to use Delta RUC as well. Delta keeps selling the first class seats some times as low as 50-75 dollars close to the flight dates and leaving zero chance to be able to use RUC's after booking.
The only time you can use RUC now is if nearly the entire first class cabin in unsold - they...
After giving up on complimentary upgrades (I am a Platinum) I have started experiencing pretty poor experiences trying to use Delta RUC as well. Delta keeps selling the first class seats some times as low as 50-75 dollars close to the flight dates and leaving zero chance to be able to use RUC's after booking.
The only time you can use RUC now is if nearly the entire first class cabin in unsold - they seem to save 2 seats for RUC users per flight.
I am giving up on being loyal to any US airline. For International travel I am strongly looking at Singapore Airlines as I fly to Asia frequently. SkyTeam is just awful when it comes to International experiences and the mileage and MQD credit has been severely diluted by Delta and its flying partners.
@Lucky Your Facebook post is off.
Top Headline above the picture - "Delta Selling 88% Of First Class Seats, Up From 14% in 2011"
Headline below the picture - "Delta Selling 74% Of First Class Seats, Up From 14% in 2011"
I'm not loyal at all. I'm about 200k away from lifetime diamond and I think "why bother." I am flying more AA and UAL than ever before, as my loyalty to Delta gets me literally nothing. The upgrade certs are unusable, and I always have to buy FC. I'm going to drop my 2 reserve cards and just say the hell with it. Loyalty is worthless now.
Free upgrades are a US thing. Nowhere else in the world you will see this premium seating as a free perk.
Most airlines aggressively offer a bidding system, or a cash upgrade at check in , if they still have seats available .
Giving away your premium product is a mistake that has been overseen for many years.
Frequent flyers still get perks such free seat selection , waived checked luggage fees...
Free upgrades are a US thing. Nowhere else in the world you will see this premium seating as a free perk.
Most airlines aggressively offer a bidding system, or a cash upgrade at check in , if they still have seats available .
Giving away your premium product is a mistake that has been overseen for many years.
Frequent flyers still get perks such free seat selection , waived checked luggage fees ( which is a generous perk, priority access etc.
I don’t agree that premium cabins are “incredibly profitable “ like you said, but they are priced reasonably for what you get .
Right - but also most other international airlines offer lounge access with elite status, which US airlines don't.
Many people are buying F (since it is cheaper now or accept the buy up option) even though they likely can't afford it. It makes them feel important and many are likely putting it on a CC that they don't pay off every month. These are the same people you see driving BMWs and you know they really can't afford it.
Wow! So elitist!
I’ve been a diamond for a number of years. I could push and get it with the new requirements but decided to drop down to platinum next year and also hold mvp gold with Alaska. I also went from spending 80%-90% of my spend on my DL platinum CC to now spending maybe 10%-15%. I prefer to fly delta, but am no longer paying more and flying less direct… they just don’t offer enough to incentive me to do that anymore.
Other than a couple subscriptions I can't cancel or change (despite my best efforts), I haven't spent a penny on my AmEx Delta-branded Reserve card since 2023.
IMO the problem on these takes is people think the only benefit of high loyalty status is upgrades, which hasn't been a consistent benefit in 5-10 years and probably one of the least occurring loyalty benefits. It seems to be the worst reason to be loyal to an airline. However, all the other perks are extremely valuable. The huge increase in FF awards per flight that have real value, bag fee waivers, decreased lounge access,...
IMO the problem on these takes is people think the only benefit of high loyalty status is upgrades, which hasn't been a consistent benefit in 5-10 years and probably one of the least occurring loyalty benefits. It seems to be the worst reason to be loyal to an airline. However, all the other perks are extremely valuable. The huge increase in FF awards per flight that have real value, bag fee waivers, decreased lounge access, complimentary economy extra seats at booking... These are the real values, but every blog poster always talks about upgrades being the reason for loyalty.
Delta has set the pace for loyalty and credit card programs among US airlines for a decade. AA and UA will follow - and already are.
As for the comments about DL's success driven by its hubs, it doesn't take much research to see that AA and UA get far more revenue from their hubs that are larger than DTW, MSP and SLC is for DL. ATL is a beast but it does not and...
Delta has set the pace for loyalty and credit card programs among US airlines for a decade. AA and UA will follow - and already are.
As for the comments about DL's success driven by its hubs, it doesn't take much research to see that AA and UA get far more revenue from their hubs that are larger than DTW, MSP and SLC is for DL. ATL is a beast but it does not and cannot make up for the larger local markets that are hubs for AA and UA.
DL does as well as it does because it has picked up so many SM members in NYC, LAX, BOS and SEA - all competitive markets where it ALSO has a disproportionate number of corporate accounts -which explains why they are seeing so many new younger customers.
DL simply has achieved revenue premiums across its network - and it is no surprise that AA and UA fan kids find it so hard to admit what DL has achieved.
The US airline industry was deregulated at the same time for AA, DL and UA. If DL really did manage to do something different, then why haven't AA and UA?
I agree that at some point they're killing their golden goose. They built up a reputation that elite status was worth something tangible, namely a decent chance of upgrades. That took many years for people to catch on and slowly change their habits. Now, they're taking that away. And again, it will take some time, but eventually people will move on from loyalty programs, and become free agents. FWIW, if Delta prices their FC cabins...
I agree that at some point they're killing their golden goose. They built up a reputation that elite status was worth something tangible, namely a decent chance of upgrades. That took many years for people to catch on and slowly change their habits. Now, they're taking that away. And again, it will take some time, but eventually people will move on from loyalty programs, and become free agents. FWIW, if Delta prices their FC cabins more reasonably than their competitors, then maybe they win those new free agents anyway, but it won't be because of loyalty, and it will come with much less ancillary revenue like their credit cards.
I think the ultimate winners in all of this will be the credit card companies. The airlines are proving the old adage that a capitalist will sell you the rope with which to hang him. The airlines are more than happy to sell their miles to CC companies and give away status and other benefits in exchange for spending on "their" credit cards. Meanwhile, CCs are busy building lounges, adding transfer partners, and making it more compelling to simply use your points to purchase airfare through their own travel sites. At this point, miles in a single airline program are a nuisance for me. It limits my options, and none of the airlines' programs are good enough to be worth banking a bunch of miles. OTOH, keeping miles in Amex, Chase, Citi, or CapOne is much more preferrable, not to mention their lounges blow away airline lounges. If airline status means nothing, then why not just become fully loyal to a few credit card ecosystems instead?
CC companies are leveraging people's pre-existing loyalty to an airline to get someone into their ecosystem, and then slowly transferring their loyalty to the CC itself. I'm a great example: I originally got the Chase Sapphire Reserve because Chase was the only CC that transfers into United, my program of choice. At the time, United had consistently great redemptions, so it was worth it to get a CC that would transfer into it. But United then degraded its points (if not as worthless as SkyPesos, definitely still less valuable than before) to where now, they're not my first choice of loyalty program. But I'm still with CSR: I love their new lounges, I like being able to transfer points to whichever program gives me the best redemption at the time I need it, and I even appreciate the ability to redeem them for a simple 1.5x conversion on straight travel purchases. At this point, Chase could sever their relationship with United and I couldn't care less. I haven't transferred a point into United in many years, and don't see myself doing so again.
Once CC companies complete this transfer of customer loyalty to themselves, expect to see them turn the screws on their airline partners, and keep most of the profit of those points to themselves.
This is why competition is more important. All these moves are result of having Little too no competition from your hubs.
This is why elite status won't matter much for domestic first upgrades nowadays. The Delta 360 is the new Delta Diamond. Same for United and AA as well. As an AA EP, I missed the upgrades sometimes because the First class seats were sold out so it left with no upgrade availability. This is the new norm now for US Airlines. If you want it, just buy it!
This is true. Look at Delta's boarding policy now. Unless you're 360 or flying first-class/business-class, you're irrelevant. Between 50-60% of a plane in many markets are gold or higher. I flew Detroit to Dallas. Dallas is an American fortress. There were 53 people on the upgrade list on a Tuesday.
So true DM means nothing now as it has been so downgraded! You need to be 360 to sort of count,
The complimentary upgrade culture is very America-centric. The vast majority of non-American FFPs don’t offer complimentary upgrades as perks in the same way, and that does not stop people being loyal. What people want and get out of FFPs is much more complex than just upgrades.
It's not our fault. The airlines started something and instead of just ending it they maintain the facade that you'll get a seat.
Yes, but the lack of free domestic lounge access for elites is also unique to America. If the upgrades go away, US elite programs will be uniquely useless.
Sure, but every elite who actually wants lounge access has it through a paid membership or a credit card. Frankly, I think Delta would get praise for just eliminating elite status. Just drop it all.
"Delta attributes a lot of the premium growth to millennials, who have more wealth than prior generations at the same age"
That's a deceptive line by them. In the major cities Millennials have more. Though in general population, they're farrrrrrrrr behind where the Boomers, and considerably behind GenX, were at their age.
Even the last 5-ish years of GenX (1976-1981, give or take a year) are referred in financial circles as the "Xennials," seeing...
"Delta attributes a lot of the premium growth to millennials, who have more wealth than prior generations at the same age"
That's a deceptive line by them. In the major cities Millennials have more. Though in general population, they're farrrrrrrrr behind where the Boomers, and considerably behind GenX, were at their age.
Even the last 5-ish years of GenX (1976-1981, give or take a year) are referred in financial circles as the "Xennials," seeing as their financial/asset status is more akin to (the struggles of) Millennials, than it is to earlier GenX.
"In the United States, airlines make a large percentage of their profits from their loyalty programs, and in particular, from their co-brand credit card agreements. Airlines want their loyalty program members to not just be loyal when they book a flight, but also when they pull out their credit card..."
You're forgetting that the vast majority of people spend their airlines miles on simple economy tickets. Or other low-value purchases. So they don't care if...
"In the United States, airlines make a large percentage of their profits from their loyalty programs, and in particular, from their co-brand credit card agreements. Airlines want their loyalty program members to not just be loyal when they book a flight, but also when they pull out their credit card..."
You're forgetting that the vast majority of people spend their airlines miles on simple economy tickets. Or other low-value purchases. So they don't care if Delta has zero premium seats available for redemption.
And for those who do redeem for premium seats, how many redeem on Delta as opposed to a partner airlines? I don't know much about Delta, but I've often redeemed United miles for premium tickets - but rarely on United itself. So Delta might be relying on its partners to provide the premium award seats it doesn't provide itself - enough to keep some customers loyal.
Disagree with the “free agent” concept. It’s better to pick and stick with UA or AA and rack up miles that are actually worth something. With status you earn them faster, and have a better chance of sitting up front, and even earning Lucky’s favorite OW emerald.
Or fly delta and enjoy your 7” tv screen with constant interruptions.
Or fly AA and enjoy your 0” no TV only seat cover with constant credit card pitch.
I’ll never get how people that have no affiliation with a company will die on the vine defending it from someone they don’t know who says one slightly negative thing about it.
I have no issue with DL selling seats; they're a business, after all , so good for them (and you get what you pay for is fair). As for loyalty, if their pricing is that reasonable (and apparently very well revenue managed), that alone builds loyalty, as well as the mentioned brand proposition/service. It would also take a closer look at the overall card benefits re loyalty, especially the profits they are making with Amex.
...I have no issue with DL selling seats; they're a business, after all , so good for them (and you get what you pay for is fair). As for loyalty, if their pricing is that reasonable (and apparently very well revenue managed), that alone builds loyalty, as well as the mentioned brand proposition/service. It would also take a closer look at the overall card benefits re loyalty, especially the profits they are making with Amex.
One other factor in loyalty, especially for freq flyers that fly internationally (and therefore usually very profitable, even if they fly Y), are the alliance benefits.
I've never looked at SkyTeam benefits, so maybe I'm missing something....I'm very happy with oneworld elite benefits, I think they're great, which is a main reason that I'm loyal to AA/oneworld. Maybe a comparison of alliance benefits would be a good topic for you in a future post?
Happy travels!
Not wishing to disappoint TD.
“What a belter Delta to only server burger in firster”.
Delta Airlines soon to be known as McDonald’s fly through budget airline.
I can't find anything that supports the slide claiming millennials have higher household wealth than boomers did at the same age. The closest I can find is BLS statistics about how millennials have the widest wealth gap of any generation so far, so maybe they're playing games with median vs mean.
It's probably based on the premise that millenials aren't married and aren't having kids like their parents or grandparents. So, they have more disposable income, at least the ones not stuck with $100,000+ in student loans.
anticipating a calm comments section
Not surprised. Sometimes you can book domestic first class on Delta for a few dollars more than coach. Depending on the distance, it makes sense. Now, what is puzzling to me is what Delta charges for international business class. I am looking at a specific itinerary which has dozens of flight options and a round trip on coach is around $2,500, premium economy is at $5,500 while Delta One is at $12,800. And no, the...
Not surprised. Sometimes you can book domestic first class on Delta for a few dollars more than coach. Depending on the distance, it makes sense. Now, what is puzzling to me is what Delta charges for international business class. I am looking at a specific itinerary which has dozens of flight options and a round trip on coach is around $2,500, premium economy is at $5,500 while Delta One is at $12,800. And no, the cabin is not full, it is just how much Delta is charging for it. Unreal.
I booked Air France business-class, which on the whole is superior than Delta, for $2,400. The option on Delta metal was $5,000.
This was last week. For December 2024.
When is this trip? Delta and other airlines occasionally way, way overprice a flight when they are moving to eliminate a route. By setting the price so high nobody books it and they can cancel without re-accommodating many, if any, passengers.
I don’t think (just my guess) that it is only about possibly removing the route. I annually book DL travel to Europe where there is no question the routes will remain. It is almost as if the judt "throw out" a number early on. If you bite, great. If not, they'll start adjusting downward trying to "walk down the demand curve."
You would have to be a complete sucker to pay $12,000 for Delta business-class on any route, at any time of the year. I bought a $7,100 ticket once when a client required me to fly to Guam on about 36 hours notice. While I was allowed to do so under the contract, they weren't happy and the contract wasn't renewed when it expired.
I am looking to fly to Brazil around December 18 to return after the New Year. Flexible 2 or 3 days around those dates. The cheapest option at around $10k is through MCO with a high layover which makes no sense. Anything through Atlanta or JFK is over $11k.
Try searching for a flight originating in Monterey, Mexico City or Cancun. Alternatively, try San Juan or Santo Domingo.
Delta offers a cheaper cash upgrade after you purchase the ticket. It happened to me a few times. My recent trip from HND to LAX. Booked on one-way economy class, $550, a month before the trip, offered $280 to upgrade to Premium Economy. PE would cost me $1800 if I book at the beginning. It depends on the market, but I would never pay their absurd international business-class fares. I'm glad I live in LA, which has more options, especially on foreign carriers.
Sometimes the buy-up after purchasing the original ticket is cheaper, but not always. Just like sometimes two one-ways can be cheaper. But not always. That said, Delta's computer does seem to different upgrade prices based on elite tier or no status. The theory being that offering a cheap upgrade to a customer with low status or no status will get them hooked on buying premium products.
There is probably a segment of their customer base that either has to fly Delta instead of a partner (corporate contract, etc.), or who have convinced themselves that a US-flagged carrier must be better and safer (and with English-speaking staff and familiar food) than any foreign carrier. I’ve known educated colleagues at work who have paid more to fly American instead of JAL or Qatar for exactly this reason. *eyeroll* *smirk*
There are also some people who are fly a US-flagged airline out of a patriotic sense of duty. Just like there are people who would never buy a foreign car even if some foreign cars are objectively more American than an American car.
The pay to sit up front is here to stay. I have no issue with it. I don't expect a business to give me endless free stuff. That being said, this Spirit like approach to the premium cabin is bullsh%t. When I pay to sit up front, whether buying outright or paying a cash upgrade I do so for the entire "experience." That includes picking up own seat from what's available, a meal if within...
The pay to sit up front is here to stay. I have no issue with it. I don't expect a business to give me endless free stuff. That being said, this Spirit like approach to the premium cabin is bullsh%t. When I pay to sit up front, whether buying outright or paying a cash upgrade I do so for the entire "experience." That includes picking up own seat from what's available, a meal if within the meal window, preferred check in (which admittedly I rarely have a need for but if I do is important). Not to go through the Frontier Airlines booking process.
Unfortunately this is a monkey see/monkey do business so I expect AA (my airline) and UA to follow suit.
You got one thing wrong: North American airlines make a fair amount of REVENUE by selling miles, not profits. Profits are made by flying, whether it's paid in cash or miles. Miles are also used as a form of rebate, i.e. when you pay by cash some of it comes back to you in the form of miles.
When you pay cash, airlines can spend on rebate in miles or in improving their product. DL...
You got one thing wrong: North American airlines make a fair amount of REVENUE by selling miles, not profits. Profits are made by flying, whether it's paid in cash or miles. Miles are also used as a form of rebate, i.e. when you pay by cash some of it comes back to you in the form of miles.
When you pay cash, airlines can spend on rebate in miles or in improving their product. DL chose the latter, and to the scorn of the miles support industry ("SkyMiles"), their financials and their customer satisfaction says they've been making the right choice.
If you're going to buy premium class.domestically, you'd be throwing money away if you bought AA instead if DL.
Go ask Tim Dunn to tell you how wrong you are.
The key is, as Ben showed on the example fare breakdown, that Delta prices the F cabin very reasonably. I can’t say the same for AA, who are consistently hundreds more than DL/UA on the same routes
Also not sure if I’m buying the “millennials are rich” reasoning. Some may be, especially the vain Instagram bunch, but the data says otherwise for the majority of that age cohort
It depends on the market. I originate from a small airport and connect into DTW on every single flight. Sometimes I have to make a double connection through ATL, SLC or LGA/JFK because a nonstop out of DTW isn’t an option. An economy (main cabin) ticket to pretty much any airport in the Continental USA will cost me $600-$900. First-class is generally $1,250-$1,800 with sufficient lead time. In my experience, first is generally double the...
It depends on the market. I originate from a small airport and connect into DTW on every single flight. Sometimes I have to make a double connection through ATL, SLC or LGA/JFK because a nonstop out of DTW isn’t an option. An economy (main cabin) ticket to pretty much any airport in the Continental USA will cost me $600-$900. First-class is generally $1,250-$1,800 with sufficient lead time. In my experience, first is generally double the price of economy. But I also don’t live in a remotely competitive market. If I lived in Tampa, I could easily fly out of Tampa, Orlando, Sarasota or even Fort Myers.
I don’t know, on the routes I fly AA first is always several hundred dollars less than United or Delta.
Delta First class is always expensive from DTW. As much as I hate it, I don’t recall the last time I flew anything but Delta. Even with its higher prices, it is still cheaper than other options at DTW and its schedule just can’t be beat. That keeps me hooked to them.
There has to be a happy medium between encouraging and recognizing spend and recognizing and rewarding loyalty.
The idea that a customer who flies 150,000 miles or 125 segments a year all within the USA and always, because of corporate policy, books an economy ticket is somehow less valuable than the guy who flies internationally four times a year on $5,500 Delta One tickets is absurd.
Delta seems incredibly detached from the vast majority of...
There has to be a happy medium between encouraging and recognizing spend and recognizing and rewarding loyalty.
The idea that a customer who flies 150,000 miles or 125 segments a year all within the USA and always, because of corporate policy, books an economy ticket is somehow less valuable than the guy who flies internationally four times a year on $5,500 Delta One tickets is absurd.
Delta seems incredibly detached from the vast majority of Americans who don’t fly Los Angeles or San Francisco to New York. There are a lot more people flying vanilla routes; like Detroit to Dallas.
I've done this to an extent with my AA Silver Barclays. Prior to this year, I usually got around 400K LPs. I'm only trying to get EXP this year. I've distributed a lot of spending to my Chase Sapphire Card (along with unlimited card) and have really enjoyed transferring points to various brands, esp if there is a transfer bonus. Upgrades are just harder to come by these days. I do value the EXP status,...
I've done this to an extent with my AA Silver Barclays. Prior to this year, I usually got around 400K LPs. I'm only trying to get EXP this year. I've distributed a lot of spending to my Chase Sapphire Card (along with unlimited card) and have really enjoyed transferring points to various brands, esp if there is a transfer bonus. Upgrades are just harder to come by these days. I do value the EXP status, but beyond 200K LPs, I feel like I can get better value and redemptions elsewhere.
Delta is selling-out its cabins because on many planes there aren’t enough seats. Delta is adding seats to Delta One and domestic first. Right now, there are often zero alternative flight options when someone goes wrong because first or business is sold-out.
Lucky, the reason Delta can get away with this is because they have such high seat share in their hub cities, much more so than UA or even AA. If you live in Atlanta, Detroit, or Minneapolis, what other choices do you have? Other carriers have more competitive hubs so they need to offer somewhat more value in their loyalty programs.
@ Dolphin -- You're absolutely right that this is largely why SkyMiles does well, despite not offering great value. The part that's unfortunate is that consumers could do better with rewards by just using a generic cash back card, and then using that money to book the Delta products that they want.
It’s just Atlanta, Minneapolis and Detroit. It’s all the secondary cities within the surrounding multi-state region. All of Michigan, Ohio, Indiana, most of Wisconsin, Kentucky, half of Virginia, Tennessee, half of the Carolinas, Alabama, Mississippi, the Dakotas, Iowa. Delta is more or less the only option, at least for anyone in the Midwest, Great Lakes and Southeast.
And in markets like SFO, LAX and JFK/LGA, Delta is doing very well by catering to the...
It’s just Atlanta, Minneapolis and Detroit. It’s all the secondary cities within the surrounding multi-state region. All of Michigan, Ohio, Indiana, most of Wisconsin, Kentucky, half of Virginia, Tennessee, half of the Carolinas, Alabama, Mississippi, the Dakotas, Iowa. Delta is more or less the only option, at least for anyone in the Midwest, Great Lakes and Southeast.
And in markets like SFO, LAX and JFK/LGA, Delta is doing very well by catering to the rich who aren’t rich enough for a private plane.
@FNT. I think nearly any state you mentioned would disagree with you about their options for one-stop travel unless they're just going to ATL, DTW, or MSP.
Sure, there are options but there is no question that Delta dominates the regions encompassing Minneapolis, Detroit and Atlanta, especially with business travelers.
@Ben, not to be nitpicky but I've noticed you using the term "cash back" lately in a manner I find confusing. To me, a "cash back" card is literally just that -- percentage of spend that is available as cash-equivalent to cover previous purchases or use in some 1:1 redemption strategy (one cent being one cent). Transferrable points cards, like the vast majority of those reviewed on this blog, are certainly not "cash back" cards.
...@Ben, not to be nitpicky but I've noticed you using the term "cash back" lately in a manner I find confusing. To me, a "cash back" card is literally just that -- percentage of spend that is available as cash-equivalent to cover previous purchases or use in some 1:1 redemption strategy (one cent being one cent). Transferrable points cards, like the vast majority of those reviewed on this blog, are certainly not "cash back" cards.
As an example... in a recent article you made a statement along the lines of "I would consider 2% to be the absolute minimum on a cash back card". Really?? Surely you mean 2% on a transferrable points card for non-categorical spend? Few of us would consider 2% on a pure cash back card to be anywhere near approaching a good deal.
So... to circle this back to the comment above, no a generic cash back card would likely not be a great alternative for someone who primarily flies Delta. A basic transferable points card like Amex ED could be, although I'd argue the 15% off with Delta Gold is compelling enough for those travelling multiple Delta flights per year.