Wednesday, February 26, 2014

Big changes ahead for frequent fliers on Delta






We found this article at Yahoo News:






ATLANTA (AP) — Delta Air Lines is making fundamental changes to its frequent
flier program and will reward those who buy its priciest tickets, as opposed to
those who fly the most miles.






It will be the first major carrier to
make such a change and other airlines will certainly be watching to see how
travelers react to the change.



Delta said Wednesday that the 2015
SkyMiles program will better recognize frequent business travelers and leisure
customers who buy premium fares.



It's a bid to lure the much-sought-after business traveler, but it will
affect everyone who flies with the carrier and uses the program.






Delta had been moving in the direction of a revenue-based program. In
January 2013 the company said that its 2014 frequent fliers would need to spend
at least $2,500 to qualify for the lowest level of elite status. Previously,
they could qualify on miles alone.






A revenue-based program generally rewards business travelers. Those fliers
are critical to airlines because they book flights on short notice and buy more
expensive tickets, versus the typical leisure traveler that plans a trip well
in advance and hunts for the cheapest fares.






JetBlue Airways Corp.'s "True Blue" frequent flier program already
awards points based on dollars spent, not on miles. And in 2011 Southwest
Airlines Co. changed its frequent flier program to reward more-expensive
tickets.






But the change by a carrier that has the reach of Delta could signal a more
definitive shift in catering more to those sitting in the front of the plane,
rather than the back-seaters.






Delta Air Lines Inc., based in Atlanta, says it's making the announcement
about changes to its SkyMiles program 10 months in advance so customers have
ample time to make travel plans. The new program goes into effect on Jan. 1, 2015.






Delta said that other program updates
will include a new mileage redemption structure that will improve Award seat
availability at the lowest mileage requirement levels; offering One-Way Awards
at half the price of round-trip and providing additional Miles + Cash Award
options.



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