Dear Cashing In,
a Delta American Express card and am disappointed to see the change to the Delta SkyMiles program.
I am wondering if it's time to switch to another rewards card -- especially
since my annual fee is coming due. I live near a major hub, so I'm not married
to Delta. But are the other carriers also going to be moving to this
"revenue-based" strategy? -- Ben
are changing times for people who participate in airline frequent-flier
programs. You've probably read about how airlines and hotels have been increasing the number of miles and points needed for free flights and hotel rooms.
has announced those kinds of changes in recent months, but what Delta announced in late February is entirely different. It's an
overhaul of how customers who fly on Delta earn frequent-flier miles. Instead
of basing the number of miles earned on the distance of the flight, Delta will
start awarding miles earned based on the fare paid, beginning Jan. 1, 2015.
for example, you pay $400 for a round-trip flight from New York's John F.
Kennedy International Airport to Los Angeles.
Currently, you receive 4,950 Delta SkyMiles, because the distance traveled is 4,950
miles. Under the new rules, though, typical Delta customers would earn just
2,000 SkyMiles -- your $400 fare multiplied by five. The multiple can increase
to as high as 11 miles per dollar if you are an elite-level frequent flier
(determined by a combination of number or distance of flights plus a minimum
this example, under the old structure, you would hit 25,000 miles -- the lowest
level to redeem for an award ticket -- after a little more than five of those flights,
which cost a total of
$2,000. Under the new structure, you would need more than 12 such flights
(totaling $4,800) for the lowest-level award ticket.
sounds like a bad deal compared to what it was, but it will be worse for some
people than others. Business travelers accustomed to paying higher fares
because they book at the last minute could come out ahead. Remember that the
purpose of a loyalty program is to reward a company's best customers.
Getting poll results. Please wait...
important to note here that the SkyMiles you earn from your American Express
Gold Delta SkyMiles card ($95 annual fee, waived first year) do not change.
You earn 1 point per dollar spent, or 2 points on Delta purchases. You also
continue to receive perks such as a free checked bag, priority boarding and
in-flight food and beverage discounts. If you earn most of your Delta miles
through credit card spending, as opposed to flying on Delta, these changes
might not affect you too much.
area Delta has not spelled out is changes on the redemption side. For years,
fliers have complained about stingy award availability on Delta flights at the
lowest redemption levels. In surveys, Delta typically ranks at or
toward the bottom for making award seats available.
the new earning system, Delta promised that it would make available more award
seats at the lowest levels.
hard to say whether these sorts of changes will catch on, but cost-cutting or moneymaking
ideas have a way of spreading in the airline industry. Not so long ago, free
meals on domestic coach flights and free checked bags were commonplace. Now,
you pay for those services.
JetBlue and Virgin America have made similar changes. In those programs, you
earn miles based on how much you spend, and the number of miles required for a
free flight depends on the cost of the ticket. That structure is similar in
concept to some credit card travel reward programs such as the Barclaycard
Arrival card or Capital One Venture card,
which let you redeem points based on the cost of the ticket you buy. Those
kinds of cards can provide ultimate flexibility, and they don't lock you in to
any particular airline.
do cards that reward you with Chase Ultimate Rewards or American Express
Membership Rewards. Points on those cards can be transferred to many different
airline and hotel partners.
no doubt that airlines are trying to clamp down on the Wild West atmosphere that's
pervaded miles redemption for a while now. It might be financially smarter and
help you sleep better to just use a cash-back card instead of gambling that you
can get seats for a family vacation to Hawaii with your miles.
as someone who is planning a family vacation to Hawaii this summer entirely on rewards
earned from credit cards (chiefly sign-up bonuses), I personally find travel-specific
rewards to be a better value, and am willing to take that risk.
just depends what you want and how much time you're willing to invest in keeping
up with rewards and all the changes underway. As always, evaluate your options, study the current deals
and see what works best for you given your spending and travel preferences.
With these programs changing, a lot of travelers will find value in
Meet CreditCards.com's reader Q&A experts Vexed by a personal finance problem?
CreditCards.com's Q&A experts answer questions from readers every weekday. Ask a question, or click on any expert to see their previous answers.
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.
Three most recent Cashing In stories:
Best way to track all those reward points? – How do you make sure you really earned triple points on gas purchases on Card A and the miles you were supposed to when using Card B's online shopping portal? There are no easy answers ...
Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now!