Do They Justify Abandoning the Program?
On Aug. 15, Delta’s SkyMiles program announced a major change to its loyalty program: “Miles for Award Travel are non-refundable for flights canceled or changed within 72 hours of the original flight departure time. This applies to both outbound and return flights.”
In effect, Delta is forcing members to “use them or lose them” if they encounter circumstances that force an itinerary change within three days of departure.
Mr. Upgrade’s Reaction:
I was ready to write off the Delta SkyMiles program completely after reading about this change. I frequently change my tickets last-minute and need a program that embraces that reality, not one that punishes me by confiscating my miles if I have to change my itinerary at the last minute. Granted, there are real pluses to SkyMiles—premium fare mileage bonuses, multi-credit card friendly, and it oftentimes lets you buy miles cheaper than any other program—but none of these outweigh the right to change my schedule, which greatly lessens the ability to use the program and therefore the value of the program.
But before I throw the program overboard, I decided to consider whether the pluses outweigh this change. Here they are:
Cheaper Domestic First Class Fares
This year Delta has offered some of the lowest domestic First Class fares of any airline, including to Hawaii. From Los Angeles to Maui, Delta’s First Class fare is $1,280, whereas United charges double for the same route—$2,550.
Premium Fare Mileage Bonus
Delta gives a fare-class bonus for Business Class—including promotional fares—of 50% more miles, so you earn miles faster; Continental and United do not.
Fewer Miles and No Co-pay for Domestic Upgrade
Delta charges no co-pay for upgrades and up to 10,000 fewer miles than other major U.S. airlines.
More Credit Card Point Partners
Delta is a transfer partner with two major credit cards, Starwood and Amex Membership Rewards. In fact, it is the only major U.S. airline that is still a transfer partner of the latter, a program with a 500,000-point annual purchase allowance. That can get you a lot of miles—instantly—and therefore into many discount upgrade strategies.
Award-Space Hold Friendly
Delta will let you hold an award seat for up to 48 hours while you transfer credit card points to miles (or buy them), while other programs, such as United’s, require that you have the miles needed for an award in your account at time of booking. (This benefit also applies to Delta’s partners Air France and KLM.) The upshot: You can keep miles in a diversified portfolio such as Amex Membership Rewards, until the award space you need is available, rather than having to bank them in one program, and hope they will have the space you need.
Transfer More Miles Cheaper
Intermittently, Delta and Amex Membership Rewards offer bonus mileage transfer promotions that average 50%. The most recent one (see FCF July 2011) even included free entry-level elite status for first-timers.
Cheaper Taxes
Delta does not charge fuel surcharges on award tickets, which can save up to $800 on an international ticket, compared to carriers like British Airways. (See FCF June 2011 for more).
Buy More Miles Cheaper
Throughout the year, Delta runs mileage-buying promotions that offer up to 100% bonus miles (see page 9 in this issue for more information on Delta’s current offer). These promotions can net up to 120,000 miles instantly at a per-mile cost of only 1.75 ¢. No other U.S. airline lets you buy that many miles at such a low price.
Booking Ease for Partners
Mileage award tickets for Delta partners such as Air France and KLM can be booked online.
Conclusion
While the program doesn’t seem to work for travelers who need the flexibility to make last minute changes—like me—there are reasons to stay with SkyMiles. Only you can be the judge if Delta’s SkyMiles program is feasible for you.