When Delta failed to change its loyalty program in time, its competitors inevitably followed.
Earlier this month, Delta Air Lines revealed it would limit access to its beloved Sky Club lounges to many American Express customers and reward elite members based on how much customers spend.
The news didn’t go down well with customers: many accepted it social media Warn they will switch to another operator with better benefits.
I am disappointed @delta and new #“SkyMiles Frequent Miles Program” Program. I have been a committed traveler for nearly 20 years, the last 7 years a Diamond Medal.I think @delta Doesn’t care about its loyal customers.
Although I don’t want one, I will look at other airlines’ frequent flyer programs.— Elliot N. (@Eveliod) September 24, 2023
However, Delta CEO Ed Bastian has heard the message loud and clear and is now promising his team will roll out a series of policy changes in the coming weeks.
In an interview with the Rotary Club of Atlanta, Bastian explained that the company was overwhelmed with high-end travelers after the outbreak, and passengers were allowed to carry over their status and air miles into next year despite the grounding of flights.
Bastian said the airline now has more “diamond” customers (those who spend $20,000 per year in addition to flying 125,000 miles or 140 takeoff-to-landing “segments”) due to the coronavirus pandemic. Doubled, adding: “All of our diamond clients are special, but we have a lot of them.”
“Honestly, our demand for quality products and services is so great that it far exceeds the ability of our assets to effectively serve it,” Bastian told the Atlanta audience. “Whether it’s Delta One, whether it’s Sky Club, whether it’s a certificate of upgrade, whether it’s a special agent line that answers the phone right when you call.”
He added: “We have to find a way to continue to serve people at all levels effectively, so we did announce some changes.”
This update angers Delta Air Lines’ elite fliers include announcements Platinum and Business Platinum American Express customers are capped at six Club Sky visits per year.
At the same time, Delta SkyMiles Platinum Card members, American Express Business Platinum Card members and Basic Economy Class passengers will not be able to use the long-term card.
Bastian noted that many of the changes would not take effect until 2025, joking: “You would think they would happen tomorrow,” but said updates to the policy would be announced in the coming weeks.
Delta Air Lines did not immediately respond of wealth Requesting comment on guidance on when these updates will be made public.
“Giving back is a gift”
Bastian acknowledged that a plan to overhaul Delta’s travel benefits was a little off, and justified the overhaul by citing the fact that the company doesn’t want to keep changing its rules year after year.
“We need to make sure we can provide our higher class travelers with the premium experience they deserve and expect,” the Atlanta-based airline’s boss said. “There’s no doubt we may have gone too far and our team Wanting to rip the Band-Aid off and not have to go through this little thing every year.”
“I think we moved too fast, so we’re looking at it now,” Bastian admitted. “We’re in a people’s business and we want everyone to have the highest level of service, but that’s far from it.” beyond our current asset base and our current position is unsustainable.”
But while Bastian hinted that he personally received a barrage of criticism and that customer service agents answered the phone, he said customer responses to the topic were a “gift.”
“I’m grateful, I really am, because it’s important,” Bastian said. “Things like these feedbacks, you realize how much people, especially our loyal travelers, love our company, they love what we do, they love our service.
“Feedback is important. We are still evaluating what we are doing, but there will be modifications.”
Yes. I’m doing both.Go to hell @delta
20 years, $100K+, 45 countries – I’m out
— Kojo Douglas’s 115th dream ☮️ 🇬🇭 (@kojodoug) September 14, 2023
“Easy” to deal with competition
Delta’s rivals are wasting no time trying to lure angry customers away from the airline.
“‘Frustrated’ by changes to once most popular loyalty program?” JetBlue Airways wrote in the release Following Delta’s announcement in early September, he added: “We have the answer.
“Breaking up is hard to do. But who has to know? We make it easy for you to adapt to your new loyalty program and understand its progress.”
Alaska Airlines has adopted a similar strategy. Earlier this week, the company released a coy ad for those who “no longer love airline loyalty programs” asking: “Do you feel like you have to be a millionaire to truly achieve status?”
Do you know someone who no longer loves their airline loyalty program? 💔 We’ll match their status and more with America’s #1 Airline Loyalty Program (Nerdwallet 2023). learn more: pic.twitter.com/n6zJXX69OC
— Alaska Airlines (@AlaskaAir) September 24, 2023
Company new products specifically defined Delta’s outbound passengers can be “status matched” into Alaska Airlines’ program, which even commits to upgrading the status of Delta passengers who will maintain their status through 2024.
However, JetBlue and Alaska Airlines are up against a much larger competitor.Delta Air Lines owns approx. 200 million customers JetBlue operates 4,000 flights per year, operating daily 40 million customers It operates 1,000 flights daily.
Meanwhile, Alaska Airlines boasts 46 million customers and 1,300 daily flights.
Delta also has the added advantage of being the oldest brand, Founded in 1925 Alaska Airlines was founded in 1932 and JetBlue in 2000.
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