Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
DL Amex Card Adds More Features. Why?  
User currently offlineenilria From Canada, joined Feb 2008, 7720 posts, RR: 15
Posted (3 years 4 months 3 weeks 6 days 15 hours ago) and read 4993 times:

There is a new press release for the Amex Delta SkyMiles that I find very interesting...
http://www.marketwatch.com/story/get...ss-2011-08-02?reflink=MW_news_stmp

They are now offering priority boarding for people with the card and discounts on BOB items. I find this interesting because the Amex card program already has way more features than other airline cards including skipping the security lines for some and most importantly FREE BAGS. Why would they need to offer yet another freebie to card members when bag fly free is already such a big deal? I suspect I know. They are going to roll out free bags in ATL up against WN and as a result they needed something else unique to offer Amex card members. What do you think of my theory?

23 replies: All unread, jump to last
 
User currently offlineTWFirst From Vatican City, joined Apr 2000, 6346 posts, RR: 51
Reply 1, posted (3 years 4 months 3 weeks 6 days 15 hours ago) and read 4895 times:

The reason is to compete with (and offer more value than) the new Chase MileagePlus Explorer card.

Trust me  



An unexamined life isn't worth living.
User currently offlineFWAERJ From United States of America, joined Jun 2006, 3833 posts, RR: 2
Reply 2, posted (3 years 4 months 3 weeks 6 days 14 hours ago) and read 4833 times:

Quoting TWFirst (Reply 1):
The reason is to compete with (and offer more value than) the new Chase MileagePlus Explorer card.

  

When the Chase/UA MileagePlus Explorer Visa came out, Chase put up a chart on their website to prove that their card was better than the Delta SkyMiles AmEx (among other forms of plastic). I guess this is American Express and Delta's way of retaliating.

Also of note: there has been a big rivalry as of late between JPMorgan Chase and American Express in the credit card business. It all started when Chase hired away a bunch of key AmEx execs to run Chase Card Services, and has gotten more intense since.



"Did he really need the triple bypass? Or was it the miles?"
User currently offlineSkyPriorityDTW From United States of America, joined Oct 2010, 187 posts, RR: 1
Reply 3, posted (3 years 4 months 3 weeks 6 days 11 hours ago) and read 4465 times:

Wrong... this has been in the pipeline for a while now. In fact, I recall a DeltaNet post about this back in April. We get A LOT of revenue from American Express off of the card, therefore it just makes business sense to make the card more marketable. This will encourage A LOT of people to sign up!


Keep Climbing...
User currently offlineFlyASAGuy2005 From United States of America, joined Sep 2007, 7004 posts, RR: 7
Reply 4, posted (3 years 4 months 3 weeks 6 days 11 hours ago) and read 4422 times:

Quoting TWFirst (Reply 1):
The reason is to compete with (and offer more value than) the new Chase MileagePlus Explorer card.

Trust me
Quoting FWAERJ (Reply 2):

When the Chase/UA MileagePlus Explorer Visa came out, Chase put up a chart on their website to prove that their card was better than the Delta SkyMiles AmEx (among other forms of plastic). I guess this is American Express and Delta's way of retaliating.

Also of note: there has been a big rivalry as of late between JPMorgan Chase and American Express in the credit card business. It all started when Chase hired away a bunch of key AmEx execs to run Chase Card Services, and has gotten more intense since.

Well, I guess you got your answer. Everything isn't a conspiricy. And I DO NOT see DL offering free bags in Atlanta because of WN. The customers that they may or may not loose does not add up to the $1B in added revenue that they saw.

[Edited 2011-08-02 13:30:32]


What gets measured gets done.
User currently offlineTWFirst From Vatican City, joined Apr 2000, 6346 posts, RR: 51
Reply 5, posted (3 years 4 months 3 weeks 5 days 16 hours ago) and read 3857 times:

Quoting SkyPriorityDTW (Reply 3):
Wrong... this has been in the pipeline for a while now. In fact, I recall a DeltaNet post about this back in April. We get A LOT of revenue from American Express off of the card, therefore it just makes business sense to make the card more marketable. This will encourage A LOT of people to sign up!

Exactly... it make business sense to make the card more marketable... AGAINST CHASE. You think AmEx didn't have in inkling about the new Chase card benefits before it was launched?

You may work for the co-brand partner... but I just left the issuer a couple months ago.



An unexamined life isn't worth living.
User currently offlineIAHFLYR From United States of America, joined Jun 2005, 4790 posts, RR: 22
Reply 6, posted (3 years 4 months 3 weeks 5 days 16 hours ago) and read 3827 times:

Quoting enilria (Thread starter):
including skipping the security lines for some

Really? Exactly how does an AMEX card authorize some to skip security?



Any views shared are strictly my own and do not a represent those of any former employer.
User currently offlineordjoe From United States of America, joined Aug 2010, 752 posts, RR: 0
Reply 7, posted (3 years 4 months 3 weeks 5 days 15 hours ago) and read 3796 times:

Hmm it seems silver medallion status has been devalued so much you can pretty much get that status by just getting that card.

User currently offlineLipeGIG From Brazil, joined May 2005, 11459 posts, RR: 58
Reply 8, posted (3 years 4 months 3 weeks 5 days 15 hours ago) and read 3789 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting SkyPriorityDTW (Reply 3):
Wrong... this has been in the pipeline for a while now. In fact, I recall a DeltaNet post about this back in April. We get A LOT of revenue from American Express off of the card, therefore it just makes business sense to make the card more marketable. This will encourage A LOT of people to sign up!

Very good point. Credit cards got up to 3% in revenue from every purchase. Delta probably got from American Express a portion of this, so the most attractive the card is, the more expenses generates.
As you said, the concept is to bring the idea that the card allows a simple card holder that pays US$ 100 a year in fee (and part of it also goes to DL cashflow) become an elite without having to fly so much.

Quoting IAHFLYR (Reply 6):
Really? Exactly how does an AMEX card authorize some to skip security?

Not to skip but to use the same line as elites.



New York + Rio de Janeiro = One of the best combinations !
User currently offlinessublyme From United States of America, joined Dec 2008, 517 posts, RR: 0
Reply 9, posted (3 years 4 months 3 weeks 5 days 15 hours ago) and read 3738 times:

I'd get the cart myself just to be able to skip security  , but the poster did mention skip security lines, not security outright.

Quoting IAHFLYR (Reply 6):
Really? Exactly how does an AMEX card authorize some to skip security?


User currently offlineLDVAviation From United States of America, joined Dec 2008, 1118 posts, RR: 5
Reply 10, posted (3 years 4 months 3 weeks 5 days 15 hours ago) and read 3689 times:

Quoting LipeGIG (Reply 8):
Very good point. Credit cards got up to 3% in revenue from every purchase. Delta probably got from American Express a portion of this, so the most attractive the card is, the more expenses generates.
As you said, the concept is to bring the idea that the card allows a simple card holder that pays US$ 100 a year in fee (and part of it also goes to DL cashflow) become an elite without having to fly so much.

I find it very unlikely that AmEx is giving Delta a cut of their transaction fees. Plus, it is primarily a miles for cash deal between AmEx and Delta.

That's how AmEx ended up turning SkyMiles into SkyPesos. It bought a lot of Delta miles at a very low cost because Delta needed the money following its bankruptcy declaration. It then flooded the market with them.

While we are just speculating, I would say that for the average card holder miles, particularly SkyPesos, have become meaningless. What Amex is doing then is replacing incentives based on miles with incentives based on items that have a more tangible value for the average card holder.

As far as its relationship with Delta goes, these items are still monetized in term of miles in exchange for cash. Or, so I would argue.

[Edited 2011-08-03 10:18:33]

User currently offlineTWFirst From Vatican City, joined Apr 2000, 6346 posts, RR: 51
Reply 11, posted (3 years 4 months 3 weeks 5 days 13 hours ago) and read 3499 times:

Quoting LDVAviation (Reply 10):
I find it very unlikely that AmEx is giving Delta a cut of their transaction fees. Plus, it is primarily a miles for cash deal between AmEx and Delta.

That's how AmEx ended up turning SkyMiles into SkyPesos. It bought a lot of Delta miles at a very low cost because Delta needed the money following its bankruptcy declaration. It then flooded the market with them.

  



An unexamined life isn't worth living.
User currently offlineIAHFLYR From United States of America, joined Jun 2005, 4790 posts, RR: 22
Reply 12, posted (3 years 4 months 3 weeks 5 days 9 hours ago) and read 3294 times:

Quoting ssublyme (Reply 9):
I'd get the cart myself just to be able to skip security , but the poster did mention skip security lines, not security outright



yadayadayada......  Okay already, I was simply hoping to skip the entire process as I already get to skip the lines.

Anyone else curious if the AMEX and Delta new agreement is in part due to the AMEX and Continental agreement ending next month to convert AMEX Membership Miles into OnePass miles?



Any views shared are strictly my own and do not a represent those of any former employer.
User currently offlineordjoe From United States of America, joined Aug 2010, 752 posts, RR: 0
Reply 13, posted (3 years 4 months 3 weeks 5 days 7 hours ago) and read 3134 times:

Quoting LDVAviation (Reply 10):
While we are just speculating, I would say that for the average card holder miles, particularly SkyPesos, have become meaningless. What Amex is doing then is replacing incentives based on miles with incentives based on items that have a more tangible value for the average card holder.

  


User currently offlineslcdeltarumd11 From United States of America, joined Jan 2004, 3640 posts, RR: 0
Reply 14, posted (3 years 4 months 3 weeks 5 days 5 hours ago) and read 2976 times:

Quoting LDVAviation (Reply 10):
While we are just speculating, I would say that for the average card holder miles, particularly SkyPesos, have become meaningless. What Amex is doing then is replacing incentives based on miles with incentives based on items that have a more tangible value for the average card holder.

Exactly Delta miles have become so hard for the average person to redeem


User currently offlineenilria From Canada, joined Feb 2008, 7720 posts, RR: 15
Reply 15, posted (3 years 4 months 3 weeks 5 days 4 hours ago) and read 2951 times:

Quoting IAHFLYR (Reply 6):
Quoting enilria (Thread starter):
including skipping the security lines for some

Really? Exactly how does an AMEX card authorize some to skip security?

It says that with the Amex Reserve Card or something like that you can skip the security lines like FFP elites do. You don't skip security as you implied, but skip the line as I stated.


User currently offlinesampa737 From Brazil, joined May 2005, 637 posts, RR: 1
Reply 16, posted (3 years 4 months 3 weeks 5 days 4 hours ago) and read 2913 times:

I'm a Platinum AmEx DL Card member. I fly international, primarily Brasil-US-Brasil. I rack up miles quickly using the card everywhere. The free bags are a great perk. But I must admit that AA's miles are easy to use and you use less of them on certain flights. In fact I just received an AA Visa with Chase, I think it is.

This fall I'm going to the US. On Delta, it was going to cost me 75,000 Skymiles; on AA just 52,500. I'm thinking of tearing up my AmEx.


User currently offlineBD338 From United States of America, joined Jul 2010, 740 posts, RR: 0
Reply 17, posted (3 years 4 months 3 weeks 4 days 21 hours ago) and read 2682 times:

Quoting ordjoe (Reply 7):
Hmm it seems silver medallion status has been devalued so much you can pretty much get that status by just getting that card.

Yep, anything Gold Amex and above would now get the early boarding (I assume zone 2) and a free bag, upgrades at the Silver level are nearly impossible so that is a nearly worthless benefit, cost $95-$150 a year (to Amex and not DL) instead of $1000's for the flights. For another $300 for a reserve card I can get all the above plus free skyclub access and sky priority at the security line. Sky priority takes a Gold Medallian status so even more $$'s for actual flight miles. Why fly DL to gain status when you could just spend on a credit card and get nearly the same benefits? How long until Amex rolls out a 25% flight mile bonus for all card members? Did DL sell its soul in bankruptcy for short term Amex cash and is now suffering the consequences of giving away benefits that would normally be earned through DL loyalty?

Still, US Airways has been offering priority boarding for Dividend Miles Mastercard holders for a long while.


User currently offlineTeamInTheSky From United States of America, joined Apr 2011, 538 posts, RR: 0
Reply 18, posted (3 years 4 months 3 weeks 4 days 20 hours ago) and read 2626 times:

Quoting BD338 (Reply 17):
Yep, anything Gold Amex and above would now get the early boarding (I assume zone 2) and a free bag, upgrades at the Silver level are nearly impossible so that is a nearly worthless benefit, cost $95-$150 a year (to Amex and not DL) instead of $1000's for the flights. For another $300 for a reserve card I can get all the above plus free skyclub access and sky priority at the security line. Sky priority takes a Gold Medallian status so even more $$'s for actual flight miles. Why fly DL to gain status when you could just spend on a credit card and get nearly the same benefits? How long until Amex rolls out a 25% flight mile bonus for all card members?

As a Gold Card Member and was and soon to be again Silver, I respectfully disagree. While the priority boarding through holding the card is a slap at Silver, you do actually get upgraded quite often as a Silver (at least on the domestic flights I normally take. Also, these bonuses, as you pointed out, are similar to other cards benefits for other carriers, so AMEX is simply trying to remain competitive. Also, since I fly internationally, first bag free doesn't really matter. As a Silver, I will be able to check two bags for free, which will be nice. You also get priority check-in as a Silver which (currently) the Gold Card does give you.

I will say in regards to the Delta Reserve, unless you are a Diamond or just have a ton of miles to burn on getting Sky Club access, having that card is great if you travel all the time.



Since 2010: DL, KL, AF, WX, IG, FR , FL, U2, AK, BA, OK, UX, VS, VN, K6, AT, US, AY, BE, EI, LG, AZ, 9W, SG
User currently offlinedartland From United States of America, joined Apr 2005, 646 posts, RR: 2
Reply 19, posted (3 years 4 months 3 weeks 4 days 15 hours ago) and read 2484 times:
Support Airliners.net - become a First Class Member!

Credit card companies are the sugar-daddies of the airlines. It's a mutualistic relationship -- airlines bring customers and transaction volume, credit card companies provide enough cash to keep airlines afloat. Remember that some of those same banks invested in airlines when they were in bankruptcy --- they rely on the airline to keep flying as much as Boeing, Airbus, et al.

DL has always been supported by Amex
UA and CO by JPMC
AA by Citi

The JPMC relationship made the UA + CO merger that much easier.

The financial relationship is basically just the buying of points. This relationship aligns incentives: The airlines and the bank both want as much charge volume as possible. For the bank, the benefit is obvious (it's their core business model). For the airline, they get paid for each mile -- generally to the tune of $0.005 to $0.006 (this number is proprietary, but ballpark). And of course there is a loyalty aspect to having their name on a card in your wallet.

As competition for card products heats up with new bells and whistles, airlines have had to do more to make their cards attractive. US Airways first had priority boarding years ago. Several cards had free baggage over the last year, and now there are even more elite-like privileges that an airline is happy to give to cardmembers in exchange for the revenue stream from the bank (and perhaps some increased loyalty).

One of the big changes in the last few years has been the growth of non-airline travel rewards cards, such as Capital One's Voyager Card with the 100,000 mile match this past spring and lots of television ads promoting their "no blackout" dates use of miles.

This has created more competition for airline co-brand cards, and certainly forced them to pick up their game.

Finally -- I think this is a good time to remember that loyalty and rewards are not the same thing. Capital One is a rewards card, NOT a loyalty card. A co-branded airline card is both. This is important because loyalty is a HUGE revenue driver for airlines, hence they created the first-ever loyatly programs (AAdvantage was the first in 1981). Because of this, airlines should always be willing and able to do more for their cardmembers than generic rewards programs. What we see here with the new United and Delta cards is a perfect example of them responding in exactly this way: Reminding us they can provide perks no Capital One card could ever dream of.


User currently offlineFWAERJ From United States of America, joined Jun 2006, 3833 posts, RR: 2
Reply 20, posted (3 years 4 months 3 weeks 4 days 11 hours ago) and read 2329 times:

Quoting dartland (Reply 19):
DL has always been supported by Amex

Not true. Prior to the 1995 launch of the Delta AmEx and renaming of the FFP as SkyMiles, MBNA (now part of Bank of America) issued a Delta Frequent Flyer Plan Visa card. The MBNA Visa card was dropped at the same time the AmEx card was launched.

Quoting dartland (Reply 19):
UA and CO by JPMC
AA by Citi

While we're on the subject of the legacies, don't forget US and Barclaycard.



"Did he really need the triple bypass? Or was it the miles?"
User currently offlinen7371f From United States of America, joined Jul 2008, 1751 posts, RR: 12
Reply 21, posted (3 years 4 months 3 weeks 4 days 10 hours ago) and read 2251 times:
Support Airliners.net - become a First Class Member!

Failed to be mentioned, until now, are the hundreds of thousands of former Northwest WorldPerks Visa members who have kept using their US Bank FlexPerks Visa cards.

At the time of the merger, there were well over a million NWA cardholders. Many of Delta's marketing attempts with the American Express card have been directed at these users who have not switched allegiances with the merger.


User currently onlineikramerica From United States of America, joined May 2005, 21589 posts, RR: 59
Reply 22, posted (3 years 4 months 3 weeks 4 days 10 hours ago) and read 2178 times:

These new cards are entirely due to the devaluing of the FF mile as a reward. UA/CO had to go to the Premier/Explorer card because using their miles is difficult unless you are an elite, and much easier if you are a Platinum/1K. Not only have they devalued the miles by making awards more expensive, they are basically unavailable if you live in Los Angeles for travel on UA/CO, especially in F. DL is similar. AA, in my experience, has been much more liberal with award availability for Los Angeles residents, although you often have to wait until a few days before to find seats.

Anyway, because the FF mile is a diminished perk, they need other incentives. The Explorer card offers premier access, first bag free, access to expedited security, and 2 RCC passes a year. That will promote loyalty to UA even if you don't get to 25k flown miles a year, especially with families. A family of 4 flying 15k a year each adds up to 60k miles, but you don't get Gold level status as a family that way. But the card allows that same family to use some of the perks of being Premier/Silver, and saves them hundreds of dollars a year in bag fees, money that can be put toward paying for E+.

The 2-10X miles bonus for some transactions and 2X miles per dollar on flights purchased does help make it a nicer program, but the other perks make traveling a bit less of a hassle and less expensive. At least the miles are still useful on LH though...



Of all the things to worry about... the Wookie has no pants.
User currently offlineN766UA From United States of America, joined Jul 1999, 8378 posts, RR: 23
Reply 23, posted (3 years 4 months 3 weeks 4 days 10 hours ago) and read 2169 times:

Quoting enilria (Thread starter):
They are now offering priority boarding for people with the card and discounts on BOB items. I find this interesting because the Amex card program already has way more features than other airline cards including skipping the security lines for some and most importantly FREE BAGS.

Continental's OnePass Plus card has had free bags forever, and recently introduced priority boarding, no blackout dates, etc. It's all competition.



This Website Censors Me
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
DL Starts 4 New Citys From LAX And Adds More F. posted Thu Jun 10 2010 10:46:18 by deltal1011man
DL Adds 5 More Destinations From MCO posted Fri Jan 20 2006 04:19:18 by OttoPylit
S.W.A.T Features DL L1011 And Many More.... posted Thu Jun 12 2003 21:10:59 by Deltadude8
DL To Drop Four More Cities posted Wed Oct 27 2010 13:20:39 by burnsie28
AA Adds More Codeshares On BA European Flights posted Sun Aug 8 2010 15:58:04 by runway23
DL 767 Woes Ground More Than 600 PAX posted Thu Jul 15 2010 10:52:22 by COalways
DL 767-300ER's - Convert More For 12+ Hours? posted Thu Apr 29 2010 13:41:31 by Transpac787
Air Canada Adds 7 More American Cities posted Wed Jan 27 2010 04:17:53 by LIPZ
Ethiopian Adds More Flights Within East Africa posted Tue Dec 8 2009 20:26:31 by ETStar
WN Adds 3 More DEN, Launches Sale posted Thu Nov 6 2008 11:06:31 by Enilria