Thursday, February 27, 2014

The almighty dollar

It was recently announced that Delta was changing their frequent flier program to move away from accruals based on miles flown, to accruals based on how much you paid for the ticket.  This is an obvious lean toward the business traveler, or even more importantly, the business CLASS traveler.  What does this mean for corporate programs?  We may see:
1 - People gaming the systems to make their reservations closer in to pay more for their travel?
2 - People finding ways to still meet their status accrual needs?
3 - People finding another carrier that will give them a point for a mile?

Only time will tell.  

Airlines are making profits now on the business traveler because they know when and how they are booking.  (Anyone who is searching for leisure travel rates Mon-Fri 8a-5p is crazy!)  They are making money on the leisure traveler with no status by charging for things like bags, seats, etc.  I love seeing the airlines profitable, we can't be successful without them.  Will be interesting to see where the money flows with changes like this. 

The almighty dollar drives decisions and in the meantime, we simply, keep going! 

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