From 2024 status requirements will no longer be based on the number of flights and distance traveled. Instead, customers will need to spend $6,000 to reach Silver status. Those aspiring to attain the upper-level Diamond status will need to spend $35,000 annually.
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GLODelta Airlines’ frequent flyer program, known as SkyMiles, is reportedly undergoing a significant shift where flying is becoming less important for affluent travelers, according to a report in The Wall Street Journal.
Traditionally, Delta had tied its SkyMiles loyalty program to flying, while its competitors had opted for a different approach by rewarding travelers based on their credit card spending. However, Delta is now transitioning to a system where customers can earn rewards based on the amount they spend on travel, using co-branded credit cards, or making reservations for hotels, rental cars, and vacation packages through Delta’s channels.
Dwight James, Senior Vice President of Customer Engagement and Loyalty at Delta, explained the shift by stating, “We wanted to make the program more welcoming to customers. But we also want to ensure that we’re reserving the most premium experiences for our most premium customers.”
To attain premium customer status, travelers will need to increase their spending. Currently, to achieve the entry-level Silver status in the SkyMiles program, Delta customers must spend around $3,000 on flights. However, starting in 2024, the requirements will no longer be based on the number of flights and distance traveled. Instead, customers will need to spend $6,000 to reach Silver status. Those aspiring to attain the upper-level Diamond status will need to spend $35,000 annually.
The reason behind this change is that frequent flyers have become less common. While individuals who accumulated points through regular flying have become scarce, there has been an increase in vacationers this summer who don’t mind spending to gain travel perks.
A study by PYMNTS and i2c revealed that 62% of consumers planned to travel during the summer, with 30% intending to travel more than the previous year. Younger generations, particularly Generation Z and millennials, expressed significant interest in summer travel.
Regarding financing their trips, credit cards emerged as the primary payment method for leisure travel. Two-thirds of consumers used or planned to use credit cards to cover their summer travel expenses, with higher-income individuals more likely to use credit cards for this purpose.
Credit card usage for travel expenses increased with higher annual incomes, with nearly three-quarters of those earning over $100,000 using credit cards for travel, compared to 53% of those earning less than $50,000.
