ON BOARD WITH RANDY PETERSEN

Randy Petersen EASING MILE WORRIES
November 2004
by Randy Petersen

Question:
What will happen to accrued SkyMiles when Delta revamps its frequent flyer program in its transformation plan?

Answer:
A good question, since Delta made news of revamping their program. Actually, I don't think you need to worry. The possible changes I've heard mentioned and other things I've discovered from research point out that nothing in the program will be "devalued" in any way that will lessen the value of the miles you already have. Among the things they are experimenting with is relaxing certain types of award redemption restrictions.

For instance, recently SkyMiles released literally thousands of previously restricted business class awards to members. They were seeing if the demand was able to be met in their current inventory. While they have since returned to normal allocation, this is a positive sign that the program is at least looking at getting better at the basics of the program. They still are wrestling with the "member by revenue" problem they got themselves into, since among their alliance partners—Continental and Northwest—it is confusing and unduly restrictive.

So as we wait for them to finalize things (they just recently hired a new director of that program, and it will likely take a little while for him to direct their efforts), I really don't think you have anything to lose and perhaps even a few things to gain.

Question:
Fifteen years ago my job required me to do a lot of traveling, and so I racked up frequent flier miles. However, since then, I've done almost no traveling at all.

Lately I've received a solicitation from the airlines trying to entice me into using my miles to subscribe to magazines. On one hand, this seems like a come on ("something for nothing" solicitations usually are), but on the other, I'm not likely to use the miles for much else (I never travel much anymore).

Are these magazine subscription deals on the level?

Answer:
Interesting question. The short answer is that these offers are not a come on. You truly can get something for nothing. Some of the mileage-for-magazine offers are as low as 400 miles.

What the publishing industry does is offer these subscriptions to airlines at little or no cost. And, though the airlines collect little or nothing for this effort, it does serve to clean up their contingent liability. And, because publishers pay for the right to contact the members who take advantage of these offers, the program receives valuable feedback about the cleanliness of their database.

For the magazine publishers, changes in how circulation departments allow publishers to count "circulation" help magazines increase their "reader" count, which, in the long run, can affect what they charge for advertising, etc. Also, since the publisher has now been able to get their product delivered to your residence, you are much more likely to renew for cash next time around.

The law of averages says it's a good deal for the magazine guys, a really good deal for you, and the airline programs are happy as well. Granted, you may not need a 50-year subscription to Popular Science to get rid of a bunch of your orphan miles, but it might be worth thinking about.

You can contact Randy Petersen at randy@insideflyer.com.

Back to top