Enhanced Delta SkyMiles® American Express Cards Offer More Rewards & Benefits

Rhea-AI Summary

American Express and Delta Air Lines have announced enhanced Delta SkyMiles® American Express Cards that offer new reward categories, benefits, and features across everyday spending, dining, rideshares, rental cars, flights, and vacation stays. The press release also highlights the new annual fees for each card, new ways to earn Medallion Qualification Dollars, and enhanced Companion Certificates.

Positive

• Enhanced benefits for consumers and business owners
• New reward categories and spending power for business card members
• Limited time offers for select cards
• Expanded Companion Certificate for First Class, Delta Comfort+ or Main Cabin round-trip flights

Negative

• Increased annual fees for all card types
• Terms and limitations apply to all benefits

Insights

Financial Analyst

The enhancements to the Delta SkyMiles® American Express Cards signify a strategic move to bolster customer loyalty and spending, which could potentially increase revenue for both Delta Air Lines and American Express. The introduction of new reward categories and the expansion of the Companion Certificate to include premium destinations like Hawaii and international locations may incentivize higher spending on these credit cards. The new MQD Headstart and MQD Boost are designed to fast-track frequent flyers towards elite status, encouraging card usage and potentially increasing the average transaction size.

However, the increased annual fees for cardholders, which are substantial in some cases, may deter some customers or lead to a shift towards competing rewards cards. It's important to monitor customer retention and acquisition metrics following these changes. The balance between enhanced benefits and increased costs will be crucial in determining the net impact on both companies' bottom lines.

Market Research Analyst

The credit card rewards market is highly competitive and these changes reflect an attempt to differentiate and add value to the Delta SkyMiles® American Express Cards. By analyzing consumer spending habits and preferences, American Express and Delta are tapping into the lucrative market of travel enthusiasts and business travelers. The focus on travel-related rewards and status milestones aligns with a post-pandemic resurgence in travel demand.

Market research indicates that consumers value experiential rewards, such as travel upgrades and access to lounges. The increased statement credits for dining and rideshares also align with consumer trends towards convenience and lifestyle spending. These enhancements can potentially shift consumer loyalty and spending behavior, leading to an increase in market share for Delta and American Express within the travel and credit card sectors.

Consumer Behavior Expert

The enhancements to the Delta SkyMiles® American Express Cards are poised to affect consumer behavior significantly. The new rewards and benefits are designed to appeal to both occasional and frequent travelers, potentially increasing the perceived value of the cards. The psychological effect of 'getting closer to status' with the MQD Headstart and Boost may drive consumers to concentrate their spending on these cards to achieve the coveted Medallion status.

However, the increased annual fees present a risk of adverse consumer reaction, particularly among those who may not travel frequently enough to justify the higher cost. The consumer's assessment of the trade-off between the fees and the benefits will be a critical factor in adoption and continued use of the cards. Monitoring customer satisfaction and usage patterns will be essential for American Express and Delta to ensure that the new offerings align with consumer expectations and do not inadvertently lead to a decrease in card membership.

NEW YORK--(BUSINESS WIRE)-- Today American Express and Delta Air Lines announced enhanced Delta SkyMiles^® American Express Cards designed to improve the travel experience and deliver everyday value to consumers and business owners. From occasional travelers to the most frequent Delta flyers, these Cards offer new reward categories, benefits and features across everyday spending, dining at restaurants, rideshares, rental cars, flights and vacation stays, plus enhanced Companion Certificates and new ways to earn Medallion Qualification Dollars (MQDs).

Delta SkyMiles Platinum American Express Card (Photo: Business Wire)

• Go More Places with Enhanced Companion Certificate*: The certificate now includes First Class (for Reserve/Reserve Business), Delta Comfort+^® or Main Cabin round-trip flights to Hawaii, Alaska, Mexico, Caribbean or Central America, in addition to the continental U.S., each year after Card renewal.
• New Everyday & Travel Value: Card Members can earn up to $560 for Reserve, up to $610 for Reserve Business, up to $390 for Platinum, up to $410 for Platinum Business, up to $300 for Gold and up to $350 for Gold Business in annual statement credits after using an enrolled Card on eligible purchases at U.S. Resy restaurants and U.S. rideshare purchases with select providers as well as on prepaid Delta Stays hotel and vacation rental bookings on delta.com (see graphic for details). With TakeOff 15, these Card Members also get 15 percent off Award Travel booked with miles (not applicable to partner-operated flights or to taxes and fees).
• Get Closer to Status: New annual MQD Headstart of $2500 MQDs gets Delta SkyMiles American Express Platinum, Platinum Business, Reserve and Reserve Business Card Members halfway to Silver Medallion status at the beginning of each qualifying year. MQD Boost helps them get closer to status throughout the year when they use their Card for purchases (Reserve and Reserve Business Card Members earn $1 MQD for every $10 in eligible purchases, and Delta Platinum and Platinum Business Card Members earn $1 MQD for every $20 in eligible purchases).
• New Reward Categories and Spending Power for Business Card Members: Platinum Business and Reserve Business Card Members can earn more miles in new everyday business spending categories. With Expanded Buying Power^** Card Members have the flexibility to spend above their credit limit. The amount they can spend above their credit limit is flexible, so it adapts with use of the Card, payment history, credit record, financial resources known to us and other factors. The amount Card Members can spend with Expanded Buying Power is not unlimited.

“These Cards offer a host of new benefits to help consumers and business owners get closer to Medallion status, access new credits and more value, and enjoy a premium travel experience. They make being a SkyMiles member even better,” said Howard Grosfield, President, U.S. Consumer Services, American Express.

“These new benefits not only help our Members on their journey to status, but they also provide tangible benefits both in the air with us and on the ground in their everyday lives,” said Dwight James, Delta’s S.V.P. Customer Engagement & Loyalty and CEO of Delta Vacations. “Through the new MQD Headstart value — along with MQD Boost, the expanded Companion Certificate and new statement credits — these Cards remain a great way to enjoy elevated experiences with Delta Air Lines and American Express.”

These new and enhanced benefits are in addition to the existing benefits Card Members currently enjoy, which vary by Card type, such as TakeOff 15, Main Cabin 1 Priority Boarding, first checked bag free, lounge access, earning more miles in top spending categories like restaurants and U.S. supermarkets and a Fee Credit for TSA Precheck or Global Entry.

New Annual Fees:

The new benefits are available to Card Members today. For Card Members who opened accounts before today, the new annual fees will go into effect at their next renewal dates on or after May 1, 2024. The new annual fees for each Card are:

• Delta SkyMiles^® American Express Reserve and Reserve Business: $650 annually (from $550). See Reserve Rates & Fees and Reserve Business Rates & Fees.
• Delta SkyMiles^® American Express Platinum and Platinum Business: $350 annually (from $250). See Platinum Rates & Fees and Platinum Business Rates & Fees.
• Delta SkyMiles^® American Express Gold and Gold Business: $150 annually (from $99). See Gold Rates & Fees and Gold Business Rates & Fees.

Terms and limitations apply to all benefits. For complete details on these benefits and the Card changes, please visit: delta.com/mynewcardbenefits.

Limited time offers start February 1:

American Express and Delta have created limited time offers for select Cards, which will be available from February 1 to March 27, 2024. See here for Consumer Card offers. See here for Business Card offers.

ABOUT AMERICAN EXPRESS:

American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

Key links to products, services and corporate responsibility information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Accertify, Business Blueprint, Resy, corporate card, business travel, diversity and inclusion, corporate responsibility and Environmental, Social, and Governance reports.

ABOUT DELTA

Through the warmth and service of Delta Air Lines (NYSE: DAL) people and the power of innovation, Delta never stops looking for ways to make every trip feel tailored to every customer. 100,000 Delta people lead the way in delivering a world-class customer experience on over 4,000 daily flights to more than 280 destinations on six continents, connecting people to places and to each other. Delta is America's most-awarded airline, having been recognized by Cirium for operational excellence; as the top U.S. airline by the Wall Street Journal; among Fast Company’s Most Innovative Companies; the World’s Most Admired Airline according to Fortune; as one of Glassdoor’s Best Places to Work; and a top employer for diversity, veterans and best workplaces for women by Forbes. Connect with Delta on Delta News Hub, delta.com, via @DeltaNewsHub on Twitter and Facebook.com/delta.

*Companion Certificate

Starting the 2^nd year of Card Membership, Card Members receive a Companion Certificate after renewal for a domestic, Caribbean, or Central America roundtrip flight. Requires payment of taxes and fees of no more than $250 for itineraries with up to four flight segments. Baggage charges and other restrictions apply.

**Expanded Buying Power

The portion of your account balance that is above your credit limit is due in full each month as part of your minimum payment due. You will not incur interest charges on the portion of your account balance that is above your credit limit so long as you pay the entire minimum payment due by the closing date of the billing period in which it is due. If you do not, then the penalty rate will apply to your entire balance, including any amount above the credit limit.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240201716869/en/

Media:

American Express

Elizabeth Crosta

917-224-7949

Elizabeth.Crosta@aexp.com



Delta

Delta Corporate Communications

Media@delta.com

Source: American Express

FAQ

What are the new reward categories for business card members?

Platinum Business and Reserve Business Card Members can earn more miles in new everyday business spending categories.

What are the new annual fees for Delta SkyMiles American Express Reserve and Reserve Business Cards?

$650 annually (from $550).

When will the new annual fees go into effect for existing card members?

The new annual fees will go into effect at their next renewal dates on or after May 1, 2024.

What are the new features of the enhanced Companion Certificate?

The certificate now includes First Class, Delta Comfort+ or Main Cabin round-trip flights to Hawaii, Alaska, Mexico, Caribbean or Central America, in addition to the continental U.S., each year after Card renewal.

What are the limited time offers for select cards?

Limited time offers start from February 1 to March 27, 2024 for select Cards.

Where can I find complete details on these benefits and the Card changes?

For complete details on these benefits and the Card changes, please visit: delta.com/mynewcardbenefits.