Recent Delta, AMEX Changes: A Reminder to Maintain Flexibility, Diversity in Your Points and Miles

There has been a lot of news in the past couple of weeks about changes in the Delta SkyMiles loyalty program and the co-branded Delta Amex credit cards. I am not going to revisit the changes here as others have already covered them in detail. Reaction to these changes has been quite negative. In fact, reaction has been so negative that, earlier this week, Delta CEO Ed Bastian acknowledged that “No question, we probably went too far.” But this was not an apology and there was no real suggestion that the changes would not stick. As Bastian put it, “Our team kind of wanted to rip the band aid off.” In other words, Delta wanted to put out lots of unwelcome news quickly. This would suggest that, even if some changes are reversed or postponed, it is still clear where Delta SkyMiles is headed.

The recent changes in SkyMiles, other loyalty programs, and travel rewards credit cards could give one whiplash. However, Travel Rewards Optimizer (TRO) plans are designed to help you address the inevitable changes in these programs in the same way that a well-designed investment portfolio allows you to ride out the turbulence of financial markets.

First, a feature of your custom TRO plan is that we can send you alerts about changes in loyalty programs or credit card policies that might affect you, positively or negatively, for one full year.

Second, the TRO plans are designed to provide an opportunity to diversify your points and miles so that you can choose which ones to use for the best redemptions when you are ready to plan travel. I get nervous when I hear about someone who has most of their points or miles in one “currency.” Their impressive total might make them feel “rich” in miles but, the simple truth is that your points and miles are only a number until they are turned into travel purchases. Diversification of the miles and points in your travel rewards “portfolio” makes you less vulnerable to changes in loyalty programs.

Third, TRO plans often emphasize the flexible points offered by several of the major card issuers like Chase, Citi, and American Express. At a minimum, these points can be used like cash for statement credits. But, they can become far more valuable when transferred to (some) airline and hotel loyalty programs. As an example, Ms. Optimizer and I only have a few thousand miles in our Delta SkyMiles accounts, but we have healthy balances of American Express Membership Rewards (MR) points. We can quickly turn those MR points into Delta miles (most transfers to domestic airlines are almost instantaneous). But, if Delta is not offering any suitable miles redemptions that give us good value, we have the option of transferring them to more than a dozen other airlines.

As in many aspects of life, change is inevitable and the miles and points game is no different. However, travel rewards continue to offer some of the greatest returns on routine credit card spending. With a custom Travel Rewards Optimizer plan based on your travel goals and preferences, you can spend your time enjoying travel while we worry about the shifting landscape of points and miles.

We are ready to help you turn your routine credit card spending into the travel of your dreams.