Puzzled over High Spend people in coach?
#16
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,681
Why are so many people on this forum puzzled by HVC folks in coach.
Three last three companies I worked for all had identical travel policies. And through friends I know of 10 other Fortune 500 companies with identical policy.
Cheapest Coach Domestically
Business Internationally
It is easy to spend $50K with Delta and yet be in Coach on a cheap fare.
It seems I read endless comments that say things like Why would a HVC be in Coach? Or there is no way someone spent $100K on tickets and would be in coach. Just 1 trip to Asia every quarter could easily run north of $50K?
Why is this standard travel policy so confusing?
Three last three companies I worked for all had identical travel policies. And through friends I know of 10 other Fortune 500 companies with identical policy.
Cheapest Coach Domestically
Business Internationally
It is easy to spend $50K with Delta and yet be in Coach on a cheap fare.
It seems I read endless comments that say things like Why would a HVC be in Coach? Or there is no way someone spent $100K on tickets and would be in coach. Just 1 trip to Asia every quarter could easily run north of $50K?
Why is this standard travel policy so confusing?
#17
Join Date: Nov 2007
Location: MLB, MCO
Programs: Delta Plat, IHG Plat, Marriott Silver
Posts: 1,315
And what exactly does the other supposed 90% of the workforce do for a living if they're not working for a company yet somehow are allowed to and can afford to fly J everywhere?
#18
FlyerTalk Evangelist
Join Date: Jun 2003
Location: DEN
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I take it that DL has no equivalent to United's "Global Services" status, which is invitation only and based on spend (or corporate contract, i.e.spend). Those cats rarely travel in coach domestically, even on el cheapo tickets. One exception is when a bunch of us peons buy -UP fares and fill up the front cabin (happens a lot on DEN-PIT, for example). My heart bleeds when I see one of those poor GS guys head back to Y.
#19
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#21
Join Date: Dec 2002
Location: Bloomfield, MI, USA
Programs: DL Gold
Posts: 694
My company's policy was (not saying what it is now):
Within U.S., to/from Canada, Mexico, Caribbean, within Europe, lowest coach fare (with $40 tolerance to get a better flight time, and allowed to take non-stops even if not cheapest rather than being pushed onto connections)
To/from Europe, Asia, Africa, South America, South Pacific, business class
No exceptions, policy was enforced by American Express software.
Of course, Group VPs and above could commandeer the fleet of bizjets, and the company ran its own flights on popular routes using Convair propjets and Fokker F70s configured in business-class seating (2-2 with ample pitch on the Fokker). I flew a Fokker DTW-HII-SNA once, and it was pretty sweet!
Within U.S., to/from Canada, Mexico, Caribbean, within Europe, lowest coach fare (with $40 tolerance to get a better flight time, and allowed to take non-stops even if not cheapest rather than being pushed onto connections)
To/from Europe, Asia, Africa, South America, South Pacific, business class
No exceptions, policy was enforced by American Express software.
Of course, Group VPs and above could commandeer the fleet of bizjets, and the company ran its own flights on popular routes using Convair propjets and Fokker F70s configured in business-class seating (2-2 with ample pitch on the Fokker). I flew a Fokker DTW-HII-SNA once, and it was pretty sweet!
#22
Join Date: Jan 2010
Location: Twin Cities
Programs: Delta DM MM, IHG Plat, Hilton DM, Marriott SE, Emerald EE, Oakdale Gun Club, NRA & GOA Life Member
Posts: 3,870
I work for a Fortune 100 company and our travel policy allows business class on flights over 8 hours. Otherwise, we are to buy the cheapest coach with about a $100 cushion (flights less than $100 more than the cheapest show up as "Green" in Concur) unless it is a connection that is less than $200 more or if it adds more than 2 hours to the trip. If it is the latter, the flight will show up in "Yellow" in Concur and both my boss and I get a nasty email about reining in travel costs but nothing else ever happens. I booked a flight to OMA earlier this year that was over $300 (more than double the cost) more than a connection. I replied back to the email, to my boss, as to why I booked it and he never responded to it nor has he ever mentioned it.
As far as buying refundable tickets, we are supposed to still follow the above rules and eat the fee if we have to cancel or change a flight. The people that set our policy feel it's cheaper in the long run to always buy the cheaper fares. BTW, all of my trips are billed to projects with the rare exception of traveling for training every couple of years.
As far as buying refundable tickets, we are supposed to still follow the above rules and eat the fee if we have to cancel or change a flight. The people that set our policy feel it's cheaper in the long run to always buy the cheaper fares. BTW, all of my trips are billed to projects with the rare exception of traveling for training every couple of years.
#24
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Join Date: Jun 2004
Location: MSP
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[QUOTE=VegasJosh;25274850I can debate this as that traveler on mirco hops fills a seat on a plane thus removing inventory from the system, with dynamic pricing this then can force the remaining seats to become more expensive. There is no way to know exactly how much this ripple effect will increase profits or revenue. When I was in the hotel business we used this pricing structure and even though some companys book a ton of rooms at 159 and would not be looked at as HVC the nights they took 100 rooms we were able to sell the other 100 at 359 due to lack of inventory and high demand thus making them very valuable.[/QUOTE]
If the company weren't there and you'd just set the price at $359, you'd still have sold at least 100 rooms (because you did) and maybe more because some of those $159 people might have been desperate enough to pay $359, and (based on your implication there were 200 rooms) there might have been others who wanted to pay $359 but were shut out. So the value of the company is in filling the rooms that would have gone empty given the $359 price, not creating the $359 price.
If the company weren't there and you'd just set the price at $359, you'd still have sold at least 100 rooms (because you did) and maybe more because some of those $159 people might have been desperate enough to pay $359, and (based on your implication there were 200 rooms) there might have been others who wanted to pay $359 but were shut out. So the value of the company is in filling the rooms that would have gone empty given the $359 price, not creating the $359 price.
#26
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,681
The real travesty in these rules is they get waived for the c- suite and EvPs whose business travel is the least productive and least substantial. The people bringing home the cash every week get the lowest fare grind. Absolutely insane.
#27
Join Date: Dec 2006
Location: Seattle
Programs: Delta DM, suffering Marriott Titanium
Posts: 94
Ugh -- my firm (a Big 4 consultancy) lets me book J (or F if no J) on flights over three hours. Who are these silly employers who stick their people in steerage where they can't open a laptop to do work, and are uncomfortable to boot?
#28
Join Date: Nov 2012
Location: PBI/FLL/MIA
Programs: DL DM/2MM, MR Ambassador, National EE
Posts: 1,614
The other 90% of the workforce works for companies that take better care of their employees, in general. People who quote big company travel policies are badly out of touch with how we compete with the most valuable thing in the business, good employees. I have a 6 foot 10 engineer who never flies in Coach, ever. I stole him from a company where a pinhead in accounting wouldn't change a travel rule for TPAC travel.
The real travesty in these rules is they get waived for the c- suite and EvPs whose business travel is the least productive and least substantial. The people bringing home the cash every week get the lowest fare grind. Absolutely insane.
The real travesty in these rules is they get waived for the c- suite and EvPs whose business travel is the least productive and least substantial. The people bringing home the cash every week get the lowest fare grind. Absolutely insane.
#29
Formerly known as jbalis
Join Date: Jul 2013
Location: Bangkok
Programs: Delta Diamond, Starwood Gold, National Executive, MGM Noir,
Posts: 342
If the company weren't there and you'd just set the price at $359, you'd still have sold at least 100 rooms (because you did) and maybe more because some of those $159 people might have been desperate enough to pay $359, and (based on your implication there were 200 rooms) there might have been others who wanted to pay $359 but were shut out. So the value of the company is in filling the rooms that would have gone empty given the $359 price, not creating the $359 price.
if you would like to read the how's where's and why's this is a article
http://www.hospitalitynet.org/news/4045046.html
if this were not true why do hotels and airlines adjust prices at all why not just have 1 price for y and one for j?
#30
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,681
Owwww. My policy is 4 hours. I'm going to have to up my game.