Originally Posted by
Dick Ginkowski
OK...what I don't quite entirely get (and I am not being disrespectful) is how your company allows this. Most places I know require that you shop for fares and get the best pricing. And for me 85% of my travel is based on my own business which means the money is out of my pocket so I also shop for the best deals. Don't understand overspending except in an emergency.
Buying refundable used to be our policy as well, but that went away and stayed away with the 2002 recession, and I can no longer name a single client of mine that buys them by default either, something that's a complete opposite from 10-15 years ago. Now we only buy them if there is a reasonable expectation of multiple changes to the itinerary and/or trip cancellation. Otherwise, buying lowest cost and paying change fees has been a valid cost savings measure for us and our clients.
So my company, as a huge consulting firm, is one of AA/US, DL, and UA's top customers in the US by both volume and revenue, at least so says our travel department, though I have no reason to disbelieve them. We have volume discounts, many of which are significant especially for higher fare buckets and premium classes, but are still required to purchase the lowest available non-refundable fares. And this is where this
may hurt DL - if the folks who might have been flying Delta who actually have a choice (ignore the fortress hubs), like those in NYC, where we have several large offices, direct spend to other carriers where lower fares won't have such a negative impact on their mileage earning.
FWIW, there's plenty of buzz along the lines of "why would I choose Delta if prices are similar since I'll earn so much less, and redemptions already suck" on our internal social media platform. If our folks materially reduce spend on DL, we'll get worsened discounts, and that could spiral as that will also impact the higher value tickets (e.g., NYC-LAX, intl biz class, etc) that DL wants to prioritize.
Who knows how this will play out. But I can see a scenario where at least for my company, DL's attempt to discourage lower fares from being purchased reduces the amount of expensive fares we buy from them. That said, if all the other carriers do something similar, this will be a moot point. But if one of them finds a way to either find a middle road or not go this path and scoop up business that DL might lose, it may represent a nice opportunity for them.