Originally Posted by
gooselee
Nobody can predict the future, but clearly someone at DL with oodles of data crunched the numbers and was able to convince management that this move would a) decrease the number of lower-margin customers, b) increase the number of higher-margin customers, or c) both.
Balance that out with revenue gained/lost on the Amex side, and obviously DL thinks they will come out ahead in the end vs. status quo.
This is an interesting move for sure....but every customer matters, high margin or low margin (unless planes go out 100% full every time). The low margin customer could even be the difference in a flight turning a profit. So the tipping point here is: Does Delta condition customers to move up the value chain? Or does Delta repel those customers and condition them to comparison shop?
I think I am falling into the latter camp.