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-   Delta Air Lines | SkyMiles (https://www.flyertalk.com/forum/delta-air-lines-skymiles-665/)
-   -   First Class Monetization, or FCM: The Definitive Thread (https://www.flyertalk.com/forum/delta-air-lines-skymiles/1230437-first-class-monetization-fcm-definitive-thread.html)

GYEWorldTraveler Nov 8, 2012 5:43 pm


Originally Posted by javabytes (Post 19650572)
Didn't we cover this already in that thread after last quarter's results were posted? Paid F loads rose 8 points, revenue growth was a paltry 1%, and margin expectations were missed. Successful fuel hedges, lower fuel costs, same old story.

And if I recall correctly, paid F loads were touted as being 33%, up from 25%. However, at last year's investor day presentations they claimed a jump in paid F loads from 15% to 30%. Someone either needs to explain the trend or the spin.

http://milecards.com/3112/delta-adju...free-upgrades/

Revenue grew on quite a large decrease in capacity. I think DLs numbers have been leading the industry for the past couple years and margins are pacing all legacy carriers and even WN. Getting more money for flying less capacity seems good to me when you consider what some of the other majors are doing...

javabytes Nov 8, 2012 5:55 pm


Originally Posted by GYEWorldTraveler (Post 19650693)
Revenue grew on quite a large decrease in capacity.

Also on record fuel prices and higher fares.

javabytes Nov 8, 2012 5:56 pm


Originally Posted by Often1 (Post 19649599)
OP hasn't told us whether this was a refundable M fare or not. Presuming that it's a refundable M, it makes a lot of sense that a non-refundable P fare would be a bit less.

If you look through the rough breakpoints between fare buckets, refundability is almost always the most significant factor.

If you are the traveler who can work with a non-refundable/changeable ticket, you should definitely by the P fare.

Why anybody thinks they have a complaint about what appears to be a solid decision by an operating for-profit business is beyond me.

Now that OP has confirmed the M fare was also non-refundable, I'm curious to hear how this still makes sense.

reef58 Nov 8, 2012 5:57 pm

It doesn't seem to make sense, but I agree with this. Maybe they are trying to lure someone with no concrete plans to grab a flight, and a cheap FC ticket might be the carrot to do it, while a coach ticket gets a yawn.

I can visualize some guy yelling out to his wife "hey Marge we can fly to xxx in FC for $400 what do you think about taking a trip?"


Originally Posted by GYEWorldTraveler (Post 19650673)
You are making a big assumption here: that a passenger will pay for the expensive M fare and fly coach. I think any business tries to get an advantage over the competitions offerings by doing stuff like this (offering web only fares and undercuts). I can almost guarantee that the P fare is not a published fare in this case but somehow run by a program based on F and Y availability. To "sweeten the deal" or entice the consumer, they sell a last minute P fare and give the passenger a first class seat. Having the two prices side by side it makes flying Delta and getting F a great deal. Unless you are on a higher fare flying the same O&D you can't really complain too much if someone is paying for the P fare.

As a side note, I have seen every US major carrier do this and I know it annoys many people but the only ones that can really be terribly upset are the ones that paid a higher fare for the exact same itinerary. Everyone else that is upset should be upset at themselves for not purchasing the seat for that price if they are unhappy that someone else did.


goingnow Nov 8, 2012 6:39 pm


Originally Posted by Ti22 (Post 19649398)
Tons of "reasonable" explanations and I get 'em, this still just irritates me to no end and I'm not alone.

Why not just buy the cheaper F fare instead of waiting around for an upgrade on a more expensive Y fare?

Edited to add I'm DM and upgraded 98% of the time, at 5+ days out.

Traveller Nov 8, 2012 7:59 pm

I'm curious how this was worded on the website:

Upgrade to First Class for just $30.00- more per person each way.

or

Upgrade to First Class for just $30 less per person each way.

DawgInCo Nov 8, 2012 9:02 pm


Originally Posted by reef58 (Post 19650759)
I can visualize some guy yelling out to his wife "hey Marge we can fly to xxx in FC for $400 what do you think about taking a trip?"

This, or DL & UA FF Jim has to take a last minute business trip. He can fly DL P for 400 or fly UA Y for 380..The extra 20 dollars would sell him on DL
While I hate it too, it makes sense for last minute revenue

Thomas Hudson Nov 8, 2012 9:12 pm

I am not sure about the rest of y'all, but I have paid a good bit more for my tickets this year and I have been flying to the same spots for quite some time... a lot more...

Ti22 Nov 8, 2012 9:48 pm


Originally Posted by Thomas Hudson (Post 19651565)
I am not sure about the rest of y'all, but I have paid a good bit more for my tickets this year and I have been flying to the same spots for quite some time... a lot more...

Yes, load factors are very much in DL's favor. Summer prices peaked as high as I've ever seen before and then the Fall pricing never dropped as much as I recall in years past.

Herb687 Nov 8, 2012 11:07 pm


Originally Posted by Schmoops (Post 19649262)
Any M fares that I've purchased within the last year have been refundable, with no change penalties or refund penalties. I've changed and cancelled plenty of them thus far - so I am sure.

I've also found plenty of refundable M fares.

And my most recent DL purchase was a non-refundable B fare.

There is no conclusion as to refundability that can be drawn solely on the basis of first character of fare basis code.

mnredfox Nov 9, 2012 12:47 am

What part of DL's FCM is not ridiculous? I thought that's why we created the thread. Normal FCM is ok, DL's is just odd.

fromYXU Nov 9, 2012 3:46 am

Quick question.

Two individuals fly the same flight. Same status. One buys the M fare, the other the P fare.

Flight gets cancelled. Who is better off in IROPS?

DeltaFan4Now Nov 9, 2012 4:30 am


Originally Posted by fromYXU (Post 19652518)
Quick question.

Two individuals fly the same flight. Same status. One buys the M fare, the other the P fare.

Flight gets cancelled. Who is better off in IROPS?

Probably the one who calls into the PSS line first. Also, if the P fare gets re-seated in coach due to IROPs they can call in and get a $200 voucher. If the M fare was upgraded and gets re-seated in coach, they might get a HOOU. I suspect that if all is handled properly and one knows the rules, the P fare is better off.

rylan Nov 9, 2012 5:40 am

This is pretty clear... screw the biz traveler who is required to purchase a coach fare for domestic travel. At the same time, piss them off because their travel dept doesn't even look at P fares, so they buy the more expensive M and they're stuck in the back while random no-status kettle grabs the cheaper fare and sits up front.

+1 to TH on his comments as well.

sethb Nov 9, 2012 7:35 am


Originally Posted by reef58 (Post 19650759)
It doesn't seem to make sense, but I agree with this. Maybe they are trying to lure someone with no concrete plans to grab a flight, and a cheap FC ticket might be the carrot to do it, while a coach ticket gets a yawn.

I can visualize some guy yelling out to his wife "hey Marge we can fly to xxx in FC for $400 what do you think about taking a trip?"

"and walking back":confused:


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