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-   -   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)

Bicostal Mar 25, 2013 11:28 am


Originally Posted by SOBE ER DOC (Post 20479056)
It would seem that DL's marketing strategy is working just fine.

I disagree - I think that in the context of customer satisfaction, the platitudes (marketing strategy) is not working fine in that the business strategy (FCM) undermines it. When a DM can't get upgraded even when using an SWU domestically it may mean more cash to the bottom line in the short run but seriously impacts on the perception that there are "more seats in FC."


Originally Posted by SOBE ER DOC (Post 20479056)
The model is working or they would have abandoned it and there is nothing they are say that is factually wrong. They do have more seats in F that any other carrier. They do have complimentary space-available UGs for elites. There is nothing DL is saying that is a lie.

I think the challenge you are having is the inability to dissociate the business from the marketing. Factually and legally, the FCM impacts are defensible. But that's the steak part of the rationale, and in case you forgot your undergradute marketing 101 class - people aren't buying steak, they are buying the sizzle.


Originally Posted by SOBE ER DOC (Post 20479056)
As a reminder...we are getting something for free when we get a complimentary UG.

I disagree - "complimentary" upgrades are not free - they are part of what marketers call the extended product. Every time a medallion buys a ticket he is also buying a chance of an upgrade. When medallions reflect back on the percentage of upgrades they are getting this year versus last and realize that the probability has declined, the value add of "complimentary" upgrades is less as well. There is a tipping point to this thing called "loyalty."

And that is the discrepancy between Delta's FCM business model and its marketing model.

SFO777 Mar 25, 2013 11:35 am


Originally Posted by Bicostal (Post 20479755)
and in case you forgot your undergradute marketing 101 class...

If you are going to insult someone, you may want to first turn on spell-check. ;)

reef58 Mar 25, 2013 11:38 am

It is too early to tell how their strategy is working. I suspect they may be okay not matter how poor their FF program becomes, because there really aren't any other options.

They will get about 5k less in revenue from me this year, but they may get 10 more customers from the other carriers to more than offset it. My reducing travel has nothing to do with their FF plan, but rather of the 22 segments I have flown this year at least 15 experienced delays.

I think the Delta front line folks are the best, but the operations this year have been bad. Maybe it is just a coincidence?


Originally Posted by SOBE ER DOC (Post 20479056)
It would seem that DL's marketing strategy is working just fine. The model is working or they would have abandoned it and there is nothing they are say that is factually wrong. They do have more seats in F that any other carrier. They do have complimentary space-available UGs for elites. There is nothing DL is saying that is a lie.

Again, you think it's bad here, go read the threads over on the UA board. The FCM over there is worse in that UA is selling day of departure UGs to non-elites before clearing some UGs for elites...or so some folks are claiming.

As a reminder...we are getting something for free when we get a complimentary UG. Yes, it's nice to reward our loyalty but remember, if DL cannot get an ROI on the first class cabins they'll start pulling seats out and adding more coach back in...a la US and UA. There are DL RJs that have more seats in F than US and UA mainline.


AA_EXP09 Mar 25, 2013 11:42 am

Restricting the F buyups to elites would be a good compromise IMO.
(The only problem is I feel that DL might do the exact opposite.)
I have not booked these for myself but I know many people who have bought these as they were cheaper than the Y fare on their preferred carrier.

Bicostal Mar 25, 2013 11:47 am


Originally Posted by SFO777 (Post 20479800)
If you are going to insult someone, you may want first to turn on spell-check. ;)

I gave him the benefit of the doubt that he had a college education that included a business curriculum. In your case, if typos is the best you've got...

SFO777 Mar 25, 2013 11:54 am


Originally Posted by Bicostal (Post 20479888)
I gave him the benefit of the doubt that he had a college education that included a business curriculum. In your case, if typos is the best you've got....:rolleyes

"if typos is the best you've got..."?
And here I gave you the benefit of the doubt, in spite of your FT handle. ;)

That fact that I am still 100% on upgrades on the cheapest available coach fares on both AA and DL tells me that the sky is not falling.
If you are seeing reduced upgrade rates and it bothers you, stop your whining and manage your travels better.

Crazyhotelguy Mar 25, 2013 11:56 am


Originally Posted by SFO777 (Post 20479404)
As long as DL increased its spending on meals to more than $1.15 per pax and expanded the meal windows to match AA, would totally support it.

+1

Bicostal Mar 25, 2013 12:01 pm


Originally Posted by AA_EXP09 (Post 20479857)
Restricting the F buyups to elites would be a good compromise IMO.
(The only problem is I feel that DL might do the exact opposite.)
I have not booked these for myself but I know many people who have bought these as they were cheaper than the Y fare on their preferred carrier.

If Delta wants to play the FCM game, then they need to consider doing it in a way that is not inconsistent with their marketing (loyalty is a two way street) scheme. In the case of the "close in" FCM - when a $700 K-fare transcon that I bought 2 weeks ago is now selling for $750 for a Y-UP of some sort three days prior and FC goes from F9 to F3, I would think that Delta SHOULD sell me the "new" FC fare for the fare difference. Instead, it would cost $200, not $50.

That's the issue - its not about FCM, its about selectively discriminating against your own HVCs in how you dole them out - why does it make a difference to the business guys who pays the extra $50 - when in fact it should make a huge difference to the marketeers. Imagine the spin one could put on the "no change fee" (SDC-like) equivalent to the FCM. Imagine how much more credible the deflection of dissention would be.

Bicostal Mar 25, 2013 12:29 pm


Originally Posted by SFO777 (Post 20479917)
"if typos is the best you've got..."?
And here I gave you the benefit of the doubt, in spite of your FT handle. ;)

That fact that I am still 100% on upgrades on the cheapest available coach fares on both AA and DL tells me that the sky is not falling.
If you are seeing reduced upgrade rates and it bothers you, stop your whining and manage your travels better.

Its not a whine - it is a credible observation of an inconsistency between what Delta's marketing spin is - and what its business model is doing to undermine it.

As for typos - my bad - not that I care too much - I think and type too fast and care little on sites like this. If pointing out typos makes you feel better, glad I could help.

Often1 Mar 25, 2013 12:57 pm

Or else? I'll jump to? Eastern, Braniff, TWA?

Bicostal Mar 25, 2013 1:56 pm


Originally Posted by Often1 (Post 20480294)
Or else? I'll jump to? Eastern, Braniff, TWA?

Jet Blue could meet a lot of my current travel needs, actually. But who said anything about leaving? Last time - the marketing hype about loyalty, more FC seats, and so on, and the FCM business model being implemented when FC tickets are less expensive than coach inside the upgrade window represents an inconsistency that left unresolved will "infuriate" the HVC.

SFO777 Mar 25, 2013 1:59 pm


Originally Posted by Bicostal (Post 20480713)
But who said anything about leaving?

Oops.:o


Originally Posted by Bicostal (Post 20479755)
There is a tipping point to this thing called "loyalty."


SOBE ER DOC Mar 25, 2013 3:11 pm


Originally Posted by Bicostal (Post 20479755)
I disagree - "complimentary" upgrades are not free - they are part of what marketers call the extended product. Every time a medallion buys a ticket he is also buying a chance of an upgrade. When medallions reflect back on the percentage of upgrades they are getting this year versus last and realize that the probability has declined, the value add of "complimentary" upgrades is less as well. There is a tipping point to this thing called "loyalty."

And that is the discrepancy between Delta's FCM business model and its marketing model.

Comments on my understanding of marketing aside, I think you are making an (erroneous) assumption that the UGs are what drive the ROI quantification you are speaking of. For many medallions, the ROI calculation is based on a large number of think which may or may not include likelihood of UG. Some folks may make the decision based on the UGs, but it's also about other benefits such as baggage fees, early boarding, preferred seats, etc., etc., etc.

As for the "marketing" of the whole thing, DL does not commit in its marketing materials to a percentage of upgrades, rather it markets that space available UGs will be made available based on a number of criteria. DL has in no way diverted from this marketing message. And, as I asserted earlier, the grass is not greener over at UA, US or AA so folks who walk because they are not getting enough UGs will find a very similar situation with the other carriers.

DL2SXM Mar 27, 2013 12:56 pm


Originally Posted by DLATL777 (Post 20443670)
I would hardly consider the 752 recliner seats as "sleeper seats" but to each his own.

i was a little to generous in describig it as a sleeper seat. I should have said recliner seat. Still, for only an extra $125 bucks or so, its well worth it, especially when heading down to sxm. Its still a ton better then the standard first class seat commonly found on most 757;s

mspflyer3 Mar 27, 2013 1:06 pm

how does that seat map indicate those are the same sleeper seats as on JFK-SFO?

I've flown a 757 to the Caribbean (STT) tens of times, and the seat map looked exactly the same - "BusinessElite", 24 seats, etc etc. As far as I know, that's a normal 757 FC cabin, marketed as BE for Caribbean flights.

Correct me if I'm wrong...


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