Delta high pricing strategy backfiring at our company!
#16
FlyerTalk Evangelist
Join Date: Nov 2011
Location: Brighton. UK
Programs: BA Gold / VS /IHG Diamond & Ambassador
Posts: 14,200
lol only 4 posts in and we've already reached the 'apologist' accusation.
I certainly don't work for DL (or any other airline) but giving an explanation does not mean people work for DL.
Price is only one factor in choosing an airline. Schedule is important as well. When it comes to corporate contracts there are many more factors to take into account than just price. Leisure travellers have different criteria.
I know of one company that has at least 6 8 seats booked per flight from one international city to another and is prepared to pay handsomely for that standing reservation even if it does not use all the seats because it knows over a period of time it will save it money rather than buying one off last minute tickets. It has also negotiated other contractual aspects such as higher level lounge access and luggage allowances that it also considers important. And it has flexibility to call up and say 'hey we don't need the seats on Thursday but we need double next Wednesday' and knows it will get accommodated.
I certainly don't work for DL (or any other airline) but giving an explanation does not mean people work for DL.
Price is only one factor in choosing an airline. Schedule is important as well. When it comes to corporate contracts there are many more factors to take into account than just price. Leisure travellers have different criteria.
I know of one company that has at least 6 8 seats booked per flight from one international city to another and is prepared to pay handsomely for that standing reservation even if it does not use all the seats because it knows over a period of time it will save it money rather than buying one off last minute tickets. It has also negotiated other contractual aspects such as higher level lounge access and luggage allowances that it also considers important. And it has flexibility to call up and say 'hey we don't need the seats on Thursday but we need double next Wednesday' and knows it will get accommodated.
#18
Join Date: Apr 2016
Posts: 1,885
Yes, the airfares at DL are more expensive, but the company I work for (<1% of the size of the company you work for), realized that IRROPs is also very expensive and the waivers and favors routinely received more than make up for the fare premium flying DL. We are given wide discretion to pick the flights that work best for us, but we are strongly encouraged to only book DL or AS. Even though the upfront cost is higher, the overall cost winds up being a little less. Also, I am not sure where you are finding empty seats except on oddball travel days at oddball times on oddball routes. I can't remember the last time I was on a flight that had more than 1-2 seats empty on a route that was popular for business travel.
#19
Join Date: May 2010
Posts: 3,461
OMG. I am sure the people that make the airfare rules are quaking in fear that the OPs 94,000 people won't be flying Delta. Bankruptcy is next. Doesn't Delta realize that they should sell seats for lower prices and make less money to make this 94,000 people company happy because apparently the company's management knows much more about airline profitability rules than those idiots at Delta..
But realistically?
I am willing to bet that all 94,000 of those people aren't frequent flyers on Delta! I also hope I don't own stock in OPs company because what I would like for your travel department to do is book flights that make the most sense financially for the company and not be "blind sheep" to Delta or have your employees spending 8 hours to get someplace because "we won't fly Delta we will fly AA and connect twice to stick to our guns" LOL!
Thanks for the laugh! Especially the "you work for the airline" comeback. Pretty much has me hoping I don't own stock in your company because if that's your "comeback" it's not a good sign of a well thought out defense and makes me wonder about your leadership style....
But realistically?
I am willing to bet that all 94,000 of those people aren't frequent flyers on Delta! I also hope I don't own stock in OPs company because what I would like for your travel department to do is book flights that make the most sense financially for the company and not be "blind sheep" to Delta or have your employees spending 8 hours to get someplace because "we won't fly Delta we will fly AA and connect twice to stick to our guns" LOL!
Thanks for the laugh! Especially the "you work for the airline" comeback. Pretty much has me hoping I don't own stock in your company because if that's your "comeback" it's not a good sign of a well thought out defense and makes me wonder about your leadership style....
#21
Join Date: Apr 2011
Posts: 3,394
lol only 4 posts in and we've already reached the 'apologist' accusation.
I certainly don't work for DL (or any other airline) but giving an explanation does not mean people work for DL.
Price is only one factor in choosing an airline. Schedule is important as well. When it comes to corporate contracts there are many more factors to take into account than just price. Leisure travellers have different criteria.
I know of one company that has at least 6 8 seats booked per flight from one international city to another and is prepared to pay handsomely for that standing reservation even if it does not use all the seats because it knows over a period of time it will save it money rather than buying one off last minute tickets. It has also negotiated other contractual aspects such as higher level lounge access and luggage allowances that it also considers important. And it has flexibility to call up and say 'hey we don't need the seats on Thursday but we need double next Wednesday' and knows it will get accommodated.
I certainly don't work for DL (or any other airline) but giving an explanation does not mean people work for DL.
Price is only one factor in choosing an airline. Schedule is important as well. When it comes to corporate contracts there are many more factors to take into account than just price. Leisure travellers have different criteria.
I know of one company that has at least 6 8 seats booked per flight from one international city to another and is prepared to pay handsomely for that standing reservation even if it does not use all the seats because it knows over a period of time it will save it money rather than buying one off last minute tickets. It has also negotiated other contractual aspects such as higher level lounge access and luggage allowances that it also considers important. And it has flexibility to call up and say 'hey we don't need the seats on Thursday but we need double next Wednesday' and knows it will get accommodated.
#24
Join Date: Jul 2012
Location: RDU
Programs: DL(PM), UA(Silver), AA(EXP) Marriott(Ti), HH(Gold), Hertz(PC)
Posts: 2,669
#25
Join Date: Jan 2001
Location: ZRH / SEA, DL PM
Posts: 1,165
It's easy to understand why SEA-CDG is struggling.
- US connecting pax prefer AMS
- Premium pax prefer AMS 330 or new AF business class.
- French pax prefer AF
- Better (later) departure time from US on AF metal allows half day of work and still midday arrival to CDG and plenty of connections.
- PE is only available on AF (albeit not great PE but it's always sold out each time I looked).
#26
Join Date: Jul 2003
Location: Orlando
Programs: Delta-Million miler
Posts: 1,312
Just take a few routes and compare the prices! I love Delta and have been patronizing Delta for over 20 years. Been a million miler and platinum for several years. But recently, the price difference between Delta and others (including its partners) is simply not worth the loyalty. Delta has been nice and kind to me on many occasions but as a retiree, I need to compare and find the best value for my money. The OP is right in one regard-as long as I was employed, most of my travel was related to work-I chose Delta and my employer didn't care. Some of my travels were related to NIH business. World Travel that is their travel agency did not allow me to travel as the price was higher than others and had no direct flights between MCO and DCA.
#27
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
I believe any company should be happy to pay an extra 5-10% on fares (in aggregate - some routes are worse of course) to fly Delta given the significantly higher probability of actually arriving at a destination on time (or at all in the case of American) than certain other network carriers.
Apparently SEA-CDG 767 is not doing very well since re-introduction of AF flight. I am forced to take this flight 3rd time this year , because it was significantly cheaper or was the only flight with upgrade space available. Last time J was half empty. Flying it again in a few days and the seatmap is the emptiest I have ever seen in all cabins while 2xAMS flights and AF flight are completely sold out in J in the same day.
It's easy to understand why SEA-CDG is struggling.
- US connecting pax prefer AMS
- Premium pax prefer AMS 330 or new AF business class.
- French pax prefer AF
- Better (later) departure time from US on AF metal allows half day of work and still midday arrival to CDG and plenty of connections.
- PE is only available on AF (albeit not great PE but it's always sold out each time I looked).
It's easy to understand why SEA-CDG is struggling.
- US connecting pax prefer AMS
- Premium pax prefer AMS 330 or new AF business class.
- French pax prefer AF
- Better (later) departure time from US on AF metal allows half day of work and still midday arrival to CDG and plenty of connections.
- PE is only available on AF (albeit not great PE but it's always sold out each time I looked).
I'm flying SEA-CDG next month and outbound I chose SEA-AMS-CDG (first leg A330) rather than fly either Delta's 767 or the AF angle-flat business class. On the way back I took the AF CDG-SEA nonstop.