Go Back  FlyerTalk Forums > Miles&Points > Airlines and Mileage Programs > Delta Air Lines | SkyMiles
Reload this Page >

Delta high pricing strategy backfiring at our company!

Community
Wiki Posts
Search

Delta high pricing strategy backfiring at our company!

Thread Tools
 
Search this Thread
 
Old Jun 6, 2019, 12:05 pm
  #16  
FlyerTalk Evangelist
 
Join Date: Nov 2011
Location: Brighton. UK
Programs: BA Gold / VS /IHG Diamond & Ambassador
Posts: 14,176
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.
UKtravelbear is offline  
Old Jun 6, 2019, 12:08 pm
  #17  
Original Poster
 
Join Date: Jun 2019
Posts: 5
I'm sure it won't make a dent all. Our company is just cutting increasing travel costs, not trying to hurt Delta. And yes, Delta did increase their profits last year with this new strategy, it is working for them.
marinster84 is offline  
Old Jun 6, 2019, 12:20 pm
  #18  
 
Join Date: Apr 2016
Posts: 1,884
Originally Posted by marinster84
I'm sure it won't make a dent all. Our company is just cutting increasing travel costs, not trying to hurt Delta. And yes, Delta did increase their profits last year with this new strategy, it is working for them.
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.
The Situation is offline  
Old Jun 6, 2019, 12:44 pm
  #19  
 
Join Date: May 2010
Posts: 3,458
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....
Orange County Commuter is offline  
Old Jun 6, 2019, 1:06 pm
  #20  
 
Join Date: Mar 2018
Programs: SkyMiles 2018 PM, 2019 PM, 2020 PM, 2021 PM, 2022 PM, 2023 PM...
Posts: 314
Originally Posted by moondog
Are you kidding?!
I wish I'd figured out that much about FT in my first five posts.
gooselee likes this.
Wimsta is offline  
Old Jun 6, 2019, 1:07 pm
  #21  
 
Join Date: Apr 2011
Posts: 3,394
Originally Posted by UKtravelbear
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'm sure it's not but that sounds like Nike and PDX/NRT (soon to be HND)
kop84 is offline  
Old Jun 6, 2019, 1:07 pm
  #22  
 
Join Date: Aug 2012
Location: SLC
Programs: DL FO, KM, & 1.7MM; UA nothing; HH♦; National EE
Posts: 6,344
Originally Posted by marinster84
Okay, no need to respond to this post anymore, sounds like most are Delta employees.
Attached Images  
trooper and jinglish like this.
Howste is offline  
Old Jun 6, 2019, 2:10 pm
  #23  
 
Join Date: Feb 2017
Programs: AS MVP HHonors Gold DL MS
Posts: 48
Our recent flight from CDG to SEA had many many open seats in C+ and main cabin. For us it was a first and we fly that route a couple times a year
ORDPSC is offline  
Old Jun 6, 2019, 2:14 pm
  #24  
 
Join Date: Jul 2012
Location: RDU
Programs: DL(PM), UA(Silver), AA(EXP) Marriott(Ti), HH(Gold), Hertz(PC)
Posts: 2,652
Originally Posted by vincentharris
You caught me, DL employee here. I was the one in charge of the ATL servers overnight in August of 2016
I need to have a word with you. That extra night in Denver was *not* what I needed at that time.
fliesdelta is online now  
Old Jun 6, 2019, 2:32 pm
  #25  
 
Join Date: Jan 2001
Location: ZRH / SEA, DL PM
Posts: 1,158
Originally Posted by ORDPSC
Our recent flight from CDG to SEA had many many open seats in C+ and main cabin. For us it was a first and we fly that route a couple times a year
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).
AntonS is offline  
Old Jun 6, 2019, 2:37 pm
  #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.
Gynob001 is offline  
Old Jun 6, 2019, 2:46 pm
  #27  
 
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,421
Originally Posted by ethernal
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.
My company (about 70k or 80k employees) would not. Bean-counters just see when you deviate from what Concur says is the lowest "reasonable" flight. I've had to type in a manual justification for a higher fare to avoid a two-stop domestic itinerary!! Travel department doesn't care about payroll impacts from IRROPS and employees have their per diem or allowances to cover whatever the airline does not. It's not right, but it's the way it is. If I picked DL over a competitor I'd be more likely accused of trying to accrue status or miles, even if my included baggage allowance saves them $60 on the expense report.

Originally Posted by AntonS
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).
Edit to avoid a back-to-back post.

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.
Gig103 is offline  
Old Jun 6, 2019, 2:52 pm
  #28  
FlyerTalk Evangelist
 
Join Date: May 2008
Location: CHA, MAN;
Programs: Delta DM 1 MM; Hz PC
Posts: 11,169
FT is still the tough crowd I love. Also I love Delta, Hertz and Hilton
ACCDraw likes this.
GRALISTAIR is offline  
Old Jun 6, 2019, 2:58 pm
  #29  
FlyerTalk Evangelist
 
Join Date: Apr 2001
Location: NYC
Posts: 27,222
Originally Posted by marinster84
It's not a secret, Delta has announced this is there [sic] new strategy.
And what a novel one! Charge as much as you can!
indufan, bubbashow and jdrtravel like this.
ijgordon is offline  
Old Jun 6, 2019, 3:05 pm
  #30  
FlyerTalk Evangelist
 
Join Date: Mar 2014
Location: 4éme
Posts: 12,024
Originally Posted by ijgordon
And what a novel one! Charge as much as you can!
Wonder how many customers the OP's employer has lost due to better prices elsewhere?
nancypants likes this.
TomMM is offline  


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.