Delta high pricing strategy backfiring at our company!
Jun 6, 2019, 3:19 pm
#31
Join Date: Jan 2011
Location: DTW
Programs: DL DM, National EE, Hertz PC, IHG PL, Bonvoy Amb
Posts: 1,342
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.
Jun 6, 2019, 3:25 pm
#32
Join Date: Mar 2010
Programs: DL PM, Bonvoy Gold
Posts: 8,414
Concur is just a platform. Each company can determine the rules and parameters for booking travel according to their travel policies.
Jun 6, 2019, 3:59 pm
#33
FlyerTalk Evangelist
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Not sure this a valid conclusion -- I'm guessing DL just opted not to match the AA/UA corporate discounts being offered.
Hard to make any conclusion about corporate contracts without seeing the actual contract or being in the room -- to much variability from corporation to corporation
Hard to make any conclusion about corporate contracts without seeing the actual contract or being in the room -- to much variability from corporation to corporation
Last edited by Duke787; Jun 6, 2019 at 4:07 pm
Jun 6, 2019, 4:29 pm
#34
Join Date: Jan 2000
Location: Canada
Programs: AS, DL, UA, Hyatt, SPG
Posts: 2,574
Delta has been selling tickets higher than most competitors and letting seats go empty. Believing that they are more profitable selling fewer higher priced tickets than selling more reasonably priced tickets. They are targeting the business traveler, thinking companies are less concerned about price. Our parent company of over 94,000 employees has announced that the travel department will no longer be using Delta unless there is no other carrier on that route. Hopefully, other companies will do the same and stop being bullied by Delta!!
If Delta can command a price premium because they have (perceived or otherwise) a more reliable operation, better in-flight product, and overall a better goodwill with their customers - than I would absolutely expect Delta to do that.
If Delta finds that people don't value those things more than their competitors, and aren't willing to pay that premium, then market forces will ultimately require Delta to adjust/correct.
Jun 6, 2019, 5:05 pm
#36
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Doesn't sound as though OP is plugged in to his employer's negotiations and knows what he has been told officially and has heard at the water cooler.
With 94K employees, it is unimaginable that the company didn't have a corporate contract with DL. None of us know what that was. But, now it appears that the employer has had a better offer from some other carrier, so it has switched its business to that other carrier.
In the meantime, some other company out there has moved its business from UA/AA to DL.
The entire issue of loads is irrelevant. It is all about PRASM. OP doesn't even mention that. Sounds like sour grapes.
With 94K employees, it is unimaginable that the company didn't have a corporate contract with DL. None of us know what that was. But, now it appears that the employer has had a better offer from some other carrier, so it has switched its business to that other carrier.
In the meantime, some other company out there has moved its business from UA/AA to DL.
The entire issue of loads is irrelevant. It is all about PRASM. OP doesn't even mention that. Sounds like sour grapes.
Jun 6, 2019, 6:09 pm
#37
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Location: Brighton. UK
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Jun 6, 2019, 6:43 pm
#38
Join Date: Mar 2010
Programs: DL PM, Bonvoy Gold
Posts: 8,414
Probably true, but we have no idea how many of those employees use air travel for work. What if most of the rank and file don't travel and only a small percentage actually need to fly for work? The number of employees has nothing to do with the negotiating power of the company with DL, all that really matters is the potential annual spend with on air travel.
Jun 6, 2019, 7:17 pm
#39
Join Date: Mar 2010
Location: KATL
Programs: DL, WN, AA, Marriott, Hertz, National, Chic-fil-A
Posts: 234
Delta is a business that exists to make money off anyone who will pay. I find it pretty amazing that they can compete on a product level that ranges from Basic Economy to D1 in a variety of markets.
They are and should be banking this cash, because the current high of this cyclical industry will eventually reverse and come down again, and the airlines will again find themselves cash strapped and cutting expenses. The longer they can offer that service level with minimum reductions, the more shareholder value will be created and retained over time.
They are and should be banking this cash, because the current high of this cyclical industry will eventually reverse and come down again, and the airlines will again find themselves cash strapped and cutting expenses. The longer they can offer that service level with minimum reductions, the more shareholder value will be created and retained over time.
Jun 6, 2019, 7:21 pm
#40
Join Date: Dec 2018
Location: PHX
Programs: Delta DM, Marriott Lifetime Titanium, HHonrs Diamond
Posts: 1,336
My company of 1 person pays 10% more to fly DL also.
But I happen to be based in a DL hub city.
Perhaps the OP's company is also.
Or has a disproportionate number of flights between DL hubs.
Hub captive fare differential. Now entering its 5th decade screwing travelers over.
But I happen to be based in a DL hub city.
Perhaps the OP's company is also.
Or has a disproportionate number of flights between DL hubs.
Hub captive fare differential. Now entering its 5th decade screwing travelers over.
Jun 6, 2019, 7:23 pm
#41
Join Date: May 2006
Location: GA
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If your company was truely concerned about price & value, they'd simply implement a policy of buying the least expensive fare.
If they've blocked Delta completely, it isn't about saving money, it's probably a contract with another airline.
If they've blocked Delta completely, it isn't about saving money, it's probably a contract with another airline.
Jun 6, 2019, 7:46 pm
#42
Join Date: Dec 2009
Location: RDU
Programs: DL DM+(segs)/MM, UA Ag, Hilton DM, Marriott Ti (life Pt), TSA Opt-out Platinum
Posts: 3,227
This. Our company also uses Concur (now part of SAP), but only for tracking expense reports. We don’t do any booking through them. Seeing how crappy (but functional) their expense app is, I can’t imagine having to book something with that UI/UX...
Jun 6, 2019, 8:03 pm
#43
Join Date: Mar 2018
Posts: 56
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.
Jun 6, 2019, 8:33 pm
#44
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Jun 6, 2019, 8:34 pm
#45
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At least for us it basically shows us a matrix (a la Kayak or Expedia) of all the fares and airlines and then lets you choose based on the company-defined policy rules. Once you get used to it and understand the nuances of the tool and how to navigate more easily to the options you are seeking, it gets the job done in a fairly efficient way (better than calling AMEX GBT which can sometimes be okay and other times lead you to an agent who doesn't seem to know anything about travel and airline routing rules)