Delta plans to play favorites
Aug 9, 2003, 8:48 am
#1
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Delta plans to play favorites
From today's Dallas Morning News:
Delta plans to play favorites
The airline will ease unpopular rules for its best customers
http://www.dallasnews.com/sharedcont...lta.29cf3.html
Delta Air Lines Inc. will relax some ticket rules and fees to lure back the carrier's best customers, the airline's top marketing executive said Friday.
...
To fight back, Delta is rescinding some of the policies that drove customers away, she said.
...
Ms. Escarra said Delta hasn't settled on the details, but it intends to let business travelers' nonrefundable tickets keep their value for 90 days or more.
...
The change eases the dictum of "no waivers and favors" that most big carriers adopted in the last two years.
...
Other changes include a more liberal upgrade policy for Delta's frequent fliers with "elite" status.
Delta plans to play favorites
The airline will ease unpopular rules for its best customers
http://www.dallasnews.com/sharedcont...lta.29cf3.html
Delta Air Lines Inc. will relax some ticket rules and fees to lure back the carrier's best customers, the airline's top marketing executive said Friday.
...
To fight back, Delta is rescinding some of the policies that drove customers away, she said.
...
Ms. Escarra said Delta hasn't settled on the details, but it intends to let business travelers' nonrefundable tickets keep their value for 90 days or more.
...
The change eases the dictum of "no waivers and favors" that most big carriers adopted in the last two years.
...
Other changes include a more liberal upgrade policy for Delta's frequent fliers with "elite" status.
Aug 9, 2003, 8:59 am
#2
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swag, can you post the link without us having to register on the site?
Aug 9, 2003, 9:18 am
#3
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Sorry, I don't know if there is a registration-free way to view this. Registration is free, consider a throwaway hotmail address.
Aug 9, 2003, 9:25 am
#4
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First of all, SWAG, excellent post name, I don't recall seeing you post before on DL, but then I don't pay that much attention to posters names. However, Supervisor Wild ... Guess sums up DL pretty well.
As far as DL giving us anything back, we have heard it before. It may be true, it just may be a sound bite to take pressure off the exeutive funding issue in the WSJ the other day. I don't believe anything DL tells me until I see it in action. They can not be trusted.
As far as DL giving us anything back, we have heard it before. It may be true, it just may be a sound bite to take pressure off the exeutive funding issue in the WSJ the other day. I don't believe anything DL tells me until I see it in action. They can not be trusted.
Aug 9, 2003, 9:39 am
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I've posted on DL only occasionally; being in DFW, AA is my carrier of choice, with DL #2.
Most of the excerpts I posted are attributed to Vicki Escarra, Delta's executive vice president and chief marketing officer. The impetus for the article in the Dallas paper seems to have been an employee rally at DFW.
And swag doesn't actually stand for anything, though I've heard many theories.
Most of the excerpts I posted are attributed to Vicki Escarra, Delta's executive vice president and chief marketing officer. The impetus for the article in the Dallas paper seems to have been an employee rally at DFW.
And swag doesn't actually stand for anything, though I've heard many theories.
Aug 9, 2003, 9:42 am
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I took one for the team and registered so I could post the article. Vicki makes some cryptic and, IMO, outrageous comments in the interview:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
The airline will ease unpopular rules for its best customers
08/09/2003
By ERIC TORBENSON / The Dallas Morning News
Delta Air Lines Inc. will relax some ticket rules and fees to lure back the carrier's best customers, the airline's top marketing executive said Friday.
Delta, the nation's top carrier last year in terms of passengers carried, said it's making the changes because it's lost a significant number of top-dollar business travelers to low-cost airlines such as AirTran Airways Inc. and JetBlue Airways Inc.
"We have become the underdogs now," Vicki Escarra, Delta's executive vice president and chief marketing officer, said at a daylong employee rally near Dallas/Fort Worth International Airport.
To fight back, Delta is rescinding some of the policies that drove customers away, she said.
Delta, along with American Airlines Inc. and most other big carriers, infuriated fliers after 9-11 when they ended a rule that allowed unused tickets to retain their value for a year.
That change meant nonrefundable tickets become worthless if they aren't used the day of travel or aren't changed or canceled beforehand. The move was among several policy changes that saved carriers money at the expense of customer convenience.
Ms. Escarra said Delta hasn't settled on the details, but it intends to let business travelers' nonrefundable tickets keep their value for 90 days or more.
In emergencies, Delta also will waive the fees it charges when customers change nonrefundable tickets – but only for passengers who buy the most expensive tickets.
The change eases the dictum of "no waivers and favors" that most big carriers adopted in the last two years.
"No waivers and favors" enraged frequent travelers. A number left to fly upstart carriers with lower fares.
Other changes include a more liberal upgrade policy for Delta's frequent fliers with "elite" status.
The move puts Delta in synch with its alliance partners Continental Airlines Inc. and Northwest Airlines Inc. Both allow their best frequent fliers unlimited upgrades based on available space.
"We're going to go about three-quarters of the way to that," Ms. Escarra said.
Delta changed how customers qualified for elite status in December. Passengers who pay higher fares now move up faster in the program than those who fly on the lowest-cost tickets.
As a result, the number of "platinum" fliers – the top tier of the three elite levels – has about doubled, Ms. Escarra said. The program's overall number of elite fliers has stayed the same, and the changes – while controversial – have helped Delta's revenue, she said.
Offering 'flexibility'
The rule changes are intended to give employees of Atlanta-based Delta "flexibility" in their attempts to win back business travelers' loyalty, Ms. Escarra said.
If hub-and-spoke carriers such as Delta and American are to regain their financial swagger, they must win back business travelers. D/FW Airport is one of Delta's four U.S. hubs.
Saddled with higher costs than fast-growing counterparts such as Southwest Airlines Co., Delta and American need to earn more per ticket to make up the cost difference. They cannot keep that "premium" without repeat business customers.
"Our customers are telling us there's no longer a reason for them to pay a premium to fly Delta, but we offer so much more than those other guys," Ms. Escarra said.
Delta's biggest low-cost challenger is AirTran, which has invaded Delta's home turf in Atlanta.
In the last several years, the number of Delta's Atlanta customers who only fly Delta has dropped to 55 percent from 75 percent.
Delta is counting on improved employee morale to win over lost fliers. And the Friday rally – attended by several hundred employees – is part of a companywide effort to energize workers.
"We have the best people," said Ms. Escarra, who flew in to D/FW for the rally.
She presented a videotape on which low-fare carrier executives crowed about their superior customer service. The video showed AirTran chief executive Joe Leonard repeating the word "indifferent" when describing the big carriers' customer service.
"I hope that makes you angry," said Ms. Escarra, who admits to throwing darts at a small picture of Mr. Leonard in her office. "We're not indifferent."
Initial reaction
The changes Delta has in mind encouraged Terry Trippler, an airline consumer advocate based in Minneapolis.
"You know this stuff seems to be cyclical," Mr. Trippler, who closely watches how carriers treat their customers. "It's time to get back to the customer service business, which is what ... [airlines] should have been doing for a long time."
While still losing money on its operations, Delta is in a better financial position than most of its competitors, with nearly $3 billion in cash and short-term investments.
Bankruptcy remains a remote possibility, but analysts are skeptical that Delta can achieve its goal to cut 15 percent from its costs by 2005.
"I think it's going to be tough, but we're going to do it," Ms. Escarra said in an interview after her address to employees.
The most difficult part will be getting Delta's unionized pilots to agree to large wage cuts. They now get 30 percent to 45 percent more than their counterparts at American and United Airlines Inc.
E-mail [email protected]</font>
The airline will ease unpopular rules for its best customers
08/09/2003
By ERIC TORBENSON / The Dallas Morning News
Delta Air Lines Inc. will relax some ticket rules and fees to lure back the carrier's best customers, the airline's top marketing executive said Friday.
Delta, the nation's top carrier last year in terms of passengers carried, said it's making the changes because it's lost a significant number of top-dollar business travelers to low-cost airlines such as AirTran Airways Inc. and JetBlue Airways Inc.
"We have become the underdogs now," Vicki Escarra, Delta's executive vice president and chief marketing officer, said at a daylong employee rally near Dallas/Fort Worth International Airport.
To fight back, Delta is rescinding some of the policies that drove customers away, she said.
Delta, along with American Airlines Inc. and most other big carriers, infuriated fliers after 9-11 when they ended a rule that allowed unused tickets to retain their value for a year.
That change meant nonrefundable tickets become worthless if they aren't used the day of travel or aren't changed or canceled beforehand. The move was among several policy changes that saved carriers money at the expense of customer convenience.
Ms. Escarra said Delta hasn't settled on the details, but it intends to let business travelers' nonrefundable tickets keep their value for 90 days or more.
In emergencies, Delta also will waive the fees it charges when customers change nonrefundable tickets – but only for passengers who buy the most expensive tickets.
The change eases the dictum of "no waivers and favors" that most big carriers adopted in the last two years.
"No waivers and favors" enraged frequent travelers. A number left to fly upstart carriers with lower fares.
Other changes include a more liberal upgrade policy for Delta's frequent fliers with "elite" status.
The move puts Delta in synch with its alliance partners Continental Airlines Inc. and Northwest Airlines Inc. Both allow their best frequent fliers unlimited upgrades based on available space.
"We're going to go about three-quarters of the way to that," Ms. Escarra said.
Delta changed how customers qualified for elite status in December. Passengers who pay higher fares now move up faster in the program than those who fly on the lowest-cost tickets.
As a result, the number of "platinum" fliers – the top tier of the three elite levels – has about doubled, Ms. Escarra said. The program's overall number of elite fliers has stayed the same, and the changes – while controversial – have helped Delta's revenue, she said.
Offering 'flexibility'
The rule changes are intended to give employees of Atlanta-based Delta "flexibility" in their attempts to win back business travelers' loyalty, Ms. Escarra said.
If hub-and-spoke carriers such as Delta and American are to regain their financial swagger, they must win back business travelers. D/FW Airport is one of Delta's four U.S. hubs.
Saddled with higher costs than fast-growing counterparts such as Southwest Airlines Co., Delta and American need to earn more per ticket to make up the cost difference. They cannot keep that "premium" without repeat business customers.
"Our customers are telling us there's no longer a reason for them to pay a premium to fly Delta, but we offer so much more than those other guys," Ms. Escarra said.
Delta's biggest low-cost challenger is AirTran, which has invaded Delta's home turf in Atlanta.
In the last several years, the number of Delta's Atlanta customers who only fly Delta has dropped to 55 percent from 75 percent.
Delta is counting on improved employee morale to win over lost fliers. And the Friday rally – attended by several hundred employees – is part of a companywide effort to energize workers.
"We have the best people," said Ms. Escarra, who flew in to D/FW for the rally.
She presented a videotape on which low-fare carrier executives crowed about their superior customer service. The video showed AirTran chief executive Joe Leonard repeating the word "indifferent" when describing the big carriers' customer service.
"I hope that makes you angry," said Ms. Escarra, who admits to throwing darts at a small picture of Mr. Leonard in her office. "We're not indifferent."
Initial reaction
The changes Delta has in mind encouraged Terry Trippler, an airline consumer advocate based in Minneapolis.
"You know this stuff seems to be cyclical," Mr. Trippler, who closely watches how carriers treat their customers. "It's time to get back to the customer service business, which is what ... [airlines] should have been doing for a long time."
While still losing money on its operations, Delta is in a better financial position than most of its competitors, with nearly $3 billion in cash and short-term investments.
Bankruptcy remains a remote possibility, but analysts are skeptical that Delta can achieve its goal to cut 15 percent from its costs by 2005.
"I think it's going to be tough, but we're going to do it," Ms. Escarra said in an interview after her address to employees.
The most difficult part will be getting Delta's unionized pilots to agree to large wage cuts. They now get 30 percent to 45 percent more than their counterparts at American and United Airlines Inc.
E-mail [email protected]</font>
Aug 9, 2003, 9:54 am
#7
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Now this is the interesting part:
"Other changes include a more liberal upgrade policy for Delta's frequent fliers with "elite" status. The move puts Delta in synch with its alliance partners Continental Airlines Inc. and Northwest Airlines Inc. Both allow their best frequent fliers unlimited upgrades based on available space. "We're going to go about three-quarters of the way to that," Ms. Escarra said. Delta changed how customers qualified for elite status in December. Passengers who pay higher fares now move up faster in the program than those who fly on the lowest-cost tickets. As a result, the number of "platinum" fliers – the top tier of the three elite levels – has about doubled, Ms. Escarra said. The program's overall number of elite fliers has stayed the same, and the changes – while controversial – have helped Delta's revenue, she said."
- The amount of PMs has doubled
- The amount of elites has stayed the same
- Unlimited upgrades for PMs will return?
[This message has been edited by Floris (edited 08-09-2003).]
"Other changes include a more liberal upgrade policy for Delta's frequent fliers with "elite" status. The move puts Delta in synch with its alliance partners Continental Airlines Inc. and Northwest Airlines Inc. Both allow their best frequent fliers unlimited upgrades based on available space. "We're going to go about three-quarters of the way to that," Ms. Escarra said. Delta changed how customers qualified for elite status in December. Passengers who pay higher fares now move up faster in the program than those who fly on the lowest-cost tickets. As a result, the number of "platinum" fliers – the top tier of the three elite levels – has about doubled, Ms. Escarra said. The program's overall number of elite fliers has stayed the same, and the changes – while controversial – have helped Delta's revenue, she said."
- The amount of PMs has doubled
- The amount of elites has stayed the same
- Unlimited upgrades for PMs will return?
[This message has been edited by Floris (edited 08-09-2003).]
Aug 9, 2003, 9:55 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Cholula:
As a result, the number of "platinum" fliers – the top tier of the three elite levels – has about doubled, Ms. Escarra said. The program's overall number of elite fliers has stayed the same, and the changes – while controversial – have helped Delta's revenue, she said.
</font>
As a result, the number of "platinum" fliers – the top tier of the three elite levels – has about doubled, Ms. Escarra said. The program's overall number of elite fliers has stayed the same, and the changes – while controversial – have helped Delta's revenue, she said.
</font>
Aug 9, 2003, 10:02 am
#9
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She throws darts at the AirTran CEO's picture?
"Our customers are telling us there's no longer a reason for them to pay a premium to fly Delta, but we offer so much more than those other guys," Ms. Escarra said.
Vicki, the customer voices their opinion with their cash.
Edited because there was duplicate info posted as I was writing.
[This message has been edited by indufan (edited 08-09-2003).]
Aug 9, 2003, 10:08 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by jimrpa:
The number of platinums has about doubled?! This seems to imply that Delta's strategy of luring people willing to pay for the higher-priced tickets is working?</font>
The number of platinums has about doubled?! This seems to imply that Delta's strategy of luring people willing to pay for the higher-priced tickets is working?</font>
I am curious if anyone here has ever got on the phone (since you can't do it online) and specificially asked to buy an M class ticket domestically when a K class was available for the extra .5 MQMs? Maybe most of the extra PMs come from CVG where M in the norm.
Aug 9, 2003, 10:36 am
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Considering that it now takes only 4 business class trips from the West Coast to Europe to become PM... it isn't shocking that there are more PM's.
My wife, who wasn't elite on any airline, might even hit PM, due to 3-4 to Europe in either C or Y/B/M, and a few other scattered trips. She certainly isn't "trying", but she prefers DL/AF, so it might happen.
My wife, who wasn't elite on any airline, might even hit PM, due to 3-4 to Europe in either C or Y/B/M, and a few other scattered trips. She certainly isn't "trying", but she prefers DL/AF, so it might happen.
Aug 9, 2003, 2:16 pm
#12
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by indufan:
I am curious if anyone here has ever got on the phone (since you can't do it online) and specificially asked to buy an M class ticket domestically when a K class was available for the extra .5 MQMs? Maybe most of the extra PMs come from CVG where M in the norm.</font>
I am curious if anyone here has ever got on the phone (since you can't do it online) and specificially asked to buy an M class ticket domestically when a K class was available for the extra .5 MQMs? Maybe most of the extra PMs come from CVG where M in the norm.</font>
Aug 9, 2003, 3:13 pm
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Is this a case of too little too late?
In order for the employees to support the management in this effort to win back customers, the management are counting on improved employee morale. I suggest that this will not be as easy as Vicki thinks, give the penion protection situation with DL's management, and many other things that the management have put on the employees recently. In fact I have not heard anything positive or complimentary from most of the DL employees about their current management that would make me think that the employees morale will improve unless there is a change of management at Delta.
Overall as I said before, too little too late. They just do not get it in their ivory tower on Virginia Avenue.
In order for the employees to support the management in this effort to win back customers, the management are counting on improved employee morale. I suggest that this will not be as easy as Vicki thinks, give the penion protection situation with DL's management, and many other things that the management have put on the employees recently. In fact I have not heard anything positive or complimentary from most of the DL employees about their current management that would make me think that the employees morale will improve unless there is a change of management at Delta.
Overall as I said before, too little too late. They just do not get it in their ivory tower on Virginia Avenue.
Aug 9, 2003, 4:44 pm
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"We have become the underdogs now," Vicki Escarra, Delta's executive vice president and chief marketing officer, said at a daylong employee rally near Dallas/Fort Worth International Airport.
Gee, that realization didn't take long, did it?
Too little, too late. Looks like 50% MQMs for insULT fares will remain; I certainly won't.
Gee, that realization didn't take long, did it?
Too little, too late. Looks like 50% MQMs for insULT fares will remain; I certainly won't.
Aug 9, 2003, 4:58 pm
#15
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If this story is true, why did Delta Air Lines not at least have the courtesy or decency to meet with and inform The FlyerTalk Four?