One of the next phases of Delta Air Lines’ evolution in fare segmentation is working to ensure that its range of offerings is available through external channels.
The airline’s view is that it has done a good job in building the functionality to support segmented fares on its own website, but transferring that capability to external retail channels is – unsurprisingly – more of a challenge.
There has been some progress on the corporate side, with 100 corporate and business customers adding premium products to their travel policies during the past year.
Delta has culled some data about premium product purchasing patterns on its own site and external channels, calculating that 20% of customers using delta.com purchase premium products. That compares with 10% via corporate channels and 5% through online travel agencies.
The airline believes that every point of improvement in customers buying products through premium channels is ultimately worth USD400 million to USD500 million.
Delta’s management has cited progress via online travel agencies in showing customers differences between its various products and giving those customers an ability to make apples-to-apples comparisons across airlines, but it has also acknowledged: “This is going to take time.”
Meanwhile, the US Department of Transportation (DoT) has denied Delta Air Lines’ motion requesting flexibility for all US carriers holding slots at Tokyo Haneda Airport. The DoT said considering Delta’s request for gateway flexibility would produce a complex and controversial element to the DoT’s standard approach to selecting carriers.
The DoT noted it is instituting the 2019 Haneda Combination Services Allocation Proceeding to allocate up to 12 slot pairs to US carriers for scheduled combination services at Haneda. The DoT plans to offer the slot pairs for an indefinite period, subject to start up conditions and the 90 day dormancy condition.
The agency believes the proceeding will maximise public benefits and allow the DoT to consider which applicants will best meet the needs of the travelling and shipping public and competitive environment.