Delta wants to see more paying passengers in its first class cabins. (Image: Delta)
Last month, we noted that Delta’s plan to create a separate fare category for its Comfort+ section — a change that starts next spring — would mean SkyMiles Medallions could no longer expect an automatic free upgrade to those extra-legroom economy seats. And now it looks like elites’ access to first class upgrades might be diminished in the future as well.
At a presentation for investors and Wall Street analysts, Delta Chief Revenue Officer Glen Haustein said the airline has been having great success with its new “branded fares” concept, which rearranged in-flight classes of service into five categories, with levels of service and amenities more finely segmented based on the fare paid. (In some cases that meant a loss of some benefits, e.g., Medallion members no longer get paid or free upgrades when they buy Basic Economy tickets).
Haustein said as a part of that program, Delta expects to see a lot more first class seats occupied by paying passengers in the future, according to Delta’s summary of its investor day presentations.
Specifically, he reported that the percentage of first class seats occupied by paid passengers rose from 45 percent in 2013 to 57 percent this year — and that Delta’s goal is to increase that number to 70 percent over the next two years.
He didn’t say how Delta expects to achieve that, but the surest way to boost sales of something is obviously to cut the price. In any case, it stands to reason that if Delta sells a lot more first class seats to paying passengers, there will be that many fewer seats available for free upgrades.
Other tidbits from the investor day presentations: The Atlanta Journal-Constitution reported that Delta officials expect to boost their revenue from the sale of amenities from the current $8.30 per passenger to $15. The also paper noted that in the future, passengers on Delta can expect to see new physical dividers installed between the main cabin and its Comfort+ seats “to emphasize the difference between them.”
It also noted that Delta intends to expand the availability of its bare-bones Basic Economy fare category from the current 450 markets where it’s available to all markets by the end of next year.
It’s not that Delta wants to sell lots of cheap seats — but rather because the airline has found that it can successfully “upsell” those customers to a higher fare category 50 to 60 percent of the time. Because Delta’s website warns Basic Economy buyers — just before they hit the “purchase” button — about all the things their fare will not include, some critics are calling the new sales tactics “fare shaming.”
Readers: Would you be more likely to pay for a first class seat instead of trying for an upgrade if first class fares were discounted? Would you buy it in advance or wait for a last-minute paid upgrade offer? Post comments below.
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I would have to disagree that SWA does not provide its “top tier” with good benefits. Benefits include (in the lower A tier) automatic A class boarding, 25% point bonus. Also, there is the fantastic “companion pass” status which can be earned by spending through the SWA mall, and obtaining SWA credit cards. The points are also very easy to redeem. The airline really has something for everyone.
You are spot on re: Southwest! I was a big fan of AirTran and really miss those 717’s.
I just went back to Tennessee a few weeks ago on Delta… and booked FC. The FC ticket was $190 _less_ than the Coach ticket would have been… This is now the second time I’ve taken that trip, and it’s been the same way both times — FC was less than the Coach ticket… I’ve started looking at FC airfares when I fly personally… the company still won’t let me book anything but coach, regardless of the price.
The Rolling stones once wrote a song about this, “You can’t always get what you want” Southwest is more the middle class way of flying and they care more about the middle class compared to Delta, American and United.
I keep wondering should I try to go back and start over with Delta. After I read these and other posts, I just slog on with Southwest. Granted, Southwest does not really offer much even to their top tier, but when we cashed in points to go to San Diego for “Vaca” it was painless and we got flights that matched our time frame. We paid a small fee and got into the “A” cattle line so we were able to board and store bags overhead.Though when I reeeaaaally need to get somewhere and get back, I will go Delta. Southwest, in my opinion, still does not have a very good schedules to where I need to go. Too few non-stops. Makes me pine for AirTran. It was easy to qualify for Elite, free upgrades to Business Class when available, assigned seats, same day standby with no fee for Elites…..makes me wanna cry! I miss AirTran!
Again all the airlines are doing is making coach so terrible, specially on long flights, that we are now paying for first class. The next problem I see, more folks are paying early for first class so if you don’t book months in advance the inventory in first class gets low and very expensive.
Honestly the frequent flyer plans have become so dilluted now that it’s based on price instead of mileage, I have noticed it’s taking twice as long to accumulate the same mileage I use to do. So for me to switch now is stupid, have to just stick it out with United and take advantage of anything that comes my way.
One aspect that might make a difference is offering the same upgrade fare on a different credit card, so two transactions, for those of us who have to book according to rules, but are willing to participate in monetization on our own dime (and I mean dime, not dollar, don’t soak us).
Yes, I agree. I wonder to what extent the frequent-flyer programs are aggravating this problem. Seems to me that a new airline could simply start with a clean slate and not offer any frequent-flyer program at all. That would mean that 100% of the passengers would be paying customers, and even a 10% increase in seat width or pitch would make a world of difference.
I don’t travel economy on flights of more than four hours. If I can’t use miles or can’t afford the higher fare, I don’t go.
Wouldn’t it be great if the government required all airline executives and employees to fly economy class when they fly on their own airline? Except the pilots… I want them rested.
I am not sure what to do with Delta. I am toying with moving to American. My status with Delta this year will be silver. It was gold- which was nice- but silver, I may never get comfort plus seating! If anyone has thoughts about American pls say….I know AA has better mileage program
I have also noticed that in most cases it’s better to just pay the first class fare in advance. I know in going from Washington to LAX it’s about $400 in coach vs $850 in first class. The days of bumping up with miles is gone and frankly if I am going to pay $139 each way for economy plus on United, I should just pay for the first class. Really feel this has becoming a ploy for airlines.
All the big airlines are doing it. They are making coach so inhuman and miserable that you are forced to pay for either comfort class or first class. The days of being faithful to Delta, United and American are running short, all they want is for you to either spend over $50,000 a year in flights to get anything for “free” or pay for the perks involved to get the services of flying.
At least airlines like Jet Blue and Southwest are championing helping make coach flying reasonable, but the really big problem is now on flights over four, five hours. For folks older than 50 it could cause health problems and possibly concerns if you are on a long flight. At 60 years old I notice that my legs start bloating on long flights and it’s very uncomfortable without some series walking and stretch. But in coach doing this is close to impossible.
Does anyone else feel the same way as me that the airlines are making it way too uncomfortable for long flights???
Delta can basically do as they please. I would not have said that prior to SWA coming to ATL but it has been a boon for them. SWA has been the best thing for them shockingly enough. The same goes for MSP and DTW. if no one is willing to challenge them in ATL or DTW in the current climate of air travel then it will never happen.
If the perks for being Diamond diminish as projected, so will the incentive to remain Delta faithful. It’s a difficult balance.. Already some first class fares are becoming almost reasonable in some markets, but business travel support for local first class tickets is not going to get better soon no matter what the price differential is. The profits for airlines seem to be sky high right now. Do they want to risk chasing their best customers away?
Having Comfort “plus” as fare basis really is no different than what any customer can do today: Buy any coach ticket and pay extra to get the comfort plus seats. This can be done at ticketing or at a later date currently. All Delta has done is assign one price (fare basis) to the C+ seat. I imagine that they will also allow a certain bag allowance too, but that is yet to be seen.
To the “real” issue: Upgrading to First Class; this has been and continues to be, a diminishing perk even at the diamond level. When DL sells FC at a discounted rate, smart people that do a little homework will buy the “discounted” FC. I’ve seen the price difference between coach and FC be as little as $9. I’ve often spent the additional amount because: #1. It gets you guaranteed FC at time of purchase. #2. It gets you 1.5 times MQM credit. #3. It takes you out of the gate lottery system for upgrades. What this does is remove FC inventory to be able to upgrade to. It’s kinda hard to upgrade when FC is full….
What Delta does NOT realize is that there are many of us who have been loyal and have been treated as such historically, and what is happening now seriously diminishes the value of their program and thusly, the future loyalty of the customer. I am currently a 3.2 Million miler and will be Platinum for 2016. Comfort “plus” is a seat with extra legroom and maybe a free drink and free movies, but THAT’S it. The seat WIDTH is still as horrific as regular coach.
Also, given the extra legroom, I am seeing more and more “people of size” (height challenged for their weight) pay for “Comfort” plus seats. Given that the seat WIDTH is the same, other passengers seated in that row will NOT be in comfort.
I am currently loyal to Delta, and they have historically taken very good care of me. That said, my loyalty is for purchase to any airline that offers a decent seat and service.
The presentation also noted that Delta’s flight cancellation rate is 6 times better than the rest of industry, combined!
Just booked a trip to PNS from PHX for the second week in January on Delta, the comfort plus fare was about the same as first class. First class it is..Years ago Continental and United both had advanced purchase F fares, maybe they should come back, I have to guess the airlines are losing money on these free upgrades and with only a couple of major airlines left, the airlines do not need nor should they have to pamper to the Medallions passengers.