Delta is finding new money in seat upgrades for business passengers, who are often paying out-of-pocket for better seats than their employers allow them. That’s pretty well putting an end to free upgrades for loyal customer, except the most elite.
The airline has grown this segment in part by making it easier to do: paying your way out of business and into first, or from coach to premium economy has now been added to Delta’s app and websites; a phone call is no longer needed. Previously, only United made it that easy.
The ‘up-sell’ is now a card-or-cash transaction, but Delta is planning to add pay-with-miles by summer, which is also when it will be introducing premium economy on its routes to Europe. Domestically, it has more premium seats to sell as it replaces older MD88s with new A321s.
Down the road, Delta is working on making the process even more personal, using what it knows about you to make individual offers. In the past, premium seats were often given as free upgrades; the new pay system is selling more of those seats. Delta president Ed Bastian likes that: “Any business where you give the majority of your best product away fro free doesn’t work.”
