Airfares are about to get more complicated again, with Delta getting ready to create a slew of subcategories in its existing fares.
Glenn Hauenstein, Delta president, told investors last week that “We’ve got all these different cabins on the airplane. But we really think there’s another way to segment them.” The airline is looking to create a ‘good, better, best’ option within each section of the aircraft. And that’s on top of the creation of ‘basic economy’ fares a few years ago that already split economy in two.
Delta is planning to try out its new breakdowns next year, starting with economy, creating different segments of ‘regular’ economy with different prices and amenities, which might include differences in snacks, boarding order, baggage rights, refundability or more.
Increasingly sophisticated technology makes plans like this possible and Delta’s not planning to stop with economy; if things work out there, it’s likely there will be segmentation at the pointy end of the plane as well. Hauenstein had already indicated last July that Delta was considering a “basic business” fare with the same seat but different amenities and conditions.
An unanswered question, since Delta’s not giving details yet, is how much of the new segment will involve additions to current prices, and how much will involve reductions in services or amenities to create distinct segments without competing with basic economy.
