Delta wants to sell you more than just an airline ticket

Passengers may want to sit down for this: Delta sees its future in a whole new direction that has implications for all carriers.

Delta does not simply want to transport people but views its future flight path as a retailer selling extra services for flights through passengers who might best described as a “captive audience” for sales pitches.

The carrier also sees a big opportunity in selling advertising that targets passengers who have little choice but to listen to the pitch.

“For passengers, that could mean an onslaught of sales pitches and advertising throughout the travel experience,” says the Atlanta Journal-Constitution.

"Historically, we have seemed to be singularly focused on selling airline tickets, and forgetting that we can sell customers other things," said Glen Hauenstein, Delta's executive vice president of revenue management, marketing and network planning.

"There are a lot of ways to make money beyond the basic sale of a seat between two points," said Tim Mapes, Delta's senior vice president of marketing. With more than 1 million visitors to Delta.com daily, it's "our storefront to the world," he said.

While those moves may be up in the air, Delta has already taken some down on the ground moves to compete with United Continental and American Airlines by announcing the largest single expansion by any carrier at LaGuardia.

The airline “hopes to improve its competitive edge against its two biggest rivals in one of the nation's most important air travel markets,” said the AP.

Total destinations from LaGuardia in New York City will expand by more than 75 percent.

By next summer, Delta will be operating 264 daily flights between LaGuardia and more than 60 cities or more than any other airline, according to Delta.

Delta will offer more domestic flights and seats from New York's three major airports than any other carrier, with more than 400 daily domestic departures from LaGuardia, JFK and Newark to destinations nationwide.

Delta is competing directly against American and United Continental.

The new routes “should help it grab more high-paying business travelers, a critical passenger segment in major cities like New York,” says the AP.

Many of its new routes are adding cities that are hubs for other airlines.

The convenience of LaGuardia should be a major deciding factor for business travelers deciding whether to fly with Delta or United, said Gail Grimmett, Delta's senior vice president of New York operations.

As for those extra sale plans beyond simple transportation, Delta has the ambitious goal of reaching US$1 billion in sales outside of tickets by 2013.

“It's well on its way, with around $600 million in revenue already coming in from sources such as its new premium economy section launched this year at $19 to $99 per seat for domestic flights, in-flight Wi-Fi fees of $4.95 to $12.95 per flight, sales of preferred seats and upgrades,” writes the Journal-Constitution.

Delta hopes to evolve from just imposing new fees for what once was free to selling improved services such as premium economy seats and eventually selling customized or bundled offerings. For example, passengers could buy things like food, in-flight Wi-Fi, priority boarding and other services by checking off boxes while booking a flight on Delta's website, the newspaper says.
 

Delta also hopes to turn its customers into a substantial source of advertising revenue on its website, mobile apps or in-flight entertainment

How will passengers respond to this new wave of sales? And how will other airlines respond?

The example of Europe’s Ryan Airlines is often used as a model for others who want to sell all services individually, which airline officials defend as reinforcing the concept of “user pay.” Those who don’t want the services can simply opt out.

And those who may object to hearing repeated sales pitches? Their only option is simply not to buy.

By David Wilkening

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