Delta Industry News Update #3

Delta reports strong second quarter, optimistic in Asia Pacific growth in 2018

Delta reported a second quarter total revenue growth of 3.3%, and a record growth in unit passenger revenue from more than 2 years of negative growth. Although revenues from Pacific routes down 12.9% this comes as Delta is on a multi year effort to shift Asia Pacific focus from Tokyo toward Shanghai, Beijing and Seoul.

“…we’re really at the endpoints of the restructuring and looking forward to very much improved 2018 in the Pacific”, company President Glen Hauenstein


American Airlines to bringing back direct booking to lower cost

Airlines in the states have in the last decade been bound by third party distribution systems for ticket booking instead of having agencies book directly with the airline. Last week American Airlines re-introduced the the direct booking scheme that was abandoned more a decade ago. Under the new system American Airlines would pay agencies incentives directly for booking on Airline system saving enormously in fees that would lower operating costs. Sabre, the ticket booking platform replied that this move may put unforeseen costs back on the airline from inefficiencies huge cost of maintenance.


Big data predicts pissed loyalty members

Loyalty program outweighs their costs enormously when they are done right. In recent years airlines have changed loyalty programs more towards valuing high spending members and weeding out basic members, with less and less attractive features for upgrade. People are taking their dissatisfaction to social media where airlines are often oblivious of consumer sentiments that can predict more about where the program is going. The study by Travel Data Daily followed Cathay Pacific’s Marco Polo program’s 13,000 elite members sentiments on social media before and after the programs change that lowered mile earning for lower fare classes while increased for high fare classes. The research found 10% of members switch programs and were vocal about new airline with a corresponding with increased booking at new airline.

A graph of members discussion of competing airlines online and their corresponding flights booked on each.

Where digitizing and monitoring social media also becomes valuable is in its capability to predict high value customers dissatisfaction and target media to facilitate transfer from competitor programs.


Aloha, send Hawaiian Airline customer service a text message

Hawaiian Airline realizing the potential time waste for customers to wait on the phone is opting for text message as means to handle customer service inquiries with technology support from Liveperson Inc. Currently running on real human power, but Hawaiian is optimistic that in the future it will be looking to advanced AI and chatbots for text based customer service.


Qatar Airways turns a fare mistake into an opportunity for customer loyalty


Qatar Airways recently mistakenly issued its business class fare from Ho Chi MIn city to the States for less than $700. The news quickly blew up on social media, and instead of retracting the fare as a mistake like many would, Qatar went on to fully honor all flights booked and people have taken to social media to praise the airline’s moves.

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