Delta’s “Basic Business” Is A Good Start. Now Finish The Job.

Delta Air Lines aircraft in flight representing the airline's premium brand and Basic Business fare strategy.

The prix-fixe problem

You ever wonder why an airline seat is still sold like a prix-fixe menu?

For as long as any of us can remember, the choice has been Business, Comfort Plus or Coach. Each one a fixed bundle. You want the flat seat, fine, but it’s tied to a lounge, a checked bag, a pile of miles and a three course meal at ten o’clock at night. Take it all. No substitutions.

Nobody actually shops that way anymore. Given the choice, most of us order à la carte. We buy what we want and skip what we don’t.

A step in the right direction

That’s why Delta’s new “Basic Business” fare is worth a look. It’s a cheaper Delta One ticket that drops the lounge, a bag, seat selection and some miles. Emphasis on step, because it only goes halfway.

Look at who actually flies up front. The frequent business traveler heading to Europe isn’t checking three bags. He’s a carry-on guy. He’s a Delta Medallion, or he carries a Platinum card that hands him the lounge and the checked bag for free anyway.

So when Delta “takes away” the bag and the club, for these flyers it isn’t taking anything. They already had it. What they’re left buying is the one thing that matters, the flat seat and a real night’s sleep, for a little less money. That’s not a downgrade. It’s the first honest item on the menu.

Only pay for what you need

Here’s the branding lesson Delta is circling but hasn’t landed. “Only pay for what you need” isn’t new. Liberty Mutual built an entire ad campaign on it. It works because it flatters the customer’s intelligence. It says we trust you to know what you want.

That premise is spreading across category after category, because technology finally makes customization cheap. So why is the airline cabin one of the last holdouts?

The technology is already on the plane

Here’s the part Delta keeps missing. The technology isn’t coming. It’s already on the plane.

They know exactly which seat you’re in. They already customize the screen in front of you. They’ve trained the crew to say, “Good evening, Mr. Adamson.”

Now imagine how much better that feels when the greeting becomes, “We know you want to go straight to sleep, so we’ll skip dinner and bring you a yogurt and an orange juice thirty minutes before landing.”

That’s not fantasy. That’s the same data they already have, put to work for you instead of for the galley schedule. When you’ve got five hours to sleep before a morning of meetings, the last thing you want is a four course dinner at 10 p.m. You want the bed. So let me decline the meal. Let me choose.

Why this builds loyalty

What matters to me at 38,000 feet is not what matters to the person in the next seat. He wants the wine pairing. I want the eye mask and silence. A fixed bundle forces us both to pay for the other guy’s preferences. À la carte lets each of us pay for our own.

That’s the loyalty play Delta is underrating. When you let your best customers design their own flight, pay for what they value and ignore what they don’t, you don’t just save them money. You make them feel known. And customers who feel known don’t shop around. They come back.

Finish the job

Basic Business gets the principle right and the execution halfway. Delta unbundled the ground game, the lounge, the bag, the miles. The real prize is unbundling the experience, the meal, the timing, the service, everything that happens once the door closes.

Airlines spent forty years telling us what a premium seat includes. The smart ones will spend the next decade asking us instead.

Only pay for what you need. Turns out that’s not just good insurance. It’s good business.

Published
Categorized as Branding

By Allen Adamson

Allen Adamson is Co-Founder of Metaforce, Adjunct Professor at NYU Stern School of Business, and an expert witness in trademark, branding, and consumer perception disputes. Learn more about Allen here.