Delta Air Lines: evolving sales channels for segmented fare offers

Product segmentation is a now a regular phrase in everyday airline discourse, but in reality is that the strategy remains immature at the large US global airlines.

American, Delta and United are working to drive revenue from fare segmentation and Delta is more advanced in its roll-out of segmented fares, having introduced a version of basic economy in 2011.

Delta recently offered some insight into its product segmentation evolution and the progress it has made in improving the way it monetises premium products. The result is that premium seating revenue growth has outpaced main cabin growth during the last few years.

One of Delta's important ongoing tasks of its product segmentation is ensuring that its various fare offerings are available across multiple channels. Broadening the reach of segmented fares in those channels could be worth millions to Delta.