Sunday, March 3, 2013

Airline Product Differentiation

This is a really good article about Delta airlines trying to differentiate themselves from other airlines and partnering with other travel corporations like hotels and car rentals.

Delta Airlines wants to further their retail product by customized the travel experience to the traveler. Delta Airlines has a wealth of knowledge that could be useful in customize the travelers experience. Addresses, type of traveler, married/not married, etc... could be used to market partnership services to the traveler. The article talks about only giving hotel offers to that have overnight flights and offering deals to "day trippers."

Knowing information about a passenger and customizing deals that are tailored to that individual's needs will allow the customer to be better satisfied with the airline and the other company. This is a win win for both companies.

It wont be long before other companies copy this strategy and the differentiation will be eliminated. Excess profits will also disappear. The real question is whether or not this strategy will actually cause a differentiation enough for a passenger to chose Delta over cheaper substitutes.

Datalex and Delta AIr LInes Retail Strategy

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