Delta killed off its basic economy fares last week, rebranding its stingiest tickets “Main Basic” while introducing new, refundable “Extra” fares with more perks. Combined with a recent website overhaul that hides the true, higher price of a standard economy ticket, Delta's pulling a bait-and-switch.
But those moves also tipped their hand to even more trouble ahead: It's only a matter of time before Delta gives the “basic” treatment to business class. And Delta Premium Select. And probably even extra legroom Delta Comfort fares.
They've clearly got the infrastructure in place to sell a Delta One Basic ticket now. Why stop at Delta One Classic and Delta One Extra?
They won't. In fact, that is the entire point: To offer a stripped-down, “basic” fare for every single seat on the plane – even the business class tickets abroad selling for $3,000-plus … or 300,000 SkyMiles.
And the airline hasn't exactly been shy about what's coming, either. Here's how they explained their vision of “further segmentation” to investors last year.
Airline President Glen Hauenstein told investors last fall that Delta would add “good, better, and best” fare types in all of its cabins in the coming years, starting with a test in economy and eventually Comfort seats sometime in 2025.
“Pay more to get more,” Hauenstein said.
Why would Delta – or any airline – sell business class fares for thousands of dollars apiece yet cheap travelers out of seat selection or lounge access? Because they can … and more importantly, because it makes the airline more money.
Investors love it. And when it makes shareholders more money, you can safely assume it's a bad thing for everyday travelers.
What Would a Basic Biz Class Fare Look Like?
Go figure the airline that invented basic economy more than a decade ago would take it to a new low and become the first U.S. airline to sell a basic business class fare. The race to the bottom knows no bounds in the airline industry.
But what would a basic Delta One ticket look like? The airline's executives aren't saying yet … but they don't have to look far for inspiration.
Lufthansa, Emirates, and even Qatar Airways have all unbundled business class tickets to sell a pared-down fare at a slightly cheaper price. Common features include:
- No free seat selection
- No complimentary lounge access
- No free change or cancellation, even for a voucher
- Earning fewer miles on the flight
If that all sounds familiar, it's because it's borderline identical to the restrictions with Delta basic economy – sorry, I mean Main Basic. You can't get into the Sky Club with one of those tickets today, you can't change your flight, and you won't earn a single SkyMile.
There's little reason reason to think Delta will do anything drastically different when it gives business class the basic treatment. Heck, because it's Delta, maybe they'll even save the Taittinger champagne and fancy new Missoni bedding for higher-paying “Delta One Classic” passengers.
That's because the point of any basic fare isn't to cut travelers a better deal. It's to lure you in with a cheaper fare, then hit you with a bunch of restrictions in an effort to get you to pay more. That upsell has worked wonders with standard basic economy fares as a way to combat ultra-low-cost carriers while pulling more revenue
So don't expect a bargain on lie-flat seats as a result. Unbundled fares aren't really cheaper – they merely take the place of a standard fare, which go up in price. You wind up paying the same amount you used to … and get less for it.
Hauenstein said it himself: Pay more, get more.
Bottom Line
It's only a matter of time: Delta basic business class fares are coming.
After rebranding their cheaper fares, the airline has everything it needs in place to start selling a stingy business class ticket. Now, the only question is when that happens … and just how bad they'll be.
