Delta, United Use Perks to Battle for Business-Class Fliers


Thanks to the plethora of mergers in the airline industry — a bankruptcy judge just last week cleared the marriage of US Airways and American Airlines — things aren’t looking good for the hoi polloi. As a recent Slate article pointed out, the era of cheap airfare is pretty much over, with four major airlines controlling 70% of the U.S. aviation market.

With the economy-class market locked up with fewer service and fare options, the lucrative premium-class customer is getting more marketing attention. That segment, according to a United spokesman, provides a “disproportionate share of total revenue.” At Delta, for example, the top 5% of passengers account for 26% of revenue.

“The consolidation you’re seeing is absolutely placing a premium on the business traveler,” said Jonathan Clarkson, a director of marketing at Southwest Airlines. “It is a high-yield, loyal and extremely knowledgeable traveler.” Corporate-travel demand is also rising: The Global Business Travel Association said it expects spending to rise 4.6% in 2013 to $266.7 billion.

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