The market of airline nowadays is worldwide, which does not only mean more and more air-transportation are exceed demanded but also it indicates that more comfortable space is wanted. Thus, in order to satisfy people’s unlimited desire of comfort, Delta started to provide unsold seat paid by customers with extra charge of money.

According to the referenced article, it says for the rationalized airline industries these days, the efficient way of surviving is to remove some of the seats in order to sort of maximize the value of a plane’s real estate. In the past, airlines used to discount the empty seat in case that they wont lose very much benefit. On the contrary, the trend currently is to get those empty seats sold. On one hand, they can build a long stand reputation because consumers may enjoy much more than ever in the planes. On the other hand, there is no doubt that this is profitable marketing strategy.

However considering the passenger load, it might not be that ideal. With paying extra amount of money for getting fancier space while being either travelling or business trip, the people who can afford extra price based on the economic class is supposed to be able to pay for the higher class in a airline. Although it’s reasonable to make this kind of deal with passengers, the risk that Delta is taking is the fall of the numbers of customers gradually.

Therefore, in terms of what article mentions, I suppose what Delta has been doing these days is a smart move. We may not see the financial effect of this implement as much soon as we expected but it’s definitely remarkably helpful for the long term development of this airline firm.

Reference: http://business.time.com/2013/10/07/6-outrageous-fees-the-airlines-havent-though-of-yet/

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Published by: Bo Yuan Wang