Delta announced last week that it will be slowing growth in order to maximize existing routes....which, for a business, makes perfect sense. You can achieve revenue growth by limiting supply. Less wear and tear on equipment and staff, more revenue as supply is constrained. Smart.
Except, for the rest of us...this ain't good.
What happens when a $375 round trip ticket becomes $675? What happens to the middle class family of four heading off for a vacation? More importantly, what happens to potential corporate and association conference attendees that can't submit such a fare and expect approval?
It's a smart move for Delta in the short run but, like my Thursday post, does it kill the golden goose in the pursuit of short term profit?
We'll see.
True. Hopefully some confidence in long term planning and spending will return after the election, but some fear the recession of 2017-2018 will come in like a lion, so they are preparing for a cash grab right now.
Posted by: Rob Stern | July 18, 2016 at 09:43