Delta is targeting Gen Z and Millennial travelers to speed up its recovery and help drive revenue growth for the airline.
Glen Hauenstein, Delta’s president, acknowledged the pivotal role of the younger generation. “We know if we can get them young and keep them engaged with the brand, their lifetime value is going to be huge. They are working fewer hours in the office, and they have more time to do what they want, where they want.”
Over the years, Delta, one of the major airlines in the U.S., has been steadily positioning itself as a provider of premium services. It has implemented a higher volume of first- and business-class seating, an extensive loyalty program, and in-flight amenities such as free WiFi and self-service. The airline’s premium services in 2014 accounted for 24 percent of its revenue. Now in 2023, Delta’s projections indicate a significant increase. Its premium spending is projected to reach 35 percent of the estimated $47 Billion total revenue.
Delta is working towards its premium revenue contributing up to 37 percent in the long run. Hauenstein highlighted that this is not a recession-proof revenue stream, but recession resistant. “We are going to have a record revenue year.
Dwight James, senior vice president of customer engagement & loyalty, said their SkyMiles program is a key driver of Delta’s younger audience. This program has attracted younger consumers by introducing new amenities and partnerships with popular brands like Starbucks, Lyft, and Paramount+. “2023 will be even younger. The introduction of free WiFi has largely fueled this audience.”
Moreover, the number of Millennial travelers flying with Delta has increased by 35 percent since 2019. James pointed out that Millennials travel mover than any generation, averaging 35 travel days per year and spending over $5,000 on discretionary travel.
Furthermore, Delta has been keeping up with the trend of changing fleets. This reflects the airline’s evolving attitude toward premium travel. Delta’s aircraft feature premium seating. Its transition to larger, new-generation Airbus aircraft has boosted the number of available seats.
Also Read: NEOM Airlines will Serve Saudi Arabia’s Futuristic City, Set for Launch by 2024
