Is Delta’s corporate travel program the key to combating the COVID-era decline in business travel?

In the past, full-service network providers such as Delta Air Lines American Airlines and United Airlines have made their money from premium cabins, and they have done so largely by targeting business travelers. Because business travelers book their tickets only a few weeks or days in advance and almost always book premium cabins, they have always been a strong source of revenue for the airlines.

However, that was the case until the COVID-19 pandemic, which significantly changed the nature of business travel as the lockdown era proved that important business activities could still take place even when employees were not physically together. As a result, travel began to seem like an undue burden that simply added costs for many who had previously viewed travel as essential to their jobs.

Photo: Lukas Wunderlich | Shutterstock

According to an analysis by Forbes, the share of U.S. adults who regularly travel for business has dropped by nearly 18%, with the number of frequent travelers again declining significantly. As a result, airlines are struggling to meet the challenges posed by this lack of consistent business travelers and are deploying new strategies to fill their premium cabins and reward business travelers.

Delta Air Lines is no exception and has pulled out all the stops to encourage the next generation of business travelers to stay loyal to their airline. SkyMiles loyalty program and is introducing a number of new program benefits aimed at this passenger segment. Delta has also been quick to recognize that the nature of business travel has changed significantly, so it has decided to target these benefits at remote workers. Could such a program be an ace up the airline’s sleeve when it comes to combating the seemingly permanent decline in business travel?

A new philosophy around business travel

It’s important to note that the nature of business travel has changed significantly since the pre-pandemic years. The era of flying to another city for a meeting or two is over. Companies now place a stronger emphasis on traveling only for essential reasons. Lawyers, consultants, salespeople, and many others have instead begun holding important meetings remotely and reserving business trips for only essential purposes.

Photo: PeopleImages.com – Yuri A | Shutterstock

Many still fly for business. However, they do so at much shorter intervals and with less frequency, probably as a result of increasingly negative attitudes towards travel. Ultimately, sending employees across the country increases costs and increases their carbon footprint. They also tire their employees out unnecessarily. While some enjoy the jet-setting life of a business traveller, for many it becomes a tiring burden that is best avoided.

A new category of travelers with different priorities

But the latest perks the company has announced may not convince companies to keep their employees flying with Delta, as they are primarily aimed at a new segment of business travelers. The airline offers its corporate program SkyMiles for Business, an initiative aimed at high-volume business travelers that has been in place for many years and has been refined after the pandemic.

Related

Which frequent flyer program offers the best benefits for business travelers

Delta Air Lines announced a new program this week for business travelers, including small business owners and the self-employed. The Delta Business Traveler program does not require a business travel agreement with Delta and will continue to run alongside SkyBonus for Business. Instead, customers can self-identify as business travelers. It offers perks including elite car rental status, discounts on MasterClass and access to coworking spaces worldwide with Industrious.

In addition to the traditional business travel programs for individual entrepreneurs, there are still those. SkyTeam airlines have several options, including BlueBiz from the Air France/KLM group and Club Premier Corporativo from Aeromexico. The Oneworld Alliance airlines are also represented with programs such as On Business (British Airways), Business Plus (Cathay Pacific) and AAdvantage Business from American Airlines. The Star Alliance offers a single program for all participating member airlines.

The new age of remote work has created an entirely new category of business traveler: that of the remote work orphan. This category of business professional is a company employee who primarily works from home. Such an employee may work for an Atlanta-based company, for example, but since they only need to be physically present for a few days or so every three weeks, they may choose to live elsewhere.

The first thing to note is that these occasional business travelers have very different priorities when it comes to which airline they fly with. Unlike most business travelers who are forced to travel to client sites or important meetings, these remote workers pay for their tickets out of pocket, making them quite price-conscious. For example, our Atlanta-based traveler who chooses to live in New York, for example, would have to pay for his three-week round-trip flight to Georgia.

Additionally, this group of travelers wouldn’t seek out business class seats either. However, they do appreciate the benefits of ticket flexibility and Wi-Fi (and would likely be willing to pay for it). Additionally, the remote work environment encourages them to take so-called “soft vacations,” so they appreciate the frequent flyer miles they earn from business flights, according to Global Rescue. That leaves us with three main priorities for these “occasional” business travelers:

1. Not rock bottom prices, but still reasonable ticket prices
2. Ticket flexibility and flight experience
3. Premium accumulation potential

Where has Delta taken steps in the right direction?

The first feature of Delta’s latest business traveler benefits offering that is an improvement over existing products is accessibility. Delta’s existing business traveler loyalty program requires a minimum number of employees as well as employee verification. Now, casual travelers and employees who primarily work from home can enjoy SkyMiles business travel benefits without verification from their employer.

The new benefits also target other aspects of the travel experience that may be important to these remote-first workers. First off, Delta business travelers now have access to Hertz Five Star status and earn additional SkyMiles for hotel reservations through Delta Stays. Additionally, these new loyal travelers have access to coworking spaces through the Industrious x Delta Business Traveler Pass, which is offered for an impressively low $99 per month.