Farewell ‘Basic Economy,’ hello ‘Main Basic’: Delta expands fare options

The new framework, released Thursday, kicks in for bookings for travel Oct. 1 or later.

What had been known as “Basic Economy,” the lowest-cost, least flexible fare, is now “Main Basic.”

“Main” will now also feature other tiers: “Main Classic,” with a bit more flexibility and mileage rewards, as well as “Main Extra” with even further benefits.

What has been known as “Comfort+” will now be just “Comfort,” with “Classic” and “Extra” tiers within it.

Ditto for “First” as well as the “Premium Select” and “Delta One” fares available on long-haul trips.

Delta’s Chief Digital Officer Eric Phillips told The Atlanta Journal-Constitution in an interview that the change is an “opportunity to continue the evolution” of Delta’s product expansion that began back in 2012, as well as a way to “make the shopping and booking process cleaner and more streamlined.”

“We know customers value choice in this instance, but…you don’t want to overwhelm them with options,” he said.

As this rolls out, Delta is closely monitoring how many clicks it takes for a customer to complete a transaction and whether the new structure delivers the promised travel experience, he said.

‘Good, better, best’

Back 15 years ago, domestic first class seats were almost all given away in free upgrades, president Glen Hauenstein told investors at an event last fall.

The company was leaving money on the table.

Since then Delta has unlocked revenue by lowering the price for those top-tier tickets and expanding its “seat mix” into more than just first class with the addition of levels like “Comfort+.”

Now, 75% of domestic first-class seats are purchased, he said.

And Delta has been working to create “good, better, best” products within all cabins, he said, to reach everyone in a more individualized way.

“There are people who have different needs,” Hauenstein said in November.

Thursday’s announcement is the latest milestone in that strategy.

Indeed, Phillips said one way the new structure has added more individualization is by not just using refundability as a differentiator between fares. They’ve also baked in mileage accrual reward levels.

“We heard from customers that they want it to be more than just refundability,” he said.

All “Classic” ticket fares will earn miles at a base rate of five miles per dollar, whereas “Extra” accrues seven miles per dollar. Medallion members get bonus boosts.

Some industry observers including travel blog Thrifty Traveler have criticized the move away from “Basic Economy” as “a borderline bait-and-switch pricing tactic,” by burying it within the “Main” cabin.

Phillips disagrees. Basic Economy, he argued, was always “the experience of Main Cabin” on board.

And clicking a “Main” fare defaults a customer to the “Classic” middle-road option because 75% of customers ultimately choose it, he said.

“We’re just meeting customers where they’re at, for what they’ve told us they want to see.”

Though the segmentation strategy continues to evolve, the company doesn’t have any other immediate plans to expand its fare structure again, Phillips said: “Change is hard.”

“We’re going to let everyone get used to this: our customers, but really importantly too, our frontline employees are learning this.”

However, a major behind-the-scenes fare change remains afoot at Delta.

The company has been testing generative AI-driven pricing analysis to figure out, at an individual level, how much each customer is generally willing to pay for what flights.

“What we’re really trying to do is to get inside the mind of our consumer and present them… something that’s relevant to them at the right time with the right price,” Hauenstein said in November.

They have been working with an Israeli company on it, he said at the time, on about 1% of flights.

That is still largely in the “very early phases” of testing, Phillips confirmed to the AJC.