Airlines use all kinds of methods to price discriminate, in order to get as much revenue from each passenger as possible. Here’s an interesting new pricing quirk, as flagged by Thrifty Traveler.
In this post:
Delta’s latest method for ticket price discrimination
While it doesn’t appear to be widespread yet, Delta has started charging different fares in some markets based on whether you’re traveling alone or with a companion.
Take a one-way flight from Minneapolis to Miami, as an example, where the entry level economy fare shows as being $209 when searching for one passenger.
However, if you instead search that same flight for two passengers, you’ll find that the entry level economy fare is just $128 per person, representing a massive discount. A similar discount applies for the extra legroom economy seating, but not first class.
Looking at the fare rules, you’ll see this reflected there, so this isn’t a pricing error. There’s a section about “Accompanied Travel,” which mentions that to quality for the cheaper fare, you “must be accompanied on all sectors in same compartment by at least 1 adult.”
Currently this price difference seems to only apply in a very limited number of domestic markets, and for one-way travel.
What should we make of this Delta pricing quirk?
It’s worth acknowledging that in many industries, providing discounts for purchases in bulk is a common practice. It’s not unusual to see something like a “buy one get one free” offer, or a “buy one get one 50% off” offer.
However, up until now, we haven’t really seen this used all that much in the airline industry. Sure, sometimes you’ll see a companion fare sale, where there are discounted premium tickets if you’re traveling as a couple, but those are typically limited time offers, and are the exception rather than the norm.
Airlines price discriminate in all kinds of way, in an effort to extract as much revenue from each passenger as possible. That largely comes in the form of trying to charge business travelers more than leisure travelers, given that the former are often spending other peoples’ money. It’s why many of the more affordable international fares have a Saturday night minimum stay required, since most business travelers are on the move during the week.
For now we’ll have to mark this as “developing.” It’s anyone’s guess if this is a trial Delta is running to see how it impacts demand, or what. The timing coincides with Delta overhauling its fare types and branding. So if you are researching Delta fares and are traveling with at least one other person, it could be worth indicating that during the initial search, since it could land you a better deal.
Honestly, when it comes to the ways that airlines try to parse out market segments, this doesn’t seem like the wildest idea. However, the challenge is that many leisure customers travel solo, so the airline is isolating those people as well.
Bottom line
Delta is now offering discounted fares for couples in select markets (or more expensive fares for solo travelers, depending on how you want to look at it). While the concept of offering a discount for a second customer isn’t unusual in many industries, it’s not something we’ve widely seen in the airline business.
I’m curious to see how this concept evolves, since it seems like it might be a test for the time being.
What do you make of this Delta pricing quirk?
Most of you are entitled or liberal individuals that don’t appreciate capitalism and how people can make a great life on ambition or passion. This blog was about miles, points, reviews and recently been very bias. Most readers are, bc we won’t share same opinions. Ben, it is your blog and it has been amazing but, please keep political controversy out it. Bc ur a sell out bc clicks and ads. Wasn’t what I was...
Most of you are entitled or liberal individuals that don’t appreciate capitalism and how people can make a great life on ambition or passion. This blog was about miles, points, reviews and recently been very bias. Most readers are, bc we won’t share same opinions. Ben, it is your blog and it has been amazing but, please keep political controversy out it. Bc ur a sell out bc clicks and ads. Wasn’t what I was reading last 10 years. Please go back to your passion. And for all you jerks. Yes I’m delta 360. 2 million real miles at 38 and I own G7 and 248 foot yacht.
Be nice if Ben reviewed orient express luxury train.
Highly discriminatory practice.
It’s time for consumers to pick on carrier and then boycott them to bankruptcy. All this alliance, open skies, jv immunity protection is all not for the consumer. today’s technology with air tag, track and trace of luggage works for interlining. It needs tobe unwound. What is next, checking into a hotel, using one bed ina room costs triple,occupying with you wife will be half, bringing you infant child on top, will then double the...
It’s time for consumers to pick on carrier and then boycott them to bankruptcy. All this alliance, open skies, jv immunity protection is all not for the consumer. today’s technology with air tag, track and trace of luggage works for interlining. It needs tobe unwound. What is next, checking into a hotel, using one bed ina room costs triple,occupying with you wife will be half, bringing you infant child on top, will then double the cost but a child over 4 will bringcost down again. All the power is with suppliers this must stop as it makes no sense.
Hotels and other travel often do this. If this rolls out I wonder about the details. What if you're booking on points? What if youre booking on partner points? What if you're booking through a travel center like Chase travel? What if youre on separate reservations? etc....
Will this work for one person purchasing 2 Seats?
Great idea but I'd doubt it. I think it would be very popular and canibalize the revenue from premium economy and/or the extra legroom/exit row seats ...
If they're trying to segment between business and leisure travelers, why does the accompanying passenger have to be an adult? Why wouldn't a child trigger the same cheaper fare? Families traveling for leisure are some of the *most* price-sensitive customers, because they have to buy so many tickets, right?
Honestly asking: how's this different than the lower prices that hotels, cruise ships, and restaurants, have been giving to couples (vs single individuals) for decades?
Hell, half the Korean BBQ places in L.A. won't even seat single people. Others will charge you 50-100% of the price.
The hotels, cruise ships and restaurants that charge the same as double occupancy for travelers do so on a "real estate taken up" basis. It doesn't matter whether 1 or 2 people occupy the room/cabin/table, the room is still occupied so solo travelers don't get a discount.
On a plane, a solo traveller occupies one seat, and a couple occupies two. Nothing is "wasted" with the solo traveller so if we apply the same logic, they shouldn't be charged more.
That being said, when I booked a hotel room earlier this year it was actually more expensive to book it for 2 than to book for just one person. It was a Hilton, the price went up about $15 per additional person on the reservation. I've never experienced having to pay more as a single person to book a hotel room or heck even a cruise than as a couple, but maybe that's just my...
That being said, when I booked a hotel room earlier this year it was actually more expensive to book it for 2 than to book for just one person. It was a Hilton, the price went up about $15 per additional person on the reservation. I've never experienced having to pay more as a single person to book a hotel room or heck even a cruise than as a couple, but maybe that's just my perspective of "the price of the room is the price of the room regardless how many people split it".
But any additional occupants in a room would at least use more towels and incrementally more 'wear & tear' on the property, and perhaps a tad more work for maid service to provide.
I think that might be a great lawsuit to refuse service to a single patron....
Those arguing “it’s to fill the middle seats” miss all the existing methods the airlines use for that. Basic economy fliers who don’t pay to pre-assign a seat fill the middle. Charging more for forward cabin aisles and windows as “preferred” helps fill the middle
This kind of fare segmentation unfairly targets single travelers and remote workers. My company is already annoyed at the high cost of flights to their office. A move like this...
Those arguing “it’s to fill the middle seats” miss all the existing methods the airlines use for that. Basic economy fliers who don’t pay to pre-assign a seat fill the middle. Charging more for forward cabin aisles and windows as “preferred” helps fill the middle
This kind of fare segmentation unfairly targets single travelers and remote workers. My company is already annoyed at the high cost of flights to their office. A move like this will probably have me looking for a new job
This is ridiculous!
I find this very discriminating. I think it is their plan to fill the middle seat, that everyone wants to avoid. Why not offer an attractive discount for booking the middle seat.
It is absolutely discrimination. Imagine if theatres, cinemas etc did this. Exactly the same seat $150 for one person and $125 booked as a couple.
I'm surprised they don't restrict this to saying that one passenger needs to occupy a middle seat. The passengers that don't mind middle seats are likely those traveling together,
Folks traveling on business will pay more as they typically fly solo; Leisure travelers pay less - This is smart
Except on several occasions my wife needs to get home sooner and we have separate tickets even it is a common vacation.
Fols traveling on business will pay more as they typically fly solo; Leisure travelers pay less - This is smart
Except for the whole part where young adults in college or just beginning their careers are often also traveling solo, and unlike business travelers are very price sensitive. Couples are far from the only type of leisure traveler.
But you're talking about 2 price for the same product.
I don’t agree with this especially for those people that are truly single. I think this is discrimination
This is not new. Its been happening for almost 2 years, mostly in AA overlap markets - as it is an AA led strategy.
That is correct!
The same AA that is hardly making any money? No idea why Delta thinks this is a smart idea.
Does the lower price apply only if exactly two passengers are flying.
Or if any number more than 1?
let's split it at 1.5
Usually the search engines on all websites default to 1 person and in the past I hardly changed the count until I am ready to book. Going forward I will keep an eye on the passenger count to see if there is a price difference.
I've had the price for 2 people be more than 2 times the price for 1 when there was only on ticket available on the cheapest fare bucket. Now I'll check to see if the price for 2 is cheaper than for 2 singles.
Nice catch Lucky
This would be a lot more tolerable if it involved first/business. I have found these discounts on foreign carriers when booking for two via Expedia packages. Unfortunately, I've never had it work for a US carrier. They prefer to fill business with non-rev employees. Hopefully, they see the lost revenue there eventually.
I have seen reports on the "American Airlines Executive Platinum Fliers" Facebook Group that AA is now doing the same as well. May not be unique to Delta
FJ has this as well.
Gives whole new meaning to ride sharing. @Ben, are you interested in starting a match-making service for plane tickets? :)
It appears American is also doing this. When searching for a one way flight from PIT to LAX on October 3, searching for one person gives a price of $424 but when searching for 2 people, the price drops to $154 per person.
Are you permitted to buy two seats (like a plus-size person could be forced to) at the lower rate for yourself and save $116.00?
Of course.
Just book for your spouse or other family member and they can no show.
Better to follow the proper procedure to book 2 seats that way you have an empty seat next to you.
Good luck with that strategy !
I"m missing the logic in these specific rates. AA would rather fill 2 seats for $308 total versus just 1 seat @ $424 PLUS more $$ for that second seat ?
No wonder why AA's revenue is lackluster !
The crux here, to me at least, is that other retailers are up front about BOGO deals or other bulk discounts. Airlines are being sneaky by not disclosing the bulk discount.
wait, aren't the airlines all making huge profits? with eco at like 90% capacity and domestic first also selling most of the seats. why the hell are they discounting at all? just curious
These types of fares have been around for years (decades) and are nothing new. LH uses the accompanied travel rule for a fair few business and first class deals (usually around holidays like Xmas etc) that are only applicable to two pax booking together.
To answer the other question, splitting the PNR is possible but the underlying tidket can't be reissued without two pax, meaning yes you could travel alone, but the second pax...
These types of fares have been around for years (decades) and are nothing new. LH uses the accompanied travel rule for a fair few business and first class deals (usually around holidays like Xmas etc) that are only applicable to two pax booking together.
To answer the other question, splitting the PNR is possible but the underlying tidket can't be reissued without two pax, meaning yes you could travel alone, but the second pax would lose their ticket since it's not reissuable without the second passenger. This also applies to the first passenger, meaning if they wanted to make a change after a split, they'd lose their two-passenger minimum fare and would have to reissue into a different, single-pax eligible fare.
It is interesting. As a solo traveler, I hate it. However, I also travel often with a family of six and see how this makes sense. My price point to buy a flight is certainly different if I am traveling solo or with six. There are many times when I search for flights that I would book a $150 one-way fare and think it is a good deal, but I wouldn't book my family of...
It is interesting. As a solo traveler, I hate it. However, I also travel often with a family of six and see how this makes sense. My price point to buy a flight is certainly different if I am traveling solo or with six. There are many times when I search for flights that I would book a $150 one-way fare and think it is a good deal, but I wouldn't book my family of six for the same $150 pp because the total is $900. However, I might book the family of six for $600 total or $100pp.
I guess this is supposed to make up for all those times in the past that I tried to book for me plus family and ended up in a higher fare bucket for all of us because the "cheapest" fare bucket had less fares than people in my party? Not a fan, even though most of my travel nowadays is with my SO. Some of these reported fare differences are eye-watering for the solo traveler,...
I guess this is supposed to make up for all those times in the past that I tried to book for me plus family and ended up in a higher fare bucket for all of us because the "cheapest" fare bucket had less fares than people in my party? Not a fan, even though most of my travel nowadays is with my SO. Some of these reported fare differences are eye-watering for the solo traveler, which as other commenters have already mentioned also includes a lot of price-sensitive leisure travelers.
I wonder if this is a clever way to sell a middle seat. When I travel alone, I will always choose an aisle or window seat. When I travel with my wife, I will book a middle seat and give her a window. In essence, I'm voluntarily buying a substandard seat in order to have a happier wife. Perhaps the airlines have figured out this quirk of human buying psychology.
A very considerate husband you are too Sir. I’m sure that your sacrifice earns you lots of ‘brownie points’ …. :-)
IMHO, the comparison between airline and other retails business isn't comparable. In others businesses (supermarket, clothing etc), as a consumer I have a choice if I want to buy two shirts/pants/TP/soda etc. However, I don't have that choice with flight tickets. If I am traveling alone, I can't just force someone to travel with me so that I can get cheaper tickets.
Whether that's "discriminatory" or not is a different conversation.
Price discrimination is a term of art. It doesn't have the negative connotations that the word does otherwise
Every conscious choice necessarily involves discrimination. The association of the word with unfair/illegal actions is testament to our susceptibility to thinking shortcuts ('heuristics') and overall intellectual laziness.
AA has been doing this for sometime as well. For example, CLT-DFW on 5/30 is $455 1 pax; however, for 2+ pax it drops to $261. I first noticed this back in March flying that route with family.
This might make some people hate an airline
If you book two rickets, will they let you sit next to each other?
Haven't seen it myself on European flights, however some train companies over here offer a discount if 3 or more people travel together.
While I don't agree with this, I don't see a huge problem with this this, as this is a common concept in many businesses. As you mentioned it's the common buy more get a discount. I don't consider it discriminatory. The unacceptable price discrimination I see is charging people wildly different prices based on where they live (flight origination). I find this truly discriminatory.
Jeff, one can understand that a single passenger might feel that the policy discriminates against them, however, a couple would consider it to be akin to ‘bulk buying’ perhaps?
It has always been more expensive for a single person to occupy an hotel room or ships cabin, etc. Are not the airlines marketing bods just catching up?
For a hotel room or ship's cabin a single person is using capacity for 2. Unless they're having the couple share a single seat that isn't the case with airlines.
It could also be a signal someone is traveling for business and letting them segment that market a bit better. Interesting test.
That's probably the goal here but it's ridiculously stupid. Some of the most price sensitive passengers travel solo (young travellers/backpackers, people visiting family, commuting to work, etc).
AA and UA have also been doing this on certain routes for a while now. (For example, CLT-MCO on AA, where solo fares can be >4x the cost of accompanied travel fares.)
Can I get served less ads on this blog if someone reads it with me over my shoulder?
Delta is just the worst airline, in so many ways. Why do so many people love them?
They run a marginally better operation, but at the end of the day, they’re just really good at marketing.
With DL aiming to have fares more complicated than a discount carrier this isn’t surprising. I don’t get it though, very few people are debating if a second person will come along on a trip due to flight prices. Most people booking as two, natural shop for flights as two. And if something happens and one wants to cancel they’re going to hit the roof at the lack of refund because dollars to donuts they...
With DL aiming to have fares more complicated than a discount carrier this isn’t surprising. I don’t get it though, very few people are debating if a second person will come along on a trip due to flight prices. Most people booking as two, natural shop for flights as two. And if something happens and one wants to cancel they’re going to hit the roof at the lack of refund because dollars to donuts they aren’t even going to realize they booked a discounted couples flight.
Book for two then cancel one within 24 hours.
You could try, but I would be surprised if this doesn't lead to the cancellation of both tickets. Also, for most airlines in order to partial cancel you need to dial in, and I'm assuming the call centre agents have been made aware of this potential loophole.
Maybe. Look at the loophole for extending DL flight credits online.
Hope this isn't a new trend. Next, restaurants will charge more for solo diners. Movie tickets will cost more if you buy only one. Anarchy!!
The concept of "buy one, get one with a discount" is hardly new in the retail industry. I'm sure your local supermarket has tons of these offers. It's rather uncommon with airlines, mainly because of how airline systems work.
"Must be accompanied" - does that mean that they're entitled to deny you boarding if your spouse can't make it?
@ GRkennedy -- It's a good question as to what happens if the record is split, or if only one person checks in...
I'm sure their booking system would have implemented some kind of protection against split and against cancelling one pax.
However, I would be surprised if this goes all the way down to check-in, let alone boarding. But in the end, as long as (a) the fare is not refundable and (b) 2 tickets cost more than 1 ticket, they should be covered.
Regarding on why not many airlines do this (and not often), it's...
I'm sure their booking system would have implemented some kind of protection against split and against cancelling one pax.
However, I would be surprised if this goes all the way down to check-in, let alone boarding. But in the end, as long as (a) the fare is not refundable and (b) 2 tickets cost more than 1 ticket, they should be covered.
Regarding on why not many airlines do this (and not often), it's really down to how airline systems work, where pricing is really per passenger. Implementing this pricing tweak (or companion offers) require a significant level of hardcode on top of the booking systems airlines use.
I agree. Fare rules will prevent a refund if the second person doesn't travel, so I really doubt there is any way to game this fare.
But wouldn't that be a one time 'charge' for the airline versus the multiple times tickets could be sold ? It seems like airlines' computer systems are always increasingly capable of handling a myriad of scenarios & regulations ... ?
Couldn't you book it as an extra seat for "personal comfort"? It would have the same last name, but first name be EXST.
Also there was a reddit thread on the Delta subreddit a few days ago, and there the price disparity was much more than Ben's example. $494 for one person vs $167/pp when traveling as two people for June 3 BOS > CVG.
I would think a single cancellation of the two tickets would automatically invalidate both fares and require some sort of reissue of the ticket of the pax actually traveling.
UA does this in certain markets as well as I've been noticing it for a few months. Not as much as a difference as this DL example, bit still maybe $5 or $10 off a One-Way flight.