Delta Dumps Meeting Department Will Others Follow?
Despite Delta Air Lines' decision to discontinue its Meeting Network product as of February 28, it appears to be business as usual for its competitors when it comes to the meeting market. The demise of the meeting product, as well a decision to eliminate group and zone discounts, was part of the fare-simplification strategy that Delta put in place in early January.
While American Airlines has done some reorganizing of its group and meetings department, its approach to the market remains “business as usual,” according to Alynne Hanford, national sales manager, groups and company meetings, American Airlines. Northwest Airlines “has made no changes as of this time to our approach and programs in the meeting market,” said a Northwest spokesperson.
Terry Egger, vice president, group and meetings services for Air Fulfillment Services in Des Moines, Iowa, thinks that Delta “may have to re-examine its decision. I don't see how an airline can't have something in place to address [the meeting] market.” Alan Krensky, president and CEO, Colpitts World Travel in Dedham, Mass., agrees. “I just don't think it's smart,” he says, adding that the meeting market deserves “fares commensurate with the commitment from the client.”
Aspects of Delta's new approach also concern David Nelson, vice president, travel, meetings, and incentives for American Family Life Assurance Co. in Columbus, Ga. For example, Nelson says that Delta now requires that he provide it with names within 30 days of blocking group space. That, Nelson says, is “virtually impossible” because his sales force doesn't qualify for incentive programs until around three months before the trip. “It's impractical for me to wait until the qualification period is over to block the space, thus risking [lack of] availability and higher fares.”
Looking ahead, Krensky is concerned about the impact the elimination of the Delta Meeting Network could have on service. “There's no major falloff yet,” he notes, “But in the long term, I think it will be very negative.”
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© 2012 Penton Media Inc.
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