Delta Drops Corporate Discount Program

By Rachelle Crum -- Tradeshow Week, 1/24/2005

Whether recent changes at Delta Air Lines, including the elimination of its corporate discount program, will substantially benefit or plague the tradeshow industry remains unclear. But one thing is certain: Industry executives are keeping close tabs on any changes within the airline industry.

Delta's structural overhaul this month is intended to shape the carrier into an airline much like its discount counterparts. Besides dumping its corporate program, called Delta Meeting Network, the airline cut fares by up to 50 percent, eliminated Saturday night stay requirements, reduced change fees and capped one-way walk-up tickets at $499 and $599 for coach and first class, respectively.

If other carriers mimic Delta's moves — as many did by dropping their fares — and cut corporate program divisions, the effect will be significant, since many show organizers use discount codes from multiple airlines for attendance promotion, said Chris Brown, senior vice president of conventions and expositions for the Natl. Assn. of Broadcasters.

The tradeshow industry needs a healthy airline industry with plenty of affordable travel options, said Brown, who is also chairman of the Intl. Assn. for Exhibition Management. "We need to support whatever measures are necessary to help them in this regard, even if it means accepting a more limited range of event-specific pricing options."

Brown doesn't expect the loss of one airline's corporate program to hurt the industry significantly. At the same time, lower fares could be a strong benefit. "Anything that reduces the total cost of participation in our event, or any other, is likely to help us grow our market," he said.

Individual business travelers may be better off flying Delta now, said Daniel Krueger, principal of Boston-based conference design and management firm Krueger & Associates. "I do a great deal of last-minute travel and this actually is a benefit to my consulting business, as I was often buying those really high fares," he said.

On its Web site, Delta encourages customers with active corporate discount contracts to use the airline's SkyBonus program to earn rewards for future meetings. Tickets may be purchased against active DMN contracts through Feb. 28.

Along with issuing staffing cuts for international flights, the country's third-largest carrier will also discontinue flight-crew meals starting in April.