Delta Airlines serves over 160 million customers each year and it’s important to know
who these customers are to determine marketing methods. In the comparison chart I examined
through Simmons Choices 3 database, I analyzed demographic data of Delta Airlines and
Northwest Airlines, before the 2008 merge, and two major airline competitors, United Airlines
and American Airlines. I looked at data regarding gender, age and race and census region of each
airline from April 2007 – June 2008.
Looking at our company, Delta Airlines, I found that the male-female ratio of their
consumers is almost equal at 52.3% female and 47.7% male with index numbers of 101 and 99
respectively. This statistic holds true to the competitor’s data. When I looked at regional
statistics I found that 44.6% of Delta’s customers live in the Southern region, 20.4% live in the
Northeast region, 19.4% in the Western region and 15.7% live in the Midwest region. It is
important to note that this data was prior to the Delta-Northwest merger. This is likely due to the
fact that Delta Airlines is headquartered in Atlanta, Georgia. Hubs have the tendency to give
consumers more options for non-stop flights which is a preferred method to travel. On the other
hand, since one airline may operate the majority of the gates at a hub, consumers have limited
options from other airlines. With fewer choices consumers may become loyal users of Delta.
Simmons data shows that people of the South have an index value of 122 which further supports
that they would become “brand” loyal to Delta.
For Northwest Airlines, only 2.60% of residents in the South choose it as their primary
airline travel and they have a low tendency number of 68, showing that the South does not prefer
Northwest Airlines to Delta. The table shows 46% of Northwest customers are from the Midwest
and again we can assume the headquartered location of Minneapolis brings brand loyalty. The
index number of Midwest users of Northwest is 205 which is a very high score for consumer
choice. It would be interesting to see the most recent Midwest data to see if the Delta-Northwest
merger in 2008 has changed any of the numbers.
Looking at United Airlines region data, 38.7% of their customers live in the West and
they also have highest index number in the West of 172. The lowest percent is in the South with
the graph showing only 3.37% of residents using United Airlines and a low index of 65.
American Airlines shows 41% of their customers live in the South and 23% live in the
West with high index numbers over 100 in both regions. The index number for the Northeast and
Midwest are both in the 80’s and only 5.75% of customers from both regions use American
Airlines.
When analyzing the data for age groups I found that for all airlines have similar patterns
with statistics. Young adults aged 18-24 accounts for only 10% or less of each airlines customer
base. This age group also has a low index number. These numbers would indicate young adults
don’t travel as much and are probably looking for the best price so are not brand loyal. For the
next two age categories, each airline indicates that the travelers aged from 25-34 and 35-44 have
similar percentages making up their customer base. The percentages range from 18-24%. The
index number increases, however, in the 35-44 age group. This data may indicate a large percent
of these travelers are traveling for business. These customers are looking for ease of travel, less
stops and are on expense account and therefore may be using the airline that provides the best of
these services in their region. As a more experienced traveler in the 35-44 age range, loyalty
becomes higher as indicated with the rising index number. Specifically with Delta Airlines, most
consumers fall under the 35-44 age range at 24.4% and the 55-64 age range have the highest
index number. It is consistent with each airline that the index number drops below 100 in the 65+
age category. This would make sense since there is a drop off of travel for this age group.
With regards to race, Delta’s customers are mainly Caucasians at 82.7%. African
Americans make up 9% and Asians 5%. Asians have the highest index of 116 at Delta. For
United Airlines, Asians have an extremely high index number of 265. This is probably due to the
fact that United Airlines in known for being the largest U.S. carrier to China. (United Airlines
website: Company Information). Index numbers for African Americans are lower than
Caucasians and Asians. Only 8.64% of American Airlines customers and 4% of Northwest
Airlines customers are Black or African American. Delta Airlines has the largest amount of
Black or African American users of 9%, but it is still a low percentage compared to the
Caucasian users.
The similarities I found between all the airlines were gender and age users. Each airline
was almost equal in male and female customers as a percentage, indicating women travel just as
much as men. All airlines had low index number (below 100) for the age range of 18-24 and 65+.
Young adults can be in college or working in jobs that doesn’t afford them to travel. Senior
citizens may travel periodically to see family members, but are most likely staying in one
location at this point in their lives.
For Delta Airlines I found the core consumers are Caucasians between the ages of 35-44
and live in the South region. Northwest’s customers mostly reside in the Midwest and are
between the ages 45-54. We can assume that the merger between Northwest and Delta increased
Delta’s customer base in the Midwest.
Growth areas would include marketing and offering more flight options to the western
United States and increasing international flights to Asia because it is clear from United Airlines
data that they high index numbers from their Asian customers. Efforts should also be explored to
increase customers that are African Americans. ("Travel – Airlines." Chart. Consumer Survey
Data of Major Airline Companies. Simmons Choice 3. Web. 7 Oct. 2010.)
Recent data I collected of Delta Airlines (May 2010) from Quantcast, a site collecting
and measuring audiences of different companies, showed that Delta appeals slightly more toward
females, the age range usage is from 35-50 and it is mainly used by Caucasians but has increased
popularity within African Americans since 2007 with an index number of 108. Delta Airlines is
also used more by people who are college educated and have an income of over $100,000 or
more. ("Delta.com - Quantcast Audience Profile." Quantcast - Home. Web. 20 Oct. 2010.
http://www.quantcast.com/delta.com.)
Catering to loyal customers is important, but at the same time focusing our marketing and
advertising techniques towards segments that are not so popular with us can be crucial as well to
gain more customers.