It sounds like Delta’s operating and business models align perfectly: higher end service for the customer that is not price sensitive. Well put. It sounds like they really benefit from not being unionized. Maybe they can higher better attendants (fire low performing) and pay less overall. Curious if you know how they continue to avoid unionization while the others haven’t?
Interesting read Tyler. I’ve never really thought about it before, but Holiday Inn’s do seem to be a step above competition for the price range. It makes sense to me that they reduce labor wherever possible yet strategically keep labor headcount high in areas such as cleaning. How does removing the bar fit into this picture? To me, it seems like a bar would only increase revenue / margins. Maybe their customer base isn’t interested in an in-house bar? Although there may not be much to do at a Holiday Inn due to their lack of service, the product is such a good value that you will continue to see me doing nothin but chillin at the Holiday Inn.
Interesting that you mention that DD is increasing its product offerings, yet customers still just want coffee from there. Starbucks and DD both struggle to increase sales of food despite selling products on the opposite ends of the price spectrum. McDonald’s on the other hand is a fast food establishment that is (successfully) attempting to enter coffee. I wonder what Starbucks and DD need to do to become a serious player in food.