Travel Companies Creating (and Extracting) Value

Here are a couple of articles recently published in The Wall Street Journal, that describe travel businesses creating value for customers–and charging them more in the process. I often tell my students that one of the primary jobs of marketing is to better understand what customers value and then to see if they can provide that value at a cost customers are willing to pay. If they generate enough value, they can charge more than it costs them to produce, thereby increasing their profit margin. Here are two examples that span multiple topics, primarily focusing on value, product, services, and price.

In “Delta Predicts Premium Seat Sales to Overtake Economy as Soon as 2026” (October 9, 2025), we see how Delta Air Lines is shifting its value creation toward premium customers—business travelers and affluent leisure fliers—who are willing to pay more for comfort and service. The company projects that revenue from premium seats will surpass economy sales as early as 2026, driven by strong demand for upgraded experiences such as first-class, Delta One, and Comfort+. This strategy allows Delta to extract more value per passenger through higher margins and loyalty-based offerings, rather than relying on volume-driven economy fares. In essence, Delta is moving from selling transportation to selling differentiated, high-end experiences that command pricing power and deepen customer loyalty.

The second article, “Marketing Is Helping Carnival Charge More for Its Cruises,” (October 1, 2025), describes how Carnival Corp. is boosting profits and commanding record cruise prices by using smarter, more targeted marketing to increase customer demand and strengthen its brand. The company is heavily promoting its wide range of destinations—such as its new Celebration Key on Grand Bahama Island—to attract travelers away from land-based vacations. These marketing investments, including a new campaign timed for the crucial “wave season” and a high-profile Macy’s Thanksgiving Day Parade float, are driving buzz, bookings, and word-of-mouth referrals. Analysts note that after years of underinvesting in advertising, Carnival’s renewed focus on branding and destination storytelling is expanding demand, allowing it to charge higher prices while maintaining strong occupancy across its cruise lines.

ChatGPT was used to generate draft summaries of these two articles.