NEW YORK -- Delta Air Lines and Amtrak have introduced campaigns
to woo business travelers in the Northeast corridor, a market that
has become more competitive with Amtrak's expansion of its
high-speed Acela service, reports the New York Times.
Before
Acela appeared in December 2000, Delta Air Lines and US Airways
carried a majority of the travelers on the New York-Washington and
New York-Boston routes, traditionally among the nation's
busiest.
Acela, though, has been making steady inroads
against the shuttles, particularly since Sept. 11; after the
attacks, increased airport security caused extensive delays, making
train travel more attractive. Acela has also been gradually ramping
up its operations; last week it began offering 16 New
York-Washington round trips each weekday, and 9 New York-Boston
trips.
Both US Airways and Delta confirmed that their shuttle
business has declined — in part because of Acela, and in part
because of a fall in business travel.
The one-way shuttle
fares on Delta and US Airways are about $205. Acela's business-class
fare is $118 from New York to Boston, and $146 on the New
York-Washington route.
Maureen P. Brady, managing director of
the Delta Shuttle and Delta Express, said the company's shuttle
revenue fell 38 percent in the fourth quarter of 2001. Revenue in
this year's first quarter, she said, was down 35 percent, while in
April it was off 30 percent.
Stephen Usery, vice president
for marketing and revenue management at US Airways, said its shuttle
revenue was down about 50 percent in the fourth quarter, while in
the first quarter it was off 30 percent.
To lure business
travelers away from Acela, US Airways ran a newspaper campaign in
New York, Boston and Washington from early January through
mid-February that blurrily depicted a businessman on the run. "Time
flies," the copy said. "It doesn't wait for a train. Average time
from curb to gate is 20 minutes for the US Airways
Shuttle."
Mr. Usery said US Airways highlighted the amount of
time required for check-in in the ads, created by the Washington
office of McCann Erickson, a unit of the Interpublic Group of
Companies, because "people who were reluctant to fly because of the
hassle were finding it ain't necessarily so." He said the campaign
created "a little share shift from Delta."
In mid-April,
Delta introduced its own shuttle advertising campaign by Leo Burnett
in Chicago, part of the Bcom3 Group. Using radio, print and outdoor
media — including daily newspapers in New York, Boston and
Washington, and radio stations like WINS in New York and WASH in
Washington — the campaign will run through June.
In the ads,
Delta appears to respond to competition from both Acela and US
Airways. Both the outdoor and print ads depict the tail of a Delta
Shuttle and the front engine of an Acela train. Copy in one ad says,
"Planes are faster than trains," while another says, "Nonstop plane
or four-stop train?"
The print and radio ads also feature a
special guarantee that Delta is offering through May 31: Travelers
will receive 20,000 extra frequent flier miles if it takes them more
than 20 minutes to get from the ticket counter or check-in kiosk to
the gate.
Delta deliberately positioned the shuttle against
Acela because "we see it clearly as our largest near-term
competitive threat," said Brad Gerdeman, Delta's director for
worldwide marketing communications. "We were not finding significant
defection to US Airways, but we did find more trial of the Acela
train. Therefore, we needed to look at the competition, what they
offer and what we offer that's superior to that."
Ms. Brady
added that Delta did not borrow US Airways' 20-minute theme in
making its bonus mileage offer after 20 minutes. "We came up with
the idea based on our customer feedback," she
said.
Meanwhile, in March Amtrak started a print, outdoor,
radio and TV campaign for Acela by E. James White Communications of
Herndon, Va. It is running, for the most part, through May in daily
newspapers in big cities between Washington and Boston; on radio
stations like WPLJ in New York and WTOP in Washington; and on cable
channels like Discovery, CNN and ESPN.
David Lim, vice
president for marketing and brand management at Amtrak, said the
campaign was Amtrak's most aggressive so far for Acela. The new ads
promote Acela's expanded schedule and the services it offers
compared to its air-shuttle competitors; one outdoor ad depicts an
executive talking on a cellphone and asks, "What's the point of a
mobile phone if you can't use it while you're
mobile?"
Neither Delta nor Amtrak would disclose the budgets
for their new campaigns, though they confirmed the amounts would
exceed 2001 spending. According to CMR, a company in New York that
tracks ad spending, Delta spent $33,000 advertising its shuttle last
year, while Amtrak spent $511,000 on Acela.
Hal Rosenbluth,
chairman and chief executive of Rosenbluth International, the
world's third-largest corporate travel company, called Delta's
20-minute guarantee "great." "Any time an airline guarantees its
performance it's something in the public's best interest. Hopefully,
it's the beginning of a trend," he said.
But Mr. Rosenbluth
also predicted that Acela would ultimately find it hard to retain
the market share it took from Delta and US Airways after Sept. 11.
He said the percentage of his company's customers traveling in the
Northeast corridor by air as opposed to rail in April nearly
approximated the percentage of air versus rail travelers last
August.