Of course, as consumers return to travel, United is not the only airline seeing gains. Delta Air Lines recently posted record revenue, for example. However, experts say the changes United has made into its overall brand strategy will pay off long-term. Looking at its business from the point of view of its customers has helped, according to Robert Cole, senior research analyst at travel market research firm Phocuswright.
“The airline for years had been all about optimizing revenue,” Cole said, noting “passenger-hostile activities” such as added bag fees and eliminating formerly free services. With its new approach, he added, United has been “very smart on a lot of things—just looking at the whole brand and product in their industry from a holistic perspective.”
Yet Cole warned that United could be challenged by the continued sluggish demand in business travel. While leisure travel has rebounded to exceed pre-pandemic levels, the gap between its business counterpart is still wide, with some estimating that the latter is down 30%. The recent economic instability, including scores of employee layoffs, could exacerbate the declines.
Schmerin said that operating through the pandemic taught United to be flexible and strategic with its marketing, and the company has been getting more savvy with its media buys. For example, when United unveiled “Good Leads the Way” in the spring, it bought a national spot during the penultimate episode of the popular “This Is Us” TV show. United, which works with Dentsu on media, knew the episode would likely attract the same number of viewers, but the media buy for a 30-second spot was significantly less than in the finale, where United placed a smaller buy in its hub cities only.
“That’s one example of a strategy we are taking to be as cost-effective as possible,” Schmerin said.