Korea-Taiwan division chief says Korean market is important for its high volume of business travelers


Delta Air Lines executive Raymond Chang admits that the average Korean customer nowadays is one tough cookie to please.

“We sometimes joke that the Korean customer these days is even more demanding than the Japanese. Sometimes,” Chang said in an interview with The Korea Herald in Seoul last week.

But according to Chang, who is approaching his third anniversary this month as the general manager of Delta Air Lines’ Korea and Taiwan division, this trait can be a good thing.

“(High) expectations are a driving force for the industry to improve. Because otherwise you stay in your comfort zone,” he said.

As one of the largest airlines in the world that provides services to over 340 destinations, Delta currently commands about 17 percent of the Asian market, according to Chang.

But like most other airlines operating in the area, it is looking to move outside its comfort zone and increase its market share in the region.

“All airlines view Asia as an important market. No exceptions,” Chang said.

This is because Asia is currently seeing, and will continue to see, the biggest market growth over the next few years, he said, citing a recent forecast by the International Air Transport Association, or IATA.

“IATA predicts that passenger boarding from Asia will increase by 56 percent, from 640 million in 2009 to 1 billion in 2014. That’s a huge increase,” the Delta executive said.

So the U.S.-based Delta Air Lines is setting its sights on several key markets in Asia, including Korea.

The Korean market is an important one due to its high volume of business travelers, and this group is a “cash cow” for the airline due to business travelers’ preference for traveling in first or business class, according to Chang.

“Obviously China is a huge market and everybody is pursuing it but front-cabin (Korean) business travelers (pay) much higher fares so it’s a very lucrative market sector,” he said. 

From Chang’s perspective, this market sector will continue to grow in the future, due to factors such as the Korea-U.S. Free Trade Agreement, which went into effect in March 2012.

“We can certainly expect more business interactions between Korea and the U.S., and as a result, maybe even a huge jump in these business travelers,” Chang said.

Delta is a U.S.-based carrier but also a global carrier, due to its extensive network of flights and partnerships with other major airlines, including Korean Air, Air Italia and Air France.

So it is in a prime position to serve its growing number of Korean business customers, according to Chang.

“The network is key, because people may choose you for one destination but may fly with others (for other destinations). Our partnerships (with other airlines means) we travel virtually everywhere,” Chang said.

In order to meet the needs of its Korean clientele, the airline has increased the frequency of flights from Incheon to Detroit, one of its key hubs.

“Detroit is ideally located in the Midwest, and it’s strategically convenient to connect to all over the U.S., and even (down) to Brazil,” he said.

So the Korean businessman will find it easy to reach his final destination via Detroit, because Delta offers over 100 connecting destinations from this hub, according to Chang.

Delta has also introduced flatbed seats for its “BusinessElite” class and a special seating section called “Economy Comfort,” which offers extra legroom for passengers. The latter has been recently introduced to Korea on flights from Incheon to Narita, Chang said.

But providing high quality service for Korean customers remains a top priority for Delta, according to the airline’s head for Korea and Taiwan.

For example, Delta’s flight attendants attend special training sessions where they learn about the “appropriate ways” to serve Korean customers, he said.

This is because Korean businessmen, in particular, have a tendency for wanting to be treated with professionalism and respect, according to Chang.

Chang also said Korean travelers have exacting standards when it comes to on-board meals.

So on Korean routes, this means serving sticky rice, rather than long-grain rice, and paying special attention to the condiments served on board.

Delta even put an end to serving yellow daikon radish for its business class meals.

“In Korea, you (tend) to serve that with noodles. It’s not a very decent side dish. So we noticed, (and said) oh no, this is not right,” Chang said.

One trait Chang has noticed over his 30-plus year career in the airline industry is Korean customers’ tendency for stressing service over price.

According to Chang, this is an unusual trait because most customers in other markets, such as China, tend to be more price-driven rather than service-driven.

While the recent economic downturn has affected this somewhat, from his perspective, this service-oriented need still persists in Korean culture, he said. So Delta will continue to cater to this local market requirement in the future in order to remain competitive.

“If you can meet the Korean standard, basically you can satisfy everybody. (It’s as) simple as that,” Chang said.

By Renee Park (renee@heraldcorp.com)