Last week Delta Airlines reported record revenue for the 2nd Quarter of 2025 and also reported that their earnings for the quarter were higher than expected.  All of this happened in a quarter where the consumer and business people were supposed to be cutting back on expenditures because of tariffs and economic concern and the thought process that the company’s expenses had moved up because of inflation and that would limit profitability.

 

More and more flying or traveling by public carriers such as Delta comes down to an experience.  Every passenger on a flight is going to the same destination but how the experience they choose to get there and how that is executed by Delta will be what they remember.

 

Is that a little like Death Care?  We can have a loved one buried or cremated but how we choose to do so and how that choice is executed by our Death Care practitioner will be what we remember and consumers will decide on if the service value was commensurate with the price they paid.

 

Like flying on public carriers, Death Care provides its services to consumers of all means —  from the very wealthy to the very poor and every situation in between.  Delta needs to provide the lowest possible costs to gain consumers who are willing to travel with “no frills” much like funeral homes need to be aware of having prices that consumers are willing to pay.

 

However, Delta has realized and most funeral homes have realized that if all clients choose the lowest priced product there is not enough margin to afford the amenities at your business to attract clients of a more discriminating nature. . . . and many times it is those clients that provide the margins to raise profits.

 

A big part of Delta’s success is what they call “Premiumization”.  Delta’s 2nd Quarter highlighted that “Main cabin revenue fell 5% for the June quarter, compared to a year ago. Premium ticket sales, on the other hand, rose 5%, underscoring an economic split between affluent customers and more price-sensitive ones”.

 

Here’s what one economic newsletter said of this situation, “spending data in other sectors reflects business-as-usual consumption in some areas but cautious spending elsewhere. More affluent customers are willing to shell out, while lower earners are pulling back.”

 

So, can funeral homes retain cost-conscious customers while picking up extra income and margin with customers who will spend more if offered more services?  I think so.

 

It might take some changes though —  Consumers are all different as are their values and perceptions of value.  In air travel getting from Point A to Point B at the lowest possible cost is many consumers goal.  However, having a larger seat, or leg room, or premium cabin service is important to many people and those people will “pay-up” for that amenity that gives them a better travel experience.

 

I think the same is true in Death Care.

 

I also think the airlines’ modus operandi of selling their travel experience online is a positive factor in their ability to “premiumize” sales.  Think about it. . . .you’re sitting in the comfort of your own home or office looking at all of the options available on the airline’s website.  Most of the airlines offer their minimum experience with a seat in the rear section of the plane — sometimes only in the middle seat.  There is a small “premiumization” of $15 to $30 simply for selecting a seat on the window or aisle.

 

With no pressure on the consumer he can think about it for a minute and envision himself on the window seat never having to get up and move during the flight. . . .And, to some that is worth $20 or $30.

 

I think one of the big keys to this situation is the ability to make these premium decisions online with no pressure.  It’s my opinion that making theses types of decisions in person, and especially in a funeral arrangement setting where decision fatigue can set in, causes much more anxiety than doing so online.

 

When I look to the psychology of purchasing Death Care products I also thought of the process that I went through with in-person arrangements with family members.  I remembered what I termed “Decision Fatigue” happening often.  Family members were asked to make so many decisions — day of funeral, time of funeral, musicians, pallbearers, visitation hours — that they eventually developed a fatigue as the arrangements went on. . . . I would argue that the client’s apparent fatigue stopped me from asking about additional purchases at times. . . .such as cremation jewelry, Parting Stone, or options available for memorialization such as placement in Better Place Forests.

 

I think online purchasing where the consumer can go at whatever pace they desire would be a big asset in those sales  — as I believe it is in airline sales.

 

So, I think there is a real potential in “premiumization” of Death Care allowing for larger margins, but funeral homes are going to have to welcome online sales and online pricing to do so.  They are also going to have to invest in the proper technology program for online purchases.

 

What things could be “Premiumized” with additional revenues over and above a base package?? —

• Day of Service? — I remember in my funeral days having more funeral services on Mondays and Saturdays.  Could you charge an extra $150 or $200 for a service on those days?
• Cremation Concierge?  — Hand delivery of cremated remains to a home so a family member does not have to come back to the funeral home?
• For those Do-it-Yourself Memorial Service families — could you offer a register book, folders, and thank you cards for an additional fee?  What about an obituary writing service?

These are only a couple of items that come to mind off the top of my head and they don’t even take into account how you could “premiumize” merchandise such as caskets, urns, and other memorialization items such as jewelry or candles.

 

My guess is that there are computer programs out there that can help you in offering preneed and/or at-need packages with premiumization choices to consumer already.  While it has been about a year, which means that the process is probably even better and more refined than when I first saw it, I went through a simulated pre-need presentation and purchase completely online.  And, I was really impressed with how it was done. It was offered by a preneed company called Prelude and you can access their website here.

 

Final Thoughts — I’ve learned consumers are individualistic.  How one person wants to experience getting from Point A to Point B is different from another person getting to and from the same place.  The same is true of how a person wants to experience the memorialization of a loved one.

 

And, in most communities, America has a diverse section of economic ability among the residents.  Prices of funerals and cremations should reflect a base point for people to be able to memorialize a loved one. . . . .but there are many in each community who will “premiumize and/or personalize” their choices regardless of cost.  How funeral homes can deal with that realization could play a big difference in your funeral home “just getting by” or “being wildly profitable”.

 

It’s another point in my realization that Death Care is continually closing in on the nexus of tradition and technology.

 

More news from the world of Death Care:

• BetterLife launches Better Final Expense insurance.  Insurance NewsNet
• Where hope never dies:  Roman underground cemetery welcomes Jubilee Pilgrims.  National Catholic Register
• The Vienna cemetery where endangered species and biodiversity thrive.  BBC News (Great Britain)

 

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