The Delta Lounge Bucked Recent Experiential Trends at SXSW—and People Loved It

In a sea of waste-heavy and formulaic activations at South by Southwest (SXSW), The Delta Lounge—one of the 2024 festival’s buzziest experiential marketing installations—aimed to buck some of the trends that have shaped brand activity at the event in recent years.

With its focus on delivering a luxury experience to all SkyMiles members, new and old, and opting for a more sustainable version of what’s become a cookie-cutter model for in-person brand activity, Delta Air Lines drew thousands of visitors to its five-day activation in downtown Austin, Texas.

While it represents a small step toward true sustainability—trailblazers like San Francisco’s Outside Lands are light-years ahead—the popularity of The Delta Lounge demonstrates that people are craving a shift away from the status quo, both in terms of sustainability and brand experience.

“If we’re going to be anywhere, then it has to be really meaningful, and it has to be very connected,” chief marketing officer Alicia Tillman told ADWEEK at The Delta Lounge. “If we can put ourselves in all of these different moments, then you start to see Delta as much more of a lifestyle brand than primarily as a company that just gets you from point A to point B.”

The plastic-wrapped status quo

Over the past several years, a formula has emerged for experiential marketing at SXSW. A brand will take over a bar, restaurant or hotel, building out the space with on-theme colors, props and a few simple, interactive games. Contractors sling swag and drinks in disposable cups, aiming to get branded, short-lived, often plastic handouts into as many hands as possible.

There are endless sustainability concerns associated with this model, from the disposable cups to the structures built to last only two or three days of the annual, 37-year-old event. After one brand is done, dumpsters roll up to gobble up the used materials, and the next brand gets to work covering the space with its own mascots, imagery, swag and activities.

It must be acknowledged that although Delta has promised to reach net zero emissions by 2050, it is still an airline that requires jet fuel to power its planes, resulting in 43 million metric tons of greenhouse gas emissions in 2022.

That said, The Delta Lounge offered a welcome shift in experiential at SXSW with modest sustainability improvements. Drinks were served in glassware rather than flimsy plastic cups, and food on ceramic plates with real flatware, and no single-use plastics. Most of the furniture was borrowed from the venue, and all built items were taken to be repurposed for future activations, the brand said.

In addition to lowering the environmental footprint of the event, Delta’s activation delivered a uniquely luxurious experience to festival-goers. Delta flight attendants and gate agents staffed the activation, bringing a depth of institutional knowledge to the event that is rare in experiential.

It represents a “bespoke mindset” that Delta and a few other brands adopted when activating this year, said Peter Lewis, chief partnerships officer for SXSW. In its first year at the festival, Delta was a Super Sponsor—the festival’s highest sponsorship level.

Sustainability and climate-related content on the official SXSW stages was also lagging this year, attendees noted. While the 45 panels that made up the climate change track outpaced last year’s 35, programming seemed to favor industry interests, climate tech and investment groups.

Mitigating backlash, prioritizing accessibility

The brand is also working to revamp its image after changes to its SkyMiles loyalty program generated a wave of backlash from members. Activating during tentpole events like SXSW and Art Basel could begin to build back some of the brand affinity and trust that was lost during that rollback—and during the challenging travel environment that the Covid-19 pandemic dealt to the entire industry.

To that end, The Delta Lounge effectively rolled out the red carpet for SkyMiles members at SXSW. Those who hadn’t yet signed up for the loyalty program could do so in line, meaning the activation was open to anyone, regardless of whether they had a SXSW badge, which cost between $995 and $2,095 (not including early bird discounts).

The event aimed to make it both luxe and accessible, Tillman said, explaining: “I don’t want to deny anyone an ability to experience Delta.”