
For some airlines stepping up to grab that market share isn't the most cost effictive right now and for them it's all about the money. Some airlines have not turned a profit in years and now they are finally getting a chance to do this and there is just no extra money around to provide those extra services even when the passengers are demanding them.
For instance, Upgrade Travel's partner flew recently from Boston to Chicago. She only received one beverage service, however if United wanted to keep those customers coming back, and even lifetime customers, they would have walked down the aisle with a pitcher of water or an extra pot of coffee.
Even if airlines just offered one extra glass of water passengers would be greatful. So what would it really cost the airlines? The extra weight is a killer for airlines. More weight equals more fuel which in turns translates to higher costs for passengers. But you are saying to yourself, it shouldn't be extra weight since passengers are already bringing on the drinks anyways. Well airlines don't know how much to bring on extra for passengers. Maybe they will have a run on bottled water. Or maybe coffee will be popular this route. Who knows, so airlines have to stock up, more stock more weight, higher fuel costs.
Airlines such as United, which markets itself as a premium economy airline with their ExPlus, Economy Plus, and P.S. Service. and JetBlue and Frontier which set themselves apart from other LCC's with Live TV and leather seats could really capitalize on these restrictions by putting forth an even more superior product. Loyal customers tend to pay more for services. Loyality is built with a superior product.






I disagree that loyal customers will pay more for service. While that's true in industries on the ground -- this history of the airlines debunks this myth in the air.
Passengers (and I'm talking the bulk of them, not random small groups, exercise choice based first on price. They are loyal to the lowest price, not the service.
Loyalty to Jet Blue, and other LCC, is to price. The extra service and features are nice, but that's NOT what sells the seats.
Posted by: Mary Jo | August 20, 2006 1:58 PM | Permalink to Comment