For Airlines, Poor Customer Service May Be The Route To Profit

Discussion in 'General Discussion | Travel' started by uggboy, Oct 11, 2012.  |  Print Topic

  1. uggboy
    Original Member

    uggboy Gold Member

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    || For Airlines, Poor Customer Service May Be The Route To Profit ||

    What a dynamic, poor customer service seems to turn on some people!:eek:
     
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  2. 8MiHi

    8MiHi Silver Member

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    The two airlines mentioned as winners - Spirit and Allegient are clearly focused on basic transportation. But they are also serving routes that many of the majors have shunned. While I agree that the article shows evidence that superior service provides little or no financial reward to the airline, the analysis in the article is undermined because it is somewhat superficial and narrow in scope. By not looking at routes (and competitiveness of their routes), fleet, work rules, customer demographics and time (can they sustain their loads?) the analysis misses other factors that may come into play.
    There are certain universal truths when selling: Price matters, size matters and Location! Location! Location! Service always takes a backseat during hard times as long as the basic service is done as promised.
     
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  3. uggboy
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    uggboy Gold Member

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    Sad that basic + fees = is the new world.
     
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  4. Wandering Aramean
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    Wandering Aramean Gold Member

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    It isn't just Spirit and Allegiant winning with this approach. All airlines are.
     
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  5. servo

    servo Silver Member

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    I fully agree. At least Spirit uses a newer fleet than Allegiant. If G4 has any kind of major catastrophic issue, I think they might end up like Valujet. I know Spirit's policies suck, but I don't get the same feeling of ineptness from them that I do from G4. Knowing it was ineptness that caused the demise of J7, and that Allegiant is primarily using the much-despised MD-80 series aircraft, it has caused me to cease considering them. However, Allegiant is sometimes the only option for certain routes (as you mentioned).

    The bolded sentence is the key. Customers who can only consider flying ULCC's because of price end up getting screwed when they think they're getting a better deal than they really are, but they think they still are getting the best deal and don't price compare. When I did fly Allegiant from SFB, it really was a completely different class of flyers. The un-educated or under-educated are taken advantage of much more easily, and I think that plays into that higher margin, because they A) don't know they're going to be getting on a 20+ year old LOUD plane, and B) when charges are broken out as separate items, the perception of a better deal exists when the total price might be more expensive than a WN flight with free bags to a nearby airport. It goes back to something I read in the book I bought when I acquired the premium membership here: "airlines don't want you to know their processes and procedures, because the less you know, the more money they make".
     
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  6. 8MiHi

    8MiHi Silver Member

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    We all would like the Blue Plate Special in an ala carte world.:rolleyes:
     
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  7. 8MiHi

    8MiHi Silver Member

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  8. Richard Chen
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    Richard Chen Silver Member

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    UA -4.9% & G4's 18.9% profit shows working with not against a dumb mass works. Let's hope more masses of pax are duped by the lack of insight until they're well into the payment process.
     
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