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June 11, 2007

1:26 pm | 0 recommendations | 2 comments

Innovation: A Fly on the Wall

| posted by Robert Buckman

I would have loved to have been a fly on the wall when the farseeing folks at American Airlines were busily inventing their new "unbundled" website — www.AA.com. What wonderful stories could I have told you about the way airlines innovate?

What I can tell you for dead certain is that American Airlines has just become the first full-service, major U.S. carrier to offer different levels of service based on the "fare family" concept.

Have you checked it?

Go to the American Airlines website and look under the "Search by" heading for the "Price & Schedule" button — that's the fare family option.

It's an entirely new way to shop for flights in the U.S.

(Talk about a blast from the past. The fare family concept is something I know a bit about because — here's the full disclosure statement for today — Amadeus, my company, helped pioneer this future-looking concept with its "Flex Pricer" faring platform.)

Prior to this, your flight choice was based either on flight times or the fare. But "Price & Schedule" introduces fliers to "Matrix World," where value reigns supreme.

When you make your flight selection based on value, you consider not just the price or date/time of liftoff, but all of the other service options the airline offers.

In Matrix World you see a chart chock full of variations that reflect combinations of service features, schedule choices, and price options.

What do you think about it this type of concept?

Do you find value in additional service choices?

Or is 'Price Is My Co-Pilot' still your bible?

Personally, I prefer shopping American Airlines' matrix-style display and I hope the carrier continues to improve the website, and that other airlines imitate it.

What do you think?

Are you satisfied with how airlines are beginning to use new online technology to make their booking sites smarter, more intuitive, and user-friendly?

And what about this newfangled concept of choice at airlines?

What service would you pay for in the future for that airlines don't offer today?

Airline Futurist • Miami • rbuckman@amadeus.com • www.amadeus.com

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Recent Comments | 2 Total

June 14, 2007 at 10:46am

Christopher Frawley
Robert, Nice that you're drawing attention to some progress in shopping in what has been a slow to innovate area. Your claims may be a bit overstated. Southwest has been employing this type of display for a while. It is true that AA may be the first "full service" carrier to do this and should be acknowledged. Unlike SW they have to manage the complexity of their fare structure which is not based on one way segments, but rather defaults to the most restrictive of either even though you may combine. Somewhere else to look for something new is Skybus . They offer a calendar showing the lowest fare in a given 30 day period, then you can drill to see the specific flight info. Agreed it's nice to see some customer centered improvement in a mature industry with a complicated pricing model. Thanks.
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June 19, 2007 at 4:55pm

Robert Buckman
Your observations about Southwest and the complexity of airline pricing, which cannot be understated, are spot on! I'd also add Alaska Airlines to the list of innovative airlines in our market. So, as we look to the six "majors" that collectively hold more than 60 percent of the U.S. domestic market share, it's noteworthy to highlight innovation. Especially when it benefits value-conscious travelers with greater pricing transparency. I suspect this is only the tip of the iceberg where major airlines can begin to leverage their infrastructure, network, and assets, and demonstrate value in new ways. I find it exciting. I'll have a look at Skybus again. The last time I visited their site I must admit that I found the flow cumbersome. The calendar view is quite handy, especially for leisure travel, but has also been widely adopted by airlines. Now, when I can display their calendar on my smartphone, then I just may have something to say. Again, thanks for your comments!
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