FC Experts Blogs
May 29, 2007
Innovation: A Question of When, Not If
A flurry of news indicates more American carriers suddenly may becoming more receptive to the à la carte pricing strategy pioneered by such non-U.S. carriers as Air Canada.
According to a recent article by David Jonas in The Beat, airlines like AirTran Airways, Frontier Airlines, and US Airways are weighing a shift to what some analysts are calling "dynamic packaging," that is, abandoning the old cookie-cutter formula of "one size fits all" and restoring choice to the customer.
The question seems to be not if, but when the U.S. carriers will make the leap.
The key is, and always has been, whether the airlines truly understand what the customer values and what customers are willing to spend for different choices.
It doesn't take a crystal ball to foretell that choice, choice, choice — and more choice! — is the future of air travel.
At least, that's what I think?
How about you?
Airline Futurist • Miami • rbuckman@amadeus.com • www.amadeus.com
Posted by Robert Buckman at May 29, 2007 1:57 PM | Topic: innovation |
3 Comments
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Choice is a good thing. At what point do all the choices become information overload, and things are no better than the current system?
As someone who uses Air Canada on a regular basis, I love how I can tailor my ticket to my needs. If I'm going on a trip for personal reasons and know I absolutely won't have to reschedule a gazillion times as often happens for work, I book the ultra discounted rate. Take off more for no checked luggage, or even asigned seating if you're not picky as to where you sit and you're saving a lot.
I've noticed the flights have been packed since they've implemented this pricing method. I would like to see this used as well for the US carriers I use when travelling down to the States.
I think more people will fly and travel further distances if multiple pricing levels were implemented across the board. It makes travel do-able for those who just couldn't afford flying in the past.
Air Canada's service is not good quality. It is also still far too expensive for what it is. Comparable airlines in Europe such as RyanAir, EasyJet and others provide a much higher quality service for much cheaper and with the same concept of customization. Air Canada survives due to a lack of competition and protection from the Government from opening the market up to more innovative carriers. Whenever possible I choose to fly other airlines such as Porter for local flights and British Airways for the UK.