Re: Profitiable Airlines ?

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On Tue, 20 Aug 2002 damiross2@attbi.com wrote:

> Yes, there is a correlation between the two.  It's
> called customer service.  Given a choice between
> good customer service and poor, the smart people
> will chose the good over the poor, even if it costs a
> few dollars more.

True enough, but one of the very real quandries the major
carriers face is that an increasing chunk of thier revenue
comes from customers who don't, to a large degree, care about
traditional customer service. They don't fly very often, they
have very little brand loyalty, and often don't really behave
as if they recall prior experiences. Yeah, you leave them in
the snow in Detroit for six hours in a smelly DC-9 without
food, they'll steer clear of you, but that's about it. Food, don't
care, lines, expect them. Legroom, don't recall it enough to remember
who has it and who doesn't.

At the same time, the majors desperately want to keep their business/
brand loyal customers happy. For the customer who pays for a dozen
tickets at non bargain basement prices, customer service really does
matter. You see some of this with things like offering customers with
status in your frequent flier program easier paths through security and
the like. I think that one thing we may well see, as this business
cycle continues to evolve, is that the majors will find ways to reward the
people who they need to influence, and not spend a nickle on the guys who
don't have enough brand loyalty to be worth the trouble. The current
fad for offering status in the frequent flier programs for everything
*but* flying makes this hard. I'm wondering if we'll start to see
some serious changes in this soon.

- David

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