Maybe this explain why airlines are stuck at a low level and the seats are not going to get bigger.
http://qz.com/533501/half-of-american-airlines-revenue-came-from-13-of-its-customers/?utm_source=ff
Half of AA revenue came from 13% of its customers. The bulk of the other 87% were one or two times users who were only concerned about price.
This is so true.
At the same, I wonder how many people have switched from American Airlines to a Europe-based airline for their transatlantic flights and Alaska, Southwest or Jet Blue for flights closer to home?
Just don't fly American.
I go to Europe with European airlines and travel within the US with the cheapest carrier, including the low cost. I can handle bad service for just a couple of hours. If I'm a commodity to them, they are a commodity to me.
Funny you say that Norheim, I travel to England yearly and I preach the foreign carrier advice to everyone lol. The US carriers cannot come close.
But the broader question is --- Is AA typical of all airlines or at least all US based relative for revenue sources? I suspect they may be. So where is the incentive to recruit customers with good service, etc., if most of us are one time users? (present company excluded) I used to be a big fan of British Air and Lufthansa. But have had miserable flights on both of them. In fact recent Delta flights have been better than recent Lufthansa. Look at the recent price structure changes with B Air. There are a lot more one timers who only want the cheapest ticket than multi trip flyers who would pay a little more for comfort and service. Looks at this board - more questions about finding cheap flights than finding comfortable flights. If you want service and comfort we are in a lose, lose battle. If I could just bite the bullet for business class, then I would not have to have this discussion.
My two cents worth... I think the airlines provide incredible value, and are understandably responding to competitive / market forces. When I think I can board a plane in the US and the next morning be in any of fifty cities in Europe for around $1500 round trip, that's incredible!! Any food / entertainment / comfort I get on the way is an unexpected bonus. I have no expectation to be pampered - just get me there safely within a reasonable time.
"$1500 RT is a rip off, especially from Minnesota"
I think this statement is a bit over the top-who's to say something is a "rip off" when Bob is happy with it and sees value in it? We paid about $1400 each r/t a couple years ago, we have incredible memories; did we get ripped off? I don't think so. Worth every penny, and so much simpler than swimming ;-)
I think I can board a plane in the US and the next morning be in any of fifty cities in Europe for around $1500 round trip, that's incredible!
Even more incredible when you have real competition among airlines and not a carefully managed oligopoly.
Best fare 11 day trip VPS (my home airport) to LHR for 30 days starting May 15- $1493 (American)
Best fare for LHR to VPS same criteria- $745 (United)
Smart airlines will segment their economy class population by offering "economy plus" (whatever marketing term they use) seats for those who want to pay more (but not as much more as business class) for comfort. Not because they're nice but because they want to squeeze as much revenue out of non-business class as well. There are only 4 major carriers left and if travel is truly a commodity, then the premise of this article is a bit off - there are too few airlines not to have repeat customers because people don't have much choice and they'll rotate between these airlines (loyalty is out the window now). It's really hard for me to believe that the lion share of AA's customers are first (and only timers)...unless they somehow migrated from US Airways and they have to take AA now. If people who fly a moderate amount (a few times a year at least) choose mainly by price, then surely they'll get stuck with AA multiple times if only because they have better routing. But the bigger point that no airline needs to care much about the customers that bring in only a fraction of their revenue is well taken - they will focus their efforts on extracting as much out of the business flier as possible and they'll compete fiercely for that business flier by offering them ever more perks.
With all that said, I would seriously look into Turkish Air. For economy class, they treat you extremely well the minute you step in the plane. Warm blanket, goodie bags, stuff to watch while you're flying and genuinely really good airplane food (who else brings fresh squeezed orange juice and fresh lemonade? I think I even read that they make everything from scratch which is unreal for airplane food). Plus their prices are great to boot (I've always paid below $800 with all taxes). I flew them 3 times now and always look forward to it. I definitely feel like I get good value from them, as well as other European Airlines (Air France, etc)
I don't fault the airlines for trying to get as much revenue as they can out of their flights. Hopefully they don't fault me for shopping around and taking the best deal.
I'm a member of a ton of frequent flyer programs but no longer have any brand loyalty. I've decided the free flight you get, for flying tens of thousands of miles, isn't worth the extra money you paid for those flights vs. shopping for the best fare each time.
The limit of my brand loyalty is certain airlines I won't ever fly (Alitalia and Aeroflot) and a few others I avoid if I can help it.
