SparrowHawk
Veteran
- Nov 30, 2009
- 7,824
- 2,707
All of the rancor and bickering is getting tiresome. So let's pretend you are the HMFIC of US Airways. (HMFIC =Head Mf'er In Charge) The goal is to raise RASM and provide a better customer experience without spending a ton of money. I'll start it off. Let's keep the other issues to the other thread please.
1. Get the bugs out of the Nuance IVR ASAP, Elites are complaining. Some of this is already done so kudos to US IT.
2. The goal should be to increase yield by attracting more business travelers who are willing to pay the last minute fares. In order to do so you have to provide a compelling reason for them not to pick DL or another non Star Carrier. So the challenge is how to do this.
If I were the HMFIC I would:
Continue the negotiation of code share arrangements with international carriers in and out of the Star Alliance. This is an outstanding source of high yield revenue. Secondary to this is making sure that these high yield customers are treated at the level they get treated by with their "home" carrier. This could likely be done with some sort of identifier in the PNR so that you don't up end with a very pissed Mr Money Bags in 22B. In fact one could easily argue that a revenue trigger in the PNR provides an automatic upgrade based on the dollar value of the ticket. Remember we want Mr Money Bags to fly with US more than once and when he tells his colleagues he speaks positively of US.
If it were me I'd revamp domestic First Class to reflect some realities. One, nearly no one buys a short haul F/C ticket so the perks are a total give away. For anything less than 1.5 hours I wouldn't even call it First Class. I'd call it Business Express and if the Elites didn't fill the seats I'd charge a modest fee like $40 to upgrade. There would be an in air two drink maximum and one pass of the snack try PERIOD as I need the savings to pay for something else.
Next tier would be mid haul from 1.5 to 3.5 hours and the level of service destination based. If you're going to select cities like DFW, ORD, PHX, FLL/MIA, BOS, PHL non stop then there would be a fruit plate or salad option depending upon time of travel. The cities I mentioned are prime business destinations and I'm sure I missed a few. Remember we want high yield business travelers. This level of service would be called Business Class.
Domestic First would be the transcon flights. PHL to SEA, SAN, LAX, SFO as an example. This would be the premier domestic First Class service.IFE, Linens, Glassware, Hot entree', Hot towels, warm nuts the whole deal and it would be called US Airways Signature Service and it would be second to none. IOW a product people will pay for. Remember who you're trying to attract! You want the guy who arrives at work on Monday and finds he has to be in SFO Wednesday morning. He looks at DL and AA and they price at say $1,199 and US prices at $1379, You want the guy to say "I'm booking US because last time it was fantastic, it was almost like going to Europe. You start filling those seats up @ $1,200+ instead of upgrades you're talking serious money.
The thought process is that if you make the Trans Cons so appealing the business folks will start using you for the rest of their travel just to reach elite status and have the chance of getting upgraded. Now you can't afford to offer this level of service on every flight but you can offer it on enough to generate some publicity from the travel mags and blogs and it will be favorable. Something US doesn't always get.
OK I've rambled on enough, YOUR turn.
1. Get the bugs out of the Nuance IVR ASAP, Elites are complaining. Some of this is already done so kudos to US IT.
2. The goal should be to increase yield by attracting more business travelers who are willing to pay the last minute fares. In order to do so you have to provide a compelling reason for them not to pick DL or another non Star Carrier. So the challenge is how to do this.
If I were the HMFIC I would:
Continue the negotiation of code share arrangements with international carriers in and out of the Star Alliance. This is an outstanding source of high yield revenue. Secondary to this is making sure that these high yield customers are treated at the level they get treated by with their "home" carrier. This could likely be done with some sort of identifier in the PNR so that you don't up end with a very pissed Mr Money Bags in 22B. In fact one could easily argue that a revenue trigger in the PNR provides an automatic upgrade based on the dollar value of the ticket. Remember we want Mr Money Bags to fly with US more than once and when he tells his colleagues he speaks positively of US.
If it were me I'd revamp domestic First Class to reflect some realities. One, nearly no one buys a short haul F/C ticket so the perks are a total give away. For anything less than 1.5 hours I wouldn't even call it First Class. I'd call it Business Express and if the Elites didn't fill the seats I'd charge a modest fee like $40 to upgrade. There would be an in air two drink maximum and one pass of the snack try PERIOD as I need the savings to pay for something else.
Next tier would be mid haul from 1.5 to 3.5 hours and the level of service destination based. If you're going to select cities like DFW, ORD, PHX, FLL/MIA, BOS, PHL non stop then there would be a fruit plate or salad option depending upon time of travel. The cities I mentioned are prime business destinations and I'm sure I missed a few. Remember we want high yield business travelers. This level of service would be called Business Class.
Domestic First would be the transcon flights. PHL to SEA, SAN, LAX, SFO as an example. This would be the premier domestic First Class service.IFE, Linens, Glassware, Hot entree', Hot towels, warm nuts the whole deal and it would be called US Airways Signature Service and it would be second to none. IOW a product people will pay for. Remember who you're trying to attract! You want the guy who arrives at work on Monday and finds he has to be in SFO Wednesday morning. He looks at DL and AA and they price at say $1,199 and US prices at $1379, You want the guy to say "I'm booking US because last time it was fantastic, it was almost like going to Europe. You start filling those seats up @ $1,200+ instead of upgrades you're talking serious money.
The thought process is that if you make the Trans Cons so appealing the business folks will start using you for the rest of their travel just to reach elite status and have the chance of getting upgraded. Now you can't afford to offer this level of service on every flight but you can offer it on enough to generate some publicity from the travel mags and blogs and it will be favorable. Something US doesn't always get.
OK I've rambled on enough, YOUR turn.