Maybe Tempe is smarter than most of you?

[UPNAWAY]

Premium Passenger Growth Stalls

[URL="http://www.aviationweek.com/aw/generic/story.jsp?id=news/PREM06168.xml&headline=Premium%20Passenger%20Growth%20Stalls&channel=comm"]http://www.aviationweek.com/aw/generic/sto...mp;channel=comm[/URL]

The number of domestic passengers flying in first class, business class or full-fare coach on U.S. airlines has stagnated despite a significant increase in overall traffic, the Stanford Transportation Group reported today in its biennial review of domestic premium passenger activity.
The results showed the number of premium trips fell from about 20% of overall domestic airline travel on commercial carriers in 2000 to less than 10% last year, with the number of premium trips having “stalledâ€￾ at 41 million--almost the same number as in 2005.
That’s a potentially ominous sign for the airlines, which rely on the higher-yield customers to make their business profitable,

All of the "Fixes" we read here are most certianly wrong for this time and environment.

 

[N965VJ]

Instead, he said, the consultancy is citing two other primary factors for the stagnation: More customers switching to cheaper seats and business aviation alternatives.

I realize that DayJet announced it was scaling back growth last month, but I’ve always felt that the VLJs are going to be moving more and more FFs in the years to come.

They had a full page ad in the Sanibel Island Reporter not too long ago.

 

[ual777fan]

Premium Passenger Growth Stalls

<a href="http://www.aviationweek.com/aw/generic/story.jsp?id=news/PREM06168.xml&headline=Premium%20Passenger%20Growth%20Stalls&channel=comm" target="_blank">http://www.aviationweek.com/aw/generic/sto...mp;channel=comm</a>

The number of domestic passengers flying in first class, business class or full-fare coach on U.S. airlines has stagnated despite a significant increase in overall traffic, the Stanford Transportation Group reported today in its biennial review of domestic premium passenger activity.
The results showed the number of premium trips fell from about 20% of overall domestic airline travel on commercial carriers in 2000 to less than 10% last year, with the number of premium trips having “stalledâ€￾ at 41 million--almost the same number as in 2005.
That’s a potentially ominous sign for the airlines, which rely on the higher-yield customers to make their business profitable,

All of the "Fixes" we read here are most certianly wrong for this time and environment.

No really... Keep defending Tempe at all costs. It doesn't matter if they account for only 10% of your traffic when they also account for more than 50% of your revenue. In many markets 1Y fare equals about 10-15 Q/O fares. So go keep chasing the business that doesn't produce the revenue you need to stay in business. Tempe... that is your path to success for the rest of the airline industry.

 

[jimntx]

Doesn't mean Tempe is smarter or dumber. It does, however, mean that all of us are losing our premium customers who really pay the bills. The reason we are all in such a fix is because we have courted the $99 r-t Vegas crowd too much for too long.

We are all losing money on fares like that. To say that shedding the premium customers makes Tempe smarter is like the Texas Aggies that bought a truck to haul watermelons to sell. They were buying the watermelons for $2 each and selling them for a $1. They finally decided that they were losing too much money with their current plan; so they decided that what they needed to do to improve their finances was buy a bigger truck.

Getting more of the $99 r-t customers will NOT solve the problem.

 

[phlus2]

Ah - statistics always lie as they say.

You failed to indicate how much revenue is being generated by "premium" passengers as a percentage of total revenue.

You also failed to mention how they determine "Premium" trip these days. In by gone days - my airfare was almost always refundable when I travelled during the week for work. But now - even my $1300 PHL/ALB round trip is a non-refundable ticket on this lovely airline - so is that a "premium" trip or not? I'll bet the kettles wouldn't pay that much to fly that route!

IF Tempe was smarter than most everyone else - they should be a bit more creative in coming up with a way to run a business that is profitable. If flights are running at or close to capacity and you can't turn a profit - it doesn't matter how many $2 cans of soda you sell - that is NOT going to make you profitable.

 

[UPNAWAY]

Business fares used to be a lot more expensive before DP rationalized them industry wide. If your going to bang on him for everything you need to give him credit too. He revolutionized the business fare structure by elimination of the SAT night stay and 3 day minimums, and reducing all One Ways to no more than $399. Now I realize lately those prices have gone up but you elites have benefited greatly the last 7 years because of Doug Parker!
How much money has he saved you? Interesting question

 

[Travelpro72]

I am just speechless. I don't even know where to go with this.... Oh my word.

 

[UPNAWAY]

US CASMs where the worst way before DP! US service sucked way before DP!

 

[Singleflyer]

Business fares used to be a lot more expensive before DP rationalized them industry wide. If your going to bang on him for everything you need to give him credit too. He revolutionized the business fare structure by elimination of the SAT night stay and 3 day minimums, and reducing all One Ways to no more than $399. Now I realize lately those prices have gone up but you elites have benefited greatly the last 7 years because of Doug Parker!
How much money has he saved you? Interesting question


In the past 7 years I have paid more than $399.00 on many one way short hul business fares.

Currently MHT-LGA is 768.00 all in. That is almost double the amount you have quoted, and I know fares have gone up. It has been over $500.00 one way for at least two years. So I think you lesft out the small print Of "select markets" our fares will not be more than $399.00

 

[UPNAWAY]

Currently MHT-LGA is 768.00 all in. That is almost double the amount you have quoted, and I know fares have gone up. It has been over $500.00 one way for at least two years. So I think you lesft out the small print Of "select markets" our fares will not be more than $399.00
[/quote]


That was pre merger AWA and the top fares where $399 no matter the market. It so angered CAL that they droped their code share overnight after AWA so dare touch the legacy golden goose that was outragious business fares.
Of course now with fuel prices it is a completely different ballgame..

 

[sharktooth]

That was pre merger AWA and the top fares where $399 no matter the market. It so angered CAL that they droped their code share overnight after AWA so dare touch the legacy golden goose that was outragious business fares.
Of course now with fuel prices it is a completely different ballgame..

No offense, but, sir, your hero is wearing no clothes.

 

[Singleflyer]

Currently MHT-LGA is 768.00 all in. That is almost double the amount you have quoted, and I know fares have gone up. It has been over $500.00 one way for at least two years. So I think you lesft out the small print Of "select markets" our fares will not be more than $399.00



That was pre merger AWA and the top fares where $399 no matter the market. It so angered CAL that they droped their code share overnight after AWA so dare touch the legacy golden goose that was outragious business fares.
Of course now with fuel prices it is a completely different ballgame..

So what you are saying DP did nor bring this policy to the merger. So his 'brilliance" has been no benefit to the east customers, as far as fare go.

 

[sharktooth]

Just another fine example of a Tempe Stooge playing fast and loose with the truth which I'm beginning to think is a condition of employment out there.

You are implying Tempe has the mental capacity to actually bend the truth. I continue to think they just don't have the capacity for deceit, like a caveman brought to the 21st century, completely oblivious and cannot figure out why what they have always done does not work anymore but they, by dog, will keep trying, at least until the environment changes to accommodate their "stellar" techniques, in about 6,000 years.

 

[FWAAA]

If I were in charge, I'd try to find a way to sell discounted premium fares to vacationers while still offering really expensive premium fares to those few people able to expense them. Try to get premium revenue from more people. Fewer upgrades, to be sure, but more revenue.

That way, tall people taking a holiday might be tempted to splurge for J or F so they could arrive sans DVT and knee pain. Problem is, current J and F fares would bankrupt many vacationers. Full premium fares are simply out of the question for most people.

Success will come to airlines who can gouge business travelers but whose customers don't feel gouged (the way Southwest feels to most people). Even greater success will come to airlines who accomplish the above PLUS gouge the vacationers by selling them discounted (yet still expensive and profitable) F and J fares.

 

[Dog Wonder]

Intelligence is relative.