Economy Plus business model
#1
Original Poster
Join Date: May 2000
Location: Zichron Yakov, Israel
Programs: SPG Gold
Posts: 808
Economy Plus business model
Can someone explain El Al's business model with their Economy Plus seats? It doesnt seem like it's there to generate more revenue. If they wanted to make money with it, they would actually sell the Economy Plus seats to any passenger with a booking at any time.
Instead, the way it works now, is you put in your "request" for an Economy Plus seat, and if the TPLs, PLs, and Golds havent grabbed them all up by 24 hours before the flight, then you get the chance to maybe buy an Economy Plus seat.
Compare that to either Delta or United, and while they both give their top Elites the opportunity to take the Premium economy seats for free, they also allow anyone to buy one of those seats at any time after booking the reservation.
My parents who come once or twice a year to Israel, were going to book on El Al, but when they found out they couldn't get a guaranteed Economy Plus seat at the same time they made the booking, they changed their mind and went with Delta - for a more expensive flight.
Instead, the way it works now, is you put in your "request" for an Economy Plus seat, and if the TPLs, PLs, and Golds havent grabbed them all up by 24 hours before the flight, then you get the chance to maybe buy an Economy Plus seat.
Compare that to either Delta or United, and while they both give their top Elites the opportunity to take the Premium economy seats for free, they also allow anyone to buy one of those seats at any time after booking the reservation.
My parents who come once or twice a year to Israel, were going to book on El Al, but when they found out they couldn't get a guaranteed Economy Plus seat at the same time they made the booking, they changed their mind and went with Delta - for a more expensive flight.
#2
Join Date: Dec 2012
Location: NYC Area
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#3
Join Date: Jul 2007
Programs: co AA ua
Posts: 140
EL AL has different considerations
Maybe because they do not fly planes for more than 24 hours and Friday is when business travelers return back home, EL AL has to throw in something and it is to reward its most valuable passengers.
#4
Join Date: Dec 2012
Location: NYC Area
Programs: UA Premier Platinum, Hyatt Plat
Posts: 1,312
Their no fly rule on Shabbat has a negligible effect on their bottom line, primarly because if they did fly on Shabbat their largest passenger base, the Hardeim, would no longer fly the airline. Consequently, any gains from flying on Shabbat would be lost when their largest passenger base, in all classes, bolt and boycott the company.
#5
Join Date: Jul 2007
Programs: co AA ua
Posts: 140
Their no fly rule on Shabbat has a negligible effect on their bottom line, primarly because if they did fly on Shabbat their largest passenger base, the Hardeim, would no longer fly the airline. Consequently, any gains from flying on Shabbat would be lost when their largest passenger base, in all classes, bolt and boycott the company.
Haredim are mainly leisure travellers. And for those who keep Kashrut ELAL is far better than any other airline serving Israel
#6
Join Date: Dec 2012
Location: NYC Area
Programs: UA Premier Platinum, Hyatt Plat
Posts: 1,312
I am not working in LY hence not sure whether you are right or wrong. But best customer for airline on USA and Asia routes are business customer. Customers flying to the silicon valley have no reason whatsoever to fly EL AL where they need to cut their workday short.
Haredim are mainly leisure travellers. And for those who keep Kashrut ELAL is far better than any other airline serving Israel
Haredim are mainly leisure travellers. And for those who keep Kashrut ELAL is far better than any other airline serving Israel
You are correct that in theory the best customer for EL AL, or any other airline for that matter, are business pax. You are also correct that the vast majority of business pax have no reason to fly LY given their limited ff program, sub par hard product, lack of alliance membership/extensive code share agreement, and even price.
However, where you are not correct is in assuming that Haredim are mainly leisure travelers. Some of EL AL's highest grossing pax are Haredim. Should EL AL fly on Shabbat those pax will bolt. It's been tried before during Haim Romano's tenure as CEO and the airline had to reaffirm its commitment to grounding the fleet on Shabbat and other Jewish holidays.
#7
FlyerTalk Evangelist
Join Date: Dec 2009
Location: HaMerkaz/Exit 145
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I am not working in LY hence not sure whether you are right or wrong. But best customer for airline on USA and Asia routes are business customer. Customers flying to the silicon valley have no reason whatsoever to fly EL AL where they need to cut their workday short.
Haredim are mainly leisure travellers. And for those who keep Kashrut ELAL is far better than any other airline serving Israel
Haredim are mainly leisure travellers. And for those who keep Kashrut ELAL is far better than any other airline serving Israel
- Business customers are mainly Silicon Valley flyers
- Haredim are mainly leisure travelers
- For those who keep Kosher, LY is far better than any other airline
My responses
- Business travelers come in all different stripes, including tech, finance, fundraising, sales, medical, etc. This also refers to tons of different geographic areas in the USA, especially NYC
- There are tons of Haredi business travelers, a number of whom post on this board. I frequently sit next to Haredim in C (mostly LY, but also UA) who are traveling for business
- That highly depends. But when anyways ordering the Mehadrin meal, both the food and the experience is no different than when ordering KSML on OALs
#8
Join Date: Feb 2005
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I should also add that even for premium business travellers the price is (or should be) a factor. When BA's business class return TLV-LHR-TLV is $600 less than EL AL's (or even $200 if you need to get a more expensive ticket) and the hard product is far better there really shouldn't be any question as to which airline is better. Oh yes, I should add that those are 12% discounted EL AL tickets when purchasing a 'kartisiya' with 11-20 tickets.
#9
Join Date: Jul 2011
Location: London, UK
Posts: 120
Their no fly rule on Shabbat has a negligible effect on their bottom line, primarly because if they did fly on Shabbat their largest passenger base, the Hardeim, would no longer fly the airline. Consequently, any gains from flying on Shabbat would be lost when their largest passenger base, in all classes, bolt and boycott the company.
I've seen plenty on easyjet/BA flights to & from london...
#10
FlyerTalk Evangelist
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But that's neither here nor there. ELY001 simply said that if LY flew on Shabbat, the amount of business they would lose from Haredim refusing to fly them would outweigh any additional business they would get from an extra day of flying. And having seen some projections, he's almost definitely correct, and it's not even close.
#11
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But that's neither here nor there. ELY001 simply said that if LY flew on Shabbat, the amount of business they would lose from Haredim refusing to fly them would outweigh any additional business they would get from an extra day of flying. And having seen some projections, he's almost definitely correct, and it's not even close.
#12
Join Date: Jul 2011
Location: London, UK
Posts: 120
Yes, Haredim fly other airlines. And correct, LY not flying on Shabbat isn't the only reason Haredim fly LY.
But that's neither here nor there. ELY001 simply said that if LY flew on Shabbat, the amount of business they would lose from Haredim refusing to fly them would outweigh any additional business they would get from an extra day of flying. And having seen some projections, he's almost definitely correct, and it's not even close.
But that's neither here nor there. ELY001 simply said that if LY flew on Shabbat, the amount of business they would lose from Haredim refusing to fly them would outweigh any additional business they would get from an extra day of flying. And having seen some projections, he's almost definitely correct, and it's not even close.
#13
FlyerTalk Evangelist
Join Date: Dec 2009
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Exactly. The idea being not to support a Jewish-owned business that violates the Sabbath so publicly
#15
Original Poster
Join Date: May 2000
Location: Zichron Yakov, Israel
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http://www.elal.com/en/PassengersInf...lass-Plus.aspx
Should we call in the lawyers?