FlyerTalk Forums - View Single Post - Should CO Open Up Its Flight Sims for Extra Revenue?
Old Apr 14, 2009 | 12:13 pm
  #8  
channa
FlyerTalk Evangelist
10 Countries Visited
20 Countries Visited
30 Countries Visited
20 Years on Site
 
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,092
Originally Posted by worldwidedreamer
It just really depends on what type of business Continental wishes to operate. Costco is in the business of creating the most value for their members and Southwest is in the business of getting Americans around the country as safely and inexpensively as possible. I've always thought of Continental as being the first class American network airline...not an experience-oriented company. Offering simulator rides, or a museum (as AA has in DFW) would be outside their enterprise logic.

Actually companies are in the business of creating value for their shareholders, not necessarily their customers. Customers may be happy when they perceive they get a good value, which results in repeat customers which drives shareholder value. That is why Costco and WN tend to do well, when in fact they are very often not the most economical. There are cheaper ways to buy toilet paper than Costco, and WN is seldom the cheapest option out there. But people think they are, so that's where they go.

As for CO, it seems your concern is that CO would somehow dilute their image if they sold the simluator time. I guess it depends on how they market it. After all, CO owns a catering company, and most people don't even know it, because it's not something they go after regular consumers with. Though in the airline industry, many people know this (and some other airlines use Chelsea for their needs).

Selling simulator time to enthusiasts or high-end clientele wouldn't exactly turn CO into Six Flags. I'm sure they could target their audience appropriately without damaging CO's image. After all, marketing is one of the things CO does rather well. And of all U.S. airlines, they are probably the most sensitive to this issue.
channa is offline