Originally Posted by
salut0
You're underestimating the value of loyalty as measured by the ratio of trips you choose to take with a particular airline compared to your total number of trips, however many that may be.
In addition, it costs more to reel in a new customer as opposed to retaining one.
ie. I always fly on AA when I can, and specifically I fly transatlantic several times a year. My annual spend isn't huge compared to someone whose business pays for full fare F or J tickets, but since AA's MRTC, and even once it was dropped, I have convinced almost all my family members to travel solely on AA when they have a choice. That loyalty is surely worth a great deal to any airline: they got at least 10 loyal customers because I myself was happy with their FF benefits.
For that reason, I believe measuring loyalty by each person's own expenditure alone is misleading and short-sighted.
Im a LifeTime Plat not from Flying alone, and thats IMO AAs big mistake LifeTime status should be based on Actual flight miles alone
anyway I cant stand the MD-80s and if I do 1 r/t a yr on AA thats alot and usually its down to FL
Nope even 100 people buying the ElCheapos isnt in my book going to keep AA afloat , its those buying Full fare tkts that will.
No different then a hotel, I cant remember the last time I spent more then $100 a night (outside of 1 location) I have top status with 3 programs and dont consider myself a Valued customer as I dont spend enough. So its very possible I will get the Upgrade that someone wont get who checks in after I do and spends 3-4x as much per night on avg then I do.
BTW 100 people buying tkts that dont cover the cost of a flight isnt worth much to a Carrier. while 10 people paying full fare is worth a heck of alot more to that Carrier
Let me sum it up as follows, my main concern would be what to do to make or keep the Carrier or Hotel the most profitable. So Id want to hold down the cost side of things as I increase the rev flow. I can sell today 10,000,000 widgets in say an hour for $10,000,000 and rake in alot of $$$ only problem is each widget cost me $1.50 so I end up lossing $5,000,000 but I would have a Great sales figure and people would line up everyday to buy from me. On the other side is what do i have to offer in order to get people to buy from me and to continue doing so. Its a very fine line, and on the side of the owner Id want to give away as little as I could, if I was the purchaser Id want to get as much as I could