FlyerTalk Forums - View Single Post - UAL 1Q 2013 call/results - Thursday 4/25/13
Old Apr 29, 2013 | 10:38 am
  #237  
bocastephen
A FlyerTalk Posting Legend
10 Countries Visited
Conversation Starter
All eyes on you!
20 Years on Site
 
Join Date: Sep 2002
Location: LAX/TPE
Programs: United 1K, JAL Sapphire, SPG Lifetime Platinum, National Executive Elite, Hertz PC, Avis PC
Posts: 46,979
Originally Posted by star_world
...First, the volume of HVFs is tiny - and if you loose a portion of them you're talking about an even tinier volume. ...
I have to disagree - if you look at this group as a whole - Global Services, 1K's Platinums on higher fares, purchase influencers - you have a fairly large block of customers who are shopping higher fares vs the Kettles who book UA out of convenience or price.

Once upon a time Delta under Mullin decided that Elites/HVF were more trouble than they were worth and figured a "take it or leave it" policy was sufficient. Lots of Medallions, many HVFs, decided to 'leave it'....and that hit Delta's bottom line, hence the rejuvenation of SM and the DL product under Grinstein.

If UA thinks it can grow revenue, and net income, by telling HVF's "take it or leave it" and then teasing low fare Kettles with buy-ups to F, E+, food, TV, wifi, shorter lines, preboarding, etc and not only make up the loss from departing HVFs, but actually grow profitability, that is just not going to happen.

Network arrogance only goes so far - people still have many choices that do not include flying United.
bocastephen is offline