FlyerTalk Forums - View Single Post - United to launch "No-Frills" fares in 2016 according to Credit Suisse analyst
Old Dec 8, 2015, 2:17 pm
  #18  
nerdbirdsjc
 
Join Date: Jul 2013
Location: SJC
Programs: Southwest, Alaska, United, American Airlines
Posts: 994
Originally Posted by TA
In order to compete successfully, it is not lower fares that mainline carriers need to offer. It is their *costs* that they need to cut. Stripping the miles earning out of the ticket is negligible.

Seems like they have not fully internalized the lessons of TED...
Consumers traveling in Economy Class have demonstrated that *price* is, far and away, the #1 driver of airline ticket buying decisions. Virtually all 21st century industry efforts to offer a domestic service differentiator to most pax (e.g., More Room Throughout Coach, meals at mealtime, etc.) have failed to result in tangible revenue/yield increases. The few customers who care about such things are taken care of through the FFP elite tiers.
nerdbirdsjc is offline