Originally Posted by
jpsj
I appreciate what you are saying, but I want use example of Dunkin Donuts--they clearly are not following this model. Antiquated? Just waiting to catch up? Different model as there are other coffee shops nearby?
As a consumer, if everyone was into the revenue model, then great--it would make sense, but that doesn't seem to be the case.
Again, with 87% of AA revenue from people who only fly once a year---I get that--it is this 13% that is so interesting--and would seem to be easily cultivated and grown with little effort. Instead, no effort and cut backs.
It all comes down to the level of competition. Corporations, particularly big large public ones controlled by Wall Street, want a ROI on everything. Dunkin Donuts faces lots of competition from several sources (other coffee shops, gas stations, convenience stores, grocery stores, etc.) So Dunkin Donuts has a harder cornering the market. The major airlines that cater to the business traveler are all in a world of near same so why do anything different?