Originally Posted by
lrdpenn
I would not be surprised if this is just the first domino to fall. Isom at least realizes they have “dug ourselves a hole”. But this is a really big hole. Besides rebuilding a sales org being very difficult, the problem when you entice customers buying a commodity product to defect, which is what AA did to themselves, is one of the following happens:
1. They liked their original product/supplier and will pay more for it or go through more hoops to get it
2. They switch and realize they like the new product more
3. They switch to another product and start buying that out of habit
4. They become more price sensitive as they realize competing products are the same
So obviously #1 is not happening on average. Bad news for AA.
Maybe #2 is happening. Bad news for AA.
AA is hoping to win back customers so they are betting on #3 and #4 coming back. But this is going to cost AA. AA will have to offer deals to entice customers and/or really invest in the product to be a preferred carrier. Short to medium term bad news for AA.
- All this is correct. During pandemic, I got fed up with Marriott and Hilton pathetic offerings, and I switched to Hyatt (after ca. 1,250 lifetime nights with SPG+Marriott and 700 nights with Hilton). Now I only use Marriott and Hilton as backup chains when Hyatt is not available. I can easily ditch AA the same way! Right now I do have an AA flight to a leisure destination on Sat morning. With 29 hrs before the flight, there are 6 seats in F available for sale and some for SWU, but this EXP with not a low LPs is not upgraded yet... What I am saying is that loyalty s a two way street,