Originally Posted by
berkshirebound
Nobody needs a Mercedes-Benz. Nobody needs a Bentley. They’re either premium or luxury products, and anyone buying one knows that a Kia or Ford would get them from A to B for much less cash. Millions choose to buy a Mercedes every year because the value proposition works for them. Perhaps these customers are willing to pay more for their car because of the product design, or technology highlights - maybe it’s about the brand prestige, or it could be unrivalled performance, increased comfort or perceived quality. The ‘luxury’ industries - fashion, cars, wine/alcohol, hotels, airlines and many others - are a complex mix of product, brand and marketing investments. They operate side by side with other non-premium competitors. Of course many components are needed to run a successful business but product substance and an aspirational brand are both key ingredients in the luxury space.
BA with its Club rebrand is seeking to reward their most discerning high-spend customers - these customers likely have a very good understanding of the premium/luxury segments and, perhaps, higher expectations than the average passenger. I think many at BA do understand luxury quite deeply. I truly believe you’re wrong and it’s about much more than getting each J or F customer from A to B.
The risk if they don’t get it right is that J or F customers who might have overlooked issues due to the benefits offered to them by the Executive Club may now feel free to choose rival products - there’s always BMW, Porsche or other premium/luxury options. Maybe Kia instead, because they’re pretty good these days too.
Would you agree that for many customers, the overall value proposition of flying with BA has changed as a result of this move? Depending on an individual’s travel patterns, another scheme may now reward them in a more meaningful way. I don’t see anything wrong with FlyerTalk members using this moment of change to reevaluate and assess what works for them.
You are 100% on the money. This is where marketing diverges from operations. I agree with you that BA understands luxury quite deeply. The question here is their ability to implement luxury effectively, at scale and efficiently (finding a balance on cost management). There is a lack of a culture of quality in the business. You don't change this overnight. Indeed, the macroeconomics and social policies of the British state is going to make this harder. They're not QR, they can't import their way out of this problem. And you are spot on, there will not be any saving grace going forward. Customers are not going to overlook a shabby cabin, less than refined service, or inadequate catering because of a great frequent flyer programme. Corporate travel has also changed. And even if there are a few corporate accounts that disproportionately contribute to yield, the core business remains getting bums on seats. I don't know how sustainable it can be in the long-term to fly planes empty in the middle and at the back. The value proposition has changed. It's going to be really interesting to see BA's performance beyond April 2026, when these changes kick in. There will be far fewer cheerleaders for the brand - I will await with much anticipation.