Originally Posted by
Ben Lipsey
Put simply - basic Y fares in Europe are meant to offer a product that competes with FR, U2, etc.
Do you actually think though, that you can compete with them, with your cost base? Wouldn't it be better than trying to be everything for everyone, rather to focus on your competitive advantage? For as long as you keep it...
Originally Posted by
Ben Lipsey
The 0 XP is essentially us saying to our elite members, We don't want you buying this, but we won't 'punish' you if you do so (by preventing elite benefits from applying to this fare - like you see with some of our legacy competitors). Because of course, that's the other possibility: we can simply say, fine, you earn XP on these cheap Basic fares, but elite benefits don't apply. (This is more of the model you see from US carriers. )
But, wouldn't that end up beign better for your stated goals? Both to encourage elites to buy up to a higher than lowest class (unless they actually want to travel super light)
and it solves your problem with negative-margin PfLs. Buying up to get XP has comparatively limited utility.
Originally Posted by
SkipperTheHooligan
As an armchair CEO I would ask my elites are buying the very cheapest Y tickets. The answer is surely twofold. 1) that the benefits make these great value - possibly too great value, as established. 2) but I think this all slightly misses the point: the real alternative isn't Y Standard or Plus, but Euro J. The product is not appealing enough. Put in proper seats (as in US domestic F) that are more comfortable, and serve hot meals that can be ordered, and I would be much more likely to book it. At the moment it would only be when by some fluke the difference is modest. This goes beyond the remit of a FF scheme, I know, but that's the elephant in the room here. People switching up thus will gain more XP, sure, but all the benefits come out of the ticket price.
We all know that bigger seats are never going to happen. Modern seats don't even allow conversion, at best a slight move of the armrests, if that. KL is already ahead of competition with Eco Comfort/J seating with large legroom.
Improving the soft product however, should absolutely be the priority if KLM wants to sell it at all... although it for sure seems like intra-EU J is not something KL wants to have or do, but has to suffer in order to have a product connecting to longhaul J.
AF is slightly worse off hardware wise, but is significantly ahead soft product wise. Even then, it's not up to standards of competition - we all know the debacle of unions not wanting to do hot food except crew meals, so that will probably not be coming, but at least a preorder, if not onboard choice should definitely be something that is on offer in this day and age.