FlyerTalk Forums - View Single Post - The new AF-KL loyalty program
View Single Post
Old Mar 23, 2005 | 10:53 am
  #122  
Sjoerd
20 Years on Site
 
Join Date: Dec 2003
Location: Amsterdam, Netherlands
Programs: KL Gold, SQ KF Gold, CX Green
Posts: 9,524
Originally Posted by NickB
Sjoerd, this has to be the KL post of the year. This all makes such perfect sense now.
Some of us are so blinded by our prejudice and hate of KLM and our failure to keep appointments with our therapists to deal with that anger that we cannot see what must be obvious to objective and less screwed-up people: viz. that KL problem is that they have too many customers in the UK.
How can we be so dumb as to not realise the huge potential of the Dutch market, as yet untapped by KL? How can we be so stupid as not to realise that the lowering of KL's fares on the Dutch market is a sign of vitality and profit potential on that market?

Of course, if they want to lose UK customers, they could offer fewer services to the UK. The disadvantage of this, however, is that they would be lowering their operating costs. It is a far better strategy to keep the same number of flights with the same equipment but discourage some people from taking those flights. This way, you get the load factors down, keep your costs high while lowering your earnings, which is surely a very smart move if one takes into account the fact that the reason why KL needs to lose UK pax is that they make too much money. This way, it all makes sense.

May I suggest, to build on this logic, that perhaps KL should consider switching its 9 daily flights from LHR to EXT as a first step in the summer schedule, to be soon followed in the winter schedule by a switch from MAN to BLK and from GLA to BRR?
Nick, let me explain to you and the other "dumb" (your word) people here: A couple of years ago KLM was very expensive (say 100% more expensive than cheapest competitor) in the Dutch market. So nobody in his right mind flew KLM for leisure travel from the Netherlands. As an example: I have been travelling / flying a lot since 1986, and the first time I flew KLM having paid for the ticket with my own money was in 2000. Same for many of my friends. At the same time, KLM was offering tickets at rock-bottom fares in other markets such as the UK to fill up their planes. Say the average fare from the UK was X.
After the change in strategy, they have lowered their prices in the Netherlands, but not to rock-bottom levels but slightly above: say X + 15%. Suddenly many Dutch people are flying KLM because they may not be the cheapest ex-AMS, but KL have reasonable fares and direct flights. In addition they now have a seat AMS - UK airport that they can sell separately, so they'll earn another few €'s competing with Easyjet etc. Last three times I flew to LHR KL was the cheapest, whereas previously EZY or BD or HV were always a lot cheaper to LON.


edited out personal comment about other flyertalker. ralfkrippner, KLM moderator

Last edited by ralfkrippner; Mar 24, 2005 at 2:07 am
Sjoerd is offline