Originally posted by Boomer:
kazman:
I agree its all about money, but its a lot more complicated than you indicate.
Continental has alot of customers that are stuck with continental, as an example the folks that fly EWR-CLE every week. They arent going to switch to united and connect in chicago, and CO knows that. They are the captive audience. Then there are the marginal customers, these are the people that might switch. If you lose them, you've lost revenue, even if the captive's pay more, it's those marginal seats that almost go right to the bottom line.
Yes, Continental is in business to make money, and Gordon should be focused on that. But he's focused on alot more than that.
They do lots of things that don't directly go to the bottom line, some of it is called good will. Often times good will in the long run will outweigh revenue in the short run.
Continental's handling of the entire EUA has not generated much good will, in fact quite the opposite.
Boomer, I am prolly your #1 case in point! First off...as a Silver (near Gold)...
Before EUA--6 for 6 on upgrades
After EUA--0 for 2 on upgrades
Not an auspicious start! Unless I see something radically different, I'll be asking UA for a comp to PremEx at the end of the year.
Why UA? Don't they charge for upgrades that CO gives free? Yep, but better a paid upgrade that happens than a free upgrade that doesn't! Furthermore, if I don't get the upgrade, at least I get a couple more inches of pitch with UA Cattle Class. And, as someone 6'1" and tipping the scales at over 200, I appreciate that! Also UA has more flights to more destinations that I go to than CO.
Boomer, your post is one of the most intelligent that I've read here. As someone flying from the West Coast, UA and AA offer far more flights with far fewer connections. Yet I fly CO for
one simple reason...free upgrades. If I don't get them, I'm gone! Simple equation!
I've always appreciated CO's liberal attitude towards domestic upgrades, but now I see a policy of "Screw the Silvers and Golds." I understand that Plats give them a major chunk of business, but let's not forget that Silvers and Golds (even with discount tickets) also add alot to CO's bottom line.
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"An upgrade, an upgrade! My kingdom for an upgrade!"