Originally Posted by
GenevaFlyer
Hi FlyerJack,
There has always been a lot of debate on this subject, for many European airlines. The conventional logic is that it's all about revenue protection. If people think they can get an upgrade for cheap just before the flight, why would they buy an expensive fare?
Hey Geneva,
My point is that KLM does not use their database very well. Also, they do not have a great upselling strategy. If I normally spend EUR 10000 with KLM one year, surely it would be better for KLM if I spent EUR 13000? This is indeed revenue protection. The whole idea of a frequent flyer program has to do with ensuring one-time customers spend more money with the company. Now, if loyal customers that have certain flying habits would pay more, this would increase KLMs revenue.
As mentioned, as it is, I am willing to pay more. I am not willing to pay full business class fare, but occasionally I would be tempted to shell out something extra if I felt the offer was right. If KLM has empty business class seats, this is money straight to their pockets.
KLM does not use upselling actively. Yes, I do make use of upgrade tactics, but why don't they advertise these possibilities more aggressively. They are losing money on me. And the question is - why don't they know me well enough to know this? They have all my records from 3 years back, they know my flying habits better than anyone. Remember, advertising in 2008 does not mean mass advertising. With KLMs databases you can target your offers really sharply.