Hey there KLM is Dead - Long Live KLM,
Just a quick note on this topic, once again
Originally Posted by
Klm is Dead - Long Live KLM
As an alternative, as others have mentioned, they do allow you to upgrade out of AMS on a space available basis by first paying the difference in amount to an upgradeable ticket and then using miles for the upgrade. If you do the math, then you are in effect paying for the WBC ticket at slightly more than the cheapest WBC prices (assuming you value your miles based on their buying power). Of course you can only do this as long as you have been loyal long enough to have enough miles.
First of all, I have upgraded my tickets the way you describe on my last 3 flights. So it is not an unfamiliar strategy for myself. However, this kind creative booking is lost on the inexperienced flyer. I think KLM should advertise and sell more actively. And specifically, upsell to existing customers.
Originally Posted by
Klm is Dead - Long Live KLM
If they "used their database" to offer you business tickets on the cheap they would cannibilize their full fare business sales. Their database would also show them that you are a cheap ticket/value purchaser and that your years of purchase behavior demonstrate that you do not value their flexible fare or business class products (or can't pay for them or get permission for them). You say you are willing to pay more for better service, yet your personal behaviour recorded in their database demonstrates the opposite. Giving away valuable product to those who cannot and will not pay for it would seem to be a poor direct marketing strategy.
What do you mean by a cheap customer? A customer that does not fly in business class or with tickets that are flexible without a surcharge? Excuse me, but this is missing the point on many levels. An economy passenger in itself can be much more valuable than a business class passenger seen in context of a year. Or a fiscal quarter, for that matter. And a passenger that is loyal is much more interesting than a non-loyal one. Surely as a frequent flyer you would agree.
Also...there is much more potential profits in a client buying cheap fares, than a client buying full fares. A client buying full fares has reached the possible spending limit. The challenge is always to get people buying cheaper tickets to pay more. This way you save money advertising and marketing to prospects that doesn't have a relationship with your company. All it takes to contact me is one SMS or one email. What does it cost to reach a non KLM-flying prospect via other marketing means?
Also...one person upgraded, frees one seat in economy class.
KLM needs a more intelligent upselling system. It's all to do with how you treat your existing database, and how well you know them and their needs. Wouldn't KLM make more money if there were fewer KLM employees traveling in C and instead they filled the cabin up with upgrade-hungry economy passengers willing to pay some euros extra?
Lastly, you seem to have a distorted view of what makes an airline work. If pure business class travel was a viable option for an airline, why are all pure business class airlines dropping dead by the week? Look at KLMs 777-300. There are 390 economy seats and 35 business class seats. Which class has most importance for revenue? Sure, business class is important for the margins, but without economy class...? KLM would indeed be dead, KLM is Dead - Long Live KLM. The clue is to get as many economy passengers as physically possible (390 seats in a 773) and vice versa with business class (35 on the 773). If for some reason business class is not full, there is opportunity for KLM to make more money. This only works one way though, economy class to business class. It is much easier to upsell to already existing economy passengers, than to people who have not booked the particular flight at all...Do they offer their existing passengers upgrades actively enough?
As far as my "personal behaviour" demonstrating the opposite because I have disclosed to you that I normally fly economy class as cheaply as possible except V or N class...well, you have proven my point! KLM has failed in upselling.
KLM needs to be more active in offering selected, targeted offers in order to make more money. If there is availablity in C, KLM is not doing their job. Sell the available seats to people on the same flight, in economy, who are willing to pay a somewhat higher fare to be upgraded in this manner. It's a win-win situation.