PI article on Virgin-Alaska competition
#16
Join Date: Aug 2005
Location: SEA
Programs: VX unless destination indicates otherwise (damn hippieanarchistville--EUG--and PHX)
Posts: 577
I was on the same flight. I have to agree, if AS is not worried about VX then they are just not paying attention. I'm sure that AS had an employee of some type VX SEA-SFO. If VX can get a strong following of people willing to pay a premium then there is no stopping them from stealing pax on other key AS routes like SEA-SAN, SEA-DCA (IAD for VX), PDX-SFO, and PDX-LAX.
#17
Join Date: Mar 2006
Location: Miami, FL, USA
Posts: 4,052
I agree. It's at most a 2 hour flight from SFO-SEA so it's not like someone really needs an expensive IFE system especially since everyone knowdays seems to have an IPOD that plays all their favorite songs and videos. I've always been the type of person to let everyone else buy the new "gotta have it" electronics while I waited for something more practical. I guess VX needed something to try to set it apart from AS. They may not sway a whole bunch of loyal Mileage Plan members but they could take away some of Alaska's business from customers in the LAX/SFO area who aren't affiliated with a FF program.
#18
Join Date: Sep 2001
Location: Seattle, WA
Posts: 5,971
For any flight greater than 1 hour I will choose the more comfortable flight with the most amenities, even at a higher price. Considering that VX is competitive on price with AS, that makes it even better. I fly SEA-SFO-SEA every 2 weeks, and was doing it on AS only. I actually chose AS over UA because I prefer SJC, but the extra amenities are even worth the extra driving for me (typically to Palo Alto). As of yesterday, they lost my regular business to VX. Maybe I'm odd, though.
#19
Join Date: Aug 2006
Location: FAI
Programs: Hertz 5*, SPG Gold, Hyatt Platinum, AS, UA, CO, AA
Posts: 342
http://www.alaskasworld.com/Newsroom/ASNews/ASstories/AS_20080305_081124.asp
#20
Join Date: Apr 2007
Programs: Alaska Airlines MVP Gold 75K
Posts: 475
You're certainly right, but is price king to your most frequent flyers? I'd guess that if you're within 10% of the best price, you'll keep their loyalty if you offer good ff benefits and a competitive product.
#21
Join Date: Jan 2005
Location: OAK
Programs: AS MVPG 100k
Posts: 3,756
FFs care about Status/UGs and miles. VX doesn't even come close to AS on either one.
#22
Join Date: Jun 2007
Location: Seattle
Programs: AS MVPG; Bonvoy Silver; OneWorld Sapphire; Miss Traveling for Work
Posts: 252
While it's been quite obvious that UnitedRhapsody has little love for AS , and while he and I have probably nearly opposing views about AS, I will say this claim has merit....
But AS's actions in this case blatantly indicate that they realize their product is pretty weak, but they have no motivation to strengthen it unless they're challenged. That indicates to me that they have a monopoly mentality--giving lip service to their customer service but not actually caring about improving their product.
But AS's actions in this case blatantly indicate that they realize their product is pretty weak, but they have no motivation to strengthen it unless they're challenged. That indicates to me that they have a monopoly mentality--giving lip service to their customer service but not actually caring about improving their product.
In theory, the people speaking up are right - VX is offering a better product right in for in the air. This should be good over the long haul - if VX survives the start up phase - and cause other to improve service. What I am objecting to is what I perceive as the increased trolling the last few weeks. If a person has no love for AS, what are they doing here?
#23
Suspended
Join Date: Nov 2004
Location: unreserved car luggage rack
Programs: Indian Railways Wallah Program
Posts: 6,532
#24
Join Date: Mar 2006
Location: Miami, FL, USA
Posts: 4,052
#25
Join Date: Sep 2001
Location: Seattle, WA
Posts: 5,971
It's actually not immaterial at all and it is definitely a fact. While you may be willing to pay $10 extra and another $10 or more in gas each way to have a frilly flight, the vast majority of people won't. You may not think that $4 is all that much but, based on their tried and proven experience, airlines know that it only takes a penny difference to see a huge difference in the numbers of bookings. Most people are very cost conscious and go directly to the lowest price feature on most booking engines (travelocity, Orbitz, etc.) - the lowest priced carrier will show up at the top of the display. If it's Alaska's $73 fare, and not Virgin's $77 fare, it's likely Alaska will capture more of the business. Since Virgin is so new there will undoubtedly be some people that will be looking to try them out but when the dust settles, he who has the lowest price will almost always win the business - frills or not. The overwhelming majority of people want a cheap fare on a safe plane that leaves/arrives on time and don't care about mood lighting, meals or television - especially on a 2-3 hour flight.
#26
FlyerTalk Evangelist
Original Poster
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,453
Of course, the reason why I'm flying VX? It was the cheapest fare (between it, WN, and AS) for the times I wanted to fly.
#27
Join Date: Oct 1999
Location: Third planet from the Sun
Posts: 7,022
It's actually not immaterial at all and it is definitely a fact. While you may be willing to pay $10 extra and another $10 or more in gas each way to have a frilly flight, the vast majority of people won't. You may not think that $4 is all that much but, based on their tried and proven experience, airlines know that it only takes a penny difference to see a huge difference in the numbers of bookings. Most people are very cost conscious and go directly to the lowest price feature on most booking engines (travelocity, Orbitz, etc.) - the lowest priced carrier will show up at the top of the display. If it's Alaska's $73 fare, and not Virgin's $77 fare, it's likely Alaska will capture more of the business. Since Virgin is so new there will undoubtedly be some people that will be looking to try them out but when the dust settles, he who has the lowest price will almost always win the business - frills or not. The overwhelming majority of people want a cheap fare on a safe plane that leaves/arrives on time and don't care about mood lighting, meals or television - especially on a 2-3 hour flight.
Bottom line is no airline can pay its bills with $73/$77 airfares to SFO. Enjoy these fares while you can. Bottom line is what airline can offer better customer service and Alaska needs to shore up its sagging morale.
#28
Join Date: Jun 2007
Location: Seattle
Programs: AS MVPG; Bonvoy Silver; OneWorld Sapphire; Miss Traveling for Work
Posts: 252
#29
Join Date: Oct 1999
Location: Third planet from the Sun
Posts: 7,022
Agreed and that's a reasonable attitude. What I refer to is the baiting that has gone on in messages such as this one. It is a matter of respect. I prefer AS, so I don't go in the UA forum and take every chance to shoot it down.
#30
Join Date: Oct 2007
Location: LAS
Programs: Marriott Plat, Hilton Diamond, Hertz PC
Posts: 273
as soon (or *IF* I should say) VX prices go north of AS, then they're done. People pay great lip service to a better product, amenities, blah blah, but they says something different with their wallets. If the "i would pay for a better product" concept actually held water, Southwest wouldn't be nearly as successful as they are......People say they want the best product, but then really buy the cheapest flight. (yes, that is a generalization, please don't flame me )
It's like everyone complaining about how horrible the press coverage is of Britney Spears....but which magazine prints sell the most? Business listen to their revenue, not their comment cards.
So.....if VX stays this cheap, then I'd say AS has serious problems; my guess is that this is a loss leader for VX and their prices will go up....(and then we're back to Pretzels for in-flight food on AS)