tismfu

To continue from another thread...

Funny you mention this as just yesterday I was thinking the same thing. After all the brouhaha with the cutbacks at AA over the past few months, I thought, "Does an AA FTer really represent AA's best customer?"

And I have to say that we probably don't. Most high-dollar, high-frequency flyers will not have the time/interest to sit posting on FT. I certainly understand there are exceptions, but for the most part I would hazard to say it holds true.

Most of us around here are constantly looking for bargains, sales, challenges, etc., in an effort to get more for less. PLT & EXP are often (but not always) attained by MRs to far off places on deep-discount fares. Seats in J and F are often obtained by using miles or certificates to upgrade from deep-discount fares. And do most elite AA FTers have a membership to the Admirals Club or do they take advantage of either a) flying in premium cabins (on an upgraded ticket) to gain access on int'l itineraries or b) use their PLT/EXP status?

So, this begs the question, should AA really care what the FT consensus is about the recent cutbacks in service and the AAdvantage program? Do we really represent the type of passengers that significantly add to the bottom line?

N.B.: I take advantage of all the perks and only buy discount economy tickets. I readily admit that I am near the bottom of the barrel when it comes to being a contributor to AA.

FWAAA

Probably depends on one's definition of "best customer." I have no idea what AA considers its "best customers."

As I mentioned in the other thread, people who fly exclusively paid premium fares probably don't spend much effort playing the points and miles game - and that's what FlyerTalk is all about. I doubt that too many Hollywood celebs/rock stars/insanely rich people, etc. care about miles and upgrades; after all, they simply buy F on 3 class planes.

Another group would be top-tier execs who are simply too busy working and flying to spend much effort on FlyerTalk, although they probably collect miles. Their annual airline spending (plenty of paid premium fares) should probably make airlines consider them the "best customers." They likely have decision-making power over lots of other passengers' spending as well.

Yet another group would be people who fly a mix of paid premium fares and discount fares when flying for business yet fly rock-bottom roach-fares when on personal travel. Upgrading is important to this group. Very important. If they have an ability to direct more than just their own travel decisions, then they might be the "best customers." (This is the group AA has been peeing on lately with the "enhancements" such as the $250 upgrade co-pay.)

Then there are the FlyerTalkers who are able to parlay discount fares into top-tier status. Outside of FlyerTalk, I doubt you'd find too many of these.

Bottom line: Should AA care what we think? In my view, that depends on how many people around here are in my third group. Others may disagree.

Teacher49

Best customer? I don't know. I know my travel plans up to five years in advance since I travel for teaching contracts that far out.

My wife, too. Last year when she was less 2,000 short of PLAT, I called to challenge. While I had been given PLAT some years before while 3,000 miles short after being told, "look, we know SFO is well serviced by others, and it is worth it to AA to keep you as a customer." However, last year in a rather snooty voice it was, "Oh, I see all her fares are discounted, sorry."

Well, it seems perceptions change - theirs and ours.

Of course since I book so far in advance the fares that come up are quite inexpensive. I am in Basel now and my 3 city fare (SFO, ZRH, - train to Milano, then MXP, ZRH, SFO) is less than $589.00. I paid what they asked for. Do they expect that we should offer more to be considered a "good customer?"

I will spend up my miles over the next year and then its best fare for me AA or not after 15 years of AA and partners only. I don't expect them to care.

Best wishes,

Teacher49

Brian-AAFlyer

I'm not so sure its about being AA's best customer, its more about your marginal future value.. I'm historically a Business flying EXP, have qualified for the last 3 years.. this year on fully personal travel.. Is it in AA's interest to give me an unused perishable product before departure and consequently retain my future business travel.. sure..

I'm the kind of person that other airlines don't want.. J travel internationally on business.. Y upgraded on personal travel.. AA gets my personal $5-10k travel budget in ADDITION to my business budget because they know i sometimes fly cheap (but do have more QPs than QMs)

Is the marginal value of the program positive to AA? Yes I believe in my case and many others it is.. so being a customer and allowing AA to increase operating profits is a plus for them.. all because of the AAdvantage program...

In other words.. Who knows..

CharlesMD

Individually I don't think we matter, but as a whole if everyone on FTAA and all the lurkers defected to another airline, then I think AA'd notice. If there's an empty seat on the plane and we fill it even at a discounted discount price, then hey, it's in AAs best interest. I wouldn't be surprised if Randy gets special treatment from all the airlines, because after all, he is THE MAN. Doesn't AA regularly monitor these boards? It wouldn't surprise me if some young, ambitious types at DFW or corporate headquarters read these boards to get new ideas.

What's this about how hard people work? When I was in college and med school we all used to brag about sleeping 3 hours a night and studying the rest of the day. But come on, most of that was checking e-mail, BSing with roommates, watching Conan. I doubt it changes much when you move into the corner office.

As to the types of people that read FT, we probably come from all walks of life. But I think if you are really into travel as much as most of us are, then you have to be pretty well off. It really doesn't take much time to do your FT hobby-- 5 min of looking over the airline boards every morning with breakfast and writing trip reports when you get tired of the IFE. I used to read the newspaper in the mornings, but that's so depressing now with Iraq, and TERROR, TERROR, TERROR! FT is so indulgent! And what a great diversion when you need a break from scutwork!

sxpsxpsxp

I think that very few of us FTers could be considered AA's "Best Customer" on an individual basis. There are some people here who travel all the time in paid J or F, but they're far and few between. However, taken collectively, the FT crowd, and the AAdvantage Elite crowd more specifically, represent AA's "Best Customers." That's why AA can justify giving us perks. They're not giving out free upgrades because they like you for who you are, or because they're a nice and friendly company that knows why you fly. They're giving out free upgrades because they know you'll come back again, and again, and again.

The whole FF game is an investment the airlines make. They give you something that may be of some value later (miles) and they give you something that is of some value now (upgrades) in order to RETAIN you as a customer, or possibly increase your spending. They wouldn't be doing that if they thought you'd never come back. And the simple fact that you keep coming back makes you one of their best customers.

I just realized that I basically contradicted myself. I think there are "best customers" and then there are "Best Customers." The distinction I'm making is that individually, most of us fall in the "best customer" category. Together we all fall in the "Best Customer" category. Or is this too subtle a distinction for the internet?

aaupgrade

The short answer, probably not. But I don't think all FTers can be lumped into one stereotype. I do a mix of ticket purchases for both business and pleasure. When I purchase BC/FC it is almost always discounted: $1206 WAS to HNL (Pleasure multiple times), $850-1100 WAS-LAX (Business multiple times), $1100 WAS to SJO (Business - UA), $4500 WAS to ROR (Pleasure - CO full fare, only airline, at 25 hours coach was not an option), $1567 WAS to YVR (Pleasure), $650 WAS-SDF (Business). Other North/Latin America flights are cheap coach usually with e-upgrades (sometimes mileage upgrades), other International is transatlantic on UA (direct flights out of IAD for pleasure) on H fares using mileage upgrades.

So am I their best customer, no way. But are a lot of passengers like me their best customers, you bet. And we are a group of customers with whom they can capitalize as we will pay more for better service, but not a lot more. For example, I don't know if I am going ot continue my HNL trips as discounted FC fares are over $2000 now. I have a feeling AA will drop it again as I think there are others like me out there that are willing to pay $1200-1400. At $2000+ I will use e-upgrades (and if the prices stay at this level the number of available upgrade seats will increase) or miles.

So yes, price is a factor to FTers, but not all of us only do discounted coach with mile upgrades, and/or free tickets. I am a Admirals Club member, as my comany pays the membership fee. But, a few years back when I traveled a lot more on business and split my travle 50/50 between UA and AA I also purchased a RCC membership with my own $ for a few years. I find there is no need now as UA travel is almost exclusively international transatlantic business and lounge access is included. All other travel is on AA or partners. However due to recent changes at AA, as long as I make AA PLAT I will fly anybody's airline if the FC/BC price is right (exlcuding US, DL, NW).

Plato90s

While the bargain-hunting FT'er may not be the most valuable customer by revenue, he is a very valuable customer due to his marginal value.

AA sells the highly discounted tickets only because it is otherwise unable to sell the seats. If not for FT'ers who fly only because of the low fares, that seat would go empty. The marginal revenue provided by the bargain hunter is revenue AA has no chance of attracting at regular prices anyways.

So we're the customer of last resort.

MiamiPrep

EXP here who flies a mix of fares. I estimate I have spent at least $12,000.00 to $14,000.00 with AA this year. In comparison to those leisure travelers who fly 1-3 round-trips per year, I imagine my revenue is nothing to sneeze at. I enjoy the FF benefits. If there are extensive cutbacks, my travel likely will decrease. I often go to London for a long weekend. Now, if I have the VIP's I'll go on discounted fare. If not, I won't. And I don't always fly ultra-low discounted fares. Often will fly AA with a higher fare knowing I usually get upgraded, and get coach seat preference.
So, I suspect it is in AA's best interests to encourage my business. There must be many people like me. I put my butt in the seat, and my dollars in their coffers. Sure, they love the celebrities and business people who pay full fare. But that is a relatively small population.

DFWDave

I can count with my fingers the number of purchased segments I've flown on other then AA in the last 5 years (not counting AA rebooking me due to cancelled flight).

Were most of those on discounted fares - yes.

I can justify, for both personal and business travel, a slight premium (20-30%) for flying AA ONLY because of the perks that result from that loyalty. The times I flew ATA, National, or Southwest during this period were because AA's fare was in the neighborhood of 5 TIMES the price of the alternative.

Without the program, I would say that maybe a little as 1/2 of my business would have gone to AA.

FTAA folks will probably take even greater steps to try to fly AA instead of alternatives that the average AA Elite. I've flown many times DFW-PVD instead of DFW-BOS to fly AA instead of Air Tran. Same goes for stopovers in AUS for markets where they compete with Southwest there and not DFW. In many of these cases, had I not found out about these alternatives from FTAA, my butt would have been on ATA or AirTran, if not Delta or United.

JonNYC

As a group, definitely not AA's "best" customers by the most important standard ($$$)-- but most certainly among the most loyal-- that's for sure. And, probably the world's best focus-group.

fractal

I'm not sure about the rest of FTAA-er's, but I'm a mixed revenue bag. I'll pick up cheap $450 RT LAX-LHR's and upgrade, but also have to fly on personal business at the last minute and pay that amount for LAX-ORD. Outside of a very occassional flight on DL (with whom work has an agreement), I don't think I've flown any other carrier since early 2000. And I was probably one of the very few flyers that AA has that had never flown WN.

...and the weekend after next I'll be taking it for the first time.

I'd have gladly paid the $363 or $410 that AA asked for the same flight to Chicago ($176 on WN), but frankly I just don't want the AA miles that badly anymore. And my next trip to PHL is on F9 (direct and > $200 cheaper).

At the end of the day, by choosing more expensive flights on AA, I contributed way more revenue than the $250/each-way upgrade fee for my prior upgrades, but that was by choice. Will I continue choose more expensive AA flights for miles-to-upgrade AND pay the fee? No way.

So, the quality of the revenue they'll get from me will sink as they'll mostly get just marginal revenue from now on.

venk

If AA kept only their "best customers" as being discussed in this thread, they would be bankrupt already. An FTer is not a marginal riff-raff either.

All I can say is

AA FTers as a group is not representative of AA's highest revenue customers, but without the group of travelers that FTers represent as a sample (not all of whom participate in FT) loyally flying AA, AA would still go bankrupt.

Plato90s

AA FT's are, however, a representative cross section of AA's customer base. We have people who are on the extreme high end $$ as well as the pure bargain hunter. Now, prolonged exposure to FlyerTalk tends to push the total purchasing pattern to the bargain-hunter end, but it remains true that the actual people represented by FT does cross every major group of AA customers.

Rasalon

But Flyertalk is not just about how to get miles. I am a partner in a global consulting company, and last year I spent a bit over $200K with Oneworld, mostly paid F, some paid J, as our client contracts dictate class of service depending on flight length. Another of our partners is also on Flyertalk as well in the Continental forum. Flyertalk is very informative to us in other ways, not just collecting miles, such as is AA going to get a better J product, which airports to avoid due to congestion and bad customer service, and when we have a flight with bad service, is it an isolated experience or is this the general trend? I also found it informative that I, in fact, was not the only one experiencing much longer than average EXP line hold times when calling from overseas in off-peak hours. So it is not just about the miles, this is a great resource in many other areas as well. And I thank you all for that!