BA crashes its NPS (Net Promoter Score)

Old Dec 8, 2017, 11:11 am
  #31  
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Originally Posted by NickB
Really? Removing duty-free trolleys is not the sign of a confused strategy. Even if you intend to generate increased revenue from inflight sales, it does not follow that it makes sense to pursue any kind o f ancillary revenue, even where the amount generated is negligible. I can quite see how removing inflight "duty-free" can make sense even for an airline that places more emphasis on ancillary revenue if the revenue generated by non-food and drink inflight sales is small.

Rather than relying on one isolated figure related to one particular individual and trying to extrapolate in the dark, why not take from the very same article figures that provide a little bit more information? That article tells us that typical sales targets are about 4.23 per passenger on a Ryanair 737-800 and that those targets are apparently barely ever achieved. Now, take 4 per person and substract from that food and drink purchases, do you really think that "duty-free" sales are a major money-spinner for Ryanair?
They also target 800 per flight, given BA fly as I recall 600 a day, this works out at 175 million if BA could match Ryanair.

Now I don't have BAs figures (maybe you do) but I often buy duty free items at the airport, because buy on board is too hit and miss. Probably spent the best part of 1000 over the last year, none of which went to BA due to my perception that they would not have what I wanted
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Old Dec 8, 2017, 11:42 am
  #32  
 
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All this talk about fares misses the point. Product and customer experience have most impact on NPS.

BA have been cutting at both. I just flew Lufthansa business class from London, via Munich to San Francisco. The journey was a bit longer, but the end to end product, was immensely better. Yes, the seat has the same (lack of privacy) that any aisle Club World seat has, but every other part of the experience was better. Munich is a joy to connect through with no security and no passport control from UK to US.

The NPS is in the toilet because of buy on board, because of no through checking of luggage, because of terrible food, because no aisle access in Club World, because of ground staff taking compliant bags off people, and finally because of dreadful service recovery efforts that are just insulting to passengers.

All of these are of BA's own making. A few 39 fares to Barcelona aren't going to make up for that.
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Old Dec 8, 2017, 11:48 am
  #33  
 
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Oh dear, I may have accidentally boosted their NPS today by completing a survey about my recent call to customer services regarding my LBA flight retimings. In my defence, my call was answered on the third ring and I was rebooked via MAN in less than 5 minutes.
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Old Dec 8, 2017, 11:54 am
  #34  
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Originally Posted by Worcester
They also target €800 per flight
It is not an "also": where did you think the figure of €4.23 per passenger in my post came from? (hint: divide €800 by 189 passengers)
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Old Dec 8, 2017, 2:46 pm
  #35  
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Not surprising, the signs have been there sometime. All those who repeatedly demanded evidence from anyone who suggested the public may not like BAs strategy are now getting it in spades.

Between this, and the rather poor financial performance compared to its peers (don't mistake IAGs performance for BAs) it's quite obvious why they just announced a bunch of U-turns. Too late? We'll see. But noting a lot of people here couldn't have told management before they went down this road. A lot of money wasted I would imagine.
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Old Dec 9, 2017, 9:01 am
  #36  
 
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Originally Posted by Filthy Monkey
I guess the bigger question that shareholders care about, though, is whether profits have been impacted and, on the basis of recent reports, the only impact is upwards. However, it will be interesting to see what happens over the next year, once the short term benefit of cost cutting is removed and the effect on forward bookings becomes clear.
Often a declining business is given impetus because there are more pax available ( choice of schedules do decide which airline to fly....as do company contracts etc)

Originally Posted by flatlander
BA doesn't have to be liked. It just has to be the least disliked airline that is still flying; people will still want to travel.
+1. Currently a lot more people want to fly than seats available and BA is resting on its laurels ?

Originally Posted by HIDDY
Is this not the same 'news' that was posted and mostly ignored several weeks ago?

YouGov - Brandindex - BA declines from 44.1 to 32.5 in a year
Seems those who are steeped in the service industry were generally overwhelmed when one talked about CUSTOMERS & SERVICE. Maybe the chicken are coming home to roost...hopefully the short sighted "enhancements will decline and quality of service will improve. Only way to get back to its PREMIUM AIRLINE OF THE WORLD.
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Old Dec 9, 2017, 2:19 pm
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As a point of reference, I have just flown LH longhaul in Y. Connecting in MUC outward and FRA return. Excellent service, snack and drink on the shorthaul legs to/from the UK, much better connection experience in MUC and FRA than is offered at LHR, much better lounges, much better food, more attentive cabin service, better drink options. And the planes were pretty full.

I think a large part BA's sales to date are down to captive markets and inertia of regular customers, but for those routes where there is a competitor BA start losing customers as the public perception of BA shifts. Continuing to charge a premium while no longer offering a premium product will only damage BA in the long term.
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Old Dec 9, 2017, 2:44 pm
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Originally Posted by Worcester
They also target 800 per flight, given BA fly as I recall 600 a day, this works out at 175 million if BA could match Ryanair.

Now I don't have BAs figures (maybe you do) but I often buy duty free items at the airport, because buy on board is too hit and miss. Probably spent the best part of 1000 over the last year, none of which went to BA due to my perception that they would not have what I wanted
How much of that 175 is profit?

Even assuming 50% its really not all that much money in the big scheme of things. What was BAs profit last 1/4 again?

the way to get NPS back up would be re-introducing a free drink, offering decent service recovery and getting staff standards back up to previous levels.

The first two two would be relatively easy and not too costly, the last a far tougher project
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Old Dec 9, 2017, 2:45 pm
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As a comparison does anyone have access to the competitions NPS/ Brand Index?
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Old Dec 9, 2017, 3:04 pm
  #40  
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Originally Posted by Filthy Monkey
I guess the bigger question that shareholders care about, though, is whether profits have been impacted and, on the basis of recent reports, the only impact is upwards. However, it will be interesting to see what happens over the next year, once the short term benefit of cost cutting is removed and the effect on forward bookings becomes clear.
its more complicated than that. There are many different types of shareholders. Speculators will look at short term changes and expectations in profit so they will indeed be satisfied. Long term investors try hard to guess what long term prospects are for a business and they are the ones who focus a lot on things such as nps which they tend to associate with prospects of long term growth and they may worry. Then you have the so called ethical investors who care about what their name/brand is associated with and for them its mostly the decline in perceived quality.

Thats a bit like assessing tge weather, you have the guys who look out of their window, high level of certainty but limited depth, those who try to read pressure maps - much longer forecast though more risk it might be disproved, and those who try to figure out what clothes they need to buy based on the season: fewer relevant points but if you feel winter is coming you wont buy a short sleeved linen shirt.

if nps continues to deteriorate, the risk is that the group might become more attractive to speculators than to long term investors and if that becomes the case, it comes with challenges of its own, not least in that any long term strategy you might have in mind becomes largely irrelevant to them and it creates a vicious circle of expecting/needing short term results even if you always intended to balance long and short term goals in the first instance.

Last edited by orbitmic; Dec 9, 2017 at 3:25 pm
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Old Dec 9, 2017, 3:18 pm
  #41  
 
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Although short-haul and the IT meltdown are probably the main drivers, those fun-sized Mars bars and water cuplets on east coast US flights have damaged BA for years to come in my view.
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Old Dec 9, 2017, 10:03 pm
  #42  
 
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After a long hiatus, I have flown 2 x LH CW, 2 x LH F and 1 x SH CE (the other leg cancelled, and the BA response was bloody awful) this year.

Admittedly I think I have been spoilt by the standards and quality of the Asia-pacific airlines and ME airlines I have been flying on more regularly.

I would rate the BA LH J product at a 3 1/2 star level, on par with SL and their F a 4 star - basically a very good J. The J SH product is appalling.

The CCR room in LHR is very good though, their other lounges, not so good.
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Old Dec 14, 2017, 7:38 am
  #43  
 
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BA Club World

I flew JFK-LHR in Club World yesterday and found quite a difference. Instead of the plump container with booties, toothpaste, etc., there was a slimmer version with the same contents. Then I found a giant square parcel containing a huge comforter and a lesser blanket; then there was a large white pillow and a smaller pillow. In fact you couldn't see the seat! The meal was on a large classy triple-folded menu reminiscent of first class with choices of wine. The seating is the same with the annoying up and down window and clambering over someone's feet if you are against the window. And I was promised three times that my overcoat would be stored before I asked the fourth time and it was removed. So, as usual with BA, there were pluses and minuses.
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Old Dec 14, 2017, 7:42 am
  #44  
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Originally Posted by bayswater1944
I flew JFK-LHR in Club World yesterday and found quite a difference. Instead of the plump container with booties, toothpaste, etc., there was a slimmer version with the same contents. Then I found a giant square parcel containing a huge comforter and a lesser blanket; then there was a large white pillow and a smaller pillow. In fact you couldn't see the seat! The meal was on a large classy triple-folded menu reminiscent of first class with choices of wine. The seating is the same with the annoying up and down window and clambering over someone's feet if you are against the window. And I was promised three times that my overcoat would be stored before I asked the fourth time and it was removed. So, as usual with BA, there were pluses and minuses.
You have experiences the new Club World bedding and dining. There is a dedicated thread regarding this here:

New Club World Service 2017 - catering and bedding experiences and reactions
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