CO may be losing its way. Is it Jeff or what's up?
#46
Suspended
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
I think I'd agree with you about bundling if it were only baggage and small things, but what I keep coming back to, and to an extent it fits with CopperSteve's comments, is when I'm travelling for work I just don't want the irritations of allowing enough time to find food at an airport, or having to accept TacoBell / lousy pizza / well, you name it. What I want, and what has a value to me is being able to arrive as close to the departure time as possible & get out of the airport as fast as possible when I arrive, faster bag processing if I need it, better IRROPs handling, enough space to open my computer, power for it, tolerable food that's of a reasonable quality, and no need to keep reaching for the credit card and a bunch of expenses to claim later. If you like, there's a value to keeping it quick and simple, allowing me to do the job I came to do. I guess I'm arguing that the bundle actually needs to differentiate more of the travel process.
More importantly, you are still back to the same issue: just how much do you value those services and just how many people agree with you. Any airline of size will almost always bump into a free-rider problem. An airline the size of CO can't fill their seats with only business travelers. At some point, they will likely need to sell those seats to the general public and they will have to do so at market prices. Once they do that, you would be an idiot to not simply hold out for full-service at discount prices.
Eventually, nobody will pay a premium, because nobody would need to. I think CO has learned this - they admitted as much about the checked bags, and I suspect the ditching of meals is another tacit admission that the strategy failed. Simply put, the legacy airlines have been pushing the concept of "full service" as a point of differentiation for the better part of 20 years now. If it were actually a feasible way to make a profit, we should see some evidence. At the end of the day, plenty of people claim they want full service, but the proof of the pudding is in the eating, and too few are actually willing to put their money (or their company's money) where their mouth is.
#47
Join Date: Nov 2007
Posts: 111
It was a dumb decision. It is one reason my friends and I prefer to fly European carriers, which still offer good customer service such as free booze. To heck with these stingy US-based carriers.
#48
Join Date: Aug 2009
Programs: UA, HH & Marriott
Posts: 357
I think ala carte pricing is far and away the smartest way to manage an airline. I have no problem with the move to baggage fees. I certainly don't feel like beverages should be free in the air (any beverage except maybe water). Why am I subsidizing your 4 diet cokes? It just doesn't make sense to me.
And I would even be in favor of not serving any food options, at all, in y (except maybe intl flights). It would reduce transaction costs and turn planes over faster.
And I would even be in favor of not serving any food options, at all, in y (except maybe intl flights). It would reduce transaction costs and turn planes over faster.
#49
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
There used to also be differences in on-board amenities but those have pretty much disappeared as customers have demonstrated that they aren't really willing to pay for such.
#50
Join Date: Nov 2009
Location: PHX
Programs: AA Gold, UA MM 1K, UK Gold, Marriott Titanium, IHG Plat Amb
Posts: 397
#51
Original Member
Join Date: May 1998
Location: CT (NYC Suburbs), Gulf Stream, FL
Programs: United Premier 1K, American AAdvantage Gold
Posts: 3,089
I first flew CO in 1970. They didn't go east of Chicago. My original Presidents Club membership was by invitation. They opened access to those clubs a few years later. I still have the framed certificate, signed by the CEO, and personally delivered to my office, in Phoenix, by the local manager. I was on the inaugural flight, DEN-EWR, when they first went transcontinental. I went through two bankruptcies, the total chaos of the Lorenzo era, which began with the deposed CEO shooting himself in his Denver office, and the Eastern merger. Lifetime platinum, earned the hard way. Acidic, no. Jaded, possibly. To really know what a company is like, you have to know how it got there. I'm sure this guy is talented, but Bob Six or Gordon Bethune, he's not. Following his lemming like cohorts at the other so called Legacy carriers, he simply joins a long list of would be marketers, who never quite get it, that if you emulate the cut rate guy, he wins. The same customer who gladly tolerates JetBlue's horrendous on time (or lack thereof) performance, is the first one to complain to DOT if CO does it. Good luck.
#53
Moderator: Avis and Rental Cars
Join Date: Oct 2006
Posts: 8,039
Personally, I think you're being a bit unrealistic. I do think 4 drink coupons and the amazing luggage tags is a bit stingy, but I don't expect everything to be free for a $300 flight.
#54
Join Date: Jun 2008
Location: Central Florida
Programs: MP 1K/Onepass Plat 1MM, SPG Plat, Marriott Plat
Posts: 562
Seriously, I met you, flew on at least one flight with you, and I am searching for a reason why you consistently push the CO corporate line against that of CO's most loyal and profitable customers. Yes, us Million Milers and year over year Platinums. FWIW, I earned > 210K miles last year and this was 90%+ business travel where I had a choice of carriers.
There are thousands of us who are becoming VERY disillusioned with CO as a direct result of the latest changes. If we wanted Un-ited level of service, we would have been flying with them all a long. We DO NOT want to compete with UA flyers for upgrades. This entire "alignment" is nothing but a losing proposition for a loyal CO Platinum.
Why should I pay $213 for an upgrade that I already earned though many, many years of high margin business. No it is not acceptable to me.
Why is it that my FF miles keep getting devalued year after year, they become harder to earn, yet my chances to redeem them are fewer and fewer? As a loyal customer, I feel betrayed and cheated, and I am not in the minority.
I would rather pay much more money to an another airline that will treat me well today than be mistreated by an airline that I have steering millions of dollars of business to over the last 12 years.
You clearly don't understand the value of customer loyalty. Apparently CO doesn't either.
I am tired of waiting for battlefield upgrades that I normally would get 5 or more days out. I am tired of my FC seat being sold out from under me for a few measly bucks. This experiment is a long term failure despite any marginal short term gains. I control significant business travel spend and I will direct it elsewhere if this nonsense continues.
#56
Join Date: Jul 2004
Programs: AA US
Posts: 378
... This guy's office paint isn't even dry, and he's talking tough. To Delta, a recent speech, somewhat reminiscent of Khruschevs We will bury you ... Then theres the in your face to the government ... The contrast with his predecessors is marked, and a bit juvenile...
The new guy should be factual, incisive, and accurate to build credibility. Only after at least six quarters of y-o-y successes can he strut a bit.
#57
Join Date: Sep 2007
Location: USA
Posts: 1,813
The griping here seems to be the typical consumer only liking change when it benefits them, not when it takes away a "free" benefit that generates negative revenue. Someone earlier said it best when they pointed out that moving away from "meals at mealtime" is a tacit acknowledgment that the strategy has not worked out (in other words, did not generate the premium revenue that it in theory was supposed to create). People en masse still flew on the cheaper airline, regardless of whether there was food at mealtimes or not.
Thus, this just seems prudent business strategy to make the switch. CO will, of course, have to provide a differentiation other than price, which it tries to do mostly through OnePass and its route network.
#58
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
Absolutely not. I've applied for a job or two there but they never saw fit to hire me.
Well, if others are actually buying the F seat then you aren't going to get the upgrade. If others are buying more expensive fares than you are then you aren't going to get the upgrade. This policy is not particularly new, though the marketing effort behind it certainly is. Oh, and the part where CO doesn't charge a change fee for folks who want to buy up to the higher fare classes is a direct result of lobbying for that exact benefit by folks here on FT. So you may not like it but that is actually something that came out of CO's participation in this community and listening to their customers.
Your miles are worth significantly more this year than they were last year at this time thanks to the *A move. Beyond that, miles have never appreciated in value. Burn 'em as you earn 'em.
So vote with your wallet. But you are in a very small minority of the overall traveling public, IMO.
And I think you place too much faith in it. Even the most loyal customers have to look at the bottom line - ticket price - and for the vast majority of customers that is THE deciding factor. Not airline, not alliance, not miles, not meals. Price. Because of that there isn't really a viable financial model that allows carriers to offer more at the same price, and there isn't a viable financial model to regularly charge more at the initial point of sale.
Customer loyalty is useless if the company isn't in business. For that reason I do believe that the most important thing for me as a loyal CO customer (though not necessarily a particularly profitable one any more) is that the company remains solvent. After that I look at the other details and go for what I see as the best value in a program. For some folks that is CO. For others it isn't. But I definitely don't let my loyalty and previous habits blind me to other options nor the bigger picture.
I applaud you for taking a look at other options. Customers always should be. I hope you find greener pastures.
Customer loyalty is useless if the company isn't in business. For that reason I do believe that the most important thing for me as a loyal CO customer (though not necessarily a particularly profitable one any more) is that the company remains solvent. After that I look at the other details and go for what I see as the best value in a program. For some folks that is CO. For others it isn't. But I definitely don't let my loyalty and previous habits blind me to other options nor the bigger picture.
I applaud you for taking a look at other options. Customers always should be. I hope you find greener pastures.
#59
Join Date: Oct 2003
Location: DCA
Programs: UA LT 1K, AA EXP, Bonvoy LT Titan, Avis PC, Hilton Gold
Posts: 9,664
There are thousands of us who are becoming VERY disillusioned with CO as a direct result of the latest changes. If we wanted Un-ited level of service, we would have been flying with them all a long. We DO NOT want to compete with UA flyers for upgrades. This entire "alignment" is nothing but a losing proposition for a loyal CO Platinum.
CO was selling (my mistake or plan) cheap upgrades earlier this year to non-elite on cheap fares at check in at cheap prices - but I think they corrected that. I have stories of non-elites on L transcons (<$200 RT) offered FC upgrade for $100 on a 752 with BF from EWR-SFO. I think CO has fixed this.
Also - CO was selling B and M fares too low - so that Silvers could pay $200 over a W fare and get a B fare with instant upgrade. I think CO has fixed by raising fares. If am M fare is $1100 (with instant Plat upgrade) that is Ok, with the B fare at $1500, and a Z fare at $1800 - these are OK. It was when the M fare was $600 and the B fare $700 - that there was a issue with cheating Elites.
#60
Original Member
Join Date: May 1998
Location: CT (NYC Suburbs), Gulf Stream, FL
Programs: United Premier 1K, American AAdvantage Gold
Posts: 3,089
You are right. This guy has been there since Bethune. All the more reason his early actions are puzzling. Evidently he has not agreed with how it has been run. He will certainly have an opportunity to test his theories.