Murph

The Jetblue CEO recently mentioned that Jetblue needs to get $5 to $10 more per ticket in order to be profitable.

Now I personally don't expect that to really occur until the majors decide they can't handle the price wars on Jetblue routes anymore, and raise the fares.

But until then I was wondering what things Jetblue could do to raise the per-ticket revenues. My suggestion: In-Air Jetblue Specialty Drinks! If they could come up with their own Blue Hawaiian or Blue Margarita (sorry, not links) and sell them for $5 to $6 onboard (just order them at your seat through the credit card slot), they could add a bit of extra oomph to the cash flow. If they could get enough visiting Brits or rugby teams on their flights, they could probably start a few new price wars.

I really like the bottled Margaritas on TED, so I imagine something along those lines. The could serve them with free salty snacks, for no reason .

I actually sent this idea to them a few months ago, but haven't heard anything back. I'm sure that means they are considering it.

Any other ideas?

JS

Nice try, but they won't write back because their business plan (similar to Southwest) is simplicity and not nickel-and-diming.

Send your suggestion to Northwest; they'll adopt it in a heartbeat.

deltajfk

Well if they need $5 to $10 extra per ticket, they could charge that amount for the t.v., just like Frontier does. On Frontier almost everyone pays the $5 to watch the t.v. It's not like you don't pay for your t.v. service, I bet people won't have a problem with this, and bam you have your needed money per ticket.

nsx

JetBlue will do this for the summer exactly the way Southwest did it last summer: fare compression. Fewer discounted seats and discounted prices moving closer to walk-up fares. Casual observers and industry analysts may not notice the change, but regular customers most assuredly will. This could provide an opportunity to catch a bump up in the stock price when summer results are reported.

IMHO, some of this fare compression will be permanent, with discounted fares settling at about 40% of walk-up fares rather than the 30% or even less that we have seen in recent years. That's just my guess, of course, but it's a continuation of the trend away from differentials of 6 to 1 or more that existed when it seemed that there was no limit on what business travelers would pay.

SkaterJasp

I don't think charging for DirecTV on jetBlue is a great idea. Yes, when they first started, they were going to charge for the service, but today I dont think they can. They have a reputation now for offering free TV, its just one thing that set them apart. Frontier can get away with charging their customers becuase they never set a standard of offering free live tv service and it became a norm for them. Even if jetBlue does charge for the TV service at a reasonable $5... than you tack on the $5 for the fox movie on domestic flights, that brings entertainment to $10, which at that point the one of most expensive inflight entertainment option in the industry. Basically what I'm getting at, if jetBlue does it, I think it will create a customer service backlash. But thats just what I think, not saying I'm right, but thats what I think.

PS: As for ideas for jetBlue, I suggested that they have some sort of service that allow customers check flight info on their cell phones (such as how people check bus status on nextbus.com). Most phones are web enable to view sites design for cellphones... they got back to me saying it was a good idea and their going to look into it... basically... if they like your idea, they will tell you.

nsx

The web site only gives status 2 hours or less before flight time. The telephone CSRs have no better information. This time frame does not allow customers to make a time-saving decision prior to leaving for the airport. Once you're at the airport, you can just look at the screen. I'd prefer more advance notice of delays than additional ways of getting no useful information.

P.S. Southwest's web site lists arrival and departure gates. If you are patient, you can match up gates and figure out where your departing aircraft is arriving from, then track down the status of that flight. This can provide a much more accurate indication of the ultimate delay than any initial optimistic projection. JetBlue's site lacks this capability because it does not show gate numbers.

jetBlueNYFL

JetBlue can charge a few bucks to watch TV but it won't happen. It's one thing that makes them unique. And, on flights to the Caribbean where the TV service is not available, movies are offered for free. JetBlue doesn't need to charge customers for every little thing. And, I love the "Blue" drink ideas!

Another idea: an inflight magazine!!!!!! It would be a great source of revenue and a potential money-maker. The only issue I can think of is that the advertisers in the magazine are interfering with advertisers on the TV. However, the TV advertisers are really going through DirecTV...not jetBlue.

SkaterJasp

I know this is a silly question, but where are the flight information screen located at LGB in the gate/waiting area, one of jetBlue's biggest hub? The reason why I'm asking is the last couple times my flights were delayed out of LGB, there were no info at the gate, the gate actually still showed the flight as on time even though its been 1hr past departure time and the only info I got was via 1-800-Jet-Blue. Thats basically what promted me to send in that suggestion.

Murph

I doubt it. If they could charge more and get higher yields, they would simply do it. With too many seats across too many carriers, they have to discount to bring out the discretionary traveler, and to get people to buy Jetblue instead of another airline. Seat are justs commodities in air travel. I noticed this on a flight I purchased recently for Spring Break. The price was so high, I assumed the plane was full. But it was only half-full when I purchased. I knew they would have to discount to fill the rest of the seats. Sure enough, the price dropped between $60-$100 on each leg, so I got several credits. It was lower 7 days in advance than 30 days in advance. And the planes went full. With too many seats, fare compression won't work, as there are too many other carriers.

lewisc

Delta is going to be using the SONG TV's on longer flights. Having the ability to pay to watch TV might be enough of a competitive advantage without having to offer TV for free.

nsx

Yes. But my point was that summer demand is higher than spring demand, thus "what the market will bear" will be higher and so will the average fares, even if the maximum fare stays the same.

gsupstate

Getting back to this original idea, I say "go ahead". JetBlue is a LCC, and as such, "nickel-and-diming" is appropriate. People can choose what they want, and pay for as much or as little service as they want.

I even think that the coach product on the "mainline" carriers should be more like this. If DL's coach service exactly mirrored the Song experience (instead of incorporating "elements" of it), I'd be flying them in a heartbeat.

enjoystravel

Jetblue has announced on board wines and shopping options as ways to slowly get $5-$10 from passengers. Not all of this incremental yield has to be from ticket prices. Look at the extreme of Ryan Air.

Flying to underserved cities and competing with NW seems to be another way to push up overall yields. If the EMB technical problems are ironed out, that'll help increase service to cities where competition is minimal and yields are much higher than current averages, pushing up the overall yields.