Race to the bottom
#16
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I too would be happy if some kind of regulations were put in place, but I'm not holding my breath. The only possibility seems to be the health and safety concerns that smaller seat sizes have started to raise.
It used to be if you had 'little money' you took the bus. If you had 'some money' you took the train. If you 'had money' you took the plane. Now as per the link I gave above, in terms of seat width and pitch, it is the train that comes out on top and the plane has shrunk to the size of a bus seat and pitch.
So if you 'have money' and more importantly 'have the time', you would do better to take a train where available. Which just goes to show that time is worth more than money! Maybe we should start considering those who 'don't have enough time' as the 'new poor.'
It used to be if you had 'little money' you took the bus. If you had 'some money' you took the train. If you 'had money' you took the plane. Now as per the link I gave above, in terms of seat width and pitch, it is the train that comes out on top and the plane has shrunk to the size of a bus seat and pitch.
So if you 'have money' and more importantly 'have the time', you would do better to take a train where available. Which just goes to show that time is worth more than money! Maybe we should start considering those who 'don't have enough time' as the 'new poor.'
#17
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The fact that it's growing so much demonstrates that there is demand for such a product, albeit limited demand. The point is that airlines make their money from the front cabins and, apart from periods of peak tourist demand, struggle to fill the back. They must compete on price back there, and so, as already discussed in the thread, they must not offer any more airplane real estate than their competitors. So we have narrower seats closer together. Only UA, with its Economy Plus, has bucked that trend, but it seems to be being dragged inexorably back to the pack - and it does seem that relatively few people will pay the $150 or so for an extra legroom seat. And those who will would probably choose Premium Economy for perhaps $200 more instead.
#18
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This is happening, in a manner of speaking. Premium Economy is becoming increasingly prevalent. BA is retrofitting some planes with larger Premium Economy cabins. The big US airlines are introducing it. Even Norwegian offers it. But it still is a product in flux, with different airlines taking different views of just how premium it should be. At its simplest, it's a seat like those from 30 or 40 years ago, and a worse meal. At its best, it's a slight upgrade on North American "first" class offerings. But, as its name suggests, it's more allied to Economy than to Business Class, as are its prices.
The fact that it's growing so much demonstrates that there is demand for such a product, albeit limited demand. The point is that airlines make their money from the front cabins and, apart from periods of peak tourist demand, struggle to fill the back. They must compete on price back there, and so, as already discussed in the thread, they must not offer any more airplane real estate than their competitors. So we have narrower seats closer together. Only UA, with its Economy Plus, has bucked that trend, but it seems to be being dragged inexorably back to the pack - and it does seem that relatively few people will pay the $150 or so for an extra legroom seat. And those who will would probably choose Premium Economy for perhaps $200 more instead.
The fact that it's growing so much demonstrates that there is demand for such a product, albeit limited demand. The point is that airlines make their money from the front cabins and, apart from periods of peak tourist demand, struggle to fill the back. They must compete on price back there, and so, as already discussed in the thread, they must not offer any more airplane real estate than their competitors. So we have narrower seats closer together. Only UA, with its Economy Plus, has bucked that trend, but it seems to be being dragged inexorably back to the pack - and it does seem that relatively few people will pay the $150 or so for an extra legroom seat. And those who will would probably choose Premium Economy for perhaps $200 more instead.
For example, increasing the number of seats on the 777 from 9- to 10-across increased gross revenue on these seats by 11 percent. Flying people does cost money though, so I would guess the net revenue increase was about five percent or less. Same goes for revenue earned from reducing pitch. So the airlines could break even by offering seats in the 9-across format with a 10 percent increase in pitch for about a 10 percent premium, and people would buy these seats like crazy.
It is possible, through regulation, to require the airlines to offer bigger seats on a revenue-neutral basis, and I think such regulations should be put into effect.
#19
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"I think there is a lot of demand for these types of seats, but the price being charged is so ridiculously high that few are willing to pay."
Umm, that is contradictory. If there is 'demand for these types of seats', it includes the price. Wanting a bigger seat but not being willing to pay more for it is an entirely different 'demand'.
Your assumption that if you increased size by 10%, people would pay 10% more is just an assumption. The facts seem to indicate that given the choice of that or a 10% smaller seat for 10% less cost, the people would choose to pay less for less.
Clearly, we have not yet reached the limit at which people will say NO to a cheaper seat. Price is their first, last and only criteria. That's what makes it a 'race to the bottom'.
Umm, that is contradictory. If there is 'demand for these types of seats', it includes the price. Wanting a bigger seat but not being willing to pay more for it is an entirely different 'demand'.
Your assumption that if you increased size by 10%, people would pay 10% more is just an assumption. The facts seem to indicate that given the choice of that or a 10% smaller seat for 10% less cost, the people would choose to pay less for less.
Clearly, we have not yet reached the limit at which people will say NO to a cheaper seat. Price is their first, last and only criteria. That's what makes it a 'race to the bottom'.
#21
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"I think there is a lot of demand for these types of seats, but the price being charged is so ridiculously high that few are willing to pay."
Umm, that is contradictory. If there is 'demand for these types of seats', it includes the price. Wanting a bigger seat but not being willing to pay more for it is an entirely different 'demand'.
Your assumption that if you increased size by 10%, people would pay 10% more is just an assumption. The facts seem to indicate that given the choice of that or a 10% smaller seat for 10% less cost, the people would choose to pay less for less.
Clearly, we have not yet reached the limit at which people will say NO to a cheaper seat. Price is their first, last and only criteria. That's what makes it a 'race to the bottom'.
Umm, that is contradictory. If there is 'demand for these types of seats', it includes the price. Wanting a bigger seat but not being willing to pay more for it is an entirely different 'demand'.
Your assumption that if you increased size by 10%, people would pay 10% more is just an assumption. The facts seem to indicate that given the choice of that or a 10% smaller seat for 10% less cost, the people would choose to pay less for less.
Clearly, we have not yet reached the limit at which people will say NO to a cheaper seat. Price is their first, last and only criteria. That's what makes it a 'race to the bottom'.
#22
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Ultimately, I want more competitors in the market. The U.S. government has cozied up to the legacies for a long time, allowing them to merge several times over and form a nice tight group that controls a majority of the capacity. Not quite a full-blown cartel, but it often acts like one.
So I welcome the ULCCs - even though I don't really want to fly them myself. I'd love to see more full-service carriers and greater access to U.S. markets from foreign airlines, but anything is better than nothing. From what I understand about the Canadian market, it could stand some more competition as well.
So I welcome the ULCCs - even though I don't really want to fly them myself. I'd love to see more full-service carriers and greater access to U.S. markets from foreign airlines, but anything is better than nothing. From what I understand about the Canadian market, it could stand some more competition as well.
#24
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Here's a semi-common thing I see on MCI-DTW:
Spirit: $32 one-way.
Delta, regular ticket: $207 one-way.
Delta, basic economy: $182 one-way.
I understand the allure of the $32 ticket.
I understand the desire for an upgradeable, mileage-earning ticket with full EQM, baggage, etc.
I cannot understand for the life of me why anyone would buy the $182 ticket. I don't even know why they bother offering it. Maybe if it were $40, I'd buy it because I like Delta's color scheme eight dollars more than I like Spirit's. But 6x as much as Spirit? Why? Makes no sense.
#25
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The thing I don't understand is the legacy carrier's "basic economy" product.
Here's a semi-common thing I see on MCI-DTW:
Spirit: $32 one-way.
Delta, regular ticket: $207 one-way.
Delta, basic economy: $182 one-way.
I understand the allure of the $32 ticket.
I understand the desire for an upgradeable, mileage-earning ticket with full EQM, baggage, etc.
I cannot understand for the life of me why anyone would buy the $182 ticket. I don't even know why they bother offering it. Maybe if it were $40, I'd buy it because I like Delta's color scheme eight dollars more than I like Spirit's. But 6x as much as Spirit? Why? Makes no sense.
Here's a semi-common thing I see on MCI-DTW:
Spirit: $32 one-way.
Delta, regular ticket: $207 one-way.
Delta, basic economy: $182 one-way.
I understand the allure of the $32 ticket.
I understand the desire for an upgradeable, mileage-earning ticket with full EQM, baggage, etc.
I cannot understand for the life of me why anyone would buy the $182 ticket. I don't even know why they bother offering it. Maybe if it were $40, I'd buy it because I like Delta's color scheme eight dollars more than I like Spirit's. But 6x as much as Spirit? Why? Makes no sense.
#26
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Blaming Norwegian for the desperate and greedy legacy airline management figures’ actions that reduce customer service in so many ways Is a great example of misplaced blame for the rat race to the bottom.
#27
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I think there is a lot of demand for these types of seats, but the price being charged is so ridiculously high that few are willing to pay.
It is possible, through regulation, to require the airlines to offer bigger seats on a revenue-neutral basis, and I think such regulations should be put into effect.
It is possible, through regulation, to require the airlines to offer bigger seats on a revenue-neutral basis, and I think such regulations should be put into effect.
And if someone doesn't want to pay, that someone should be fine with not getting what they wouldn't pay for. Why on earth should airlines be regulated into making it available to those not willing to pay for it?
#28
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airlines offer what the market will bear. market participants such as yourself only bear economy fares, as is established in this thread. where is the bottom? its a minimum level of safety and security maintained by authorities, and so far this minimum is better than it's ever been.
So please don't try to suggest that I am one of the 'market participants' who will only 'bear (today's)economy fares'. It's those market participants that I'm annoyed with. They are forcing the airlines to provide a product that I personally don't want. That would be fine if the airlines still offered the alternative of a product I do want, but the whole point of starting the thread was the fact that such alternatives are becoming fewer and fewer. Major airlines like Air Canada are dropping routes on their mainline planes and instead flying them with their inferior LCC lines like Rouge. What does that tell you about where they are heading? A higher level of product and service or a lower level?
#29
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You seem to be confused about what I will 'bear'. What I would actually like to see is the airlines go back to what an economy seat experience used to be like 30 years ago and simply charge me the equivalent price in real money today. In other words provide what today they call Premium Economy, for all economy seats and at the Premium Economy price. Remove the current Economy seats and service entirely. Is that clearer deniah?
#30
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Join Date: Jul 2011
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Airlines are going to provide what more people want, not what you want. If the airlines are providing a product you don't want, don't buy it. If they aren't offering the product you want, find another airline. If no airline is offering what you want, then there is probably not enough demand for it