WS Passengers Open to the Idea of Premium Fares
Dec 7, 2018, 3:47 pm
#31
Original Poster
Join Date: Jul 2014
Location: YVR
Programs: WS Nothing, AC Something, AS Gold. Too big for 737Max washrooms
Posts: 893
Very interesting read, aerobod - thanks for that.
Interesting thoughts. To me, the opportunity for Westjet isn't in trying to win over the bling bling Super Elites so much as the tens of thousands of disgruntled Altitude 25k, 35k and 50k travelers who have seen all rewards for their loyalty steadily eroded away. AC's frequent flier program is clearly aimed at travelers who book premium fares as a matter of course. But that's a shrinking group, as more companies mandate economy fares for all business travel. Westjet has an opportunity to capitalize in a big way by providing a FF program that focuses on the mid-tier frequent fliers who are restricted to booking economy fares. These folks may not book 20 grand a year in travel, but they will book 4 to 8 grand year after year, and are comparatively low maintenance and comparatively low cost to retain. They also represent the overwhelming majority of business travelers today.
Interesting thoughts. To me, the opportunity for Westjet isn't in trying to win over the bling bling Super Elites so much as the tens of thousands of disgruntled Altitude 25k, 35k and 50k travelers who have seen all rewards for their loyalty steadily eroded away. AC's frequent flier program is clearly aimed at travelers who book premium fares as a matter of course. But that's a shrinking group, as more companies mandate economy fares for all business travel. Westjet has an opportunity to capitalize in a big way by providing a FF program that focuses on the mid-tier frequent fliers who are restricted to booking economy fares. These folks may not book 20 grand a year in travel, but they will book 4 to 8 grand year after year, and are comparatively low maintenance and comparatively low cost to retain. They also represent the overwhelming majority of business travelers today.
Dec 7, 2018, 8:59 pm
#32
Join Date: Aug 2002
Location: YYZ/MGA
Programs: AA 1MM Lifetime Gold, AA Platinum, WS Gold, Marriott Bonvoy Gold
Posts: 7,607
What WestJet needs to go after are people who are willing to pay for the Business cabin. I suspect most of those are going to be corporate accounts where most of the staff fly economy and there is a very small number of senior executives who fly paid business. Even there it is going to be on specific routes. They probably will have problems selling business on YVR-YYC while they could on YVR-YYZ. Having a limited number of business class seats for sale on every flight lets them win that larger account that includes a lot of economy flying.
So I check their price and schedule and only fly if it some combo of same is way better or way cheaper than a competitor like AA, AV, CM even AC. They need to differentiate the product with actual food and service. What will happen is they will just charge more or try to.
Dec 8, 2018, 10:29 am
#33
Join Date: Jun 2008
Location: YYC, Canada
Programs: AC 35k
Posts: 1,896
Yes they have no clue as to this logic. I fly only paid premium (and I did work for a company that paid for J 5+ hour flights). They try to price it too similarly to airlines on some routes that have actual J , free lounges, proper seats, and then wonder why people just want all this largesse for free after earning status with 20 routes that barely total one J fare, or $100 at check-in. This "buy Plus" at check-in nonsense is just that, nonsense. Who will pay $2,000 for a seat when they think it's 50/50 they can pay $500 and then only pay another $100 smackers a day before?
The new Premium product with 2x2 seats, ovens, proper meals and lounge access at major hubs will be much closer to traditional offerings and they can charge for it.
