With all of this talk about airlines, such as Spirit Air, beginning to charge extra fees not only for checked bags but also for carry on bags, people are clearly dismayed. When it's bundled into the cost of our tickets, we don't know how much we're paying for baggage because it's not itemized (so we complain about high ticket costs). When it's unbundled and we're presumably paying a lower fare to fly, we balk at the incremental fees.
Yet here is where these policies create real value for the travelers and not for the airline: the power of choice. At $45 for a carry-on and, on average, $20 for a checked bag, I might be better off sending my luggage via FedEx, no? The four-day, ground, door-to-door delivery option for 30 lb. package traveling from Rochester to Beverly Hills is a mere $36.75. Yep. I'll pay a lower price to fly and I don't have to carry a thing. Sure I have to pack earlier than usual; I can handle that.
I'm not sure if this is a classic example of some idiot in revenue management looking at growing his airline's profit margins (short-term) without looking at the bigger picture (i.e., customer dissatisfaction and/or lost revenue to a carrier that's not directly in his competitive set); however, if I worked in marketing at FedEx, I would leverage this opportunity to market the heck out of my service and cue up The Band.
And . . . you put the load right on me.
Showing posts with label revenue. Show all posts
Showing posts with label revenue. Show all posts
Wednesday, May 5, 2010
Monday, February 1, 2010
The Idiots' Guide to Makee Money
I have a serious question. How do people who post crap in blog comments make money?
Like:
Followed much later by:
While I realize that online language translators aren't always optimal, I seriously don't understand how this mess can ever be monetized. What am I missing (aside from an untapped revenue stream)?
Reminisce over and out. Show me the (transport is) money.
Like:
As Xrumer experts, we secure been using [url=http://www.xrumer-seo.com]Xrumer[/url] quest of a large leisure now and know how to harness the titanic power of Xrumer and turn it into a Cash machine.
Followed much later by:
Reminisce over, Transport is Money.
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TRAVERSE B RECOVER YOUR INFERIOR BURST TODAY:
While I realize that online language translators aren't always optimal, I seriously don't understand how this mess can ever be monetized. What am I missing (aside from an untapped revenue stream)?
Reminisce over and out. Show me the (transport is) money.
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