Posted February 5, 2009 3:02 PM
By Chris Wills
All the Small Things
“True care, truth brings - I'll take, one lift - Your ride, best trip.” It was this first verse of the above titled Blink 182 song which came to mind as I was arriving in to JFK last week, some 5 hours late.
I must admit I was quite laid back about the whole situation; however, what had dawned on me was what a difference the small things really do make to passenger decisions. Going further than just providing the mandatory £5 refreshment voucher for a delay, as a for instance.
We are all well aware that price is the biggest driver of passenger choice in the back of the plane but where competition is strong and prices very similar it is the little differences which win customers and, importantly, keep them coming back.
The US has historically been in a destructive relationship with market share, in many cases flooding the market with capacity rather than targeting the demand effectively. It is vital in this current economic climate that capacity reductions not only take place but remain so until demand picks up. The American carrier’s capacity cuts have left them better placed than many in the world to achieve a good ratio of supply and demand, just as long as they don’t go hunting for market share.
On the other hand, one might see this as an opportunity. Why not go for market share? Especially if competitors are falling by the wayside, there is demand out there for the taking. Of course, as with so many things in life its not so much what you do, but how you do it.
I am not suggesting that capacity should just be increased; I am going back to that age old ideal of good, no, superb customer service. To be honest it’s even more than that, its getting into the mind of the customer and really truthfully trying to do everything in your power to provide the best trip. The following are two examples I personally have recently noted:
The first was, I admit a bit shallow, as I was arriving last week I missed the end of my movie not due to poor planning on my part (surprisingly) but through the flight entertainment being turned off an hour before we landed rather than the 15 minutes advised to us at the beginning of the flight. This is a small peeve I know but having experienced the exact opposite on another carrier I would actually consider changing my carrier based on this if the price differentials were, as I am sure, minimal.
The second example is one I recently read about: AirTran offering free Fortnum and Mason Royal Blend tea on every flight. AirTran’s Vice president of marketing and sales said “At AirTran Airways we believe in partnering with high quality brands that will enhance our passengers experience”
Personally I couldn’t care less what tea I am served but it is the principle. There are some people for whom that really will make a difference, but importantly it shows that the airline cares and is thinking about its passengers. It is not just the act but having the right culture and attitude behind it. Otherwise it’s just an empty gesture.
For the full year 2008, AirTran’s total number of enplaned passengers saw an improvement of 3.5% (standing at 24.6m), RPMs increased 9.6% and ASMs were up 4.9% resulting in a load factor of 79.6%, a rise of 3.4 percentage points. This was not limited to the start of the year with growth in all of the measures, bar ASMs, in December. Of course this is not just down to the tea but it shows an airline with the right attitude can increase passenger numbers in this market.
So, what would I do right now in this market beyond cost cutting and capacity reductions? Now more than ever I would look inside the heart of the company at the small things which could be changed with minimal outlay. To do this you have to ask the passenger what they want and what can the company do to make it happen for them?
A mantra with a meaning along the lines of the words in the song, where with “True care” just “one lift” will show how it is the “best trip”, should be the goal of every person who has any input in any flight. This way to increase market share, the correct way, by increasing demand for the product load factors will go up and then so can capacity in line with growth.
Its very simple stuff, however, that doesn’t mean it’s easy. People have been saying this for years and you would think we would be getting better, like with safety, but alas that does not appear to be the case. The airline business is a risky one at best to invest in, but if one could find an airline with that true focus and sound business model to boot, I think the opportunities on the horizon would make it a very shrewd move.
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