One More Time, "The High Cost Of Cheap"

[vantheman63]

Okay...here's yet another angle on the high cost of cheap...and how it affects US via a customer's bookings....

Let's take a look for a moment at the "high cost of cheap" and how it affects one business traveler's bookings:

Bookings Thus Far For 2008:

US: PVD-MFR - $240.93 (Booked in Y with all employees)
AS: MFR-SMF - $119.07 (can't really book this on US)
DL: SMF-PVD - $696.74 (Booked in F)
US: SMF-BOS - $138.61 (Employees Flying Home)

CO: PVD-ABQ - $654.88 X 2 (Booked in F, Wife headed with me, not sure where I'm headed after that.)

CO: PVD-MAN-PVD - $4,914 (Booked in Biz First)

AS: BOS-YVR - $738.50 X2 (Booked in F, wife going with)
Will fly AS back from Anchorage

Now, this is by no means complete...these are trips I know I'm doing. For example, I go to ABQ on January 26...but I'm not sure where I'm going to from there.

But from a purchasing pattern, notice this...

--I could have booked US on EVERY trip except MFR-SMF.

--I did book US when I needed a dirt cheap fare....and when there really was no other way to do it. PVD-MFR is really easiest on US. And they are netting $0.073 per mile on that booking....X3. And then my 2 guys are flying SMF-BOS on US....that booking is netting them $0.05 per mile. Meanwhile, I'm headed back on DL...and DL is getting $0.233 per mile for my ticket. And is US profitable on $0.733 and $0.05 per mile in revenue???

--I would NEVER book a "Premium" cabin on US....NEVER. Ill take a freebie upgrade on a cheapie ticket....but no way I'd pay for it.

--In pricing these, EVERY SINGLE TICKET that I did price in a "Premium Cabin" on US was (a.) higher in cost and (b.) non-refundable.

That drives me INSANELY crazy. (Question for the Rocket Scientists That Make Up US Marketing: WHY IS EVERYTHING NON-REFUNDABLE UNLESS ONE WANTS TO SPEND WAY OVER THE GOING RATE??? DO YOU REALIZE HOW "UNINTELLIGENT" THAT IS??? ITS A MAJOR REASON, PROBABLY THE #1 REASON I WON'T BOOK ON US! ARE YOU AFRAID OF SOMETHING???)

So, what does the high cost of cheap cost US in this example? If my math is correct, $8,397.50. (as a note, this is pure airfare, these prices don't include taxes or fees.)

Meanwhile, I've seen at least 3 analyst question (a.) US' ability to sell and generate revenue and (b.) their ability to generate "business traveler" revenue....becasue they've lost so much.

We all know I'm not the only one. In so many words, via a truly awful product and in actual "too bad, so sad" letters they've sent back to me, they are fine with their premium product sucking. (As I've said, "I'll believe it when I see it" on this new $50 Million "upgrade." $50 Million over what, 20 years?)

And that will cost them....because there is NO WAY I'm the only one who would never, ever buy a premium product on US....

 

[Singleflyer]

Well US finally lost this business traveler.

I flew MHT-PHL-TPA on Sunday, nd planned to return on US so I could each gold (currently CP) just in case I needed to fly US next year. I agave the FA my expensive camel hair blazer to hang up. She did not put in on the bulkhead hanger She folded it up (neatly) and stuffed it in the overhead. Nothing hung on the hangers the entire flight. That did it for me, they don;t want my premium dollars. I'll spend it elsewhere. Monday night I flew DL TPA-ATL-SYR. Forget US air when I am wear a suit DL has closets. I will get my two legs tomorrow SYR-LGA-BOS, so I will have some status if I must fly US net year.

If they weren't so cheap adding more seats by removing closets and trying to fill the planes with $74.00 fares, and take my $400.00 and leave the closets they would still have my business.

Its too bad to see a business airline forgetting its bread & butter, but luckily there are many airlines out there that want my Y fare money, and make it easy to spend it with them, and they provide amminities to me that make me happy to give it to them.

 

[CynicalResAgent]

If you ever get a chance to fly YX do it, I think you'll like them. I flew them this year and their Signature service is very nice. They are reconfiguring their 717's to be half siganture service and half regular coach but the money is well worth it. This summer I flew them from STL to SFO and I could have flown AA nonstop (329.99 round trip) but I chose YX thru MKE for (371.99) just to see what they are like and the difference is phenomenal. I'm not just talking about a cookie, but a nice clean aircraft with ample width and legroom and it even had a footrest. The Service was very nice it's buy on board now but the food was great, fresh and tastey, and of course the cookie for desert.

Honestly, I would have paid maybe 450-480 for the ticket now that I know what their service is like but they don't have great connections out of STL.

Anyway, I did not mean to get off your point.... US sees no profit when they look at premium services they just see it from the cost side of the equation. It took a few years for Envoy to build a reputation and if they restored Envoy to what it was back when Wolfe and Gangwal were running the show it would take a while for it to be recognized. It won awards and was featured in travel magazines, acknoledgemnt takes time. A brand image is something that is either built slowly or in the case of US something that erodes very quickly..... hmmm erosion? that should be a concept that sandpeople understand, isn't it?

 

[flygirl74]

Well US finally lost this business traveler.

I flew MHT-PHL-TPA on Sunday, nd planned to return on US so I could each gold (currently CP) just in case I needed to fly US next year. I agave the FA my expensive camel hair blazer to hang up. She did not put in on the bulkhead hanger She folded it up (neatly) and stuffed it in the overhead.

That is the problem with the bulkhead hangars. Damned if you do damned if you don't. If you hang everyones' jacket, the people in the last row of first class can't recline their seats. And, if they do, it puts a nice crease in the middle of the coat. So, I ask (if I see lots of coats) where they want it. The coat, that is. Sometimes, folded neatly on top of a rollerboard is the best :down: place.

 

[legacy-to-LCC]

Well US finally lost this business traveler.

I flew MHT-PHL-TPA on Sunday, nd planned to return on US so I could each gold (currently CP) just in case I needed to fly US next year. I agave the FA my expensive camel hair blazer to hang up. She did not put in on the bulkhead hanger She folded it up (neatly) and stuffed it in the overhead. Nothing hung on the hangers the entire flight. That did it for me, they don;t want my premium dollars. I'll spend it elsewhere. Monday night I flew DL TPA-ATL-SYR. Forget US air when I am wear a suit DL has closets. I will get my two legs tomorrow SYR-LGA-BOS, so I will have some status if I must fly US net year.

If they weren't so cheap adding more seats by removing closets and trying to fill the planes with $74.00 fares, and take my $400.00 and leave the closets they would still have my business.

Its too bad to see a business airline forgetting its bread & butter, but luckily there are many airlines out there that want my Y fare money, and make it easy to spend it with them, and they provide amminities to me that make me happy to give it to them.

we are a business casual airline now. all passengers want, despite what fare they pay, is to arrive at their destination, on-time, and with their bags. we are going back to the basics. premium passengers do not want ammenities.
did i miss any of IMPOtempe's spin?
honestly, most easties are sorry to lose your business! DoUgIe has turned this airline into a trailer park with wings. the disgrace that is now usairways reflects solely on one person: DoUgIe Parker.

 

[vantheman63]

If you ever get a chance to fly YX do it, I think you'll like them.

I love YX....I fly them EVERY chance I get.

In fact, I'm on them 12/20 from MCO to MCI.

I have a great deal of biz in both MCI and SFO...and I do fly YX between MCI and SFO. Signature service and the overall "can do" attitude and culture of the airline ROCK.

Frankly, if they ever started flying into PVD, and I could get to the west coast on them, I'd move a chunk of biz to them.

But I have to say, I've moved all my "premium cabin" and long haul flying to CO and UA...and I'm pretty happy with it.

My trip to YVR out of BOS on AS is my first long haul on AS....I've done them a few times from SFO to YVR and PSP....but never transcon. So, we'll see how it is.

The just friggin BIZZARE part.....3 or 4 years ago...I would never have imagined myself flying ANYONE other then US....Goodness how times change....