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Why No US BOB Concept In Europe?  
User currently offlineLH4116 From Sweden, joined Aug 2007, 1710 posts, RR: 14
Posted (6 years 4 months 2 days 2 hours ago) and read 3592 times:

Hello first i'd like to say that this is my first post on airliners.net (I have surfed on this site since 2001).

I have always wondered why the Buy on Board concept in europe isn't the same as in the US. For example, in Eurpoe you either get a full meal in Y or you have to pay for everything including water. In the US you get free non-alcoholic drinks + food for purschase, even on LCCs. My question now is: Why couldn't full fare carriers with BOB such as SK and IB introduce the US concept?

Jonas//


SAS Plus is Business Class made faux!
9 replies: All unread, jump to last
 
User currently onlineCandid76 From United Kingdom, joined Apr 2005, 733 posts, RR: 4
Reply 1, posted (6 years 4 months 2 days 2 hours ago) and read 3562 times:

Having flown with a number of US airlines late last year I'd say because it's such a poor product. The European market is more discerning, and LCCs so much stronger that if the mainline carriers removed all "frills" everyone may as well just fly with Ryanair. They would be shooting themselves in the foot. In the US no-one seems to expect a proper service.

User currently offlineLH4116 From Sweden, joined Aug 2007, 1710 posts, RR: 14
Reply 2, posted (6 years 4 months 1 day 23 hours ago) and read 3427 times:

Is there any chance that SK and IB will change back their meal concept in Y in order to win back PAX? Just look at AF and LH they still have meal service in Y and they're doing well financially.


SAS Plus is Business Class made faux!
User currently offlineHelvknight From , joined Dec 1969, posts, RR:
Reply 3, posted (6 years 4 months 1 day 23 hours ago) and read 3399 times:

LX brought in a BOB concept in shorthaul Euro Y for a while just after the grounding but it started costing them passengers. They went back to a free snack product in cooperation with Nestlé.

By the time LH took over they were back to full(ish) service.


User currently offlinePetera380 From United States of America, joined Feb 2005, 345 posts, RR: 0
Reply 4, posted (6 years 4 months 1 day 22 hours ago) and read 3351 times:
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Last time I flew easyJet they had Buy On Board!

Peter


User currently offlineFUN2FLY From United States of America, joined Dec 2006, 1024 posts, RR: 1
Reply 5, posted (6 years 4 months 1 day 22 hours ago) and read 3324 times:

UAL reported recently that domestic food service cost them approx. $100m in 2000. In 2007, it cost them $16mm and revenue was $19mm. A $100mm swing in profit. In today's world of airline issues in the US, that's a lot of $.

Based on thier model and those results, I imagine that others will consider this except those w/full catering service ownership like CO.


User currently offlineLH4116 From Sweden, joined Aug 2007, 1710 posts, RR: 14
Reply 6, posted (6 years 4 months 1 day 21 hours ago) and read 3238 times:

I'm not a big fan of BOB, but i would actually pay some extra for the ticket (some 10€) to get on board meal service. The only airline i know who has this service is Sterling European, are there any other carriers too?


SAS Plus is Business Class made faux!
User currently offlineKappel From Suriname, joined Jul 2005, 3533 posts, RR: 17
Reply 7, posted (6 years 4 months 1 day 20 hours ago) and read 3131 times:



Quoting LH4116 (Reply 2):
Is there any chance that SK and IB will change back their meal concept in Y in order to win back PAX?

I doubt it, because especially IB does not seem to loose pax over this issue. So there is no incentive for them to bring it back.



L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
User currently offlineViscount724 From Switzerland, joined Oct 2006, 24643 posts, RR: 22
Reply 8, posted (6 years 4 months 1 day 12 hours ago) and read 2939 times:



Quoting LH4116 (Thread starter):
in Eurpoe you either get a full meal in Y or you have to pay for everything including water.

Full meals in Y within Europe are rare except on some of the longest flights on a few carriers. Generally you don't get much more than a sandwich and drinks.

Quoting Helvknight (Reply 3):
LX brought in a BOB concept in shorthaul Euro Y for a while just after the grounding but it started costing them passengers.

I don't think the LX BOB concept lasted much more than 6 months. Since many of their shorthaul passengers make longhaul connections, there was too big a contrast in the Y class product on each sector. And there was a lot of waste as demand varied widely from flight to flight and day to day. And having to collect money, make change and deal with credit cards on one-hour flights slowed down service significantly. Sometimes they couldn't even complete the service before everything had to be stowed for landing.


User currently offlineStitch From United States of America, joined Jul 2005, 30397 posts, RR: 84
Reply 9, posted (6 years 4 months 1 day 12 hours ago) and read 2924 times:
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Quoting Candid76 (Reply 1):
In the US no-one seems to expect a proper service.

That has, unfortunately, become the case now. But for decades, the US majors decided that the best way to fend off the LCCs was to try and snow them under with frequency and capacity as well as hold the line on service and catering.

They could do this because they had "price opaqueness" - nobody knew what anybody else was paying for their seat. As such, they could run plenty of $1000+ "extortion fares" that generated tons of revenue which helped subsidize the folks on the $100 excursion fares.

When the internet brought "price transparency" to airline fares, folks who were paying $1000 suddenly saw they could pay $250 of the booked a week earlier or stayed an extra night. So revenues started to tank - and tank hard. Meanwhile, inflation continued to drive up costs - labor, capital, and operational. However, airlines couldn't raise fares because if they did and even one airline didn't follow, bookings would drop by double-digit percentages as traffic moved to the carrier that didn't raise their prices.

So the majors decided that since the only reason people were paying more then the minimum was lack of flexibility in their scheduling, they didn't need to offer anything more then the minimum in service.


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