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SK Focus On Economy Extra - Prices Reduced By 25%  
User currently offlineoykie From Norway, joined Jan 2006, 2754 posts, RR: 4
Posted (2 years 5 months 1 week 5 days 10 hours ago) and read 2513 times:

Scandinavian Airlines are reducing Economy Extra tickets by 25% on average and up to 40% on some European routes. SAS aims to attract more passenger that wants Fast Track, light meals, and the possibility to rebook tickets in Europe.

This new strategy will be introduced on more than 40 European destinations from CPH. Instead of just focusing on making money by being dirt cheap, SAS believes some passengers will pay a little extra for less time at the airport and more comfort.

SAS has been successful in the past as the Business man's airline. Will this new strategy work for SAS? Are they onto something here, or are they just dreaming of the past success stories?

Personally, I have found that Y on many airlines are now so bad (Should we name it Y-? ), that I have started to pay extra for a better flying experience. Not sure if I am the average flying person. I am very tall and enjoy Y+ products.


Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
7 replies: All unread, jump to last
 
User currently offlineaffirmative From France, joined Jul 2009, 352 posts, RR: 0
Reply 1, posted (2 years 5 months 1 week 5 days 9 hours ago) and read 2375 times:

Maybe they're finally doing what I told them when I was working there. When you have a product that doesn't differ from the LCCs there's really no reason as to why you should pay the extra money. So you need to set yourself apart from the LCC players with your product. SK did the exact opposite and tried to compete with the likes of Ryanair and Easyjet by trying to mimic them but that was always a battle they would lose, which has been painfully evident the last couple of years. It seems SK is slowly gaining control of their cost base and now they're starting to look at ways to actually make money instead of loosing it.

So, in effect they're back to what they used to offer. And they charge extra for it. Maybe it was a bad idea to lower the standards in the first place. Maybe it would've been better to just take the loss to the LCCs and then focus on being a great full service airline. A lot of people realized after a while that flying LCCs for business is really not cheaper (fare rules, oddly located airports) so they would automatically come back to the service they need and want after getting disappointed at the LCCs. The problem was that they got disappointed with SK as well since SK had lowered the service to the standard of the LCCs but didn't change the price accordingly. So now SK needs to revise back to what they used to offer and the business travelers will come back and also pay the extra money for the extra service.

I have always been adamant that LCCs serve a great purpose for Joe public, taking a plane today is equivalent to getting on a bus or a train both in price and availability.. But it will never really be able to be an acceptable alternative to legacy carriers for business travelers..

Cheers,
A-firm



I love the smell of Jet-A1 in the morning...
User currently offlineoykie From Norway, joined Jan 2006, 2754 posts, RR: 4
Reply 2, posted (2 years 5 months 1 week 4 days 21 hours ago) and read 1928 times:

Quoting affirmative (Reply 1):
So, in effect they're back to what they used to offer. And they charge extra for it.

So it seems. It reminds me in a way about the Euroclass that SAS offered for a while. In the end almost all passengers where in front of the curtain. It may not be like that this time around, but SAS strength is being a premium brand and as you state they will never be viewed as a LCC.



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlineSASDC8 From Norway, joined Mar 2006, 763 posts, RR: 1
Reply 3, posted (2 years 5 months 1 week 4 days 20 hours ago) and read 1858 times:
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Quoting oykie (Thread starter):
Scandinavian Airlines are reducing Economy Extra tickets by 25% on average and up to 40% on some European routes. SAS aims to attract more passenger that wants Fast Track, light meals, and the possibility to rebook tickets in Europe.

Excellent news from SAS this   I hope that SAS will launch this ex. ARN and OSL as well? There are a lot of people (me included) who gladly will pay a bit more, for a better product.
It actually reminds me a little bit of what LX has done with their supersaver Business tickets, and they seem to be making money on those.



2-3-2 is NOT a premium configuration
User currently offlinesmbukas From Lithuania, joined Feb 2009, 211 posts, RR: 0
Reply 4, posted (2 years 5 months 1 week 4 days 18 hours ago) and read 1698 times:

In my opinion, existing European product structure for SAS is a mess.

First, business class. What is the motivation for the passenger to buy business class ticket on European service on SAS? It is the same seat in all classes, and in business there is the same food as in "Economy Extra" (except spirits available in business and beer+wine only in Y+). On "Economy Extra" you get the same ticket flexibility as in Business. There is bigger chance to get free seat next to you, but no guarantee if it is a full flight.

In my view, "Economy Extra" should eat "Business" product a lot. AFAIK on domestic flights SAS removed business at all, but there are many international SAS services from CPH/ARN/OSL in 2 hours range (actually, even shorter then some of Norway/Sweden domestic services) where Business are still in place.

Economy product is the same as low cost, except seat allocation and 1 bag included to the ticket price. This year they re-introduced free coffee on "Economy" but given rude (and be honest, usually very old and un-motivated) cabin crew, it is much better experience to fly "Wizz Air" or "airBaltic" without free coffee but smiling and nice (and young) Eastern European staff.

"Economy Extra" is somewhere in between, but until today it was very very expensive. You can buy "Lufthansa" regular Y much cheaper at get the same as Y+ on SAS.

It is different with long-haul, where "Economy Extra" at SAS is quite good product for those who are not able to buy "Business" tickets, but it is very hard to find sense in existing European products structure.

Maybe this reduction of prices in "Economy Extra" will move most of the corporate customers to Y+, but by then they will have to compete with LCC with regular Y cabin.


User currently offlineSomeone83 From Norway, joined Sep 2006, 3425 posts, RR: 3
Reply 5, posted (2 years 5 months 1 week 4 days 18 hours ago) and read 1667 times:

Quoting smbukas (Reply 4):

There are quite a few factual error in your post and some things needs to be explained

Quoting smbukas (Reply 4):
It is the same seat in all classes,

Well, that applies to all major intra-European carriers. And as with them you have an extra inch or so legrom. So SAS isn't any different than their competitors here

Quoting smbukas (Reply 4):
in business there is the same food as in "Economy Extra"

Wrong, there is different food in business. Hot meal on longer and important routes (such as LHR), while it's always cold food in economy extra. There to be said, there is a number of routes where they don't offer business class, but you still can by a "business" ticket

Quoting smbukas (Reply 4):
(except spirits available in business and beer+wine only in Y+)

You get the exact same drinks in C and Y+ in intra-European, as they share the same drink cart. Y which has boy-on-board has its separate drink and food cart

Quoting smbukas (Reply 4):
On "Economy Extra" you get the same ticket flexibility as in Business.

Yes, and no. It depends on the fare rules on your ticket as there are several different types of tickets regarding flexibility in business and economy extra

Quoting smbukas (Reply 4):
There is bigger chance to get free seat next to you, but no guarantee if it is a full flight.

Except for the MD-80s and CRJ where there is a two seater. You always get a free middle seat when flying business when there is a three seater (on all their 737s, Airbusses and "half" the MD-80)

Quoting smbukas (Reply 4):
AFAIK on domestic flights SAS removed business at all, but there are many international SAS services from CPH/ARN/OSL in 2 hours range (actually, even shorter then some of Norway/Sweden domestic services) where Business are still in place.

SAS never had business in domestic flight in Norway (maybe back in the very old days?) which accounts for a majority of their domestic services. The reason for this is partly cultural and that there is no demand for it. Braathens tried this in the late 90's and it was a gigantic failure


The rest of you post is more personal opinions, although I must say I disagree with parts of it. Maybe I'm most used to Norwegian crew, but my experience (and I probably fly SAS a lot more than you) is that they actually are friendly and smiling. In addition they gotten quite a few young and good looking FA's too  


User currently offlinesmbukas From Lithuania, joined Feb 2009, 211 posts, RR: 0
Reply 6, posted (2 years 5 months 1 week 4 days 18 hours ago) and read 1619 times:

Quoting Someone83 (Reply 5):
The rest of you post is more personal opinions, although I must say I disagree with parts of it.

Maybe you are right with the facts. I usually fly SAS with transfer in CPH and most of the aircrafts I fly is CRJ or MD's.

But my point is what is the key selling points of European Business class? What I get more then Y+ and is it worth money? I see so small difference in European Y+ and C.

If they now reduce prices on Y+ so the price difference between C and Y+ become even bigger?

I usually fly VNO-CPH-LHR and I am S* Gold. What is the difference between C and Y+ for me? Hot food on CPH-LHR sector?


User currently offlineSomeone83 From Norway, joined Sep 2006, 3425 posts, RR: 3
Reply 7, posted (2 years 5 months 1 week 4 days 18 hours ago) and read 1576 times:

Quoting smbukas (Reply 6):
If they now reduce prices on Y+ so the price difference between C and Y+ become even bigger?

It wouldn't be much change in the price difference. The Y+ prices they will reduce is for the cheapest Y+ fare buckets, not for the fully flexible/flexible Y+ tickets, which still will be priced about the same.
The reason behind this price reductions is just like the Z-fare bucket in business, trying to get some customer to be willing to be pay a little extra for the "comfort" when flexibility is not needed

The first post in this thread (and the press release from SAS) is quite inaccurate, and make it sound like they are overall reducing prices in economy extra, when the reality is that they come up with an economy extra discounted fare bucket. Which they already have on international routes


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