Posts: 197
Joined: Wed Dec 08, 1999 12:48 pm

Comparing Hotel And Airline Industries.

Thu Dec 09, 1999 6:13 am

In the hotel industry you have a great variety in the level of ammenities and quality of service in a given market. There is the Bates Motel, Motel 6, Days Inn, Ramada, Holiday Inn, Sheraton, Intercontinental and so on.

Hyatt doesn't much care what Motel 6 is charging or offering because they are selling to a different segment of the market and their product is customized for that demand.

In the airline industry you have Southwest and a handful of other "discount" carriers and then the other guys. Instead of trying to differentiate and show value for any difference in fare, the majors have all let the differences become fewer and fewer. On the vast majority of flights the only difference between Southwest and a full service carrier is your seat is assigned. The planes are almost as dirty, coach meal service has all but disappeared, and the general inflight experience has deteriorated. (Midwest Express is the exception) I'm 29 and I remember when flying was classy.

The majors ought to differentiate their product. I know TWA tried and supposedly failed with the Comfort Class experiment but they got my business. The emergence of the internet as a way of directly selling air travel presents the carriers with an opportunity to sell the ATTRIBUTES of their service. The travel agent and CRS system only gives a prospective traveler two parameters to consider when purchasing tickets, price and schedule. A lot of travelers would be willing to pay a reasonable difference of fare (10-15%) for a decent meal, increased pitch, and adequate flight attendant staffing.

Until they do, I'm staying with Amtrak!
Posts: 144
Joined: Tue May 18, 1999 3:57 am

This Is What I Want To Do

Thu Dec 09, 1999 7:33 am

I want to start my own airline that:
1. Is privately owned so the employees and passengers come first, not the shareholders
2. Flies smaller aircraft with first class seating and shuttle type service on point to point routes
3. I WANT to bring the focus back onto the INDIVIDUAL passenger instead of concentrating on being global, which only improves profits short term and decreases service standards.

Look for my airline in the future. You can help by reading my start-up airline post and filling out the short survey.

thank you.
erau, future airline owner and ceo