Right after I wrote about the airlines, I heard this on NPR; if you are tracking the perspective on long term customer experience impact on airlines, listen to some of the comments by Howard Putnam, former Southwest CEO talk about fee based tactics rather than just raising fares....
My favorite quote, when asked if American should have simply raised fares, Putnam says" As an alternative to nickle and diming us, I think it would be a better customer service approach."
Yup.
I agree. Airlines are taking away expected services and charging fees for what was considered to be "part" of the expected value proposition. They set an expectation of value with a ticket purchase and are eroding it on a continuing basis. Just pull the darn bandage off all at once instead of poking us in the eye with every additional nuisance fee. Instead of just creating animosity over one issue, they rekindle, and increase, your angle with each new nuisance fee.
On the other hand, I recently flew on Allegiant Air and they set the expectations low from the start. Super low no frills fare and you understood that if you wanted to pick your seat, $14, check a bag $12, pillow $2, water or soda $3, smiles were free. The difference between them and the other guys was that they exceeded expectations. Boarding - quick, flight crew - friendly, airplane - clean, arrival time - 20 minutes early, overall cost - lower!
If you want to keep loyal consumers understand your value proposition and be true to it. Allegiant Air is true to their value proposition!
Posted by: Gene Pelham | May 30, 2008 at 05:52 PM