Friday, April 12, 2013

More money, less problems


American Airlines is trying out new ways to cater to airport customers. They are offering treatment for these VIPs that includes curbside pickup (by name), boarding pass delivery and an escort to the front of the security line. Delta is even offering transportation in a Porsche between airplanes so that the VIPs won’t even have to go into a terminal.

Once these fancy folks board the plane, airlines offer smooth sailing with last-second boarding; passengers avoid the hustle and bustle and can easily place their luggage in reserved overhead storage.

According to the Star-Telegram, “There is a lot of money on the line. At big airlines like American, 70 percent of the revenue comes from 20 percent of its customers.” Yikes.

Airlines have found a great niche for these extreme customer service outlets. Celebrities, athletes and anyone with extra funds will gladly shell out more money if they can get through the airport faster and with less stress—I know I would do it if I could. That is the key point here: anyone can take part in this program if they’ve got the money.

“American's program, called Five Star Service, costs $125 to $275 for the first passenger, depending on the airport. Each additional adult costs $75; children cost $50 extra. These fees are in addition to the price of a ticket.”

I think this is a great marketing plan on American’s part—offer great services at a price, which has always been the motto for any company that wants to profit.

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