My favorite travel writer, Joe Brancatelli, publishes a subscription-only website. Written especially with business travelers in mind, it's a worthwhile read for anyone who travels a lot, wants to be in the know, and would value a regular summary of airline and hotel "steals and deals." A subscription is $49 a year but well worth it for the information alone.
I was intrigued by the following comment in the April 21 issue of The Brancatelli File.
The airlines began reporting first-quarter financials this week. Surprise! Airlines that offer free checked bags (i.e., Southwest and JetBlue) eked out quarterly profits. Those that don't (American, United and Continental) racked up huge losses.While legacy carriers keep pointing to their revenue from ancillary fees (a massive amount of income), they fail to recognize this fundamental fact: the only airlines that consistently make money are those known for being consumer-friendly. While I'm not a fan of Southwest (frankly, I like the extra elbow room afforded in business class, and Southwest doesn't have business class), they have a terrific business model. Need to change your flight? No penalty. Want to check your bags? No fee. Want to automatically be in the "A" boarding queue and get the first choice of seats? $10 is a reasonable ticket surcharge for this assurance.
So if you're the CEO of an airline and happen to be reading this blog, the lesson is clear. Whether you're an airline, hotel, cruise line, or tour company, the secret to profitability is customer service. Do your customers feel nickeded-and-dimed when they do business with you? they'll stay away. Are you responsive to your customers' needs and feelings? They will reward you with continuing business ... and profits!
P.S. — luxury hotel guests feel the same way about being charged for internet access.
copyright (c) 2011 by David Ourisman LLC. All rights reserved. If you have comments on this column, or questions about booking travel, email me or visit my website.
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