Airlines: What’s more valuable than a customer?

No 296!.....I am NOT a Number..lol..:O)
Creative Commons License photo credit: law_keven

One of the things that is most frustrating and wonderful these days are… airlines.

Why frustrating and wonderful?

  • They teach us far more than how NOT to treat people.
  • They teach us how not to make a fair number of business decisions.
  • They teach us how not to empower our staff.
  • They teach us how not to save money in our business.
  • They teach us how not to attract more clients.

Wonderful when we see examples of things to never do in our own business. Frustrating when they happen to us.

Powerless

Ever notice that most public-facing airline employees are just about powerless to make a change that makes perfect sense? It’s by design.

For example, a friend recently told me this story about his daughter flying home from college for spring break:

My daughter has an economy class reservation on Frontier for Saturday (less than $300 round-trip and lots of penalties for switching).

She finds out her classes are out early and can fly out on Thursday.

So we check the Frontier website and the flights are booked solid for the spring break weekend and all the flights on Thursday have dozens of open seats.

I call up Frontier and suggest that moving her to an empty seat on Thursday and selling her old seat on Saturday would be gravy for the airline. The one-way tickets are going for $500 on Thursday and Friday.

Even the supervisor can’t make the deal.

He said something about a customer buying a cheap ticket and switching to a more expensive day;  but she wanted to switch from a flight where there were no ticket available to a flight where that has dozens of empty seats.

Classic supply and demand.

Way more important than that, it’s classic supply and demand where the salable asset becomes worthless every day, every hour, every few minutes.

The asset? Empty airplane seats that safely move from place to place in a specific time frame.

Like milk and hotel rooms, airplane seats spoil. Once a certain period of time passes, they’re worthless. And a lot more expensive than milk when they go bad.

Airlines 101: Ignore the customer

We have a customer who is taking a fragile, expendable, time-bound asset (an empty airplane seat on Thursday) and offering to make it more valuable by trading it for a clearly MORE valuable seat on a busy travel day in the future on a prime travel day.

I suspect you’d have to look very hard to find one airline employee who fails to understand the value proposition being offered by their customer. In fact, I’ll bet they all understand it.

Sadly, it appears that not one has the power to take action in the face of that value.

So as my friend says, “Here you have the airlines cutting prices to get people to fly and even the Frontier supervisors don’t have the authority to help Frontier make a profit all because they don’t trust their customers.”

What do you sell?

Every now and then I ask you if you really, truly know what you sell.

Airlines sell fragile, time-bound expendable assets. Surely they know this, but they don’t act like it.

They act, empower their staff and create systems that send the message that they sell something entirely different: Reservations, or something like them.

Why do I say that? Because they treat the reservation with far more reverence than they do the customer.

Once the customer passes by the ticket agent at the gate, in many cases they are treated like cattle at a feedlot. At that point, the reservation is worthless, thus the customer holding it has now become a liability, an expense, and/or a burden.

In extreme situations where a plane has a problem, we don’t hustle the (valuable) customer back to the terminal where they could consume an expiring asset we haven’t yet sold (seats on other planes), instead we devalue them by holding them prisoner on the tarmac for hours.

An empowered captain would return his customers to the gate where they could continue their travel, consume unused and about-to-devalue assets. But that isn’t what happens.

Have you truly empowered your staff? Can they take action to maximize your customers’ experience AND the value of the assets you sell?

4 thoughts on “Airlines: What’s more valuable than a customer?”

  1. Another comment was made here and I accidentally deleted it (clicking around too fast in WordPress), so I’ve added here by hand:

    Good article on this airline stuff – I also like that cow photo. I have social bookmarked this article over at the SEOSocialBookmarking.com website.

    The comment came from SEOSocialBookmarking.com

  2. The supply and demand is key, especially in regards to commercial airlines and charter jets. The fact of the matter is that they have the power and we have to go along with it, however the customer should always be right.

  3. This is why the airlines are failing. It’s the penny pinching and inability to make rational (and good business) decisions for their customers…not because of security fees, fuel prices, or anything else. Stories like these are all too common.

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