Jill Garcia’s Post

More airlines are charging for seat assignments. However, via the DOT, every passenger flying is guaranteed a seat for any ticket purchased. So the question becomes: When do the airlines have to release seats for assignment to passengers who choose not to pay reservation fees for specific seats?

More airlines are charging for seat assignments. However, via the DOT, every passenger flying is guaranteed a seat for any ticket purchased. So the question becomes: When do the airlines have to release seats for assignment to passengers who choose not to pay reservation fees for specific seats?

#ancillaryrevenue hits new record at $148.4B, according to IdeaWorksCompany and its latest CarTrawler reivew. Ancillary revenue contributes a crucial 14.9% to #airline revenue across the globe. For individual #airlines, this contribution can range from a low of 2% to a high of 56.4%. The upward march of ancillary revenue has recovered from a severe pandemic-era drop. The record result for 2024 reveals the resiliency of revenues generated by a la carte items (such as baggage and assigned seats) along with commissions generated by car and hotel travel sales, and co-branded credit card programs associated with frequent flyer programs. https://lnkd.in/eiYJ3njg

The ability to drive ancillary revenue separates the most profitable travel companies from the others - as it offers customers the opportunity to gain more value which can be sold at much higher margin than flights. Having a best-in-class car rental proposition is an obvious example- customers are already purchasing elsewhere and research shows that many of them would be happy to buy via their airline partner. But not all propositions are created equal! Some are a white label with a “sticker”, and some are a completely bespoke booking engine on desktop and mobile powered by proprietary cross selling technology and seamlessly integrating into your loyalty program though earn and redeem. There’s also a misconception that it’s a big IT project to do this properly- CarTrawler has integrated and started to make money for the worlds largest travel companies in weeks… so if you’re tasked with driving travel revenue, and you don’t have the best solution, you’re not providing the best customer experience, you’re not leveraging your brand, and you’re leaving money on the table. And that’s something you can change much more quickly than you think!

Embedded in this article is a great video report on the evolution of #airline #loyaltyprograms by Alison Sider, the #aviationjournalist for The Wall Street Journal. Good to see Bob Crandall, the "father" of loyalty programs interviewed and I think we all share his FOC -- Fear of Coach. I loved the reason for unbundling -- to have passengers only pay for what they use. Made me LOL! You think we actually buy that, Scott Chandler? Yeah, you are doing us such a favor by charging us for baggage so that you make billions more on us. Ditto seat choice. Give me a break. While it covered the devaluation of points, it did not cover that the "capture" is more expensive. For instance, Hilton won't count stays that are not booked on their site for points but their site is much more expensive than other booking platforms. Capital One is the same thing. Rich folks may not care but I do. I'd like someone to do a study on the "cost" of booking on their platforms. How much more expensive are #flights, #hotels on these sites than what you can find on the open market? Are points really they "bargain" they are thought to be. I've always thought not because the issuers, airlines and hotels have all the power to do what they want to maximize profits...because they can. While we all play the loyalty game, the question is whether we are really being smart with our money, especially when a lot of these cards have membership fees and a ton of high interest. Oh, yeah, did I mention that the flights offered on these sites often require two stops to get where you want to go? 2 Stops? Really? Do you think that is a better offer of service? Jay Sorensen

Upscale eh? I hope they can find the right mix of paying passengers to stay in business. It has attracted the ultra-low fair value oriented passengers for basic transportation. Fine if you want to get from Point A to Point B and don’t expect many free services beyond a seat, water and air. I flew Spirit once from Dallas to Los Angeles, $49 each way. I read the fine print and had only a small sized personal item. the newer airplane was on time and the crew was professional. I got a seat in an aircraft that was much more comfortable than the C-130 old worn nylon web seat. It was only 3hrs and it wasn’t even cold at altitude. It’s all about managing your expectations. The only negative aspect I remember was being surrounded by many unhappy fellow passengers who did not bother to read the fine print and were unexpectedly got stuck with a variety of fees. I can sympathize with the first-time pax, but not much with the repeat customers. As they say, there isn’t a free lunch in the airline biz, someone is paying for it. It will be interesting to see if they can find a new class of passengers who want to pay the equivalent fares on other airlines for similar services. Since the Federal Government did not allow Spirit to merge with JetBlue, I guess they figured they will become JetBlue all by themselves. “The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices. We will continue to vigorously enforce the nation's antitrust laws.” - Merrick Garland Spirit Airlines (SAVE) is losing money and has to change to avoid bankruptcy. https://lnkd.in/ggbcZBd5 With a share price of $3.00 (down $13.35 this YTD) and an EPS of ($-4.45), something has to give soon enough, and it won’t be free peanuts.

Would you spend on ads that aren’t designed to sell flights? Some time back, I saw an ad by an airline that featured just an image of windows and part of a plane, and even that wasn’t clear. There was no slogan, no communication, or even a call to action. In fact, the name of the airline was barely visible. It was like McDonald's showing just half of the "M," and yet you could still guess the brand. The brand I’m talking about is British Airways. When booking a flight, you have limitless options with varied pricing. If XYZ Airline costs $55, then British Airways will be $155. BA simply cannot win the price war, as their operations are expensive, but they offer better food, seats, and an overall great experience. 𝐓𝐡𝐢𝐬 𝐦𝐚𝐝𝐞 𝐦𝐞 𝐭𝐡𝐢𝐧𝐤: why aren't they capitalizing on their superior features? The answer is simple: they don’t want to rely on feature and benefit positioning. Imagine paying $100 extra for better food and comfortable seats (and I’m not considering premium class). Chances are, they would lose market share. Instead, they aim to set the right customer expectations and become the default option. 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐌𝐢𝐧𝐝𝐬𝐞𝐭: Should I pay $100 extra for a better experience with British Airways? 𝐃𝐞𝐬𝐢𝐫𝐞𝐝 𝐌𝐢𝐧𝐝𝐬𝐞𝐭: Should I downgrade to XYZ Airline and save $100? If you have to compete with only price being a factor, then you haven’t created the right value. #Communication #Advertising #BrandPotli

Have you considered buying airline miles to boost your status or you need a few to meet a mileage booking to Rome (for example)? This article gives you a guidance on when to buy and when not to buy. Have you ever bought miles? Tell us why!

✈️ Did you know? US airlines are now REQUIRED to automatically refund you for canceled flights! 🙌 No more chasing down refunds—just sit back and relax. Have you ever had a flight canceled? Share your experience in the comments! To learn more about this rule, click here 👉 http://tiny.cc/0igvzz #TravelUpdate #AirlineRefunds #FlySmart

✈️ Key Points Airlines are offering monthly subscriptions to buy frequent-flier miles, but it's important to do your research before signing up. Buying miles doesn't always mean spending less on flights, and the value of points can decrease over time or expire. Consider checking your preferred carriers regularly for deals and comparing the cost of award flights in points versus cash to determine if buying miles is a good value…👇🏾