It Is About Time That Lee Got a Blog: Charging for Seats vs. Rewarding with Seats


It Is About Time That Lee Got a Blog

This blog contains snippets from all of the useless information stored in my head. While mostly made up of links to things that caught my interest, there may also be some original thoughts once in a while

Thursday, March 23, 2006

Charging for Seats vs. Rewarding with Seats

When traveling to London last week on Virgin Atlantic, I inquired about the availability of an exit row seat and was shocked to find out that there were actually several available (which is rare on a red-eye flight). Then came the news that these seats cost an additional $75. I joked with a co-worked that they'd start charging for window seats next. I was wrong - but not by much. NWA (the airline, not the rap group) announced that it will begin charging passengers for the right to sit in aisle seats.

I definitely understand that these seats are valuable, but I think that American Airlines' current approach is far smarter for the airline - they choose to reward their best customers (Executive Platinum and Platinum AAdvantage members) with the ability to reserve the exit row seats. Other passengers can only get these seats at the gate if they are left over.

Travel is already so expensive - why add the extra frustration of additional charges and have the seats taken up by anyone but your best (most profitable) customers?

If you have extra seats left over, is the extra $75 really worth it, assuming you even get it? Most of the seats on my Virgin flight remained empty and were simply taken by smart travelers who moved over.

Think about the value instead of (a) rewarding your best customers and/or (b) providing an unexpected perk to other customers with any remaining seats. Remember, there are many ways to reach the end result (increased profitability).

How you are you rewarding your best customers? Do you even know who they are?

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