Should Economy Class be moved to buy-on-board only model?

[LionKing]

I have been thinking with the increase of premium travel demand, and high sensitivity of price for budget travellers, which fuels the competition from budget carriers, should economy class be redefined in the future as a Buy-on-board only model class?

I would imagine the future of Economy Class travel should be:

• 0 kg checked baggage - Charge passengers extra at check in and provide extras bundles.
• 0 kg carry-on baggage - Charge passengers extra at the gate and provide bundles.
• Points be awarded based on amount of fare, and extras paid.
• No status points
• 0 Meals - Buy-on-board is available, lower cost for pre-booking meal
• No free WiFi - WiFi should be a chargable feature
• No free inflight entertainment - BYOD for your own movies or you should be paying extra for the licenses paid by the airline - or adopt a pay-per-view model in collaboration with Netflix etc.
• Add 1 seat per row. For B777-300ER and A350, should be 10 abrest, 9 abrest for A330 etc.

If customers want standard checked and carry-on baggage, meals, entertainment, WiFi and Status Points, they should be flying Premium Economy, which would provide more spacious seating and all inclusive fares. This would have reduced the amount of Economy Seats and significantly increase PEY and J seats, which would have boosted airline revenue.

Moreover, this model would eliminate any airlines need for establishing a low cost carrier, where those who wanted budget travel simply fly Economy Class, and normal passengers will fly Premium Economy and Business. This will also lower the cost base for most legend airlines as well.

I think it is time to move away the all-inclusive model at Economy Class and make Economy Class be a budget only option, so that the real benefit of Premium Travel is unlocked for premium passengers, and give us what as premium passengers deserve on thin and regional routes.

 

[Forg]

If all airlines did it at once, so there’s no other choice, then maybe.

But the fact people buy Qantas seats when Jetstar ones are available, and the fact that there are still more full-service airlines than discount ones, says a lot of people want to pay to get those inclusions.

From a technical point of view … given the cost of fuel & leasing costs & infrastructure, what percentage of an economy ticket would deleting all that stuff save an airline?

 

[serfty]

I have been thinking with the increase of premium travel demand, and high sensitivity of price for budget travellers, which fuels the competition from budget carriers, should economy class be redefined in the future as a Buy-on-board only model class?

I would imagine the future of Economy Class travel should be:

• 0 kg checked baggage - Charge passengers extra at check in and provide extras bundles.
• 0 kg carry-on baggage - Charge passengers extra at the gate and provide bundles.
• Points be awarded based on amount of fare, and extras paid.
• No status points
• 0 Meals - Buy-on-board is available, lower cost for pre-booking meal
• No free WiFi - WiFi should be a chargable feature
• No free inflight entertainment - BYOD for your own movies or you should be paying extra for the licenses paid by the airline - or adopt a pay-per-view model in collaboration with Netflix etc.
• Add 1 seat per row. For B777-300ER and A350, should be 10 abrest, 9 abrest for A330 etc.

If customers want standard checked and carry-on baggage, meals, entertainment, WiFi and Status Points, they should be flying Premium Economy, which would provide more spacious seating and all inclusive fares. This would have reduced the amount of Economy Seats and significantly increase PEY and J seats, which would have boosted airline revenue.

Moreover, this model would eliminate any airlines need for establishing a low cost carrier, where those who wanted budget travel simply fly Economy Class, and normal passengers will fly Premium Economy and Business. This will also lower the cost base for most legend airlines as well.

I think it is time to move away the all-inclusive model at Economy Class and make Economy Class be a budget only option, so that the real benefit of Premium Travel is unlocked for premium passengers, and give us what as premium passengers deserve on thin and regional routes.

What Airline?

Many already are BoB in economy ...

 

[offshore171]

Haven't you just essentially described a LCC (Low Cost Carrier)?

 

[oz_mark]

I don't understand the points of this. There are choices available now. Why dictate what Economy is? Let the market sort it out.

 

[esquire]

Haven't you just essentially described a LCC (Low Cost Carrier)?

Indeed - if I wanted to fly an LCC I would book them.
My organisation specifically didnt want LCCs as it was causing so many issues.

 

[mbe1510]

I think it is time to move away the all-inclusive model at Economy Class and make Economy Class be a budget only option, so that the real benefit of Premium Travel is unlocked for premium passengers, and give us what as premium passengers deserve on thin and regional routes.

Not sure how scaling economy back would improve the flying experience in premium classes. Qantas is going down part of your argument by going premium heavy on project sunrise and to a lesser extent the 787 fleet. That has not improved the experience up the front of the bus.

Perhaps all cabins should have a build your own ticket like how some carriers make business class passengers pay extra for lounge access. Works for some, but not others. 11pm flight so unselect that you want dinner, etc.

 

[Quickstatus]

There is no need and should never be a market definition of "Economy".
The market can define it any way they like.

 

[elanshin]

I have been thinking with the increase of premium travel demand, and high sensitivity of price for budget travellers, which fuels the competition from budget carriers, should economy class be redefined in the future as a Buy-on-board only model class?

I would imagine the future of Economy Class travel should be:

• 0 kg checked baggage - Charge passengers extra at check in and provide extras bundles.
• 0 kg carry-on baggage - Charge passengers extra at the gate and provide bundles.
• Points be awarded based on amount of fare, and extras paid.
• No status points
• 0 Meals - Buy-on-board is available, lower cost for pre-booking meal
• No free WiFi - WiFi should be a chargable feature
• No free inflight entertainment - BYOD for your own movies or you should be paying extra for the licenses paid by the airline - or adopt a pay-per-view model in collaboration with Netflix etc.
• Add 1 seat per row. For B777-300ER and A350, should be 10 abrest, 9 abrest for A330 etc.

If customers want standard checked and carry-on baggage, meals, entertainment, WiFi and Status Points, they should be flying Premium Economy, which would provide more spacious seating and all inclusive fares. This would have reduced the amount of Economy Seats and significantly increase PEY and J seats, which would have boosted airline revenue.

Moreover, this model would eliminate any airlines need for establishing a low cost carrier, where those who wanted budget travel simply fly Economy Class, and normal passengers will fly Premium Economy and Business. This will also lower the cost base for most legend airlines as well.

I think it is time to move away the all-inclusive model at Economy Class and make Economy Class be a budget only option, so that the real benefit of Premium Travel is unlocked for premium passengers, and give us what as premium passengers deserve on thin and regional routes.

What you have described here is the equivalent of airline brand suicide for the legacy and premium carrier. They build LCC to distinguish the brands.

Emirates doesn't need flydubai as a separate airline and brand - but it does it to distinguish the brands. Scoot and Singapore Airlines, Jetstar and Qantas etc.

You're seriously underestimating the power of brands and brand recognition. Why does Coca Cola spend billions on advertising every year - everyone knows about Coca Cola right? Most widely known drink beverage in the world. Its about about brand recognition and perception.

In a perfectly rational insulated world, what you described may work and work ok, but we are not in an insulated world nor are humans always rational. So no, brand differentiation is absolutely necessary.