Wednesday , October 27 2021

Why do not companies want to travel with a basic fare?



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When purchasing the airline card, the choice between the tourist class and the executives has disappeared. Endless efforts to fill end margins have made airlines more sophisticated with merchants. There are several options for travel, especially in the economy cabin, where most passengers expect new and reduced rates.

They call them a "basic economy" rate.

In just a few years, the basic rate is now strong. A few days ago, Alaska Air Group began selling this type of fare and JetBlue Airways launched a similar offer in the middle of 2019 (It is the only major airline company of Southwest Airlines, which avoids this extremely ultra-easy tariff).

For those who do not live, this is the basic economic rate: Rates do not support changes or refunds; The airlines still choose the seat (for the full price) before traveling for a week or more; Others do not; Most people allow luggage like other travelers; United Continental Holdings does not; Airlines, for example Alaska and Delta Air Lines, even though their members loyalty programs accumulate a thousand.

But, ultimately, they want to know who you are on the plane: but if the airline does not have anything to do with it, If you choose a basic economy, you will face the latter.

President JetBlue, Joanna Geraghty, has said that basic rates reflect consumers' environments, and that many travelers buy rigorously based on price. "The passenger chooses for the full price depending on the size of the portfolio, which shows that the smallest part of the experience is ready to be delivered as soon as possible, "he wrote on the JetBlue blog, warning the" success rate "of the aircraft at no rate.

In any case, the phenomenon is launching hands sleight. The goal is to persuade the lowest rate, but for that, The basic economy is not so enjoyable, that many people earn more money for the traditional economic rate, now more expensive. The basic economic rate also seems that airlines that raise costs do not appear to have a steady income increase.

In the United States, Delta considered the basic economic level as a defense measure against low-cost injuries, Spirit Airlines and Frontier, amongst others, at the low prices of their main products. The idea was to match the uninterrupted routes of the competition, although there were fewer benefits, such as the possibility of changing flights.

The cost of basic taxes has been a broad trend in the industrial sector. In this way, the planes are divided into several cabins of different services, that is, segmentation. Therefore, You can find seats sections with the usual economy rate, economic with legs and economic Premium, all in the same plane.

The basic economy has spread to Latin America, the Caribbean and the Atlantic, But there is not yet the longest flight to appear in Asia or South America.

"If Norwegians and WOW Air have offered seats in Tokyo or the United States of Buenos Aires for 99 euros, I am sure that we had seen the basic economic rate in these markets," said Seth Kaplan, the trade magazine editor. Weekly airline company. Low-cost carriers reduce the economic advantage for long flights and travelers generally decide on more food and seating when the length of the trip increases.. "Also, partly, why remote and low-cost flights generally did not achieve a short-term low-cost career," he argued.

Earlier this month, Alaska Airlines began a "soft start" of the new "saving rate" from three of San Diego to its cities. Starting with a "savings rate", at the beginning of January, it will start at all markets. The Seattle airline allows you to choose a seat, also in the back seat of the plane. This is the main part of the rest of the industry.

Some options are better than anything, says an airman. "I think people are very important"Andrew Harrison, Commercial Commercial in Alaska, announced the announcement that the new rate was announced in April.

But, even the cheapest and stoic customers, it is necessary to draw a line somewhere. This summer, American Airlines, in Fort Worth (Texas) When he got lost in the market, he started the basic economic rate passenger to get a bag to buy a market., thanks to a rugged hand.

What has been successful in the airline marketing strategy? The Americans said last month 60% of customers choose basic basic bases, but the percentage expects it halfway down, although the changes have its own luggage guideline.

United is an atypical case for limiting baggage for passengers in the basic economic rate, to help speed up and schedule airplanes. United does not plan to change its luggage regulations, said Andrew Nocella, the airline's commercial director.

"I believe that the basic economy rate has been successful and allows us to segment our product, they allow us to compete efficiently against ultra-competitive competitors, and allow us to achieve better results for our destinations, "said Nocella." And it is designed to work, "he added.

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