American Airlines president says airlines should price the way hotels price
Airlines need to be more like hotels, which have mastered the art of differentiating their products, said American Airlines president Scott Kirby. "Hotels have done a better job (than airlines) of creating brand where they can run a 50% occupancy and that's OK," Kirby said Wednesday. "They don't feel like they have to match a hotel somewhere down the road {because} people who want to stay at a Marriott property won't stay at Hilton." Also, Kirby said, "When Starwood Group or Marriott Group compete for customers, they don't compete at a single property, they do it at multiple properties." By contrast, he said, "We haven't done that." In other words, the airline industry has not yet found a way to segregate passengers willing to pay more for a coach seat from passengers who want to pay the absolute lowest fare. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-27/oneworld/american-airlines-president-says-airlines-should-price-the-way-hotels-price
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American Airlines president says airlines should price the way hotels price
Airlines need to be more like hotels, which have mastered the art of differentiating their products, said American Airlines president Scott Kirby. "Hotels have done a better job (than airlines) of creating brand where they can run a 50% occupancy and that's OK," Kirby said Wednesday. "They don't feel like they have to match a hotel somewhere down the road {because} people who want to stay at a Marriott property won't stay at Hilton." Also, Kirby said, "When Starwood Group or Marriott Group compete for customers, they don't compete at a single property, they do it at multiple properties." By contrast, he said, "We haven't done that." In other words, the airline industry has not yet found a way to segregate passengers willing to pay more for a coach seat from passengers who want to pay the absolute lowest fare. <br/>
