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Recently in Marketing and pricing Category

Airport havens have a hot spot

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haven_photo_1.jpgAh for a haven. You know the kind of spot the have in mind: the little corner of the airport between the baggage ramps and the chapel where no one goes and where it's quiet and where they don't have TV's blaring or announcements that the moving stairs are about to end. Now a company has launched a contest to help locate these airport havens. And post the findings. Left Field is not sure we approve of this effort because once a secret spot is posted, it's not a secret anymore.
And we'd note that the contest sponsor is a company that makes screens to cover your laptop's screen so that people sitting near you cannot see what you're working on on the screen. A look at the entries so far is not encouraging: one lady says she likes the hustle and bustle of Washington's Reagan National in the main terminal.

Airline unbundling becomes an onscreen battle

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Attribute Based Shopping.JPGThe unbundling battle is moving, shifting from the airlines to the travel agent, both real and on-line, as the big three major Global Distribution Systems - Amadeus, Sabre and Travelport - hustle to deploy systems and initiatives that will allow agents to sell up and let home shoppers consider ancillaries and spend.
Sabre has made the biggest splash so far with its Attribute-Based shopping, a 'solution' that will be available to travel agents in the first quarter of 2009, but its rivals say that they have some unique features. At Travelport, for instance, a major project will allow travel agents to customise an airline's offering, while at Amadeus, progress with large clients such as Air Canada and Qantas will lead to a major new offering next year.
Kyle Moore, Sabre's vice president of product marketing, said during a presentation that the Attributes Shopper allows easier price comparison, which may address one of the public's major complaints: complexity and opacity. In fact, a survey by Amadeus, a major rival of Sabre's, suggests that travellesr accept ancillary fees if they are clearlye stated - and if the airlines' don't push too far. Robert Buckman, the Amadeus North American director of airline distribution strategies, says, "consumers won't feel nickel-and-dimed if they are getting something they value, whether it is choice, convenience or simplification.'  
But it is the simplification that is the challenge. As Moore puts it, "complexity is the friend of the agent. Air-travel shopping has become very complex."

 

Turkeys take flight on United

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turkeyclose.jpgThey may be turkeys, but they're not that dumb. They get to ride up in first class while you have to go to the blackboard and write 100 times over, "I will not make bad jokes about United." On the other hand, they are turkeys. Two of 'em.
And they have the whole front section of a United flight to LAX from Washington tomorrow, Thanksgiving Day. And they're not just any turkeys. In Washington, these noble beasts, once championed by Benjamin Franklin to be the national symbol of the United States rather than the bald eagle, will be pardoned by the president (Bush, no jokes please) at a White House ceremony.
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Connie captures Luftie's last prop glory days

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D103-10-14_G.JPGFirst you build a hanger, then you rebuild the plane. And that's what Luftie is doing up in the snowy wilds of the great state of Maine with its newly built hangar at the Auburn-Lewiston airport. There, it's officially commenced restoration of the Lockheed 'Super Star,' the first long-haul aircraft operated by Lufthansa capable of non-stop trans-Atlantic flights. Over the next three years, the aircraft will be brought back into flying condition so that by 2011 it can take to the air again from its new base in Germany once it has been newly registered and repainted in Lufthansa's historic colours.


 

Frequent flyers to airlines: not so fast, fellows

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images-gent-protest-2006-masses-500x500.jpgVox populi: the voice of the people has spoken, and it has told airline guys to think again. So they did, and in response to protest by their frequent flyers, some major carriers have reversed recently announced changes to their loyalty plans
The latest is US Airways, which reversed a widely unpopular move and said it would reinstate bonus miles and a 500-mile minimum benefit for members with Preferred status in its Dividend Miles plan. The carrier had rescinded the minimum award and the bonus points earlier in the year, and said it would give the elites only as many points as the actual miles flown. For travellers in the top tier of its Dividend Miles program, Preferred flyers who schlep 100,000 miles a year or more, the change had the effect of cutting their mileage balance in half. Randy Petersen, the frequent-flyer expert behind FlyerTalk and InsideFlyer magazine, began an on-line campaign he called 'Save Dividend Miles' to bring attention to the decision and he was overwhelmed with postings. So in response the carrier will reinstate the awards retroactively to August 6 for members of the four preferred status levels.


 


 

On sale now: airline seats. Act quickly.

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football-game.jpgDe-mand. It's like the cheering crowds at a football game yelling de-fense. Only now it's a weaker refrain. And getting fainter. Travel agent sales reported through the airline industry clearing house, ARC, show their first monthly double-digit decline in volume - almost 12% - in years and the most dramatic drop in October sales since October 2001, the month that followed 9/11. And these transactions tend to be advance purchases.
So the airlines have begun their sales, and even though they're from a higher base price than just a few months ago, they're out there. Southwest Airlines, the low-fare leader of the entire world (sort of), just announced its third short-term sale for travel right around the holidays as well as in the slow shank of the New Year. It launched a sale a week or so ago - its first pricing promotion in five months and quickly followed with two more. Others have come in with sales of their own. Fare watcher Rick Seaney of farecompare.com says, "I can't recall three airfare sales from Southwest in a quarter, let alone a week."

Pittsburgh gets new service

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bus.jpgPlanes, trains and busses. Everyone knows that the Pittsburgh airport has taken a serious blow since US Airways downgraded it from a hub to a focus city to a spot on its route map. Even with word that Delta will fly between the city and Paris, the region's suffering. Comes now word that at least one city in the region has new service from Pitt. Sort of. It's not a flight but a bus, a very nice bus, which will fly, er drive directly between Pittsburgh's downtown and the state's capital city, Harrisburg. Dubbed the Steel City Flyer, the bus is to be operated by a company called Railroad Development Corp. This company owns rail lines in Iowa, Chile, Argentina, and Guatemala. 

Travel agent front end, free from Farelogix

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flx-solution-overview.jpgFarelogix, which likes to call itself "the last GNE standing," says it is taking a tack toward the open source community with a new application it will be offering travel agents for free, starting next March. Dubbing its open source application Hawkeye, the company's chief, Jim Davidson, tells us that agents can use Hawkeye with or without tying into the main Farelogix products, the FLX platform; agencies can also built the open source front-end package into a custom application. Farelogix, which will be the community coordinator and manager, may be taking a risk in making the source code available for free, but, he says, "a certain number of people will take the source code and come back to us for our black box," which is the FLX middleware.

Yes, holiday airfares are up. And down

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The leaves are turning, the air is crisp, the sun goes down early...it must be time for a story on holiday airfares. Left Field, for one, is glad of this because some of the self-proclaimed airfare experts havemarketplace.jpg been marking the rounds out there about how there really are still a lot of bargains to be found. Our point is this: airlines will always have sales and promotions and the big print will always say 30% or 50% off. The important point is how much that percentage is off, and in this year's travel environment, it's off a much higher base. We were pleased when the Public Radio show Marketplace called the other day and asked us to discuss this (even though their headline was sort of the opposite of our point.) Also on the show was our friend Richard Aboulafia. You can listen here. 

Southwest, looking south, will fly Volaris

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yourfile.gifWhen the chief of Volaris told us a few weeks back that they have word soon about how they plan to enter the US market, we figured that there'd be word about a few routes into Texas or the like. Nope. This is a big deal: Volaris signed a deal with Southwest Airlines to set up a code-sharing pact that starts in 2010. You know that Southwest already has a code-share deal with Canada's WestJet, set to begin next year, and that it has been looking southward as well. It does not give many details.