After presiding over a major restoration of confidence and an unusually long period of prosperity Boeing Commercial Airplanes (BCA) CEO Scott Carson announced he will retire at the end of the year.
His successor is Jim Albaugh, 59 currently head of the defense systems group.
Under Carson's leadership - BCA changed from a challenged organization to one with greater focus on sales fixing what had become clearly broken. The one blot on his tenure has been the debacle of the 787. Hopefully Boeing will be able to deliver a first flight before the end of the year as a retirement present for Carson.
Cheers
31 August 2009
Is Google A Monopoly?
I have this uneasy feeling about Google. The power they wield is significant. Fine if they don't abuse it - or is it? And what if they do actually use their power and abuse it?
I have written columns on this going back to 2006, here are two of my older posts on the subject:
http://t2impact.blogspot.com/2006/10/that-giant-sucking-sound-is-google.html
http://t2impact.blogspot.com/2009/08/is-google-new-evil-face-of-it.html
It seems that the Seattle Times and other Media outlets have started to feel the same way too. Today's editorial was somewhat less than subtle. The Times (a right wing paper in my view since it crushed the old Seattle PI), is calling for Google to be investigated for being in violation of the Sherman Act.
http://seattletimes.nwsource.com/html/editorials/2009766680_edit31google.html
A quote from the Obama Administration assistant attorney general for antitrust, Christine Varney, as saying that Google was America's most obvious antitrust problem — Microsoft was "so last century" she said... ouch.
The editorial called for an investigation of Google under the Sherman Act. Section 2 which says:
Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony...
That has been the law of the United States since 1890. All it requires (per the Seattle Times) is that the Justice Department pick it up and use it.
Should we accept that Google is being altruistic all the time or is there something more sinister about Google? It seems that Google's hand has to be forced sometimes - hardly the behavior of a good global citizen.
For my own part - I am happy to use the Google search engine but I remain leery of Google's force in the market. It is downright scary the amount of power they have.
So what do you think?
Cheers
I have written columns on this going back to 2006, here are two of my older posts on the subject:
http://t2impact.blogspot.com/2006/10/that-giant-sucking-sound-is-google.html
http://t2impact.blogspot.com/2009/08/is-google-new-evil-face-of-it.html
It seems that the Seattle Times and other Media outlets have started to feel the same way too. Today's editorial was somewhat less than subtle. The Times (a right wing paper in my view since it crushed the old Seattle PI), is calling for Google to be investigated for being in violation of the Sherman Act.
http://seattletimes.nwsource.com/html/editorials/2009766680_edit31google.html
A quote from the Obama Administration assistant attorney general for antitrust, Christine Varney, as saying that Google was America's most obvious antitrust problem — Microsoft was "so last century" she said... ouch.
The editorial called for an investigation of Google under the Sherman Act. Section 2 which says:
Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony...
That has been the law of the United States since 1890. All it requires (per the Seattle Times) is that the Justice Department pick it up and use it.
Should we accept that Google is being altruistic all the time or is there something more sinister about Google? It seems that Google's hand has to be forced sometimes - hardly the behavior of a good global citizen.
For my own part - I am happy to use the Google search engine but I remain leery of Google's force in the market. It is downright scary the amount of power they have.
So what do you think?
Cheers
30 August 2009
Governments Look To Airlines For Models And Skills
A headline inside the Grauniad on Friday grabbed me as I was leaving LHR to return home.
have a listen to their podcast on the subject:
http://www.guardian.co.uk/uk/blog/audio/2009/aug/28/guardian-daily-podcast
The idea of a model Low Cost Carrier being applied to the provision of government services is somewhat radical - even the more so by being offered by a Tory Council in the Greater London area. I only hope they don't look for inspiration to Ryanair and Michael O'Leary.
It seems that Goverments are now looking to the airline to address some of their own woes. Particularly financial.
MAS Chairman Idras Jawal after the stunning turnaround at MH has now been hired into the Government.
Wow - what a world we live in!
have a listen to their podcast on the subject:
http://www.guardian.co.uk/uk/blog/audio/2009/aug/28/guardian-daily-podcast
The idea of a model Low Cost Carrier being applied to the provision of government services is somewhat radical - even the more so by being offered by a Tory Council in the Greater London area. I only hope they don't look for inspiration to Ryanair and Michael O'Leary.
It seems that Goverments are now looking to the airline to address some of their own woes. Particularly financial.
MAS Chairman Idras Jawal after the stunning turnaround at MH has now been hired into the Government.
Wow - what a world we live in!
LH And BMI - To Have And To Hold?
There is quite a bit of speculation surrounding what LH will do with its long and hard fought win of BD.
To recap what did it end up buying for arguably a pretty heft price?
It won a bunch of slots at LHR, and 3 separate airline groups plus some route authorities.
The integration of BD and LH in Europe is pretty extensive. I recently flew LHR-TXL on a LH flight number checked in at the LH counter in Terminal 1 but the metal was BD. The flight attendants and the ground service were not so clear as to which product I was travelling on. BD refused to check me in at the airport.
But enough about me! What about BD.
BD acquired BMED for a song last year and this has translated into a good market. It essentially got it for nothing - selling back the slots to BA. it operates the routes on a more sparse basis and manages to get some good yields with a thin service. The rest of BD's fleet is really Airbus but the A330s are doing mostly charter service and some long haul to KSA. Mumbai and the US routes having been dropped recently.
So it seems natural that BD mainline will be assimilated into LH. I would think it will be operated more like the LH Italia branded product out of Milan. The likelihood of the BMI brand surviving doesn't seem that promising. This is not similar to the case of LX and OS where the national branded carrier is at stake. BMI changed its name from British Midland and has had a fairly innocuous brand since then. It cannot compete in the branding stakes with the likes of British Airways and Virgin. Lufthansa Britannia anyone? (The Sun newspaper would have a field day with that one!).
So what about the other two parts of the airline - BD Regional and BMIBaby?
Anna.Aero thinks that regional will follow the old Brymon and co to Flybe. I would place money on LH wanting to move some of that connecting traffic into Europe and away from LHR. Further LH has a pretty robust regional business both direct and franchised.
Anna.Aero also speculates that LCC BMIBaby with its old fleet of B737-300s and 500s will go to someone in the UK like Jet2 part of Philip Meeson's group of airlines. I also beg to differ. With LH tharted in creating a second tier German airline of its own - it would more likely want to take the idea of expanding the concept to its own LCC German Wings and give the purple and yellow airline another UK base and a broader footprint. Why would LH give up such a business doesn't seem logical to me.
So what do you think?
Cheers
To recap what did it end up buying for arguably a pretty heft price?
It won a bunch of slots at LHR, and 3 separate airline groups plus some route authorities.
The integration of BD and LH in Europe is pretty extensive. I recently flew LHR-TXL on a LH flight number checked in at the LH counter in Terminal 1 but the metal was BD. The flight attendants and the ground service were not so clear as to which product I was travelling on. BD refused to check me in at the airport.
But enough about me! What about BD.
BD acquired BMED for a song last year and this has translated into a good market. It essentially got it for nothing - selling back the slots to BA. it operates the routes on a more sparse basis and manages to get some good yields with a thin service. The rest of BD's fleet is really Airbus but the A330s are doing mostly charter service and some long haul to KSA. Mumbai and the US routes having been dropped recently.
So it seems natural that BD mainline will be assimilated into LH. I would think it will be operated more like the LH Italia branded product out of Milan. The likelihood of the BMI brand surviving doesn't seem that promising. This is not similar to the case of LX and OS where the national branded carrier is at stake. BMI changed its name from British Midland and has had a fairly innocuous brand since then. It cannot compete in the branding stakes with the likes of British Airways and Virgin. Lufthansa Britannia anyone? (The Sun newspaper would have a field day with that one!).
So what about the other two parts of the airline - BD Regional and BMIBaby?
Anna.Aero thinks that regional will follow the old Brymon and co to Flybe. I would place money on LH wanting to move some of that connecting traffic into Europe and away from LHR. Further LH has a pretty robust regional business both direct and franchised.
Anna.Aero also speculates that LCC BMIBaby with its old fleet of B737-300s and 500s will go to someone in the UK like Jet2 part of Philip Meeson's group of airlines. I also beg to differ. With LH tharted in creating a second tier German airline of its own - it would more likely want to take the idea of expanding the concept to its own LCC German Wings and give the purple and yellow airline another UK base and a broader footprint. Why would LH give up such a business doesn't seem logical to me.
So what do you think?
Cheers
Farelogix Cements Trend Towards Off Core Profiles With New Product Line.
At this year's NBTA in sunny San Diego (sadly I could not go this year so I am late in catching up with all the info out there), one of of the hot topics was the move by the GDS to shift Profiles out of the the central TPF core. Everyone is doing it. Sabre, Amadeus and Travelport all have versions either as demoware or in roll out.
Now comes the announcement that Farelogix has a new product FLX Files. From the Farelogix PR piece:
“We see momentum toward universal traveler profiles for two reasons,” said Jim Davidson, president and CEO, Farelogix. “First, decentralization is no longer practical for storing and managing multiple profiles. Maintaining profiles in multiple sources and locations creates too much expense and duplicity, and synchronization headaches. Second, the industry is moving toward independence, data ownership and choice. Nobody wants strings attached. As technology proliferates, opening up is essential so customers can pick and choose the components that work best for them. What we are providing is an extensible, easy-to-implement, open system that can be integrated with as many other systems as customers want. With FLX-Files users get more control and flexibility, while maintaining full ownership of their data.”
In my humble opinion this is not a new issue. In my day job I have seen several far-sighted companies take their Profiles OFF GDS core before. Indeed my team have even helped to make this happen. However because it was an anathema to the centralized data management concept of the GDS - it was both frowned on and actually very hard to execute. Last year Sabre allowed me a sneak peak at their new off-TPF based Profile system. One of the interesting topics to emerge during the discussion with the project team was that they say this as not just a single and solitary change but rather the underlying core technology (my words) unbundling of one of many of the central customer file management functions of the GDS. Sabre was unabashed in their enthusiasm for the move including moving the PNR away as well.
My sense is that we are seeing (finally after very many years) a radical restructuring of reservation type products not just by the GDS but also by the airline PSS vendors as well. SITA's new PSS has a customer centric vision rather than a PNR centric vision. CRM is driving much of this change.
In my view the whole concept of the unbundling of the GDS is a natural progression. When I started working in distribution in the early 1980s, the only electronic way to communicate was a cradle to grave approach by the then CRS companies. 100% of their services were provided by their own systems. Quickly the independent vendors ABS/ADS, TravelLink et al were snapped up by the GDS. Very few PNRs made it through the agency lifecycle being touched by anything else other than a human and perhaps a back office vendor's product.
Fast forward to today and in almost all major markets each PNR is touched by multiple external systems. This has shifted the focus of the reservations system to the front line. Front Office and Mid Office applications are used (and paid for) by the intermediaries. This has eroded the importance of the GDS to the user community. In the early 1990s I used to draw a diagram that showed the GDS moving away from the front and center of the Intermediary tool kit to a box on the higher content (read supply) source line. While in my mind it has taken way too long for this to happen - it has been a slow and steady progression to get there.
If one examines the features and functions of an OTA for example - one can see that the key GDS functions (supply access, file management, search etc etc) are performed better and with far greater flexibility by these players than by the GDS platform providers. The OTA functions are a superior superset. I wont dwell on the subject of why the OTA's still use the GDS - that is for another time.
Farelogix is one of the innovators in addressing the needs of the supply side and the distribution side and their evolution. They are however by no means the only player doing that. The long term trend to me is an inevitable migration away from the bundled one size fits all GDS centric model to a fragmented but more customizable set of relationships managed by different and more appropriate technologies and players. I will caution everyone - with this power comes responsibility. Are we ready to take that on yet? I think so - and so it would seem do quite a few other players.
The death of the unitary model has oft been predicted. Frankly I think its already here.
Cheers
Now comes the announcement that Farelogix has a new product FLX Files. From the Farelogix PR piece:
“We see momentum toward universal traveler profiles for two reasons,” said Jim Davidson, president and CEO, Farelogix. “First, decentralization is no longer practical for storing and managing multiple profiles. Maintaining profiles in multiple sources and locations creates too much expense and duplicity, and synchronization headaches. Second, the industry is moving toward independence, data ownership and choice. Nobody wants strings attached. As technology proliferates, opening up is essential so customers can pick and choose the components that work best for them. What we are providing is an extensible, easy-to-implement, open system that can be integrated with as many other systems as customers want. With FLX-Files users get more control and flexibility, while maintaining full ownership of their data.”
In my humble opinion this is not a new issue. In my day job I have seen several far-sighted companies take their Profiles OFF GDS core before. Indeed my team have even helped to make this happen. However because it was an anathema to the centralized data management concept of the GDS - it was both frowned on and actually very hard to execute. Last year Sabre allowed me a sneak peak at their new off-TPF based Profile system. One of the interesting topics to emerge during the discussion with the project team was that they say this as not just a single and solitary change but rather the underlying core technology (my words) unbundling of one of many of the central customer file management functions of the GDS. Sabre was unabashed in their enthusiasm for the move including moving the PNR away as well.
My sense is that we are seeing (finally after very many years) a radical restructuring of reservation type products not just by the GDS but also by the airline PSS vendors as well. SITA's new PSS has a customer centric vision rather than a PNR centric vision. CRM is driving much of this change.
In my view the whole concept of the unbundling of the GDS is a natural progression. When I started working in distribution in the early 1980s, the only electronic way to communicate was a cradle to grave approach by the then CRS companies. 100% of their services were provided by their own systems. Quickly the independent vendors ABS/ADS, TravelLink et al were snapped up by the GDS. Very few PNRs made it through the agency lifecycle being touched by anything else other than a human and perhaps a back office vendor's product.
Fast forward to today and in almost all major markets each PNR is touched by multiple external systems. This has shifted the focus of the reservations system to the front line. Front Office and Mid Office applications are used (and paid for) by the intermediaries. This has eroded the importance of the GDS to the user community. In the early 1990s I used to draw a diagram that showed the GDS moving away from the front and center of the Intermediary tool kit to a box on the higher content (read supply) source line. While in my mind it has taken way too long for this to happen - it has been a slow and steady progression to get there.
If one examines the features and functions of an OTA for example - one can see that the key GDS functions (supply access, file management, search etc etc) are performed better and with far greater flexibility by these players than by the GDS platform providers. The OTA functions are a superior superset. I wont dwell on the subject of why the OTA's still use the GDS - that is for another time.
Farelogix is one of the innovators in addressing the needs of the supply side and the distribution side and their evolution. They are however by no means the only player doing that. The long term trend to me is an inevitable migration away from the bundled one size fits all GDS centric model to a fragmented but more customizable set of relationships managed by different and more appropriate technologies and players. I will caution everyone - with this power comes responsibility. Are we ready to take that on yet? I think so - and so it would seem do quite a few other players.
The death of the unitary model has oft been predicted. Frankly I think its already here.
Cheers
Will Giant ILFC Be Split Up?
Probably one of the biggest boosters for Aviation is Steven Udvar-Hazy, chairman and chief executive of International Lease Finance Corp., the aircraft leasing company owned by American International Group. He built it and then sold it to AIG where it has been one of the strongest performers consistently. ILFC is one of the world's largest Aircraft Leasing Companies. (Actually THE biggest).
For the past year since AIG entered into difficulties and needed bailing out - he has been trying to take it out of the group. However the company is saddled with a lot of debt $30 billion give or take a few and $2Billion due in October.
It has been no secret that he wants to have the whole company - run from the MGM Tower in Century City - back under his direct control and independent from AIG. However this plan is looking increasingly unattainable. So he has started to look at the possibility of splitting it up into smaller chunks and he take part of the Portfolio with him.
Normally there would be no shortage of people wanting to arrange a buyout and with boat loads of cash to boot. Also in normal times the GCC Sovereign funds or one of their surrogates would be very interested. Ditto Singapore. However the GFC is not helping this - coupled with the global downturn in travel that the airlines are feeling just a little heat from.
ILFC is the grease that oils a lot of the global airline trade. Both Airbus and Boeing are heavily dependent on it for orders. Should ILFC go away all together (very unlikely) or be reduced in size - the impact on the market for airliners would be significant and likely in a detrimental way.
Quietly late last year - both Boeing and Airbus got back into the capital market of lending money to airlines. Should ILFC be affected then Boeing for one would have to pick up a significant part of the slack.
All in all - let's hope the ever effervescent Hungarian born CEO gets his wish to make ILFC independent and retain its portfolio.
For the past year since AIG entered into difficulties and needed bailing out - he has been trying to take it out of the group. However the company is saddled with a lot of debt $30 billion give or take a few and $2Billion due in October.
It has been no secret that he wants to have the whole company - run from the MGM Tower in Century City - back under his direct control and independent from AIG. However this plan is looking increasingly unattainable. So he has started to look at the possibility of splitting it up into smaller chunks and he take part of the Portfolio with him.
Normally there would be no shortage of people wanting to arrange a buyout and with boat loads of cash to boot. Also in normal times the GCC Sovereign funds or one of their surrogates would be very interested. Ditto Singapore. However the GFC is not helping this - coupled with the global downturn in travel that the airlines are feeling just a little heat from.
ILFC is the grease that oils a lot of the global airline trade. Both Airbus and Boeing are heavily dependent on it for orders. Should ILFC go away all together (very unlikely) or be reduced in size - the impact on the market for airliners would be significant and likely in a detrimental way.
Quietly late last year - both Boeing and Airbus got back into the capital market of lending money to airlines. Should ILFC be affected then Boeing for one would have to pick up a significant part of the slack.
All in all - let's hope the ever effervescent Hungarian born CEO gets his wish to make ILFC independent and retain its portfolio.
So Let's Look Deep Into Twitter - UPDATE
I have been scouring around looking for a good independent source of information on how Twitter is used.
I finally found one.
Have a look here... it is everything you want to know about Twitter and how people use it.
http://sysomos.com/docs/Inside-Twitter-BySysomos.pdf
It is a fascinating look a the world of Twitter. Some interesting results are that a large percentage of stuff is generated by Bots of some sort or another. I suspect that number will rise dramatically over time. Of course as we have seen then there are surrogate Tweeters (people who Tweet on behalf of others) and other what I would term insidious behaviour that not only damages the credibility of the Tweeter but of the whole value of Twitter.
Of course you don't have to agree with me - far from it. But anyone assuming that Twitter will continue to grow and become a force for the future must take into consideration the amount of crap that goes with it.
So I say again - when will someone come up with a value service that lets me control the amount and relevancy of the Tweets that are out there...
Dream on - or maybe not... I am the eternal optimist.
For another look at Twitter - including 40% of mindless babble - look at the white paper from Pear Analytics
http://www.pearanalytics.com/wp-content/uploads/2009/08/Twitter-Study-August-2009.pdf
Lord help us from the crap!
Cheers
I finally found one.
Have a look here... it is everything you want to know about Twitter and how people use it.
http://sysomos.com/docs/Inside-Twitter-BySysomos.pdf
It is a fascinating look a the world of Twitter. Some interesting results are that a large percentage of stuff is generated by Bots of some sort or another. I suspect that number will rise dramatically over time. Of course as we have seen then there are surrogate Tweeters (people who Tweet on behalf of others) and other what I would term insidious behaviour that not only damages the credibility of the Tweeter but of the whole value of Twitter.
Of course you don't have to agree with me - far from it. But anyone assuming that Twitter will continue to grow and become a force for the future must take into consideration the amount of crap that goes with it.
So I say again - when will someone come up with a value service that lets me control the amount and relevancy of the Tweets that are out there...
Dream on - or maybe not... I am the eternal optimist.
For another look at Twitter - including 40% of mindless babble - look at the white paper from Pear Analytics
http://www.pearanalytics.com/wp-content/uploads/2009/08/Twitter-Study-August-2009.pdf
Lord help us from the crap!
Cheers
When Online Is Better Than Offline?
As many of you know I am a fan of Gerry McGovern's weekly mail.
This is this week's effort
http://www.gerrymcgovern.com/nt/2009/nt-2009-08-31-Online-face-to-face.htm
However I think he misses the point here - just because the offline service process and rules are screwed up doesn't mean that this is the wrong way to do it.
Sometimes the process of being bloody minded works just as well. The problem is that you cannot be bloody minded and persuasive with a machine!
On the other hand there are some good tools where the interaction can work. For example customer service chats. This REALLY works well when you have a he said she said kind of issue.
A case in point I had a problem with my cable company. They changed to the all digital format and as a result my old VCR and my new independent DVR didn't work except when wired into the same channel I was watching. Thus depriving me of the ability to time shift.
I tried the call center (yes India again) and got no where. So I went to the chat process and was able to resolve the problem. Further they had to transfer me to another section. The chat formed part of the record and thus there was no misunderstanding and the agent was able to see what we agreed early on without me having to repeat myself (one of the biggest bug bears of customer service today).
Despite having to still do some INANE things like repeat who I was (even though I signed in as the account holder) ... so they don't get it right still!!! ... I managed to get them to do something out of the ordinary and provide me a service. This would have fallen outside of the norm of what you can do in a conventional web form world.
So is there a lesson here?
Yes!
The web can be a powerful tool as we can both see what has happened and we are dealing with identical information resulting in better customer service.
Of course going back to Gerry's problem - this is unlikely to have helped given that he was at Athens airport and the process of getting online would have been painful and slow at best - unavailable would be the norm. of course the time pressure doesn't apply when dealing with the cable company. When waiting to board a flight - that pressure is really on. (BTW a recent study showed that the airport check-in and boarding process is as stressful as driving a formula 1 car!!!).
So sometimes it just pays to be a pain in the rear....
Cheers
This is this week's effort
http://www.gerrymcgovern.com/nt/2009/nt-2009-08-31-Online-face-to-face.htm
However I think he misses the point here - just because the offline service process and rules are screwed up doesn't mean that this is the wrong way to do it.
Sometimes the process of being bloody minded works just as well. The problem is that you cannot be bloody minded and persuasive with a machine!
On the other hand there are some good tools where the interaction can work. For example customer service chats. This REALLY works well when you have a he said she said kind of issue.
A case in point I had a problem with my cable company. They changed to the all digital format and as a result my old VCR and my new independent DVR didn't work except when wired into the same channel I was watching. Thus depriving me of the ability to time shift.
I tried the call center (yes India again) and got no where. So I went to the chat process and was able to resolve the problem. Further they had to transfer me to another section. The chat formed part of the record and thus there was no misunderstanding and the agent was able to see what we agreed early on without me having to repeat myself (one of the biggest bug bears of customer service today).
Despite having to still do some INANE things like repeat who I was (even though I signed in as the account holder) ... so they don't get it right still!!! ... I managed to get them to do something out of the ordinary and provide me a service. This would have fallen outside of the norm of what you can do in a conventional web form world.
So is there a lesson here?
Yes!
The web can be a powerful tool as we can both see what has happened and we are dealing with identical information resulting in better customer service.
Of course going back to Gerry's problem - this is unlikely to have helped given that he was at Athens airport and the process of getting online would have been painful and slow at best - unavailable would be the norm. of course the time pressure doesn't apply when dealing with the cable company. When waiting to board a flight - that pressure is really on. (BTW a recent study showed that the airport check-in and boarding process is as stressful as driving a formula 1 car!!!).
So sometimes it just pays to be a pain in the rear....
Cheers
The Sick Boys Of The Airline Biz
As the world airline industry tries to put on a good front in the face of still falling traffic/revenues in both passenger and cargo, we can now see some trends of players who are going to hurt more than others.
Perry Flint's ATW editorial for August made a big point about the success of the DOT over the DOJ in approving the Continental/United/Star ATI JV. This should have been a collective sigh of relief for the industry. However in my humble opinion this masks a darker side.
The conventional wisdom of the internal airline market seems to be that bigger is better and that consolidation should be the order of the day. I disagree. Consolidation does not result in lower fares and better service. The economies of scale as a result of mergers have in the main been far outweighed by the high costs of integration and the resulting downsize has not led to any consumer benefit save the ability to have a single ticket service.
When the dust clears - the resulting airline hardly ever gets a size boost and the market returns to the state it was previously. Warts and all. Somehow the airlines always seem to expect that the government(s) will ride to their rescue if all else fails. How many shareholders have lost considerable sums in capital write offs due to bankruptcies and writedowns over the past 30 years? The number is staggering.
Michael O'Leary must be a happy person at the moment watching his nemesis Aer Lingus writhe in agony in what its own CFO called an airline "...in trouble".
It is time for the government's to get FULLY out of the airline regulatory (except for consumer protection and safety) business and to stop tampering with the market forces.
So my nominees for sickest airlines of the world and most likely to need "fixing" are as follows:
In the basket case category:
Aer Lingus
SAS
In the deeply troubled category
British Airways
Virgin Blue
Many Chinese based airlines
In the category - in need of a dose of reality
Too many to pick nominees
Strangely enough the US airlines are not immediate standouts here. True they are struggling but this is a comparative game - so I am giving them a break at the moment.
Agree with me or not - I hope this sparks more debate.
However - lets have a truly more honest and open market and let the strong survive on true metrics and let the scrappiest keep them honest..
Cheers
Perry Flint's ATW editorial for August made a big point about the success of the DOT over the DOJ in approving the Continental/United/Star ATI JV. This should have been a collective sigh of relief for the industry. However in my humble opinion this masks a darker side.
The conventional wisdom of the internal airline market seems to be that bigger is better and that consolidation should be the order of the day. I disagree. Consolidation does not result in lower fares and better service. The economies of scale as a result of mergers have in the main been far outweighed by the high costs of integration and the resulting downsize has not led to any consumer benefit save the ability to have a single ticket service.
When the dust clears - the resulting airline hardly ever gets a size boost and the market returns to the state it was previously. Warts and all. Somehow the airlines always seem to expect that the government(s) will ride to their rescue if all else fails. How many shareholders have lost considerable sums in capital write offs due to bankruptcies and writedowns over the past 30 years? The number is staggering.
Michael O'Leary must be a happy person at the moment watching his nemesis Aer Lingus writhe in agony in what its own CFO called an airline "...in trouble".
It is time for the government's to get FULLY out of the airline regulatory (except for consumer protection and safety) business and to stop tampering with the market forces.
So my nominees for sickest airlines of the world and most likely to need "fixing" are as follows:
In the basket case category:
Aer Lingus
SAS
In the deeply troubled category
British Airways
Virgin Blue
Many Chinese based airlines
In the category - in need of a dose of reality
Too many to pick nominees
Strangely enough the US airlines are not immediate standouts here. True they are struggling but this is a comparative game - so I am giving them a break at the moment.
Agree with me or not - I hope this sparks more debate.
However - lets have a truly more honest and open market and let the strong survive on true metrics and let the scrappiest keep them honest..
Cheers
Accor to Change Focus
Bowing to the inevitable Accor - one of the strongest players in the Hotel business - is considering splitting its Hotel and Services business. In much the same way that Marriott did with what is now a part of Sodexo. (I hope I have the branding right now!)
In the case of Accor it will mean a forced more wider review of its Hotel operations which has benefited in the past from the financial strength of the Services unit. Thus Accor has been able to develop much of its own facilities at lower financial costs (through self funding) than its competitors.
Where Accor has had its strength in the low end brands (Formule 1 and Motel 6 for example) however this has not returned as much value to it as it lacked high end brands. Indeed its product portfolio has become more and more confused as it struggled to upgrade the Sofitel Brand, raising the profile of Mercure with the Grande Mercure brand and (re)introduce the Pullman brand. Sadly this has not translated to the bottom line. Accor has suffered in line with the other hotel companies worldwide and not been able to capitalize on what should be its strengths in an economic downturn. This is as much a result of Accor's strategy as it is the extent of the worldwide Travel recession.
Another problem for Accor has been its inability to control the franchises. Its franchise arrangements have tended to be looser than some of its competitors - again in particular at the higher end of the brand. I witnessed this personally with a Sofitel product in Asia Pacific recently.
Will Accor go the way of Club Med and become an anachronistic icon of a bygone age? Hardly! But look for a change in direction and perhaps even a less Gallic perspective in the coming few years.
Cheers
In the case of Accor it will mean a forced more wider review of its Hotel operations which has benefited in the past from the financial strength of the Services unit. Thus Accor has been able to develop much of its own facilities at lower financial costs (through self funding) than its competitors.
Where Accor has had its strength in the low end brands (Formule 1 and Motel 6 for example) however this has not returned as much value to it as it lacked high end brands. Indeed its product portfolio has become more and more confused as it struggled to upgrade the Sofitel Brand, raising the profile of Mercure with the Grande Mercure brand and (re)introduce the Pullman brand. Sadly this has not translated to the bottom line. Accor has suffered in line with the other hotel companies worldwide and not been able to capitalize on what should be its strengths in an economic downturn. This is as much a result of Accor's strategy as it is the extent of the worldwide Travel recession.
Another problem for Accor has been its inability to control the franchises. Its franchise arrangements have tended to be looser than some of its competitors - again in particular at the higher end of the brand. I witnessed this personally with a Sofitel product in Asia Pacific recently.
Will Accor go the way of Club Med and become an anachronistic icon of a bygone age? Hardly! But look for a change in direction and perhaps even a less Gallic perspective in the coming few years.
Cheers
US Government: "Leave Laptops At Home" or "You Cannot Come In!"
OK under the "what must they be thinking" department - Here is today's stupid government pet trick.
Thanks to Professor Andrew for this one: See here for the whole government official recommendation for travelling with laptops etc.
http://file.sunshinepress.org:54445/dhs-travel-threat-assessment-2008.pdf (See page 3).
However the critical section is a statement as follows:
"Risks associated with use of electronic media overseas can be reduced
through proper handling techniques. The simplest of these is to leave such devices at home. Barring that, protective measures should include using designated “travel” computers, single-use cell phones, and temporary e-mail addresses as well as refraining from communicating with a home organization’s information technology systems."
So the US government has decided that we should not carry laptops with us when traveling and further we should not electronically speak back to the central office in the USA.
Thank god we have the CBP (Customs and Border Patrol) to protect us at Homeland Security. Clearly with their finger on the pulse of the world - their response is a Monroe Doctrine like isolationism. Gotta love those guys!
So if you think that is good... then I can now officially tell you something well official is a difficult expression as according to the document the following warning is applied: "(U) Warning: This document is UNCLASSIFIED//FOR OFFICIAL USE ONLY (U//FOUO). It contains information that may be exempt from public release under the
Freedom of Information Act (5 U.S.C. 552). It is to be controlled, stored, handled, transmitted, distributed, and disposed of in accordance with DHS policy relating to
FOUO information and is not to be released to the public, the media, or other personnel who do not have a valid need-to-know without prior approval of an
authorized DHS official. State and local Homeland security officials may share this document with authorized security personnel without further approval from DHS."
So what is it that I can tell you?
1. That your laptop can be treated like a suitcase.
2. it is subject to search and if necessary both short term and long term confiscation without any probable cause.
Further - if you are a NON-US citizen - failure to provide (if asked) passwords and access to your computer may result in you being denied entry into the USA.
I can think of only 3 other countries who have the same restriction. Burma (Myanmar) North Korea and the Kingdom of Saudi Arabia.
Cheers
Thanks to Professor Andrew for this one: See here for the whole government official recommendation for travelling with laptops etc.
http://file.sunshinepress.org:54445/dhs-travel-threat-assessment-2008.pdf (See page 3).
However the critical section is a statement as follows:
"Risks associated with use of electronic media overseas can be reduced
through proper handling techniques. The simplest of these is to leave such devices at home. Barring that, protective measures should include using designated “travel” computers, single-use cell phones, and temporary e-mail addresses as well as refraining from communicating with a home organization’s information technology systems."
So the US government has decided that we should not carry laptops with us when traveling and further we should not electronically speak back to the central office in the USA.
Thank god we have the CBP (Customs and Border Patrol) to protect us at Homeland Security. Clearly with their finger on the pulse of the world - their response is a Monroe Doctrine like isolationism. Gotta love those guys!
So if you think that is good... then I can now officially tell you something well official is a difficult expression as according to the document the following warning is applied: "(U) Warning: This document is UNCLASSIFIED//FOR OFFICIAL USE ONLY (U//FOUO). It contains information that may be exempt from public release under the
Freedom of Information Act (5 U.S.C. 552). It is to be controlled, stored, handled, transmitted, distributed, and disposed of in accordance with DHS policy relating to
FOUO information and is not to be released to the public, the media, or other personnel who do not have a valid need-to-know without prior approval of an
authorized DHS official. State and local Homeland security officials may share this document with authorized security personnel without further approval from DHS."
So what is it that I can tell you?
1. That your laptop can be treated like a suitcase.
2. it is subject to search and if necessary both short term and long term confiscation without any probable cause.
Further - if you are a NON-US citizen - failure to provide (if asked) passwords and access to your computer may result in you being denied entry into the USA.
I can think of only 3 other countries who have the same restriction. Burma (Myanmar) North Korea and the Kingdom of Saudi Arabia.
Cheers
29 August 2009
BA – How Not To Respond To A Customer
I am a premium (currently Silver) member of BA’s frequent flyer program.
I tend to read a lot of the email that comes from the hacks at the airlines whose programs I am enrolled in. What never ceases to amaze me is how disconnected the airlines are from their actual customers. This is not a new phenomenon – it has been this way since the year dot. The problem is of a one to many relationship.
So in this case I responded to a solicitation by BA which asked me to tell them what I thought of their program. My response and then their response is provided in its entirety below (Bottom to top). This is definitely NOT the way to communicate with your customer in my opinion on just so many levels. I have only modified my name and the account number. Everything else is real – up to and including the person in India who dealt with the request according to the BA formula.
You can draw your own conclusions. Personally I feel that if this is customer service – then give me self service.
Cheers
TEXT FOLLOWS
Recently you requested personal assistance from British Airways. Below is a summary of your request and our response.
Subject
Silver Executive Club programme feedback
Response (Abhishek) 24/08/2009 11.31 AM
Dear Professor Sabena
Thank you for taking the time to tell us what you think about the Executive Club.
It’s important to us that you have an opportunity to let us know what you like or think needs to be improved and we have opened this feedback channel so that you can do just that.
Unfortunately we cannot respond personally to every piece of feedback we receive but we will collect this information with a view to making improvements that are important to you.
If you have any membership queries in the meantime please feel free to contact your dedicated service centre:
http://www.britishairways.com/travel/custsp/
Once again, thank you for letting us know how you feel.
Regards
Abhishek
British Airways Executive Club
Next time you have a question about travelling with British Airways, simply go to:
http://ba.com/contactus
-----------------
LEGAL INFORMATION
-----------------
The information in this Internet email is confidential and may be legally privileged. It is intended solely for the addressee. Access by any other person to this Internet email is not authorised. If you are not the intended recipient, please delete this Internet email. Any disclosure of this Internet email or of the parties to it, any copying, distribution or any action taken or omitted to be taken in reliance on it is prohibited, and maybe unlawful.
If you have received it in error please inform the sender as soon as possible.
This email message has been swept by McAfee virus protection for the presence of computer viruses however we cannot guarantee that it is virus-free and you should scan this mail and, prior to opening them or saving them, any attachments for viruses.
This email was sent to you by British Airways Plc - to find out more about the company please visit:
http://ba.com/aboutba
Customer (Professor Sabena) 23/08/2009 10.13 PM
Silver Executive Club programme feedback
Name: Mr Professor Sabena
Email address: ProfessorSabena@gmail.com
Executive Club number: XXX0000
Comments: The biggest problem I have with BA miles is that I cannot use them efficiently. The fees and costs associated with the miles on BA is currently so onerous that I can easily buy a ticket on the open market and pay less than the BA fees for the whole ticket and not pay any miles.
BA's fees are frankly outrageous.
I tend to read a lot of the email that comes from the hacks at the airlines whose programs I am enrolled in. What never ceases to amaze me is how disconnected the airlines are from their actual customers. This is not a new phenomenon – it has been this way since the year dot. The problem is of a one to many relationship.
So in this case I responded to a solicitation by BA which asked me to tell them what I thought of their program. My response and then their response is provided in its entirety below (Bottom to top). This is definitely NOT the way to communicate with your customer in my opinion on just so many levels. I have only modified my name and the account number. Everything else is real – up to and including the person in India who dealt with the request according to the BA formula.
You can draw your own conclusions. Personally I feel that if this is customer service – then give me self service.
Cheers
TEXT FOLLOWS
Recently you requested personal assistance from British Airways. Below is a summary of your request and our response.
Subject
Silver Executive Club programme feedback
Response (Abhishek) 24/08/2009 11.31 AM
Dear Professor Sabena
Thank you for taking the time to tell us what you think about the Executive Club.
It’s important to us that you have an opportunity to let us know what you like or think needs to be improved and we have opened this feedback channel so that you can do just that.
Unfortunately we cannot respond personally to every piece of feedback we receive but we will collect this information with a view to making improvements that are important to you.
If you have any membership queries in the meantime please feel free to contact your dedicated service centre:
http://www.britishairways.com/travel/custsp/
Once again, thank you for letting us know how you feel.
Regards
Abhishek
British Airways Executive Club
Next time you have a question about travelling with British Airways, simply go to:
http://ba.com/contactus
-----------------
LEGAL INFORMATION
-----------------
The information in this Internet email is confidential and may be legally privileged. It is intended solely for the addressee. Access by any other person to this Internet email is not authorised. If you are not the intended recipient, please delete this Internet email. Any disclosure of this Internet email or of the parties to it, any copying, distribution or any action taken or omitted to be taken in reliance on it is prohibited, and maybe unlawful.
If you have received it in error please inform the sender as soon as possible.
This email message has been swept by McAfee virus protection for the presence of computer viruses however we cannot guarantee that it is virus-free and you should scan this mail and, prior to opening them or saving them, any attachments for viruses.
This email was sent to you by British Airways Plc - to find out more about the company please visit:
http://ba.com/aboutba
Customer (Professor Sabena) 23/08/2009 10.13 PM
Silver Executive Club programme feedback
Name: Mr Professor Sabena
Email address: ProfessorSabena@gmail.com
Executive Club number: XXX0000
Comments: The biggest problem I have with BA miles is that I cannot use them efficiently. The fees and costs associated with the miles on BA is currently so onerous that I can easily buy a ticket on the open market and pay less than the BA fees for the whole ticket and not pay any miles.
BA's fees are frankly outrageous.
28 August 2009
Seat Review - New United Business Class
Like many airlines United has tried to upgrade its product to be competitive with the best of the rest of the world particularly the Asian and the Middle East carriers.
Almost all of the US carriers have in the main have tried but not necessarily succeeded in this regard.
United is no different. So far I have been able to sample the old and new offerings of UA, AA, CO, NW - the new DL service is not really available except on the 777 LRs. So US is the one carrier I want to still try.
The US airlines are really not as good as they could be. However the current crop of products is better. UA's seat is as good as most.
So here is the review using the BOOT's standard of comfort.
For Tim Hughes's standard go here:
http://tims-boot.blogspot.com/2009/02/airline-seat-reviews-new-boot-segment.html
So plagiarizing him mercilessly - here is my review
So just for the sake of clarity - this was a long and oft delayed frequent flyer ticket.
I want to applaud United's customer service people for helping me to secure the seat.
United has had to struggle in recent years and probably more than anyone else they have a legacy environment. Again plaudits to them for trying.
The Professor's rating for United Transatlantic Business Class is a 3.5 stars out of 6 or Great Seat". Here is the detailed review
Getting on Board Score 1.0
For London United has the old now radically reconfigured BA lounges in Terminal one. They are quite nice. In my opinion as good as BA was. The choice is not as great but it wasnt as crowded as the old place was. When the full compliment of carriers is in the terminal then it may not be quite as nice.
Does it compare with the Asian Carriers - not really. But does it compare to the other carriers - yes! Its a pretty good experience, they have some things that need to be handled. The Wifi could be a bit better for example. Frankly I think the Star group have really been better at getting their alliance on the road. It really is the best alliance. (And I am not even a gold member these days).
The Seat Score 0.5
UA's product is pretty good. Interesting forward and backward rows is a little weird but it kinda works.
The seat is correctly padded and the controls work. Not too fancy - Utilitarian I would say. The screens are great. The Movies just fine. Its Panasonic's current generation IFE. Of course in flight wifi would be a big help.
The Service Score 0.5
Actually I would like to say this was good but it was - well just average and that is being generous. The flight attendants were very friendly but the product range is very shallow - so they try but they don't have a lot to work with. When times improve lets hope that they do better. Here UA us behind DL but about on par with CO and AA.
The Food Score 0.5
The menu is limited but reasonable quality. The food came at the right time and didn't have much choice. The Wine list interestingly had not a single French wine on it. Sacre Bleu! The service from London was clearly the regular flight kitchens. The Sandwiches are pretty much the same on every major long haul carrier out of LHR.
The Entertainment Score 0.5
UA has on par. It is full video on demand with a regular library of movies, TV and audio. Nice mix of recent releases and good older films. Again limited but quality. I tried it all. The one complaint I had it was the quality of the audio the noise canceling was ad hoc at best. For a new system - this should have been better.
The Professor's factor Score 0.5
I had a low expectation going into the service and was pleasantly surprised to find it was a pretty good - solid not flashy - implementation. There was no sleeper suit, no special amenity bag, nothing of any flash.
However for the Professor - these are not important to the service of a good system that works and lets me travel in peace and comfort.
Almost all of the US carriers have in the main have tried but not necessarily succeeded in this regard.
United is no different. So far I have been able to sample the old and new offerings of UA, AA, CO, NW - the new DL service is not really available except on the 777 LRs. So US is the one carrier I want to still try.
The US airlines are really not as good as they could be. However the current crop of products is better. UA's seat is as good as most.
So here is the review using the BOOT's standard of comfort.
For Tim Hughes's standard go here:
http://tims-boot.blogspot.com/2009/02/airline-seat-reviews-new-boot-segment.html
So plagiarizing him mercilessly - here is my review
So just for the sake of clarity - this was a long and oft delayed frequent flyer ticket.
I want to applaud United's customer service people for helping me to secure the seat.
United has had to struggle in recent years and probably more than anyone else they have a legacy environment. Again plaudits to them for trying.
The Professor's rating for United Transatlantic Business Class is a 3.5 stars out of 6 or Great Seat". Here is the detailed review
Getting on Board Score 1.0
For London United has the old now radically reconfigured BA lounges in Terminal one. They are quite nice. In my opinion as good as BA was. The choice is not as great but it wasnt as crowded as the old place was. When the full compliment of carriers is in the terminal then it may not be quite as nice.
Does it compare with the Asian Carriers - not really. But does it compare to the other carriers - yes! Its a pretty good experience, they have some things that need to be handled. The Wifi could be a bit better for example. Frankly I think the Star group have really been better at getting their alliance on the road. It really is the best alliance. (And I am not even a gold member these days).
The Seat Score 0.5
UA's product is pretty good. Interesting forward and backward rows is a little weird but it kinda works.
The seat is correctly padded and the controls work. Not too fancy - Utilitarian I would say. The screens are great. The Movies just fine. Its Panasonic's current generation IFE. Of course in flight wifi would be a big help.
The Service Score 0.5
Actually I would like to say this was good but it was - well just average and that is being generous. The flight attendants were very friendly but the product range is very shallow - so they try but they don't have a lot to work with. When times improve lets hope that they do better. Here UA us behind DL but about on par with CO and AA.
The Food Score 0.5
The menu is limited but reasonable quality. The food came at the right time and didn't have much choice. The Wine list interestingly had not a single French wine on it. Sacre Bleu! The service from London was clearly the regular flight kitchens. The Sandwiches are pretty much the same on every major long haul carrier out of LHR.
The Entertainment Score 0.5
UA has on par. It is full video on demand with a regular library of movies, TV and audio. Nice mix of recent releases and good older films. Again limited but quality. I tried it all. The one complaint I had it was the quality of the audio the noise canceling was ad hoc at best. For a new system - this should have been better.
The Professor's factor Score 0.5
I had a low expectation going into the service and was pleasantly surprised to find it was a pretty good - solid not flashy - implementation. There was no sleeper suit, no special amenity bag, nothing of any flash.
However for the Professor - these are not important to the service of a good system that works and lets me travel in peace and comfort.
27 August 2009
New NBTA Exec Director - Mike McCormick
Michael McCormick is to serve as new NBTA Executive Director relinquishing his current roles at Hudson Crossing and PCW. Full circle for Mike - he was formerly President of BizTravel.com
Congrats Mike!
Cheers
Congrats Mike!
Cheers
Boeing: "WE PROMISE IT WILL FLY" in 2009
Boeing is now sticking its neck out (I count this as the 9th first flight date announcement - but I could be wrong) and saying the Dreamliner 787 will fly in 2009. Technically before the end of the year with deliveries now planned for "late 2010".
Frankly I had given up on Boeing being able to do this. I remain a little bit skeptical as having been the nay sayer for sometime - I have avoided commenting on the "Microscopic" skin wrinkles that have "no impact" on the safety or flight characteristics.
I will let others more qualified than I talk about the potential to get this right or wrong. Instead I will take the opinion that this has worked to Boeing's advantage and to the airlines also. In the mean time the wind down of the 767 line has kept lease prices high for an aircraft of the right size. It has keep the market from being flooded with a number of new planes in the mid size category, and it has kept the 757s and 767s flying when some could easily have found their way to the desert.
It has also fueled the demand for Airbus's product in the A330 line.
So winners all round?
Not quite sure. For one thing Boeing's credibility has been severely shot in the process. The idea of a Just In Time supply chain management driven production process has really taken a big bite. We can be assured that in future - Boeing wont be so trusting of its partners.
Cheers
Frankly I had given up on Boeing being able to do this. I remain a little bit skeptical as having been the nay sayer for sometime - I have avoided commenting on the "Microscopic" skin wrinkles that have "no impact" on the safety or flight characteristics.
I will let others more qualified than I talk about the potential to get this right or wrong. Instead I will take the opinion that this has worked to Boeing's advantage and to the airlines also. In the mean time the wind down of the 767 line has kept lease prices high for an aircraft of the right size. It has keep the market from being flooded with a number of new planes in the mid size category, and it has kept the 757s and 767s flying when some could easily have found their way to the desert.
It has also fueled the demand for Airbus's product in the A330 line.
So winners all round?
Not quite sure. For one thing Boeing's credibility has been severely shot in the process. The idea of a Just In Time supply chain management driven production process has really taken a big bite. We can be assured that in future - Boeing wont be so trusting of its partners.
Cheers
jetBlue Continues Migration to Full Service Carrier
Jetblue has finally conceded that actually it does need a way to pay for tickets sold via Travelagents on the GDSs.
So facing the inevitable - they have joined ARC. This makes jetBlue a true conventional carrier. The only think missing is (drumroll please) Interlining. Well it sort of already does that with virtual interlining to several airline partners.
Then in reality it is a regular Network carrier.
So let's review:
Participation in GDS - Check
Interlining - Check
Travel Agent sales - Check
ARC participant - Check
Sabre as PSS (coming soon) - Check
Regular fares and Services - Check
So what about this isn't a regular airline
Cheers
So facing the inevitable - they have joined ARC. This makes jetBlue a true conventional carrier. The only think missing is (drumroll please) Interlining. Well it sort of already does that with virtual interlining to several airline partners.
Then in reality it is a regular Network carrier.
So let's review:
Participation in GDS - Check
Interlining - Check
Travel Agent sales - Check
ARC participant - Check
Sabre as PSS (coming soon) - Check
Regular fares and Services - Check
So what about this isn't a regular airline
Cheers
IBM and Travelport Focus On Expenses
Travelport and IBM have signed a deal to focus on Expense Management. Clearly Concur is the issue here.
With Amex and Concur cozying up to each other even more than they have in the past and with the importance of expense control in the sights of the Corporate Financial Departments being acute - this is a timely announcement.
The issue will be how well they do.
The good news is that the technology will combine IBM’s Global Expense Reporting Solutions (GERS) with all Travelport GDS bookings. GERS is a mature product.
This could be a non-event as companies are already providing services just not actively together.
However the more interesting piece will be if other players focus on the space. I dont think this will move the dial that much. Still its good to see both companies focus on addressing the importance of EMS.
Cheers
With Amex and Concur cozying up to each other even more than they have in the past and with the importance of expense control in the sights of the Corporate Financial Departments being acute - this is a timely announcement.
The issue will be how well they do.
The good news is that the technology will combine IBM’s Global Expense Reporting Solutions (GERS) with all Travelport GDS bookings. GERS is a mature product.
This could be a non-event as companies are already providing services just not actively together.
However the more interesting piece will be if other players focus on the space. I dont think this will move the dial that much. Still its good to see both companies focus on addressing the importance of EMS.
Cheers
Got To Love The BA PR Hacks
I really enjoy reading the (sometimes) complete drivel that airlines put out in their PR to both their customers and the media.
I am sure that there are airline people (still) that believe what they write.
So for your personal edification – I present the Customer email from British Airways announcing “Seating in Club Europe is Changing”
Rather than publishing the whole letter – I will just pull out two sections:
In the body of the email:
We have taken this feedback on board and will be making further enhancements to our Club Europe cabin by widening the seats and reintroducing the original configuration*, as of 2 September 2009. And to ensure you always sit in an aisle or a window seat we won’t book customers into the middle seat.
So I will be very interested to see how they intend widening the seats and re-introducing the original configuration!!
Now for the good part
Here is the confidentiality statement in the email….
This email is intended solely for the addressee(s) and the information it contains is confidential. If you are not the intended recipient, (a) please delete this email and inform the sender as soon as possible, and (b) any copying distribution or other action taken or omitted to be taken in reliance upon it is prohibited and may be unlawful.
So I think it will be interesting to see how BA enforces confidentiality when it sends its emails out so a squillion people!
You be the judge
Cheers
I am sure that there are airline people (still) that believe what they write.
So for your personal edification – I present the Customer email from British Airways announcing “Seating in Club Europe is Changing”
Rather than publishing the whole letter – I will just pull out two sections:
In the body of the email:
We have taken this feedback on board and will be making further enhancements to our Club Europe cabin by widening the seats and reintroducing the original configuration*, as of 2 September 2009. And to ensure you always sit in an aisle or a window seat we won’t book customers into the middle seat.
So I will be very interested to see how they intend widening the seats and re-introducing the original configuration!!
Now for the good part
Here is the confidentiality statement in the email….
This email is intended solely for the addressee(s) and the information it contains is confidential. If you are not the intended recipient, (a) please delete this email and inform the sender as soon as possible, and (b) any copying distribution or other action taken or omitted to be taken in reliance upon it is prohibited and may be unlawful.
So I think it will be interesting to see how BA enforces confidentiality when it sends its emails out so a squillion people!
You be the judge
Cheers
AA Jetstreams Over Sabre
In the next weeks and months a lot of digital ink will be spilled on the new HP-AMR deal for “Jetstream” PSS for the AA group of airlines and in the process dump SABRE as the core system.
What are these implications?
Here is my little list:
*The big nail in the coffin of the TPF based inventory and PSS systems.
*The final separation of SABRE and AA
*The big win for Microsoft and its push to be at the core of the enterprise
*HP’s vindication of its purchase of EDS
*The emergence of HP as (second time around) a contender with Amadeus for PSS
*Amadeus still has some pretty serious issues with its ALTEA roll out, and clearly now some competition.
All of these will be important over time. One thing is sure – the landscape for PSS has been redrawn in a relatively short period of time.
So who are the losers in this - actually a lot of people:
1. ITA software - bravely putting on a face for the product that now has no customer
2. Sabre - losing its anchor PSS tenant and a vote of disfavour for the current generation SabreSonic product
3. Amadeus who thought they would win the contract (what were they thinking!!!!)
4. IBM who have now effectively exited the PSS business
5. IBS who have failed to get a major US or European airline as customer.
6. Travelport who also are a no show in the frame
7. SITA - who had an outside chance at the PSS contract.
Oh yes and me... I can't make any more jokes about Sabre being AA's SEMI-AUTOMATED Res system.
Winners? HP of course. Not sure about anyone else in there. Although the other Shares subscribers are probably very happy that they have a big fish in their midst. At least today. Tomorrow they are going to wake up and see what a big animal AA really is and just how much resource it will be consuming over the next 4 years.
There is one clear winner however. That is the determination that PSS systems are really complex and that the intermediate systems around distribution and merchandising are now more important than the core Inventory system.
So the focus of PSS salesmen is now on the AC/CO group. This will be an interesting battle as there will be a lot riding on the newest best friends decisions on how they link their systems. Amadeus can console themselves with a TAM win. Sabre is still resting on its Jetblue and Westjet recent wins.
Its going to be an interesting period of time.
Cheers
What are these implications?
Here is my little list:
*The big nail in the coffin of the TPF based inventory and PSS systems.
*The final separation of SABRE and AA
*The big win for Microsoft and its push to be at the core of the enterprise
*HP’s vindication of its purchase of EDS
*The emergence of HP as (second time around) a contender with Amadeus for PSS
*Amadeus still has some pretty serious issues with its ALTEA roll out, and clearly now some competition.
All of these will be important over time. One thing is sure – the landscape for PSS has been redrawn in a relatively short period of time.
So who are the losers in this - actually a lot of people:
1. ITA software - bravely putting on a face for the product that now has no customer
2. Sabre - losing its anchor PSS tenant and a vote of disfavour for the current generation SabreSonic product
3. Amadeus who thought they would win the contract (what were they thinking!!!!)
4. IBM who have now effectively exited the PSS business
5. IBS who have failed to get a major US or European airline as customer.
6. Travelport who also are a no show in the frame
7. SITA - who had an outside chance at the PSS contract.
Oh yes and me... I can't make any more jokes about Sabre being AA's SEMI-AUTOMATED Res system.
Winners? HP of course. Not sure about anyone else in there. Although the other Shares subscribers are probably very happy that they have a big fish in their midst. At least today. Tomorrow they are going to wake up and see what a big animal AA really is and just how much resource it will be consuming over the next 4 years.
There is one clear winner however. That is the determination that PSS systems are really complex and that the intermediate systems around distribution and merchandising are now more important than the core Inventory system.
So the focus of PSS salesmen is now on the AC/CO group. This will be an interesting battle as there will be a lot riding on the newest best friends decisions on how they link their systems. Amadeus can console themselves with a TAM win. Sabre is still resting on its Jetblue and Westjet recent wins.
Its going to be an interesting period of time.
Cheers
25 August 2009
For Sale: BA Silver for 200 quid!
No this is not a misprint... This is what BA's new deal for low cost fares being eligible for entry into the BA FF high clouds of Silver. The new arrangement allows the user to collect either 600 points or 50 flights on BA. So being the person that I am, I went and looked at what that could mean. With a little help from Professor Mike (who alerted me to this deal) we went and found the current cheapest fare on BA. It is 8 pounds for a roundtrip ticket LGW-MAN-LGW. The taxes and fees however raise the price to 77 pounds. This if you take the cheapest option and the most effective version you can fly 25 times from LGW to Manchester roundtrip and walk away having snagged a Silver card from BA. Total cost 1925 pounds
HOWEVER imagine if you are a higher premium traveller who flies occasionally on BA but pays full wack for his tickets. He will have paid for a roundtrip LON-NYC - 2017 pounds and would have snagged merely a few miles and a measly 50 tier points.
Thus the new program definitely favors cheap short haul day trips on lower yields that the chap who has actually provided the bread and butter of the long haul premium cabins.
For those of us who are filling BA's coffers with cash - we find that this is an unfair situation.
I raise this for another reason - the ugly side of airline ancillary revenue comes forward. I wont comment on exactly how the split of those fees are actually real taxes or fake charges that can work out for BA - but suffice to say BA is doing nicely thank you and that its net on such a ticket is way north of the headline 8 pounds.
So here is a little view of the relevant page on BA.
Cheers and have a good time with this
Professor.
18 August 2009
The Times Hates Michael O'Leary?
Thanks to Professor Paul for this one...
http://timesbusiness.typepad.com/money_weblog/2009/03/20-reasons-not-to-fly-ryanair.html
It needs no embellishment...
Cheers
http://timesbusiness.typepad.com/money_weblog/2009/03/20-reasons-not-to-fly-ryanair.html
It needs no embellishment...
Cheers
Changes In India - Sabre buys Travelguru
Sabre's subsidiary Travelocity yesterday purchased Travelguru one of the big 4 India OTA sites. The product has been re-branded with Travelocity like visuals. A thank you to Professor Naveen for this one.
This leaves the other players as potential targets for Expedia and Orbitz/Blackstone.
The big Kahuna is Makemytrip who has managed to maintain a two part business model - domestic sales and then inbound sales. Cleartrip and Yatra make up the other candidates. There are a squillion other players but these are the ones that matter.
It will be interesting to see whether the buying frenzy starts or if the likely purchasers sit on the side lines. Expedia's local efforts have been somewhat lost - their supplier relations muscle is driven from outside India sales. Orbitz has no real market footprint. Of course there are other reasons for getting a local footprint - Travel is still a footprint product so the media companies are very likely to be watching the developments closely.
The dynamics of the Indian market have changed in the past year or so with first the fuel prices and now the recession biting hard into the local airlines. Deccan has disappeared, Jet absorbed a smaller competitor and the unthinkable - Jet and Kingfisher are cooperating extensively. The National airlines too have merged under a single Air India brand but the bloated overmanning and waste continues. Air India even had to ban overweight flight attendants! Thus the proliferation of airlines has rationalized somewhat and the OTAs in my opinion need to do the same.
That said - if they could monetize the whole thing well - the transaction volumes at the big 4 OTAs in the market are very healthy. Like so many things today - it is the yields that suck!
Cheers
This leaves the other players as potential targets for Expedia and Orbitz/Blackstone.
The big Kahuna is Makemytrip who has managed to maintain a two part business model - domestic sales and then inbound sales. Cleartrip and Yatra make up the other candidates. There are a squillion other players but these are the ones that matter.
It will be interesting to see whether the buying frenzy starts or if the likely purchasers sit on the side lines. Expedia's local efforts have been somewhat lost - their supplier relations muscle is driven from outside India sales. Orbitz has no real market footprint. Of course there are other reasons for getting a local footprint - Travel is still a footprint product so the media companies are very likely to be watching the developments closely.
The dynamics of the Indian market have changed in the past year or so with first the fuel prices and now the recession biting hard into the local airlines. Deccan has disappeared, Jet absorbed a smaller competitor and the unthinkable - Jet and Kingfisher are cooperating extensively. The National airlines too have merged under a single Air India brand but the bloated overmanning and waste continues. Air India even had to ban overweight flight attendants! Thus the proliferation of airlines has rationalized somewhat and the OTAs in my opinion need to do the same.
That said - if they could monetize the whole thing well - the transaction volumes at the big 4 OTAs in the market are very healthy. Like so many things today - it is the yields that suck!
Cheers
17 August 2009
Caveat Emptor - But Is Public Venting In Good?
I like to vent as much as the next person. (Perhaps a bit too much sometimes!!)
So in reading a rambling rant against Air France within a Travel Industry Newsletter - it seems to be disingenuous of anyone.
We all know airline customer service sucks. So what is new about that. There are however somethings that people can do if they try hard!!!
Of course Air France (lack of) Customer Service is legendary. There are many other carriers who are just as bad for much of the same reasons.
However in today's environment - it is time for the consumer to better informed and better equipped to handle the situations that are there for all to see.
So if you would like to read a tale of woe - read this one:
http://www.eturbonews.com/11026/why-air-france-deserves-its-loss
My opinion?
Caveat Emptor.
Cheers
So in reading a rambling rant against Air France within a Travel Industry Newsletter - it seems to be disingenuous of anyone.
We all know airline customer service sucks. So what is new about that. There are however somethings that people can do if they try hard!!!
Of course Air France (lack of) Customer Service is legendary. There are many other carriers who are just as bad for much of the same reasons.
However in today's environment - it is time for the consumer to better informed and better equipped to handle the situations that are there for all to see.
So if you would like to read a tale of woe - read this one:
http://www.eturbonews.com/11026/why-air-france-deserves-its-loss
My opinion?
Caveat Emptor.
Cheers
15 August 2009
Cheeky Bahrain Air to Scupper GF’s Strategy
Bahrain Air is the little airline that could. While pursuing a relatively conservative strategy – it has been slowly gaining market share and winning customers with its brand of LCC with charm. I have flown them several times equally with Gulf Air. I find the carrier to be solid and quite competent.
Now that GF finally has a new leader (and a very competent one too) in Samer Majali (ex RJ), the airline can now get away from its bloated and occasionally corrupt past. However the bold strategy of being the carrier of choice to Iraq seems to be back firing a little with Bahrain Air matching GF’s service by flying to 2 new cities in Iraq.
Cheers
Now that GF finally has a new leader (and a very competent one too) in Samer Majali (ex RJ), the airline can now get away from its bloated and occasionally corrupt past. However the bold strategy of being the carrier of choice to Iraq seems to be back firing a little with Bahrain Air matching GF’s service by flying to 2 new cities in Iraq.
Cheers
US Travel Weekly Steps Into Trust Battle
Travel Weekly (US)’s corporate parent Northstar Media has stepped into the fray of trust with a provocative email entitled “Can you trust Consumer Reviews”.
It is extolling a platform for Travel Industry peers to create their own reviews (on TW’s environment of course). So while I agree that Consumer input on sites such as Trip Advisor has been subject to Fraud and other general nefarious bad things – they are just that – consumer thoughts. However does that make them any the less valuable? Further are Agent or Travel Industry reviews any more reliable and trust worthy?
Frankly I have always felt that the Travel Industry ability to sugar coat things in sickly syrupy bad PR was an art form. The infamous Ocean View (standing on the wardrobe when the tide was high and in the middle of a tidal wave) embellishment should give the world no more credibility than a disgruntled guest or a self promoting supplier.
Indeed neither sectors are immune from self interest. However the idea that Agents are better at expressing quality measurements than consumers doesn’t hold a lot of value.
This brings me to my core belief is that there has to be some merging of “Professional” mode opinion with the “Consumer” IE user opinion. However how to merge the 2 cannot be easily brought together in harmony.
When someone sorts this out – it could be useful, very useful.
Cheers
It is extolling a platform for Travel Industry peers to create their own reviews (on TW’s environment of course). So while I agree that Consumer input on sites such as Trip Advisor has been subject to Fraud and other general nefarious bad things – they are just that – consumer thoughts. However does that make them any the less valuable? Further are Agent or Travel Industry reviews any more reliable and trust worthy?
Frankly I have always felt that the Travel Industry ability to sugar coat things in sickly syrupy bad PR was an art form. The infamous Ocean View (standing on the wardrobe when the tide was high and in the middle of a tidal wave) embellishment should give the world no more credibility than a disgruntled guest or a self promoting supplier.
Indeed neither sectors are immune from self interest. However the idea that Agents are better at expressing quality measurements than consumers doesn’t hold a lot of value.
This brings me to my core belief is that there has to be some merging of “Professional” mode opinion with the “Consumer” IE user opinion. However how to merge the 2 cannot be easily brought together in harmony.
When someone sorts this out – it could be useful, very useful.
Cheers
Is Twitter More Important Than Facebook?
There has been quite a lot of discussion about the importance of Twitter. As regulars know I am not a fan of Twitter or rather its (ab)uses.
It seems that marketers are flocking to Twitter and eMarketer has done a piece on extolling the way Marketers are embracing Twitter over Facebook:
http://enews.emarketer.com/m/29aGdnueRyzvKdKXuV0e_IocpAwnK7lv11JwFKWE-NeH--4WGQ
Interesting. I am not sure that the marketers who are going after other channels in an effort to interact with their customers are doing the users – or themselves – any real benefit and good.
But you be the judge! The consumer will be the ultimate decider. I worry personally that the consumer has actually had enough of too many choices and too much noise aimed in his direction.
Cheers
It seems that marketers are flocking to Twitter and eMarketer has done a piece on extolling the way Marketers are embracing Twitter over Facebook:
http://enews.emarketer.com/m/29aGdnueRyzvKdKXuV0e_IocpAwnK7lv11JwFKWE-NeH--4WGQ
Interesting. I am not sure that the marketers who are going after other channels in an effort to interact with their customers are doing the users – or themselves – any real benefit and good.
But you be the judge! The consumer will be the ultimate decider. I worry personally that the consumer has actually had enough of too many choices and too much noise aimed in his direction.
Cheers
13 August 2009
Delta now the US biggest airline but...
Southwest actually is the biggest single brand based on May stats.
So when will the merger actually count?
We are all waiting!
So when will the merger actually count?
We are all waiting!
Pilot Unions Scupper WN/F9 Deal
You have to admire the way unions seem to shoot themselves in the foot.
I think most of us had hoped and believe that this sort of union behavior was a think of the past. Apparently not so. Thus the US bankruptcy court ruled yesterday as the WN bid included a requirement for the 2 pilot unions to agree.
So here is the bottom line. F9's pilots (700 of them) and WN's pilot's (6,000) of them could not agree on the seniority issue. Thus the bid failed. Thus F9 ends up with a value of 108 million from Republic Airlines Group vs the much larger cash bid from WN.
I think it's high time that someone tackled the seniority problem with a set of rules that makes sense. The simple answer would be merge them based on suitable dates. However a bad merger could result which was the situation at the Pan Am/National merger. So the best answer is to put in a single set of rules that is based on COMPETENCY and hours in the cockpit rather than the date of hire.
And to the two pilot unions. Shame on you both.
However there is a little bit of silver lining in this. Frontier stays independent (which was my preference if anyone was asking) and the team at F9 stay intact and will continue to keep prices in check! So perhaps the real winner will be the consumer. Zut Alors!
Cheers
I think most of us had hoped and believe that this sort of union behavior was a think of the past. Apparently not so. Thus the US bankruptcy court ruled yesterday as the WN bid included a requirement for the 2 pilot unions to agree.
So here is the bottom line. F9's pilots (700 of them) and WN's pilot's (6,000) of them could not agree on the seniority issue. Thus the bid failed. Thus F9 ends up with a value of 108 million from Republic Airlines Group vs the much larger cash bid from WN.
I think it's high time that someone tackled the seniority problem with a set of rules that makes sense. The simple answer would be merge them based on suitable dates. However a bad merger could result which was the situation at the Pan Am/National merger. So the best answer is to put in a single set of rules that is based on COMPETENCY and hours in the cockpit rather than the date of hire.
And to the two pilot unions. Shame on you both.
However there is a little bit of silver lining in this. Frontier stays independent (which was my preference if anyone was asking) and the team at F9 stay intact and will continue to keep prices in check! So perhaps the real winner will be the consumer. Zut Alors!
Cheers
France/Germany "Officially" No Recession
Results from the respective economic authorities show that two of the leading economies of Europe are no longer in recession.
The UK is also showing some signs of life. The property market had one of its best months in June - particularly in the upper end properties and in the East Anglia region.
For the US - the results are looking like we could be at the bottom.
Asia doesn't look quite so rosy with both India and China still stuck in the doldrums. Australia is looking a little better.
However I caution anyone to turn to this as evidence that the travel market is on the way up. Remember we have lost a lot of actual traffic and too the yields look awful.
For the month of August we should see a flat result. September's results should be interesting as this was he first real month in the USA when traffic tanked.
There are still some basket cases - Las Vegas would be a good example.
Stay tuned!
The UK is also showing some signs of life. The property market had one of its best months in June - particularly in the upper end properties and in the East Anglia region.
For the US - the results are looking like we could be at the bottom.
Asia doesn't look quite so rosy with both India and China still stuck in the doldrums. Australia is looking a little better.
However I caution anyone to turn to this as evidence that the travel market is on the way up. Remember we have lost a lot of actual traffic and too the yields look awful.
For the month of August we should see a flat result. September's results should be interesting as this was he first real month in the USA when traffic tanked.
There are still some basket cases - Las Vegas would be a good example.
Stay tuned!
It Really Is All About Trust
Brands are about Trust but Trust is not all about Brands.
People Trust Friends - some of the time - but not all of the time.
The assumption that friends trust other friends all the time and therefore by extension their "relationships" on social networks result in the cachet of Trust being bestowed on the circle/network is patently false. However there seems to be a lot of people who both believe in this notion and are now relying on it.
The difficulty is debunking this theory. Finding a way to understand Trust and its Impact should be something everyone takes care in - not just the frontline people.
If there is someone out there with empirical (and repeatable) technology or process who can prove me wrong ... please do. I really do want to believe. I just find it goes against my grain.
Cheers
People Trust Friends - some of the time - but not all of the time.
The assumption that friends trust other friends all the time and therefore by extension their "relationships" on social networks result in the cachet of Trust being bestowed on the circle/network is patently false. However there seems to be a lot of people who both believe in this notion and are now relying on it.
The difficulty is debunking this theory. Finding a way to understand Trust and its Impact should be something everyone takes care in - not just the frontline people.
If there is someone out there with empirical (and repeatable) technology or process who can prove me wrong ... please do. I really do want to believe. I just find it goes against my grain.
Cheers
12 August 2009
Interesting Airline Stories
Here are a few airline tidbits I picked up....
AirTran delivered on its promise to wire(less) up its whole fleet by the end of July. So there you go! Of course no guarantees that the things actually work!
Delta was quietly recommended to work with JAL by the Japanese regulator as a way out of its predicament and get more traffic and less costs. Hmmm not so sure its OneWorld partners would be so keen - particularly AA. With NW - DL now has fully put itself back into the Japanese market.
F9 to become WN? I think that while it would have been a good idea to be owned by Republic, WN is a better bet longer term. Does this make WN a full service airline? I think so....
V Australia has to do something with those planes - so off to Fiji. Rather than bleeding more cash - V has decided to extend the existing model for the Virgin Blue group and head to Fiji with one of its shiny new 777s. Virgin Oz has some challenges ahead. Lets hope that they don't become too much of a distraction. They are having to fight a lot of battles on a lot of fronts.
And finally under the category of "What were they thinking" CO is being investigated (or is it Expressjet) for holding its passengers hostage and blaming the airport and the TSA. The right course of action would have been for the Captain to just let people off the plane and take action. He has the authority and moral responsibility. So sorry - the company was wrong and the captain was wrong. Not to mention the fact that the TSA should have by now got a policy to handle this. So boos all round. BTW - Chris Elliott had some good ideas. Next time declare an emergency. Then see how fast people forget stupid rules....
Cheers
AirTran delivered on its promise to wire(less) up its whole fleet by the end of July. So there you go! Of course no guarantees that the things actually work!
Delta was quietly recommended to work with JAL by the Japanese regulator as a way out of its predicament and get more traffic and less costs. Hmmm not so sure its OneWorld partners would be so keen - particularly AA. With NW - DL now has fully put itself back into the Japanese market.
F9 to become WN? I think that while it would have been a good idea to be owned by Republic, WN is a better bet longer term. Does this make WN a full service airline? I think so....
V Australia has to do something with those planes - so off to Fiji. Rather than bleeding more cash - V has decided to extend the existing model for the Virgin Blue group and head to Fiji with one of its shiny new 777s. Virgin Oz has some challenges ahead. Lets hope that they don't become too much of a distraction. They are having to fight a lot of battles on a lot of fronts.
And finally under the category of "What were they thinking" CO is being investigated (or is it Expressjet) for holding its passengers hostage and blaming the airport and the TSA. The right course of action would have been for the Captain to just let people off the plane and take action. He has the authority and moral responsibility. So sorry - the company was wrong and the captain was wrong. Not to mention the fact that the TSA should have by now got a policy to handle this. So boos all round. BTW - Chris Elliott had some good ideas. Next time declare an emergency. Then see how fast people forget stupid rules....
Cheers
WSJ Calls Dutchman Hendrik Noorderhaven "Robin Hood"
I have written in the past about EUclaim and the model for the US market in passenger rights.
Now it seems that Hendrik is getting some kudos from WSJs Middle Seat Column.
http://online.wsj.com/article/SB10001424052970203612504574344832790197904.html?mod=djemseat
I fully agree!
No all we need is US based legislation to match that of the EU and we will see lots of companies like this operating.
Cheers
Now it seems that Hendrik is getting some kudos from WSJs Middle Seat Column.
http://online.wsj.com/article/SB10001424052970203612504574344832790197904.html?mod=djemseat
I fully agree!
No all we need is US based legislation to match that of the EU and we will see lots of companies like this operating.
Cheers
US Agency Transactions Still Suck, But....
There may be some cause for limited optimism.
The latest ARC figures today show a marked improvement over the last few months of activity.
Specifically Transactions were off less than 1% from last year's numbers and yield was off only 17% vs last year. Year to Date figures are 7% and 26% respectively.
Let's not leap to conclusions. Despite the opinion among leading economists that the Recession has bottomed out, we may just be bubbling along the bottom.
I am not yet convinced but I am heartened by these numbers
Cheers
The latest ARC figures today show a marked improvement over the last few months of activity.
Specifically Transactions were off less than 1% from last year's numbers and yield was off only 17% vs last year. Year to Date figures are 7% and 26% respectively.
Let's not leap to conclusions. Despite the opinion among leading economists that the Recession has bottomed out, we may just be bubbling along the bottom.
I am not yet convinced but I am heartened by these numbers
Cheers
The Big US East Coast Switcheroo
Well the dust is clearing on the giant switch of airport slot assets on the US East Coast. It started yesterday with Continental and Air Tran doing a relatively small switch. AirTran AP reported planned to swap some Newark landing slots with Continental Airlines’ slots in Washington and New York, effective 25-Oct-09 AirTran would give Continental ten slots, gate and Jetway access at Newark in exchange for six Continental slots at Washington and four slots at LaGuardia.
Then the US Airways Delta swap was announced today.
As the Professor understands it, newly engrossed Delta acquires 125 slot pairs at LGA, US Airways acquires 42 slot pairs at DCA with international rights to Brazil and Japan both to be served from Charlotte. It is likely that cash will also change hands but that was not fully clear yet.
What is interesting is that the basis for this is swapping Regional and Commuter slots for mainline service slots in all the respective markets.
When the smoke clears it will mean a lot more nonstop services on the West Coast. It will also change the competitive landscape.
In my mind the winners here are US Airways in Washington market (who will be able to provide nonstop service in many markets particularly in the long haul arena now that West Coast services are possible from DCA). Correspondingly UAL will face increased competition despite having seen off several players who have attempted to boost services from the area - for example the spectacular collapse of Independence Air.
For New York - Delta will become a formidible competitor to Continental its cross town rival.
Is there a loser in all this?
In my opinion there are several losers. American will see its fall from top dog go even further, I have already given an opinion on UAL and CO. But perhaps the biggest loser(s) will be the small communities who currently receive nonstop service from both LGA and DCA airports.
Is this good?
Well lets see what Transportation Secretary LaHood has to say. For sure the disadvantaged will be clamoring for some mitigation.
Cheers
Then the US Airways Delta swap was announced today.
As the Professor understands it, newly engrossed Delta acquires 125 slot pairs at LGA, US Airways acquires 42 slot pairs at DCA with international rights to Brazil and Japan both to be served from Charlotte. It is likely that cash will also change hands but that was not fully clear yet.
What is interesting is that the basis for this is swapping Regional and Commuter slots for mainline service slots in all the respective markets.
When the smoke clears it will mean a lot more nonstop services on the West Coast. It will also change the competitive landscape.
In my mind the winners here are US Airways in Washington market (who will be able to provide nonstop service in many markets particularly in the long haul arena now that West Coast services are possible from DCA). Correspondingly UAL will face increased competition despite having seen off several players who have attempted to boost services from the area - for example the spectacular collapse of Independence Air.
For New York - Delta will become a formidible competitor to Continental its cross town rival.
Is there a loser in all this?
In my opinion there are several losers. American will see its fall from top dog go even further, I have already given an opinion on UAL and CO. But perhaps the biggest loser(s) will be the small communities who currently receive nonstop service from both LGA and DCA airports.
Is this good?
Well lets see what Transportation Secretary LaHood has to say. For sure the disadvantaged will be clamoring for some mitigation.
Cheers
11 August 2009
Mesa's Go! Suffering in Hawaii
Go! the object of much ire last year when the venerable Aloha went out of business doesn't seem to be making much headway. Compared to its parent - the airline is suffering even more than the rest of the group. Thus it can be inferred that either the market in Hawaii has become ultra competitive hurting yields, or that they are losing passengers, or that people would much rather fly in larger equipment than in CRJs. Perhaps even a combination of all 3.
The competition from a newly invigorated Island Air, Mokelene and the powerhouse of Hawaiian might be too much for the little airline.
Anyway - here are the headline results. This doesn't augur well - given the damage done to Aloha - it is increasingly obvious that this loss represents a significant amount of the loss for the whole Mesa Group.
Anyhow - you be the judge
• Revenue: USD8.7 million, -44.1% year-on-year;
• Operating costs: USD12.3 million, -46.8%;
• Operating profit (loss): (USD3.5 million), compared to a loss of USD7.4 million in the previous corresponding period.
Cheers
The competition from a newly invigorated Island Air, Mokelene and the powerhouse of Hawaiian might be too much for the little airline.
Anyway - here are the headline results. This doesn't augur well - given the damage done to Aloha - it is increasingly obvious that this loss represents a significant amount of the loss for the whole Mesa Group.
Anyhow - you be the judge
• Revenue: USD8.7 million, -44.1% year-on-year;
• Operating costs: USD12.3 million, -46.8%;
• Operating profit (loss): (USD3.5 million), compared to a loss of USD7.4 million in the previous corresponding period.
Cheers
Do Friends REALLY Want To Share Everything?
I find it an interesting paradox that many people love Facebook for its ability to connect. Yet at the same time there is a whole load of people – I would GUESS that it is the majority – who are just not comfortable with sharing everything. Yet with Facebook and other Social Media tools, both the choice and the ability to allow a depth of nuance of what is allowable eludes the user.
A close family member refuses to share her Facebook access with me because she fears that I will have access into her own personal world of her friends and relationships. I have no desire to pry yet there are many different other family members (connected to both of us) who wish to connect and be connected to other family members yet are at the brick wall of this decision.
I liken this dilemma to that of the original Web 1.0 Travel products where access was the value and the trade off of access was the poor User Experience. Ditto today with Social Media, the trade off is loss of anonymity with access to a broader community of “friends”. One has to ask is this sustainable? I think not. As the tools proliferate around Facebook and in the interior of Facebook so too will the willingness to share be a trade off of being exploited. I am really getting upset with some of the intrusive “suggestions” that Facebook sends to me.
And no I don’t think Friends do really want to share everything to everybody equally. The technology is not up to it and the management is definitely not.
Friends don’t let Friends use Facebook indiscriminately!
Cheers
A close family member refuses to share her Facebook access with me because she fears that I will have access into her own personal world of her friends and relationships. I have no desire to pry yet there are many different other family members (connected to both of us) who wish to connect and be connected to other family members yet are at the brick wall of this decision.
I liken this dilemma to that of the original Web 1.0 Travel products where access was the value and the trade off of access was the poor User Experience. Ditto today with Social Media, the trade off is loss of anonymity with access to a broader community of “friends”. One has to ask is this sustainable? I think not. As the tools proliferate around Facebook and in the interior of Facebook so too will the willingness to share be a trade off of being exploited. I am really getting upset with some of the intrusive “suggestions” that Facebook sends to me.
And no I don’t think Friends do really want to share everything to everybody equally. The technology is not up to it and the management is definitely not.
Friends don’t let Friends use Facebook indiscriminately!
Cheers
Ancillary Revenue Mania - By EasyJet
OK so this is about the worst case of Ancillary Revenue highway robbery I have seen so far.
Sign up for the Easyjet text service (to tell you about the conditions of your flight and the likely delays etc etc). You can sign up for 2 different versions.
Frankly this is not a good thing in my opinion. Creative but man it sucks!!!!
Mesa's Results Provide Insight Into Yield
Mesa Group's results should give no one any cause for celebration.
The results are a peak into the current ills of the US airline market. While their fuel costs plummeted 65% for the quarter (53% for the year to date), their gross yields have dropped a jaw dropping 28%.
This shows that despite holding onto passengers and only seeing a 5% slide in pax numbers their total results show that the situation with yields are in fact worsening not getting better. With its dependence on ACMI operations Mesa is still very dependent on the legacy carriers that it serves (DL, CO, US and UA). Their independent operation in Hawaii is probably still a drain on resources with its former partner Mokulele eating part of its lunch in the Hawaiian Islands - things cannot be that good.
So be warned we are going to be in for some more horrible results for a while yet.
Cheers
The results are a peak into the current ills of the US airline market. While their fuel costs plummeted 65% for the quarter (53% for the year to date), their gross yields have dropped a jaw dropping 28%.
This shows that despite holding onto passengers and only seeing a 5% slide in pax numbers their total results show that the situation with yields are in fact worsening not getting better. With its dependence on ACMI operations Mesa is still very dependent on the legacy carriers that it serves (DL, CO, US and UA). Their independent operation in Hawaii is probably still a drain on resources with its former partner Mokulele eating part of its lunch in the Hawaiian Islands - things cannot be that good.
So be warned we are going to be in for some more horrible results for a while yet.
Cheers
10 August 2009
No Secret Any More - AC Cans Polaris PSS
The slow painful lack of progress with the Air Canada Reservations Project known as Polaris has come to a dead stop with AC writing off C$67 million. More importantly the depth of the work left to do was an astonishing C$40 million. This clearly indicates that the project was no where near done. Even if you discount a large amount of money for implementation, there is a clear indication that this project had some significant hills to climb to reach an "implementable" solution. Sadly ITA software is left without its anchor customer for what is a significant amount of their future revenue expectation.
And the big winner in all this?
Amadeus?
Once again carrying all before it - Amadeus is fast becoming the only game in town for large scale reservations systems PSS. ....Well maybe not.... Amadeus has many problems of its own with the UAL implementation not making any visible progress. There are now some pretty good alternatives for large scale legacy airlines.
Mature solutions are from: Mercator (the core system of Emirates and several other airlines), itself an adaptation of the old Swissair Atrraxis system.
SabreSonic (as deployed at AA and many other carriers) the latest iteration of the venerable system from Sabre.
Horizon (although I am sure that I will get flamed by SITA who think its a brand new system)
EDS-Shares - Continental, Virgin Atlantic and US Airways are the biggest users.
There are some good solutions at the lower level of LCC and simple carrier level - such as Navitaire New Skies and Results or TikSystems (Amadeus's newest best friend).
Still trying to make headway are Unisys's Air Core, and IBS's solution.
The market for PSSs remains in churn with some big contracts still up for grabs. Lufthansa's exit from the market has left a hole. The cooperation between UA and CO should be interesting and we will be keeping an eye on this. They might yet decide to go to something different away from Altea. For sure there are a lot of people making trips to Chicago and Houston!
Actually there is one certified winner in this. IBM who managed to stay behind the scenes and retain the value of their relationship with AC. Couple this with the recent outsourcing of many of QF's IT functions to the Software and Services Giant and the boys in Armonk must be smiling.
For the rest - stay tuned.
And the big winner in all this?
Amadeus?
Once again carrying all before it - Amadeus is fast becoming the only game in town for large scale reservations systems PSS. ....Well maybe not.... Amadeus has many problems of its own with the UAL implementation not making any visible progress. There are now some pretty good alternatives for large scale legacy airlines.
Mature solutions are from: Mercator (the core system of Emirates and several other airlines), itself an adaptation of the old Swissair Atrraxis system.
SabreSonic (as deployed at AA and many other carriers) the latest iteration of the venerable system from Sabre.
Horizon (although I am sure that I will get flamed by SITA who think its a brand new system)
EDS-Shares - Continental, Virgin Atlantic and US Airways are the biggest users.
There are some good solutions at the lower level of LCC and simple carrier level - such as Navitaire New Skies and Results or TikSystems (Amadeus's newest best friend).
Still trying to make headway are Unisys's Air Core, and IBS's solution.
The market for PSSs remains in churn with some big contracts still up for grabs. Lufthansa's exit from the market has left a hole. The cooperation between UA and CO should be interesting and we will be keeping an eye on this. They might yet decide to go to something different away from Altea. For sure there are a lot of people making trips to Chicago and Houston!
Actually there is one certified winner in this. IBM who managed to stay behind the scenes and retain the value of their relationship with AC. Couple this with the recent outsourcing of many of QF's IT functions to the Software and Services Giant and the boys in Armonk must be smiling.
For the rest - stay tuned.
Is Google The New Evil Face of IT?
It sometimes bothers me to think that Google has so much power and information on all of us. The benign image we have of Google being all good should have (by now) been debunked.
So it seems that others are beginning to notice that whenever Google doesn't get its own way - it becomes a jihad to crush the competition. Interestingly Microsoft has been the target of regulators not for actually doing anything (ok just a little) really bad but rather the potential for damage. If that is the criteria then Google is the new evil empire.
Just lately the latest person to fall foul of Google seems to be Apple - its one time best friend.
Check out this article:
http://www.infoworld.com/d/adventures-in-it/apple-vs-google-time-its-personal-977?source=IFWNLE_nlt_notes_2009-08-10
And what does this mean for Travel? Quite a lot. While Apple has never made a big splash in Travel - Google has and makes a very large chunk of money out of the sector.
So if you thought Microsoft was bad... just think how much power Google has and has yet to exercise.
Food for thought no?
Cheers
Disclaimer here: I am a one time MS employee and I hold stocks in all 3 companies.
So it seems that others are beginning to notice that whenever Google doesn't get its own way - it becomes a jihad to crush the competition. Interestingly Microsoft has been the target of regulators not for actually doing anything (ok just a little) really bad but rather the potential for damage. If that is the criteria then Google is the new evil empire.
Just lately the latest person to fall foul of Google seems to be Apple - its one time best friend.
Check out this article:
http://www.infoworld.com/d/adventures-in-it/apple-vs-google-time-its-personal-977?source=IFWNLE_nlt_notes_2009-08-10
And what does this mean for Travel? Quite a lot. While Apple has never made a big splash in Travel - Google has and makes a very large chunk of money out of the sector.
So if you thought Microsoft was bad... just think how much power Google has and has yet to exercise.
Food for thought no?
Cheers
Disclaimer here: I am a one time MS employee and I hold stocks in all 3 companies.
09 August 2009
Tell It Like It Is Gerry!
I don't read as often or as widely as I would like. However one of my favorite commentators is Gerry McGovern. A true internet pioneer he writes a weekly piece that I try (but am not always successful) to read.
This week's letter is a doozy. So I am just going to replicate it verbatim because it is really good:
Here is the link:
http://giraffeforum.com/wordpress/2009/08/09/nobody-cares-about-your-website/#respond
And an apology to Gerry for doing this without his permission but after you read it I hope you will agree with me. The arrogance of "personalization" knows no bounds.
Cheers!!!!
The piece is entitled:
Nobody cares about your website
Your customers couldn’t care less about your new look, your new design or whether your dog has just had kittens.
“Hi Gerry,” the Air New Zealand marketing email started off. I remember many years ago when I was a young employee at a company that had just bought its first computer. We got this word processor with an amazing feature called mail merge. We could now send lots of automated individual letters to people who owed us money. The letters went something like this:
Dear (NAME),
You owe us (AMOUNT). Pay up by tomorrow or we’ll break your legs.
Yours sincerely
We sat around and marvelled at the ability to produce so many letters automatically and how people would feel that they were receiving individually penned missives. Those letters worked so well.
I don’t think it works quite as well today. When I receive an automated marketing email addressing me by my first name, I don’t go weak at the knees: “Oh, the software knows my first name! It knows my name!” Has anyone tested to see whether these so-called personalization techniques are more likely to alienate a customer than impress them?
Anyway, back to the Air New Zealand marketing email that I don’t remember signing up to. (I’ve had pretty good experiences flying with Air New Zealand by the way.) “Welcome to the second edition of our new look monthly email.” Two fatal mistakes in the first sentence. Welcome? Hello? What’s with the welcome? I don’t want your welcome. If I want anything from you it’s your deals, and hot deals at that. When you think of your customer, imagine Tony Soprano. Nothing personal, just business. Cut the crap. Get straight to the point.
So Air New Zealand has got a new look monthly email! Stop the presses!!! Has anyone phoned CNN? This is big news. A new look monthly email! Release the press releases! What a story. I can’t wait to tell all my friends.
“Lads, lads, listen. Have I got news for you.”
“What?”
“You won’t believe it.”
“Come on, tell us.”
“You won’t believe it.”
“Come on, come on.”
“Air New Zealand has a new look monthly email.”
“You’re not serious!”
“I am.”
“You’re joking.”
“Never been more serious in my life.”
“Nah, you’re joking.”
News like that makes our day. It really does. And you’d be amazed at the amount of websites that want to give you this sort of hard news. Why, I was at the Starwood Preferred Guest website recently wanting to check what they offered in Athens when I was confronted with content that told me that the site was “redesigned and ready to help you plan your adventures. Take a few minutes to customize your account profile to ensure you take advantage of all that our new site has to offer.”
And you know what, I didn’t take those few minutes. That sounded like a real pain to me. I just wanted to quickly check availability and see if there were any good deals. I had zero interest in designs, redesigns, bee-designs, knee-designs or we-designs. (Which are what most redesigns really are; done more because of internal egos than because of external needs.)
I just wanted the website to work. How thoughtless, cruel and uncaring of me. But then I’m only a customer.
This week's letter is a doozy. So I am just going to replicate it verbatim because it is really good:
Here is the link:
http://giraffeforum.com/wordpress/2009/08/09/nobody-cares-about-your-website/#respond
And an apology to Gerry for doing this without his permission but after you read it I hope you will agree with me. The arrogance of "personalization" knows no bounds.
Cheers!!!!
The piece is entitled:
Nobody cares about your website
Your customers couldn’t care less about your new look, your new design or whether your dog has just had kittens.
“Hi Gerry,” the Air New Zealand marketing email started off. I remember many years ago when I was a young employee at a company that had just bought its first computer. We got this word processor with an amazing feature called mail merge. We could now send lots of automated individual letters to people who owed us money. The letters went something like this:
Dear (NAME),
You owe us (AMOUNT). Pay up by tomorrow or we’ll break your legs.
Yours sincerely
We sat around and marvelled at the ability to produce so many letters automatically and how people would feel that they were receiving individually penned missives. Those letters worked so well.
I don’t think it works quite as well today. When I receive an automated marketing email addressing me by my first name, I don’t go weak at the knees: “Oh, the software knows my first name! It knows my name!” Has anyone tested to see whether these so-called personalization techniques are more likely to alienate a customer than impress them?
Anyway, back to the Air New Zealand marketing email that I don’t remember signing up to. (I’ve had pretty good experiences flying with Air New Zealand by the way.) “Welcome to the second edition of our new look monthly email.” Two fatal mistakes in the first sentence. Welcome? Hello? What’s with the welcome? I don’t want your welcome. If I want anything from you it’s your deals, and hot deals at that. When you think of your customer, imagine Tony Soprano. Nothing personal, just business. Cut the crap. Get straight to the point.
So Air New Zealand has got a new look monthly email! Stop the presses!!! Has anyone phoned CNN? This is big news. A new look monthly email! Release the press releases! What a story. I can’t wait to tell all my friends.
“Lads, lads, listen. Have I got news for you.”
“What?”
“You won’t believe it.”
“Come on, tell us.”
“You won’t believe it.”
“Come on, come on.”
“Air New Zealand has a new look monthly email.”
“You’re not serious!”
“I am.”
“You’re joking.”
“Never been more serious in my life.”
“Nah, you’re joking.”
News like that makes our day. It really does. And you’d be amazed at the amount of websites that want to give you this sort of hard news. Why, I was at the Starwood Preferred Guest website recently wanting to check what they offered in Athens when I was confronted with content that told me that the site was “redesigned and ready to help you plan your adventures. Take a few minutes to customize your account profile to ensure you take advantage of all that our new site has to offer.”
And you know what, I didn’t take those few minutes. That sounded like a real pain to me. I just wanted to quickly check availability and see if there were any good deals. I had zero interest in designs, redesigns, bee-designs, knee-designs or we-designs. (Which are what most redesigns really are; done more because of internal egos than because of external needs.)
I just wanted the website to work. How thoughtless, cruel and uncaring of me. But then I’m only a customer.
It Only Took Them A Year Or Two But.....
Finally it seems that the esteemed powers that be in Washington DC pay attention to the Professor's Blog. OK so that is what I would prefer to believe other than to think that independently the US Senior Congressman from Minnesota and Chairman of the US House of Representatives Transportation Committee came up with this idea on his own.
And what is the idea? TAXES: IE That the process by which ancillary revenue is charged to the customer by the airlines was actually lowering the amount of potential revenue that the US government received for things like the FAA. (Oh yes and paying back some of its recently increased obligations). I say potential because this has not been proved.
Here is the article from CNN Money/Dow Jones:(Courtesy of BTC).
http://money.cnn.com/news/newsfeeds/articles/djf500/200908071536DOWJONESDJONLINE000574_FORTUNE5.htm
When I first raised this issue in 2007, I received a few nasty notes from some airlines who disagreed with me and when I once raised the issue at an airline forum I was almost booed off the stage for suggesting such a thing.
However I think it is inevitable. Taxation is coming to Ancillary Revenue. Some countries have been able to impose VAT type taxes on fees. This will only extend. For the US the situation is simple. Ancillary Revenues are either aviation revenue in which case the purvey of the Federal Government or they are sales revenue in which case they are subject to state taxes. They cannot be neither. (Sorry for the poor use of English here). Thus in my view they are subject to Tax.
The difficulty for everyone - and this is a fair warning - is that it will be treated differently by separate taxation jurisdictions. Thus the complexity of the airline product pricing is about to get VERY complicated.
Be prepared. If you are not ready for this - there will be great amounts of difficulty. Particularity this will affect airlines and those who set independent prices for air fare products such as Consolidators and other travel intermediaries. Ditto their suppliers and providers of solutions that must create, monitor and report this revenue/taxation.
Now you have been warned! If you would like to know what to do about it - send me a note.
Cheers
And what is the idea? TAXES: IE That the process by which ancillary revenue is charged to the customer by the airlines was actually lowering the amount of potential revenue that the US government received for things like the FAA. (Oh yes and paying back some of its recently increased obligations). I say potential because this has not been proved.
Here is the article from CNN Money/Dow Jones:(Courtesy of BTC).
http://money.cnn.com/news/newsfeeds/articles/djf500/200908071536DOWJONESDJONLINE000574_FORTUNE5.htm
When I first raised this issue in 2007, I received a few nasty notes from some airlines who disagreed with me and when I once raised the issue at an airline forum I was almost booed off the stage for suggesting such a thing.
However I think it is inevitable. Taxation is coming to Ancillary Revenue. Some countries have been able to impose VAT type taxes on fees. This will only extend. For the US the situation is simple. Ancillary Revenues are either aviation revenue in which case the purvey of the Federal Government or they are sales revenue in which case they are subject to state taxes. They cannot be neither. (Sorry for the poor use of English here). Thus in my view they are subject to Tax.
The difficulty for everyone - and this is a fair warning - is that it will be treated differently by separate taxation jurisdictions. Thus the complexity of the airline product pricing is about to get VERY complicated.
Be prepared. If you are not ready for this - there will be great amounts of difficulty. Particularity this will affect airlines and those who set independent prices for air fare products such as Consolidators and other travel intermediaries. Ditto their suppliers and providers of solutions that must create, monitor and report this revenue/taxation.
Now you have been warned! If you would like to know what to do about it - send me a note.
Cheers
07 August 2009
Speak Up on Pax Rights
So you want to have your voice heard on passenger rights and the proposed passenger bill of rights - well now is your chance:
Passenger Rights Stakeholder Hearing: Examining a Market Failure?
Presented by AirPassengerSafety.org
September 22, 2009 - Washington, DC
On Tuesday morning, September 22, 2009 consumer groups and travel industry organizations will conduct a Stakeholder Hearing in the Hart Senate Office Building regarding airline passenger rights. The purpose of the hearing is to examine passenger safety-related problems such as extended ground delays. Desired outcomes from the hearing include a better understanding of passenger safety problems; best practices from the EU in the area of passenger protections; and the potential efficacy of proposed Congressional solutions. Experts representing all sides in this debate have been invited to participate in this hearing.
The meeting is free (provided you can get there) but you must register. I hope that this is broadcast as a webinar and streamed out on the web.
Go here to register:
http://stakeholderhearing.eventbrite.com/
Cheers
Passenger Rights Stakeholder Hearing: Examining a Market Failure?
Presented by AirPassengerSafety.org
September 22, 2009 - Washington, DC
On Tuesday morning, September 22, 2009 consumer groups and travel industry organizations will conduct a Stakeholder Hearing in the Hart Senate Office Building regarding airline passenger rights. The purpose of the hearing is to examine passenger safety-related problems such as extended ground delays. Desired outcomes from the hearing include a better understanding of passenger safety problems; best practices from the EU in the area of passenger protections; and the potential efficacy of proposed Congressional solutions. Experts representing all sides in this debate have been invited to participate in this hearing.
The meeting is free (provided you can get there) but you must register. I hope that this is broadcast as a webinar and streamed out on the web.
Go here to register:
http://stakeholderhearing.eventbrite.com/
Cheers
06 August 2009
We're Not Going To Take It...
Never did and never will...
OK so call me an old WHO fan - but I find the news that Travellers are pissed off with Travel Booking Sites a revelation of stunning proportions (not).
I have great respect for Forrester's research and for a mere $499 you too can get a copy of the study.
http://www.forrester.com/Research/Document/Excerpt/0,7211,47562,00.html
For once common sense seems to prevail and the world can now rest easy that Websites are still very much a 1.0 product, and in need of a major uplift. I concur with Henry's findings that the GDS should evolve but the technology is too old and creaky to do so. Not to mention that the GDS vendors are not investing nearly enough in addressing this. Further there is a nasty underlying issue that is the (one of many) issue(s) on the table as an elephant in the room.
The captive GDS model ties the OTA players to the GDS based systems. Thus the ability of the online systems to provide a decent technology service is inhibited and will be until the commercial model is displaced that today incentivizes the OTA to continue to use these old legacy systems. The same is true for the Airline direct systems that in many cases are still based on GDSs.
Fortunately change is coming. However not quite fast enough, just don't hold your breath - this will not occur until the airline/GDS contracts start to come up for renewal - look for this in 2010.
In the mean time - the smart airlines are actually prepared to do something about this state of affairs and are moving away from GDS based systems. Solutions from Farelogix, and ITA etc are making sense and are now mature enough to be implemented in high transaction volume environments. The OTAs must step up and bite the bullet to wean themselves off the GDS based model first commercially then technically. The latter is very easy - it is the GDS incentive fee meth that they have the problem with. The OTAs however are seeing their transaction value proposition decline in favor of more ad based models. This puts them in direct conflict/competition with what used to be called Meta Search engines such as Bing and Skyscanner etc. Surprise, surprise the OTAs are not necessarily winning that particular battle, at the same time - the consumers are using more and more the supplier direct sites - thus the OTAs are fighting a multi-front war.
But, dear sisters and brothers, let us not forget the traveller who has become MUCH smarter and is decidedly not happy with the tools in place at the moment, nor is he happy with the way he is being treated by the suppliers, the intermediaries and their technology solutions. Fair notice, he/she will move to where he is treated better. Loyalty counts for now't (nothing) in today's economy.
You have been warned.
Cheers
OK so call me an old WHO fan - but I find the news that Travellers are pissed off with Travel Booking Sites a revelation of stunning proportions (not).
I have great respect for Forrester's research and for a mere $499 you too can get a copy of the study.
http://www.forrester.com/Research/Document/Excerpt/0,7211,47562,00.html
For once common sense seems to prevail and the world can now rest easy that Websites are still very much a 1.0 product, and in need of a major uplift. I concur with Henry's findings that the GDS should evolve but the technology is too old and creaky to do so. Not to mention that the GDS vendors are not investing nearly enough in addressing this. Further there is a nasty underlying issue that is the (one of many) issue(s) on the table as an elephant in the room.
The captive GDS model ties the OTA players to the GDS based systems. Thus the ability of the online systems to provide a decent technology service is inhibited and will be until the commercial model is displaced that today incentivizes the OTA to continue to use these old legacy systems. The same is true for the Airline direct systems that in many cases are still based on GDSs.
Fortunately change is coming. However not quite fast enough, just don't hold your breath - this will not occur until the airline/GDS contracts start to come up for renewal - look for this in 2010.
In the mean time - the smart airlines are actually prepared to do something about this state of affairs and are moving away from GDS based systems. Solutions from Farelogix, and ITA etc are making sense and are now mature enough to be implemented in high transaction volume environments. The OTAs must step up and bite the bullet to wean themselves off the GDS based model first commercially then technically. The latter is very easy - it is the GDS incentive fee meth that they have the problem with. The OTAs however are seeing their transaction value proposition decline in favor of more ad based models. This puts them in direct conflict/competition with what used to be called Meta Search engines such as Bing and Skyscanner etc. Surprise, surprise the OTAs are not necessarily winning that particular battle, at the same time - the consumers are using more and more the supplier direct sites - thus the OTAs are fighting a multi-front war.
But, dear sisters and brothers, let us not forget the traveller who has become MUCH smarter and is decidedly not happy with the tools in place at the moment, nor is he happy with the way he is being treated by the suppliers, the intermediaries and their technology solutions. Fair notice, he/she will move to where he is treated better. Loyalty counts for now't (nothing) in today's economy.
You have been warned.
Cheers
26 July 2009
Spamollowers Banned From Twitter, Maybe - Real Followers And Tweeters Rejoice
So Twitter has finally realized that Spam Followers (Spamollowers) actually exist.
Finally!!!!
Unfortunately they have yet to realize that the commercial cretins have now tried to take over from the individuals. All those nice people who want to create Tweets that are commercial cannot be differentiated good or bad.
This is where the whole idea of self regulating "wisdom of the crowd" falls apart.
Frankly this is why most kids are ignoring Twitter and staying with Facebook. And the numbers show this - Twitter gets zero repeat visitors by the vast amount of people.
So the real question is as follows:
Is Twitter really useful in a Facebook kind of way or is it just fun in a Second Life kind of way.
I am betting on the latter - so far no one seems to be able to prove otherwise. Spamollowers are just more perpetrators of Twitterhea.
One of the Yahoo honchos was bemoaning the other day that the company doesn't get its fare share of advertising. The caveat was that ABSENT SEARCH. Well DUH this is the place that people spend money. So he can get over it - just like Twitter is one of those things that is unnecessary and not useful.
Sorry but I really am finding Twitter very tedious. Perhaps we should start calling the messages not Tweets but Tireds. Many of them are really tiresome and totally unnecessary.
Finally!!!!
Unfortunately they have yet to realize that the commercial cretins have now tried to take over from the individuals. All those nice people who want to create Tweets that are commercial cannot be differentiated good or bad.
This is where the whole idea of self regulating "wisdom of the crowd" falls apart.
Frankly this is why most kids are ignoring Twitter and staying with Facebook. And the numbers show this - Twitter gets zero repeat visitors by the vast amount of people.
So the real question is as follows:
Is Twitter really useful in a Facebook kind of way or is it just fun in a Second Life kind of way.
I am betting on the latter - so far no one seems to be able to prove otherwise. Spamollowers are just more perpetrators of Twitterhea.
One of the Yahoo honchos was bemoaning the other day that the company doesn't get its fare share of advertising. The caveat was that ABSENT SEARCH. Well DUH this is the place that people spend money. So he can get over it - just like Twitter is one of those things that is unnecessary and not useful.
Sorry but I really am finding Twitter very tedious. Perhaps we should start calling the messages not Tweets but Tireds. Many of them are really tiresome and totally unnecessary.
Weigh In On Passenger Rights Legislation
OK your chance to do this.
The BTC group is undertaking a survery.
Weigh in and make your voice heard.
http://surveymonkey.twi.bz/g
Cheers
The BTC group is undertaking a survery.
Weigh in and make your voice heard.
http://surveymonkey.twi.bz/g
Cheers
24 July 2009
Hotwire Says Deals Ending Soon. Hogwash!
Chris Elliot has an interview with Clem Bason who is the president of Hotwire.com. In this Bason says deals are ending and you have never had it so good.
I beg to differ. Judging from the publicly available data for forward projections - I don't think that the deals are ending soon. I think we have to get through a pretty bleak fall/winter/spring season before we start to see any shoots of any meaning.
OK so this is a blanket statement and does not apply to all markets but for bargain hunters - there is clearly an open season here on just about everything. You can still get a round the world ticket for under 600 Pounds which puts everything into perspective.
Just because Hotwire is suffering - doesn't mean that the market is actually hurting. Hotwire's business model is under threat - just like that of the rest of the Expedia group. Priceline is still eating their lunch.
Agree? Let's have that discussion in 8 months time.
Cheers
I beg to differ. Judging from the publicly available data for forward projections - I don't think that the deals are ending soon. I think we have to get through a pretty bleak fall/winter/spring season before we start to see any shoots of any meaning.
OK so this is a blanket statement and does not apply to all markets but for bargain hunters - there is clearly an open season here on just about everything. You can still get a round the world ticket for under 600 Pounds which puts everything into perspective.
Just because Hotwire is suffering - doesn't mean that the market is actually hurting. Hotwire's business model is under threat - just like that of the rest of the Expedia group. Priceline is still eating their lunch.
Agree? Let's have that discussion in 8 months time.
Cheers
London Calling - Why BA is Hurting
Excellent piece from Anna.aero on BA and its markets.
http://www.anna.aero/2009/07/24/half-british-airways-capacity-on-transatlantic-routes/
I always thought there was a reason why the BA impact was so severe. Now we can see from those fine people at Anna.Aero the data to back up the gut feeling.
Having fought off the enlarged US-UK Open Skies onslaught last year BA- in the end had to look at its fortress home market and see that the carrier was more vulnerable to the GFC than just about any others.
That said - we can now see that certain other airlines are also impacted. KLM/AF are down 20.5% in GROSS revenue in Q1. That is astounding.
We are not at the bottom yet folks...
Cheers
http://www.anna.aero/2009/07/24/half-british-airways-capacity-on-transatlantic-routes/
I always thought there was a reason why the BA impact was so severe. Now we can see from those fine people at Anna.Aero the data to back up the gut feeling.
Having fought off the enlarged US-UK Open Skies onslaught last year BA- in the end had to look at its fortress home market and see that the carrier was more vulnerable to the GFC than just about any others.
That said - we can now see that certain other airlines are also impacted. KLM/AF are down 20.5% in GROSS revenue in Q1. That is astounding.
We are not at the bottom yet folks...
Cheers
Compared to Others, UK Travel Sites Suck!
For a long time I have thought that many of the leading sites in Travel really dont do a good job. Having worked with a number of teams where Usability is a religion - I have come to join that jihad.
Now comes some evidence that the TUE - Total User Experience - is less than satisfactory for travel sites. Not only this now - for the first time an independent study has actually tested travel against other categories.
A disclaimer - the study size is small and the level of the sites compared are small, and it covers the UK market only - however I think that this is a level of study that is demanded on a broader scale. The UK is clearly not the best proxy for the USA but there are similarities.
So to sign up and get a free copy of the study (its an 18 MB Powerpoint )- go here:
https://ecustomeropinions.com/survey/survey.php?sid=222643292
And BTW you need a UK phone number. If you dont have one just enter numbers in the UK format which can be found here:
http://en.wikipedia.org/wiki/Telephone_numbers_in_the_United_Kingdom
Best of luck.
Cheers
Timothy
Now comes some evidence that the TUE - Total User Experience - is less than satisfactory for travel sites. Not only this now - for the first time an independent study has actually tested travel against other categories.
A disclaimer - the study size is small and the level of the sites compared are small, and it covers the UK market only - however I think that this is a level of study that is demanded on a broader scale. The UK is clearly not the best proxy for the USA but there are similarities.
So to sign up and get a free copy of the study (its an 18 MB Powerpoint )- go here:
https://ecustomeropinions.com/survey/survey.php?sid=222643292
And BTW you need a UK phone number. If you dont have one just enter numbers in the UK format which can be found here:
http://en.wikipedia.org/wiki/Telephone_numbers_in_the_United_Kingdom
Best of luck.
Cheers
Timothy
21 July 2009
United Refuses To Put In Seatback Videos
In the column of strange and possibly bizarre behaviour, United Airlines is defending its decision not to have Seat Back Video system on its Economy Classes.
OK - having just done the great experiment (RTW in Coach/Economy/Tourist Class) - I can tell you that on a 14 hour flight you had better have a seat back entertainment system or else your passengers will get unruly and PO'd.
Now I really like the people at United. Especially since today they managed to eke out a profit in Q2. I am pulling for them to be a survivor in the current mess.
However there is just no excuse for this lack of product service.
Their VP for Pacific - Jeff Mueller is quoted in the Australian trade magazine Travel Today as saying the following:
"I imagine it will be of
importance to some
people but you need to
look at all elements of
the product."
He then is quoted as highlighting the other "attributes" of the product:
Its network in the US, membership of Star Alliance and “generous” loyalty scheme all
attract business, Mueller stated in the article. “Our loads in economy have been strong,” he added. “We have also invested heavily in lie flat beds in first and business class and refurbished the economy cabin.” He continued: “We have very
strong relationships with industry partners and corporates and have a great deal of loyalty. We see that as a very strong asset.”
So if you happen to be sitting reading this on paper or downloaded on your laptop in Y class on a UA long haul flight - I am sorry. But I really don't think that these other "features" make up for the lack of seat back video.
Common United - give the poor passengers a break.
Cheers
OK - having just done the great experiment (RTW in Coach/Economy/Tourist Class) - I can tell you that on a 14 hour flight you had better have a seat back entertainment system or else your passengers will get unruly and PO'd.
Now I really like the people at United. Especially since today they managed to eke out a profit in Q2. I am pulling for them to be a survivor in the current mess.
However there is just no excuse for this lack of product service.
Their VP for Pacific - Jeff Mueller is quoted in the Australian trade magazine Travel Today as saying the following:
"I imagine it will be of
importance to some
people but you need to
look at all elements of
the product."
He then is quoted as highlighting the other "attributes" of the product:
Its network in the US, membership of Star Alliance and “generous” loyalty scheme all
attract business, Mueller stated in the article. “Our loads in economy have been strong,” he added. “We have also invested heavily in lie flat beds in first and business class and refurbished the economy cabin.” He continued: “We have very
strong relationships with industry partners and corporates and have a great deal of loyalty. We see that as a very strong asset.”
So if you happen to be sitting reading this on paper or downloaded on your laptop in Y class on a UA long haul flight - I am sorry. But I really don't think that these other "features" make up for the lack of seat back video.
Common United - give the poor passengers a break.
Cheers
Me Thinks He Doth Complain Too Much - MOL.
OK so MOL is taking his battle to the streets again. And we all know that the tax issue is a burning one - so far the acceptance level makes most airlines look like lambs.
That said however RyanAir has again threatened to reduce the fleet at STN from 40 aircraft to 24. (One down from last year's winter of 25).
So the winter slow down seems to have worked because apart from the fuel hedging FR did just fine thank you.
Does he protest too loudly?
You be the judge
Cheers
That said however RyanAir has again threatened to reduce the fleet at STN from 40 aircraft to 24. (One down from last year's winter of 25).
So the winter slow down seems to have worked because apart from the fuel hedging FR did just fine thank you.
Does he protest too loudly?
You be the judge
Cheers
The Spending Down Turn Impacts Across The Board
By now everyone knows that while the passenger numbers have been falling the revenue numbers are even worse.
So three key indicators have recently confirmed this. If we look at the USA market as a proxy for the whole world (I will come back to this), it shows that all aspects of travel are down.
1. Passengers are down
2. Fares are down
3. Amounts that people spend are down.
This is now across the board with average spend down reported by the US - TIA at 22%. With regard to airfares - they have been falling since September of 2008. For passenger spend, May 2009 marks the seventh straight month in which U.S. travel and tourism-related exports were lower when compared to the same period of the previous year, having declined in November 2008 (-4%)for the first time. This shows that the fall off of bookings that started with effect from September 2008 didn't work themselves into the tourism spend till November of that year.
This should give us some clue as to if - or hopefully when - we can see an uptick. So far those indicators are not there. As an aside - there is a common held belief that freight precedes passengers with regard to economic cycles. I have not actually been able to find (mostly because I have never looked) to see if this was true historically. But I do know that freight traffic is STILL falling. Both Air and Sea/Land.
In economic terms there is still too little demand for the available supply. However the economic cost of cutting more supply works to the point of actually increasing the costs.
It is at this point that tourism stimulation is required by all concerned. I read an intro by Trailfinders' Mike Gooley CBE. He clearly states that travel is at its lowest ever. I agree. But its not enough.
I don't want to dampen people's spirits nor be the naysayer - but so far I cannot find any evidence of an uptick. I have previously predicted that we will see some stabilization come September. I do believe by that time that the worst of the cuts will have worked their way through the system. One indicator however may give us cause for concern. A recent survey by WWF as part of their one in five campaign has attracted a growing number of people to reduce corporate/business travel.
http://www.wwf.org.uk/what_we_do/press_centre/?3189/Big-Businesses-commit-to-cutting-flights
So there you have it. Save the Planet or Economic Poverty.... It may get as stark as this.
And what do you think?
So three key indicators have recently confirmed this. If we look at the USA market as a proxy for the whole world (I will come back to this), it shows that all aspects of travel are down.
1. Passengers are down
2. Fares are down
3. Amounts that people spend are down.
This is now across the board with average spend down reported by the US - TIA at 22%. With regard to airfares - they have been falling since September of 2008. For passenger spend, May 2009 marks the seventh straight month in which U.S. travel and tourism-related exports were lower when compared to the same period of the previous year, having declined in November 2008 (-4%)for the first time. This shows that the fall off of bookings that started with effect from September 2008 didn't work themselves into the tourism spend till November of that year.
This should give us some clue as to if - or hopefully when - we can see an uptick. So far those indicators are not there. As an aside - there is a common held belief that freight precedes passengers with regard to economic cycles. I have not actually been able to find (mostly because I have never looked) to see if this was true historically. But I do know that freight traffic is STILL falling. Both Air and Sea/Land.
In economic terms there is still too little demand for the available supply. However the economic cost of cutting more supply works to the point of actually increasing the costs.
It is at this point that tourism stimulation is required by all concerned. I read an intro by Trailfinders' Mike Gooley CBE. He clearly states that travel is at its lowest ever. I agree. But its not enough.
I don't want to dampen people's spirits nor be the naysayer - but so far I cannot find any evidence of an uptick. I have previously predicted that we will see some stabilization come September. I do believe by that time that the worst of the cuts will have worked their way through the system. One indicator however may give us cause for concern. A recent survey by WWF as part of their one in five campaign has attracted a growing number of people to reduce corporate/business travel.
http://www.wwf.org.uk/what_we_do/press_centre/?3189/Big-Businesses-commit-to-cutting-flights
So there you have it. Save the Planet or Economic Poverty.... It may get as stark as this.
And what do you think?
20 July 2009
Today's Cigarette is a Mobile Phone?
If any of you have had a chance to see the excellent series Mad Money - you see that most folks look very cool holding a cigarette. And a lot of them do it throughout the show. I love this stuff. Back when neckties were really thin, and women wore their hair up in tight buns, long before PC became a watch word... ah those were the days.
I have been considering the issue of frequency of usage of our respective devices. With the diminution of TV viewership and increasing time slicing by recording devices - I asked myself a question - what is the "non-physical sustenance" product that we touch more than any other?
Up till the early 1990s - there was no other product that was touched or consumed more than the Cigarette. My father was in the tobacco business all his life and he was a master marketeer of the product. He lived and breathed his company and his product creation. Today - it remains one of the top world brands. But its use has been superseded by what product?
Why the answer has to be the mobile phone of course. We touch it, we play with it, we use it, countless surveys have shown that if you were to be left with only one thing - it would be your mobile. (OK for Americans Cell Phone).
Here is some great research on how people use their phones and what they would like to use it for. I do suggest that before everyone rushes to create expensive and (in many cases completely useless) mobile applications - consider what people really want and then consider the reality of the medium.
Here is a link to the research: http://www.lightspeedresearch.com/pdf/lsr_pr_meandmymobile.pdf
While the research was primarily from a UK perspective - the study is in fact multi-country.
Worth the read.
Cheers
I have been considering the issue of frequency of usage of our respective devices. With the diminution of TV viewership and increasing time slicing by recording devices - I asked myself a question - what is the "non-physical sustenance" product that we touch more than any other?
Up till the early 1990s - there was no other product that was touched or consumed more than the Cigarette. My father was in the tobacco business all his life and he was a master marketeer of the product. He lived and breathed his company and his product creation. Today - it remains one of the top world brands. But its use has been superseded by what product?
Why the answer has to be the mobile phone of course. We touch it, we play with it, we use it, countless surveys have shown that if you were to be left with only one thing - it would be your mobile. (OK for Americans Cell Phone).
Here is some great research on how people use their phones and what they would like to use it for. I do suggest that before everyone rushes to create expensive and (in many cases completely useless) mobile applications - consider what people really want and then consider the reality of the medium.
Here is a link to the research: http://www.lightspeedresearch.com/pdf/lsr_pr_meandmymobile.pdf
While the research was primarily from a UK perspective - the study is in fact multi-country.
Worth the read.
Cheers
Teenage Angst And Flying
OK - Hands up those who have been to See Harry Potter VI?
I wont spoil it for those of you who haven't but many of the reviews have focused on the issue of Teenage Angst which is a theme through the movie. Also many of the actors... well they look like they could be in their 20s!!!!
It seems that the topic of Flying and the angst part was a driving force of a UK Teenager who managed to fool a whole number of people into thinking he was starting an airline and had just enough with false websites and even a real receptionist - to convince some quite respectable commercial adults into supporting his fraud.
http://www.newstin.com/rel/us/en-010-016382727
(The Times link doesn't seem to work and I don't feel like supporting the Fox News hijacking of the URL.)
Amusing... but it does raise the issue of how much or how little we now need to have to create an impression of size.
And yes there really is a Professor slaving away in a basement somewhere. I just like not to reveal my identity in open forum. But a lot of you know who I am anyway!
Cheers
I wont spoil it for those of you who haven't but many of the reviews have focused on the issue of Teenage Angst which is a theme through the movie. Also many of the actors... well they look like they could be in their 20s!!!!
It seems that the topic of Flying and the angst part was a driving force of a UK Teenager who managed to fool a whole number of people into thinking he was starting an airline and had just enough with false websites and even a real receptionist - to convince some quite respectable commercial adults into supporting his fraud.
http://www.newstin.com/rel/us/en-010-016382727
(The Times link doesn't seem to work and I don't feel like supporting the Fox News hijacking of the URL.)
Amusing... but it does raise the issue of how much or how little we now need to have to create an impression of size.
And yes there really is a Professor slaving away in a basement somewhere. I just like not to reveal my identity in open forum. But a lot of you know who I am anyway!
Cheers
Out With A Whimper - Videotext To End
So the announcement was made previously that the Teletext service would end in 2012 along with the completion of UKs switch to Digital TV. However service provider Teletext has accelerated the end of the analogue service in the UK to January 2010.
While the announcement affects really only the public Teletext service - it means that support for the closed Videotext service really cannot occur past this date.
So the once almighty and omnipresent Viewdata (aka Videotext, Prestel, CEPT 3 etc etc) has finally been killed by the web. It will likely also hasten the end of many of the smaller UK agents who relied on the service.
for those of us who tried very hard to kill it and then even more to actually get it to work on top of GDS systems - this will come as a moment of nostalgia. Send me your reflections and at some point I will compile a collection of them.
So onto the web. I wonder if we will ever have a time when we watch the end of closed user functionality based systems - such as a GDS for example?
Now that's an interesting thought.
Cheers
While the announcement affects really only the public Teletext service - it means that support for the closed Videotext service really cannot occur past this date.
So the once almighty and omnipresent Viewdata (aka Videotext, Prestel, CEPT 3 etc etc) has finally been killed by the web. It will likely also hasten the end of many of the smaller UK agents who relied on the service.
for those of us who tried very hard to kill it and then even more to actually get it to work on top of GDS systems - this will come as a moment of nostalgia. Send me your reflections and at some point I will compile a collection of them.
So onto the web. I wonder if we will ever have a time when we watch the end of closed user functionality based systems - such as a GDS for example?
Now that's an interesting thought.
Cheers
18 July 2009
Psst Interested in a Special Deal on Volaris
Volaris the Mexican LCC is starting up service from the USA to Mexico.
For a small number of people there are some special discounts available on their inaugural routes. Volaris is part of the new breed of LCCs that offers more than the bare bones service.
They are profitable.
So if you want to sample the service and get a special discount - just ping me directly and (if you qualify) I will send you the special link valid on any Volaris flight out of LAX or Oakland/San Francisco that offers a 20% discount above the rate Volaris posts on its website. The code is good for any flight between September 1st, 2009 and November 30th, 2009.
Cheers
For a small number of people there are some special discounts available on their inaugural routes. Volaris is part of the new breed of LCCs that offers more than the bare bones service.
They are profitable.
So if you want to sample the service and get a special discount - just ping me directly and (if you qualify) I will send you the special link valid on any Volaris flight out of LAX or Oakland/San Francisco that offers a 20% discount above the rate Volaris posts on its website. The code is good for any flight between September 1st, 2009 and November 30th, 2009.
Cheers
Cronkite and The Moon
40 years ago this weekend - I like so many people (who are now mostly in their middle age!!!) were glued to our Television sets watching the events unfold on Man's first visit to the Moon. I watched the live broadcasts that came from the US complete in many cases with a voice over from the great Walter Cronkite. That wonderful voice of his narrated and added context to the historic events that were unfolding in Black and White in front of my eyes.
Yesterday as he passed - I got the email while I was returning home after completing a circumnavigation of this globe. I was able to reflect on so many things. Mostly why we don't have heroes and the voices of history that made it so real.
Thanks to Professor Mims for this link:
http://www.wechoosethemoon.org/#
So let's celebrate the events and remember the guts and grit, luck and focus that got this momentous enterprise done. We should all be able to be so challenged and have that opportunity to succeed.
If then, why not now?
Cheers
Yesterday as he passed - I got the email while I was returning home after completing a circumnavigation of this globe. I was able to reflect on so many things. Mostly why we don't have heroes and the voices of history that made it so real.
Thanks to Professor Mims for this link:
http://www.wechoosethemoon.org/#
So let's celebrate the events and remember the guts and grit, luck and focus that got this momentous enterprise done. We should all be able to be so challenged and have that opportunity to succeed.
If then, why not now?
Cheers
Warning: Greenmail on Travel Web Search?
I am catching up on a lot of things that have arrived in my "Interesting Stuff" files. About 3 weeks ago I received an email from an Intellectual Property Attorney Group offering for sale U.S. Patent No. 6,381,597 – “Electronic Shopping agent which is capable of operating with vendor sites which have disparate formats” For a view of the offer go here: http://catalog.oceantomoauctions.com/auction/lot/view/1/A2
I waited till I got home to see about this. The owning company is Omni Travel Search Inc. That rang a bell but not quite sure (I am of course getting a bit older so not enough grey matter to go round). So I persisted in my search. The only registered user of the product was a website called SweetFare.com. A US based company focused on US and Asia business. However it seems only to search on the big boys of Orbitz, Expedia and CheapTickets.
I'll bite even more...
The registrant of Sweetfare.com will be revealed in a minute but doing a search of Sweetfare showed a lot of posts and articles linked to Travel Mole. All of them pretty positive.
It seems that the owner of Omni Search is Omnitourism who just also happens to own Travel Mole.
Disclaimer here - A joint venture between this group and T2 created a 2007/8 study on LCCs via a service called www.inthekno.com.
What worries me is that the patent could clearly affect quite a few people. Will the new (or old one if it doesn't sell) owner go after the likes of Bing, Skyscanner, Mobissimo and Yatra?
Well this should be interesting. If you wish to buy this patent - then the reserve price is $200,000. Please contact Mr Paul Greco his email is: pgreco@oceantomo.com
And for the record - I don't support this form of behavior in any shape or form.
Best of Luck.
I waited till I got home to see about this. The owning company is Omni Travel Search Inc. That rang a bell but not quite sure (I am of course getting a bit older so not enough grey matter to go round). So I persisted in my search. The only registered user of the product was a website called SweetFare.com. A US based company focused on US and Asia business. However it seems only to search on the big boys of Orbitz, Expedia and CheapTickets.
I'll bite even more...
The registrant of Sweetfare.com will be revealed in a minute but doing a search of Sweetfare showed a lot of posts and articles linked to Travel Mole. All of them pretty positive.
It seems that the owner of Omni Search is Omnitourism who just also happens to own Travel Mole.
Disclaimer here - A joint venture between this group and T2 created a 2007/8 study on LCCs via a service called www.inthekno.com.
What worries me is that the patent could clearly affect quite a few people. Will the new (or old one if it doesn't sell) owner go after the likes of Bing, Skyscanner, Mobissimo and Yatra?
Well this should be interesting. If you wish to buy this patent - then the reserve price is $200,000. Please contact Mr Paul Greco his email is: pgreco@oceantomo.com
And for the record - I don't support this form of behavior in any shape or form.
Best of Luck.
UAL CC Fees To Cost Consumers $2 billion?
The now big political spat over credit card fees that UAL want the agents to shoulder has everyone weighing in.
As Richard Eastman noted many weeks ago this has significant potential implications. However as I have noted - this is not something for everyone to get their noses bent out of shape on. We do have many other issues that are perhaps more important.
But let's play along with ASTA's Paul Rudin and use his $2 Billion number. If we accept the US represents about 1/3rd of total global traffic then this number would triple worldwide.
Thus we can say that now credit card fees comprise approx 3 times the cost impact to the airlines than GDS fees.
Etc Etc - Lots of big numbers to worry about.
Credit card fees are in the cross hairs of the airlines. Rightly so. As I noted in a recent post - with the near banks withdrawing from the credit card market we are seeing a pretty significant and steep increase in the imposition and collection of fees by the bank based credit card companies. Just like the airlines - CC companies have learned the unbundling trick. Although I am not sure who trained who in this bad set of practices.
There can be no doubt that the cost of using a credit card has risen and is rising for both Merchants and Consumers. In Europe and Asia/Pacific, having credit card fees covered by the consumer rather than a merchant is much more common behavior. Here are some examples from the UK:
Ryanair charges £5 per flight whether flights are booked online, via a call centre or at an airport. EasyJet levies a £2.95 booking fee, Flybe's charge is £2 per one-way journey, but rather confusingly lists a minimum fee of £3.50. Aer Lingus charges a £4 handling fee and British Airways charges a hefty £4.50 per ticket.
Ryanair recently lost a significant court fight that may have long time reverberations. The Superior Court of Justice in Berlin cited a European Union directive, which states that the charge is "inadmissible" unless Ryanair offers a charge-free method of payment too. They ruled that while FR offers free charges via Visa Electron the low penetration and usage of these cards made it largely irrelevant. This ruling could then reverberate around Europe.
Frankly we have to consider that if the US airline industry was to lose $3+billion this year, passing off more than 50% of that to the consumer is too large a number to avoid. So you can be sure United must be weighing its options - it may now be too late for people to back down.
What do you think?
Cheers
As Richard Eastman noted many weeks ago this has significant potential implications. However as I have noted - this is not something for everyone to get their noses bent out of shape on. We do have many other issues that are perhaps more important.
But let's play along with ASTA's Paul Rudin and use his $2 Billion number. If we accept the US represents about 1/3rd of total global traffic then this number would triple worldwide.
Thus we can say that now credit card fees comprise approx 3 times the cost impact to the airlines than GDS fees.
Etc Etc - Lots of big numbers to worry about.
Credit card fees are in the cross hairs of the airlines. Rightly so. As I noted in a recent post - with the near banks withdrawing from the credit card market we are seeing a pretty significant and steep increase in the imposition and collection of fees by the bank based credit card companies. Just like the airlines - CC companies have learned the unbundling trick. Although I am not sure who trained who in this bad set of practices.
There can be no doubt that the cost of using a credit card has risen and is rising for both Merchants and Consumers. In Europe and Asia/Pacific, having credit card fees covered by the consumer rather than a merchant is much more common behavior. Here are some examples from the UK:
Ryanair charges £5 per flight whether flights are booked online, via a call centre or at an airport. EasyJet levies a £2.95 booking fee, Flybe's charge is £2 per one-way journey, but rather confusingly lists a minimum fee of £3.50. Aer Lingus charges a £4 handling fee and British Airways charges a hefty £4.50 per ticket.
Ryanair recently lost a significant court fight that may have long time reverberations. The Superior Court of Justice in Berlin cited a European Union directive, which states that the charge is "inadmissible" unless Ryanair offers a charge-free method of payment too. They ruled that while FR offers free charges via Visa Electron the low penetration and usage of these cards made it largely irrelevant. This ruling could then reverberate around Europe.
Frankly we have to consider that if the US airline industry was to lose $3+billion this year, passing off more than 50% of that to the consumer is too large a number to avoid. So you can be sure United must be weighing its options - it may now be too late for people to back down.
What do you think?
Cheers
Airline Seat Safety
A new rule has come into force that requires airlines to ensure that seats can withstand the impact of 16 Gs. Interestingly that is of course more than the poor old human body can withstand.
The rule has been on the FAA books for years but is nor required retroactively. Another reason to question why you would actually want to fly on a Boeing 737-200 anyway.
Airline seats are wondrous things. They may or may not be required (depending on whether you think RyanAir and a Chinese airline should be allowed to have passenger's standing up on flights). Business class and first class seats are already pretty elaborate things. In some cases just too elaborate (like the Emirates old Biz Class seats were plain awful). 3 separate sets of controls were just too confusing (particularly after several sets of drinks and a 16 hour flight!).
One idea I am particularly drawn to is the idea of seat airbags. With the auto industry having adopted air bags of all types into the passenger cabin - there should be no reason why an airline cabin should not be just as protected.
The AP put out an interesting article about airline pax air bags incorporated into the seat belt. Have a look here: http://www.mercurynews.com/travel/ci_12843291?nclick_check=1
I have to comment that the lap only belts on aircraft do worry me when I know that a shoulder/lap belt is the standard on a car and that indeed lap only belts are banned on cars.
And the cost... Well given the current price of an airliner today - we are talking about very low - probably sub 1% cost to add to the cost of an aircraft. This seems to be a very low price to pay for significantly increasing survivability in a crash.
Cheers
The rule has been on the FAA books for years but is nor required retroactively. Another reason to question why you would actually want to fly on a Boeing 737-200 anyway.
Airline seats are wondrous things. They may or may not be required (depending on whether you think RyanAir and a Chinese airline should be allowed to have passenger's standing up on flights). Business class and first class seats are already pretty elaborate things. In some cases just too elaborate (like the Emirates old Biz Class seats were plain awful). 3 separate sets of controls were just too confusing (particularly after several sets of drinks and a 16 hour flight!).
One idea I am particularly drawn to is the idea of seat airbags. With the auto industry having adopted air bags of all types into the passenger cabin - there should be no reason why an airline cabin should not be just as protected.
The AP put out an interesting article about airline pax air bags incorporated into the seat belt. Have a look here: http://www.mercurynews.com/travel/ci_12843291?nclick_check=1
I have to comment that the lap only belts on aircraft do worry me when I know that a shoulder/lap belt is the standard on a car and that indeed lap only belts are banned on cars.
And the cost... Well given the current price of an airliner today - we are talking about very low - probably sub 1% cost to add to the cost of an aircraft. This seems to be a very low price to pay for significantly increasing survivability in a crash.
Cheers
Why Do People Go Online?
I get a lot of stuff in my inbox. As a voracious reader I love to see what is happening and more importantly what makes people tick. So for me the "why" question is always fascinating.
I have seen in the past some of the work thar Rudder Finn have done. While it is sometimes a little too slick for my personal taste their work adds a dimension to the why we do what we do.
Spending large amounts of time in front of my "machines" has recently been a topic of noodling in my head and discussions with my friends and colleagues. So I am going to be doing some occasional blogs on the subject of the right brain functions. These may not appear to be connected (probably because they wont be) but I do hope that they provide food for thought in our constant quest for understanding and ultimately knowledge and power over our environment - both professional and personal.
So click on over to the following URL:
http://www.ruderfinn.com/about/news/rf-s-new-study-of.html
Have a read and see what you think. eMarketer did an analysis of the numbers and determined that actually 100% of the users listed went on line to (drum roll please) Pass the Time!
For the eMarketer article go here:
http://www.emarketer.com/Article.aspx?R=1007184
So if that's the case then we are all a very sad lot. So this does indicate however that many of the assumptions about how airline and travel companies are marketing to their audiences may be fundamentally wrong. As with most things this has to be seen in context. However I do believe that the continuation of traditional marketing techniques and processes do not hold true for today's web based time passing consumers.
Food for thought?
Cheers
I have seen in the past some of the work thar Rudder Finn have done. While it is sometimes a little too slick for my personal taste their work adds a dimension to the why we do what we do.
Spending large amounts of time in front of my "machines" has recently been a topic of noodling in my head and discussions with my friends and colleagues. So I am going to be doing some occasional blogs on the subject of the right brain functions. These may not appear to be connected (probably because they wont be) but I do hope that they provide food for thought in our constant quest for understanding and ultimately knowledge and power over our environment - both professional and personal.
So click on over to the following URL:
http://www.ruderfinn.com/about/news/rf-s-new-study-of.html
Have a read and see what you think. eMarketer did an analysis of the numbers and determined that actually 100% of the users listed went on line to (drum roll please) Pass the Time!
For the eMarketer article go here:
http://www.emarketer.com/Article.aspx?R=1007184
So if that's the case then we are all a very sad lot. So this does indicate however that many of the assumptions about how airline and travel companies are marketing to their audiences may be fundamentally wrong. As with most things this has to be seen in context. However I do believe that the continuation of traditional marketing techniques and processes do not hold true for today's web based time passing consumers.
Food for thought?
Cheers
17 July 2009
Love That Bigger Seat?
Premium seats are now under threat. And probably it's a good thing to examine whether or not Premium seats are a good thing or a bad thing.
Listen to the IAG Podcast from today when Addison and I look at the decision by BA to reconfigure its fleet from a premium focus to - well a more proletarian world.
Cheers
Listen to the IAG Podcast from today when Addison and I look at the decision by BA to reconfigure its fleet from a premium focus to - well a more proletarian world.
Cheers
16 July 2009
Twitter "A Fad?"
I realize that there will be a lot of people who will not be happy about this post. But I only report the facts ma'am.
Disclaimer first!
I am not a huge fan of Twitter and believe that the adoption of Twitter is overblown and hyped. Having used it - I believe it has some value in specific circumstances - but not to the level that the hype might have led all of us.
So it was very interesting to read about the media storm around Matthew Robson (aged 15 years and 7 months) and his piece which Morgan Stanley has published:
http://media.ft.com/cms/c3852b2e-6f9a-11de-bfc5-00144feabdc0.pdf
OK so this was widely reported. Now comes some hard evidence that says that the expectation of the behaviour of teenagers by adult pundits may indeed be all wrong.
Today eMarketer published some interesting stats from Neilsen and (surprisingly HBR). In April, Nielsen Online found that only about 40% of the service’s new users return the following month. A Harvard Business School study estimated that most Twitter users sent an average of only one tweet in their lifetime.
Find the article here:
http://www.emarketer.com/Article.aspx?R=1007185
I highly recommend reading both Matthew's piece and then the hard data from eMarketer. It puts things in context.
So it would seem that Twitter may at best be a niche tool and service may indeed be a fad.
At this point you will probably hear some of the audience exclaim that I am a curmudgeon. At the appropriate time perhaps I am. However I am not keen to use Twitter to communicate my message. It is just too restrictive and not functional enough.
Twitter is at least more useful than Second Life as a business tool. However its fall from grace may be just as spectacular. After all its just Twitterrhea...
Cheers
Disclaimer first!
I am not a huge fan of Twitter and believe that the adoption of Twitter is overblown and hyped. Having used it - I believe it has some value in specific circumstances - but not to the level that the hype might have led all of us.
So it was very interesting to read about the media storm around Matthew Robson (aged 15 years and 7 months) and his piece which Morgan Stanley has published:
http://media.ft.com/cms/c3852b2e-6f9a-11de-bfc5-00144feabdc0.pdf
OK so this was widely reported. Now comes some hard evidence that says that the expectation of the behaviour of teenagers by adult pundits may indeed be all wrong.
Today eMarketer published some interesting stats from Neilsen and (surprisingly HBR). In April, Nielsen Online found that only about 40% of the service’s new users return the following month. A Harvard Business School study estimated that most Twitter users sent an average of only one tweet in their lifetime.
Find the article here:
http://www.emarketer.com/Article.aspx?R=1007185
I highly recommend reading both Matthew's piece and then the hard data from eMarketer. It puts things in context.
So it would seem that Twitter may at best be a niche tool and service may indeed be a fad.
At this point you will probably hear some of the audience exclaim that I am a curmudgeon. At the appropriate time perhaps I am. However I am not keen to use Twitter to communicate my message. It is just too restrictive and not functional enough.
Twitter is at least more useful than Second Life as a business tool. However its fall from grace may be just as spectacular. After all its just Twitterrhea...
Cheers
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