
August 22, 2008
Early next month, United Airlines will no longer offer complimentary snacks to economy class fliers across North America, reports the San Francisco Chronicle. One month after, it will stop offering complimentary meals in domestic business class for most flights. In a double whammy, it will also raise the prices of food you can buy on board.
The Chronicle also reports that United will soon terminate its free meal service on international economy class on flights from Washington-Dulles to Europe.
United’s explanation? "In the wake of high fuel prices and a challenging economic environment, we must continue to examine every aspect of our business and find new ways to improve our day-to-day operations through efficiencies that still meet our customers' expectations.”
But is this really the best way to go? According to Henry Harteveldt, airline industry analyst at Forrester Research. “These moves are flat-out stupid… The savings they will get doing away with lunch in business class - they will lose more than that when corporations yank business. The challenging thing about business is that whether things are good or bad, you have to invest in your product for the sake of keeping customers and to make it harder for competitors to catch up with you. This does nothing to encourage people to pay more because you give more. They really make me question whether the inmates have taken control of the asylum."
Comments | 19 Total
August 22, 2008 at 10:33am by Tyler Adams
I'm inclined to agree with the idea that airlines will lose money if they keep deemphasizing customers' needs and wants. However, if ALL airlines start charging for the basics such as food and water, which seems to be the path we are going down, they can't ALL lose money, can they?
August 22, 2008 at 11:33am by Rip Empson
It is absolutely ridiculous that we should have to pay for the airline industry's thoughtlessness, or rather, unpreparedness. The whole industry has struggled mightily as a result of high fuel prices, and therefore, customers should become sources of ancillary revenue? Because of their "strategic planning," customers must now pay exorbitant sums to get an in-flight meal? That includes three crackers and a chicken wing?
That being said, this is not an unintelligent move. It certainly seems unfair to take advantage of the consumer like this, but what else are they going to do? The airlines are unapologetic. The president of Delta was quoted as saying, "Airlines need to have a way to recover the cost of their product." United thinks it can raise $1 billion from its supplementary charges. By charging for bags, meals, and by raising ticket prices, the airlines put the burden on the passengers, because they know we will shoulder it. Until we stop flying or using their "product", these things will continue to happen. And what's more, since 9/11, people have begun expecting travel to be a hardship. Prices across the board (concert tickets, food prices, gas, etc.) are up. So in a way, we EXPECT it. So the airlines take advantage of the inelastic demand. People need to fly, and they need to eat, so either they pay the price for the in-flight-meal, or they bring a bag lunch or eat in the airport. Airlines probably won't lose money because of this in the long run, and if people DO stop eating on planes, they will simply lower the food prices and raise ticket prices. What else are they going to do?
August 22, 2008 at 12:27pm by John Rallison
It's the ala carte age. Although, if energy costs stay up, airline travel will return to the luxury it was in the 70's and before. If airline travel becomes more elite again (as some are predicting), then they will have to include food. But if it stays more of a bus in the air, then the casual and vacation traveler will probably choose to pay less and bring their own food.
August 22, 2008 at 12:34pm by david wayne osedach
All forms of travel are experiencing major changes. Hopefully, when energy sources are stabilized airlines will begin to add some if not all the things they have taken away.
August 22, 2008 at 1:49pm by Jennifer Moore
Airlines haven't seemed to be in touch with their customers for years, look at the lack of customer service at any counter or gate...
It would probably go a long way if just one of the airlines decided to implement a more friendly attitude towards their customers from square one.
August 22, 2008 at 2:03pm by Dale Thompson
To agree or disagree with this statement requires a crystal ball that, frankly no one has in their possession. Besides, does anyone really think that airline food is that good anyway? Sure, I like flying business class outside the country and having some food/drink on the way. But if I did not have that food/drink, would I not take a trip that I needed/wanted to take? Oh sure, I am going to walk or swim from the US to any location oveseas. Gimme a break...
August 22, 2008 at 3:15pm by Arnold Gendelman
To start by identifying the intended effect of the changes, rather than leaving the details of how to react to information that will not be known, no matter what we think, until after the dividends are in the bottom line or not. If we want to get to point A from point B, that is too far to walk or drive, then we fly. Energy and baggage taxed,brown bagging it or not. We thought planes would be half full when smoking was banned for the same reasons.It cost too much in fuel to filter and remove smoke butts and residue from breathing air. Here is an opportunity for some genius to come up with affordable throw away clothing and a chewable nutritous, filling and tasty food pill. But fly we must, and pay we will.
August 22, 2008 at 3:54pm by Ben Murphy
They're going the way of Amtrack... so, so, sad!
August 23, 2008 at 11:50pm by Clarke McGuire
The domestic US airlines (exception Southwest) have cumulatively never made any money. So what will be the magic formula that enable this collective group of managers to discover profitability. So far not much by way of creativity. They are bankrupt (financially, intellectually, and morally), they should remain bankrupt and we should shut the down. Schumpeter would cheer for the elimination of the traditional US operated airline.
August 24, 2008 at 2:52am by A Pruette
1. Bag your lunch. It would be healthier anyway!
2. The food has never been good on airlines. Maybe now the quality can go up and the jokes about "stale peanuts" can truthfully subside. (Why buy the good stuff when you're just going to give it away anyway.)
3. Are you really flying for the food? No. The product that you really want is a safe, quiet, trip to and from where you are going.
4. If one of your vendors for your business raised their prices in the same exact ratio that gas has gone up for the airlines, you too would be scrambling and looking at all options to reduce overhead. Reduce or die. And as always, pass the cost of doing business on to the customer.
5. Businesses around the country, all the way down to the local pizza shop, are suffering because of the current economic climate. (Raising prices, trying to hold prices, eating cost increases as best they can, trying to not go out of business) Why should the airlines be any different?
So the next time that you get on a plane just be glad that there is someone who can say, "Have a nice flight."
August 24, 2008 at 11:06am by Robert Griffin
If one examines the airlines with the greatest customer satisfaction, Singapore Air is certainly number 1--and their level of service in the best in the world. What ever happened to giving customers a level of service that makes them want to return to the business time and time again.
August 24, 2008 at 12:34pm by Gregg Lebovitz
The only time I fly these days is when I am traveling for business. I am on the road 50% of my time. We have a policy in place to not book flights on United unless there is no other choice (business is business.) A few months ago, the stress of flying on United put me in the hospital for a night with severe chest pains. The least of United's worries should be removing food from flights. Their biggest worry should be the growing hatred that is building from business travelers. Once the economic good times return, our bad memories and anger towards this airline will not fade.
August 24, 2008 at 5:13pm by Carel Two-Eagle
I haven't flown since 1986, so I don't know 1st-hand about food on airlines now. But - given that everyone I know who flies says the food served on airlines is lousy, I don't think it's going to matter. People are still going to need to eat, & they'll take what they can get if they are hungry enough. Sad, maybe, but true.. Or, someone will start making decent take-along meals specifically for fliers available at reasonable prices & fliers will go that route, thus establishing another business for some entrepreneur. Think of the possibilities - Chinese, Thai, Mexican, U.S. standard. Doesn't sound so bad to me.
August 24, 2008 at 6:27pm by Peter Metcher
Never under-estimate the power of the stomach in voting where money is spent.
I wonder if the airlines would be happy for passengers to bring their won food with them? Perhaps instead of supplying passengers with a "free" meal, the airlines could provide a food service in the supply of microwaves, ovens, coolers and the like.
August 25, 2008 at 9:47am by rhonda Page
i wonder how much they're really saving by cutting meals. seems like the airlines need some major innovation. they are charging more and more and you get less and less and poorly treated to boot in many cases! i have hear that porter airlines a small local toronto airline is doing things right.
August 25, 2008 at 11:02am by Vernon Martin
No more free lunch? I’ve never checked the menu before reserving my flight, but that is not the point. I heard a passenger talking about his last fight, his unsolicited report sounded like someone that just got ripped off by an unscrupulous salesperson. “They charged me for my first bag, wanted me to pay for the pillow, and charged me a crazy price for a candy bar!!!” He has placed that carrier in the, “no fly zone!” In the long run, there will be people that need to fly and will be, as my friend, chained to the experience whether they like it or not but there will be some that will choose other carriers and even other modes of transportation. If all carriers agree to make this experience the industry standard then the impact will be shared by all. If there are some airlines that continue to offer the frills free, without it hidden in air fare prices, they will be the prime choice when compared with a similar flight. If the meal situation were isolated, it might have a lesser impact, but it is accompanied by other switches and charges as mentioned about as well as higher prices. The industry may be depending on the flyers that have to use their service, but customer care remains a very important part of the business. All it takes is one carrier to pay attention to the articles in Fast Company, to realize that the answer is, leadership, creativity, and management. The solution will create change, but it will not turn reduce the airline to a flying city bus. “Put people first…”
Vernon Martin
www.vernonmartincoaching.com
August 26, 2008 at 7:40am by Howard Freeman
On a recent US Airways flight, the crew announced that they would soon begin their "In flight beverage service." This new "service," begun August 1, was no service at all: it was a sales effort to hawk $2 sodas and other items. I'd rather be insulted with airfares that are $2-$5 higher and get the free stuff.
***************
http://meadonmanhattan.wordpress.com/
September 3, 2008 at 12:18am by Barbara Hoff-Morin
Who really needs a meal on an airplane? For the most part the food is not good, just a plain uncomfortable way to eat crummy food. I can't however see this will be a great saving for the company, but if they keep the drinks at a cost efficient price..... Maybe the airlines will earn their fortune with the $15.00 dollar a bag fee, after all customers have gone from having a person give them a boarding pass, and check in their bags, to printing their boarding pass at home, heafting their own bag on the track, to paying 15.00 a bag to do all their own work, and we even thank the guy sitting on the chair watching us do what they used to.
Sounds a little tounge in cheek, but when you think about it yes the cost for traviling by plane is rising, so is traveling in any other way. People really just want to get where they are going quickly and in relative comfort, pack a lunch, choose what you want and eat what you like, just get me there safely and quickly. We all know that no matter what the airlines do or change we won't stop flying, we may go along kicking and screaming but we will accept it, because we want to get where we need to go faster.
September 3, 2008 at 12:18am by Barbara Hoff-Morin
Who really needs a meal on an airplane? For the most part the food is not good, just a plain uncomfortable way to eat crummy food. I can't however see this will be a great saving for the company, but if they keep the drinks at a cost efficient price..... Maybe the airlines will earn their fortune with the $15.00 dollar a bag fee, after all customers have gone from having a person give them a boarding pass, and check in their bags, to printing their boarding pass at home, heafting their own bag on the track, to paying 15.00 a bag to do all their own work, and we even thank the guy sitting on the chair watching us do what they used to.
Sounds a little tounge in cheek, but when you think about it yes the cost for traviling by plane is rising, so is traveling in any other way. People really just want to get where they are going quickly and in relative comfort, pack a lunch, choose what you want and eat what you like, just get me there safely and quickly. We all know that no matter what the airlines do or change we won't stop flying, we may go along kicking and screaming but we will accept it, because we want to get where we need to go faster.