The power of wine

Hi there,

I was wondering if you people were using the best catering settings available for every class, or if you were saving the most expensive ones in order to avoid wasting too much money. I have a doubt when I compare the prices of on-board service in Economy class, there’s a huge gap between Soft Drinks+Beer (1.75$) and Soft Drinks+Beer, Wine and Champagne. (9.50$)

I have the feeling that this factor will be crucial on flights longer than 1500km, but what about routes operating at around 800km?

you must test at your own, what’s the best mix for the different routes

you can get the maximum rating for every distance for less money

try it

I just make sure the bars are filled.

On most routes I found that by offering a 5 bar service, I could charge higher and make up for the additional costs (and much much more!!)

Saad

There are several ways to do this.

  • One, usually what I do is that I categorize the types of planes I use. For example, if I buy a 737-900 I know how far it can go at full capacity. Then what I do is that knowing how far the plane can go, I configure the on board service based on that range. Then I assign only that on board service to those planes.

  • Two, you can also do this in the prospect of the routes. Meaning you apply the same theory, but instead of making the quality of service based on the planes range. You make the quality of service based on the range of length of the route (roughly) it will fly.

Option two WILL cost you less, but it varies depending on what your airline routes are composed of (regional, short, long range). The down side is that it is somewhat time consuming, since it requires you to research roughly every route.

Also you can look at what flights are 100% booked and increase the per ticket price, again this does make you more money and increase profit margins. But as the bigger your airline gets and the more routes you add can make this task again very time consuming.

Generally I make a generic on board service based on minimum range for services. Then deploy those services to planes depending on the range of the route.

For example, some services require 0km range, 800km range, and 1500km range. So I create 3 service profiles (0km, 800km, 1500km) and have 5 bar service based on the range of my longest range aircraft.

Another aspect: does it make sense to offer wildly different standards on different routes? If a PAX flies A-B-C, then if A-B is a cheapo low-cost flight with lots of red bars in ORS and B-C is expensive up market with lots of green bars, what happens to the overall trip rating? Same consideration applies to your choice of ILs, I think?

I have set my catering profiles based on the length of the routes. SR (short), SMR (short-medium), MR (medium), LMR (long-medium), and LR (long-range).

There shouldn’t really be a huge difference because:

For a low cost airline, offering close to nothing and charging accordingly, the price performance ratio (which I believe is what is used to calculate the flight rating) should still be pretty good. Similarly, A flight with a good rating (for which you should be charging much more) will have a similar price performance ratio. So the overall rating should be fairly similar to the two flights.

In my experience, you get a better margin by giving the pax a better service becuase it allows you to charge more than the cost of what you are offering.

Saad