Guest blog: a dynamic pricing model for air travel

Tags

air travel, airline, dynamic, flight, pricing, tickets

Here is the first guest blog on Kims.

This was written by the Ferret. He (and I) feel quite passionately about this topic. Very nice of him to say I weigh only 1/3 of most passengers. But it’s true, I do travel quite light.

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The airline industry is in near disarray. Between soaring fuel prices, ever increasing competition, union strikes, and political pressure, change is needed. I’m not talking change in technology, or government regulation; what needs to change is perception.

You are only buying fuel.

When you log into Expedia.com or call your travel agent to purchase a flight to an exotic isle somewhere, your money is being used for two things. The first is a reservation of space on a plane, and the second (the only tangible object) is fuel.

Today we have higher prices for tickets and in addition are seeing airlines tack on little fees with increased frequency. From an additional charge for checking 2 bags, to asking $45 for bringing a carry-on, when is enough, enough? How far will the airlines go?

I say the problem is the airlines haven’t gone far enough. Let me show you why.

Historically weight wasn’t so much of an issue. The price difference between light-weight passengers and ones that travel heavy wasn’t sufficient enough to necessitate price changes. Sure, if back in 1990 your Aunt Martha wanted to bring her entire wardrobe when she visits, this caused the plane to burn through an extra $75 of fuel.

Now fast-forward to 2010. Aunt Martha is a bit older now but still packs the same way and wants to come out for a visit. The $75 has become $262.50. Because I don’t want the price of my ticket to pay for your Aunt Martha, the airline is forced to lower the total acceptable weight limit that each person can bring, as opposed to sharing the cost with all fliers. This is where the extra fees come in.

The general concept is a good one, why should the price of everyone’s tickets go up just because some lady wants to bring her entire wardrobe on a 1 week vacation? This pricing model is out-dated and unfair.

What is a solution then?

Fuel consumption is precisely calculable, while the total weight and size of the cargo is dynamic. This is no revelation to FedEx, DHL, UPS and other air-freight companies who on a daily basis successfully calculate total costs of flying a set amount of mass in a given space to a set location. Even their customers can easily calculate exact prices via phone or online by entering the weight and size of the item to be shipped.

Passenger airlines need to translate this model to their pricing. The total space limits are already set so simply add a field to input approximate body weight and estimated luggage weight when purchasing a ticket.

When people get to the airport have them do a final weigh-in and charge extra if they’re over, and give a refund if under. There is no reason my wife who weighs literally 1/3 of some passengers has to pay extra when bringing both her laptop and purse on board.

Implementing a dynamic pricing model can only bring fairness and transparency to the price we all pay for air travel.

The big apple

Tags

Jet Airways, JFK, Marriott, New York, Times Square, Travel

Who says New Yorkers are rude?

I have just had the most lovely trip. From the kind flight attendants, the charming customs guard, the polite taxi driver, the check in guy who gave me a great room, to the sweet bellhop; all the people I met so far today have been nothing but warm and welcoming. Let’s hope it stays that way. ;)

This here is my room and the view. It’s the room people want for New Year. See the ball? I am going to freshen up and head out to Sephora and then dinner at Ruby Foo’s.

I love NY!

That killed my Buzz

Tags

Buzz, disappointed, Google, Todd Jackson

For many years I have been a fervent Google supporter. I prefer Gmail over any other email client, the Ferret and I share all our budget and household spreadsheets on Google Docs, all our wedding photos are stored on Picasa, we have our own and mutual Calendars and love how it integrates Maps. I occasionally rely on Google to Translate, like the News, and recommend iGoogle to many.

My love and admiration for Google has unfortunately taken a steep dive. I shrugged when Wave was launched, but with Buzz they’ve really killed mine.

The reason I’ve always liked Gmail is because I’m a control and a neat freak and Gmail provides me with the clutter-free, sleek environment I demand. I am also a privacy nut. I don’t post loads of pictures on Facebook and don’t post my real name on this blog. So when Buzz decided to automatically follow everyone in my “all contacts” list, I was less than impressed. When I noticed I cannot change my public name, and that the buzz comments for me aren’t just listed in Buzz but generate additional emails, I quickly hit the hide button. One blogger made the news with her rant about Buzz, but I noticed her blog is now no longer available. Just like her though, I am still concerned about the privacy issues Buzz has brought along.

I work for a company that has been bogged down in privacy issues for years. Here are a few tips for Todd Jackson, product manager at Google:

Before launching a new product, consult with both your PR and Legal departments. If you did, Todd, I can only assume you either ignored their advice, or they are incompetent and did not advise you well.

I know that in the meantime you’ve been working hard to address our “concerns”, but an information paper and a Q&A with your PR should have raised these issues before the launch. Launching a faulty product turns people off and it becomes much more difficult to convince them that the next version does a better job.

As a PR pro, I often face these situations where product managers can’t wait to launch their latest and greatest, no matter how much more testing, piloting and scrutinizing the product still needs. They don’t ask PR to help them out from the bat off, but insist we promote the thing with a bang it does not necessarily deserve. A thorough test phase and a well thought through Q&A can solve a lot of issues, and keep your customer base happy.

Google, take some lessons from a communicator who has seen how brittle a company’s reputation really is.