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  • Business Travelers Return to Legacy Carriers

    Are biz travelers revolting against discounters?
    Despite the bang-up performance by discount airlines in the latest airline quality survey, business travelers are apparently rejecting the discounters and returning to the traditional airlines. That's according to The New York Times' (free registration) biz travel writer Joe Sharkey, who sites an Accenture survey that found 82% of business travelers now say they "primarily" use traditional carriers instead of discounters. That figure is up from 72% a year ago, which the survey called a "significant shift" back to the so-called legacy carriers. Accenture's Paul Chiu tells Sharkey that biz travelers now have "more flexibility to pick airlines and flights more conducive to their schedules and destinations, rather than selecting them strictly on price." Of course, even when price is considered, the traditional carriers typically undercut the prices of their discount rivals by so much that the legacy airlines' fares are often the lowest. Perhaps that's starting to work for them … as long as they can stay in business.
    Good to see!

  • #2
    Just somewhat logical in a way.
    Here, some people are getting fed up to be finally charged by EZY and Ryanair the same as AF, the fares of which for business travellers fly at the same levels every day ! Some quipers can add that
    - neither EZY nor Ryanair credit with redeemable miles !
    - with AF + other fellow legacies, bags fly for free ...
    Alain
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    • #3
      When I was Ottawa and Montreal on Sunday I noticed alot of business travelers flying on AC.
      -Kevin

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      • #4
        ...was bound to happen eventually.

        As LoCos and Legacies became increasingly indistinguishable in terms of price/product, the fact that Legacies offer significantly more and wider-ranging benefits for their patronage was bound to swing the tide significantly back into their favor.

        Whether that's enough to counteract soaring fuel cost, lower average ticket prices, and increased net market capacity... ergo returning the Legacies back to the go-go good-times of the late 1990s; is another matter.
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        • #5
          Agreed: remember that as legacy carriers have restructured (some more successfully than others) their costs have come down and they can afford to be more price-competitive. Another thing to keep in mind is that business travellers usually want to fly with legacy carriers because of valuable extras, not only IFE but also things such as frequent flier points etc, but the companies have prevented them from doing so because of cutbacks and cost-savings measures.

          If (and that's a conditional if) more business travellers fly on legacy carriers that might also indicate, in part, that companies have slightly more money nowadays, or at least is willing to spend more.

          -Sturla

          Originally posted by ACman
          When I was Ottawa and Montreal on Sunday I noticed alot of business travelers flying on AC.
          Who the hell do you become Montreal and Ottawa? I've tried to be Niagara Falls for several years now with no success...

          -Sturla

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          • #6
            I'll venture to say that it works as a cycle. As the legacy and LCC ticket prices are more comparable now, more business travel goes to the legacies. Then when there is more demand for legacy premium seats, prices go up, and the difference between legacy carriers and LCCs increase again, so low cost will begin to look more attractive again.
            However, maybe fuel prices will have some say in this

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            • #7
              Originally posted by sturla
              Who the hell do you become Montreal and Ottawa? I've tried to be Niagara Falls for several years now with no success...

              -Sturla
              hehe, i was apointed on saturday. No, big typo.
              -Kevin

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              • #8
                Perhaps that's starting to work for them … as long as they can stay in business.

                I caught this line and hope others do too. Just because it is happening does't mean its working. the airlines must remember its about saving these passengers and making it work for them.

                I am assuming these are business class seats the guys are flying. yes they offer more, but uhm..FL flies a business seat. and when you think about it, if you are talking coach..what does AA offer thats different from B6? or WN? OR FL?

                Alex
                Stop Searching. Start Traveling. southwest.com

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                • #9
                  I wouldn't say it is anything really indicative of the health of the industry or even surrounding industries. As noted in the article (I think) legacies are now often cheaper the LCCs. Basically legacies are selling seats at cost to entice travellers back. It's not like they are making huge profits now, businesses are still going for cheap seats it appears when one looks at the current bottom lines for legacy carriers.
                  - Fly United -
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                  • #10
                    Originally posted by sturla
                    Who the hell do you become Montreal and Ottawa? I've tried to be Niagara Falls for several years now with no success...
                    -Sturla
                    Maybe he meant Miss Montreal and Ottawa.
                    Follow me on Twitter! www.twitter.com/flyingphotog

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