Making Airline profitable- Understanding value of Passenger’s Time

All the major airlines are complaining of the high operational cost leading to mounting losses. It has also led to some airlines shutting shop. If the airlines start becoming nibbler, they can beat some of the issues that they are facing. One basic example of the same is “Understanding value of Passenger’s Time”.

To illustrate let me share my journey with you. I recently traveled via GoAir to Mumbai for official work. On the return journey I reach airport two hours early. I requested GoAir to shift me to an earlier flight. Luckily, there was a flight departing in next 45 min, they were about to close the check-in process. There were seats vacant on this aircraft and if they switch me it gives them extra 2 hrs to sell the ticket for the next flight. Mistake number 1, they refused.

I offered to pay reasonable extra charges if they were to shift.  They told me the changes would be 4k, when my original ticket price was 7k. I was ready to pay 1K (I would have anyways spend some money on airport during the 2 hrs that I had to spend) but they refused. Mistake number 2.

The above is a basic example, where the passengers would be ready to pay close to 10% higher if the airlines are able to understand the value of Passenger’s Time. The systems and process are available with the airlines, the thing that is missing is the intent. A simple solution that can help add to bottom line of the airlines.