Cracks appearing in low-cost travel assumptions

Thursday, 20 Mar, 2006 0

The long-standing assumption is that price is all consumers think about when booking travel, but a new survey raises a question:

Are American travelers finally looking beyond price as the only reason for a purchase?

Yes, says a survey by Amadeus that comes following Northwest Airline’s recent announcement it will now charge for seats with “extra” leg room.

“We’ve discovered that more than half of the flying public would be willing to spend more for improving the quality of their flights,” said Nicole Lowe, spokeswoman Amadeus.

How much more?

Up to $20, the survey found.

Passengers also were willing to pay more for individual services such as gourmet food or high quality scotch.

“Amadeus found that travelers are not just looking for a low fare  —  they want choices, and are even willing to pay for amenities and options that will enhance their flying experience,” said Chris Barnes, vice president.

“Consumers are not always looking for the lowest price; they are looking for the best price that fits in line with their travel needs,” he added.

The Amadeus study, don’t with research firm Leflein Assocaites, found nine out of ten travelers find value in the ability to find flight and fare information quickly.

The survey, which Amadeus said was an “exclusive,” questioned 1,000 travelers.

The survey also found that of those travelers using Web sites, 83% said they would switch to an airline Web site if it offered flexible fares and add-on options.

Mr Barnes said that was “encouraging news” for the airline industry.

Airlines that provide consumers flexibility  —  choice, control and convenience  —  can more effectively compete for consumers’ business,” he said.

Northwest recently began offering larger prime aisle and exit row seats for a $15 premium.

Report by David Wilkenng



 

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