On Tuesday morning, American Airlines announced they would follow Delta's lead by introducing free premium video entertainment on all flights. But with the product gap now narrowing between airlines, what can carriers do to differentiate themselves?
There are two major areas in which airlines can improve - inside the plane, and outside the plane (so, essentially everywhere). First, let's look at what airlines can improve for passengers during the flight.
From the perspective of an economy passenger, most flights are pretty much the same. Tight seat, drink service, and maybe a snack, if you're lucky. It's the little things that make the difference, such as the friendliness and attentiveness of the flight attendants. Foreign airlines practice this so well, but on U.S. flights, you're lucky to see your flight attendants again after that initial drink service and trash collection.
The way flight attendants treat passengers is ever more important, because digital technology now makes it possible for customers to get all the way to the plane without really interacting with any other airline employees, thanks to internet check-in and mobile boarding passes.
Southwest Airlines has known and practiced customer service for 45 years. It's so important that they capitalize "Customer Service" internally. Southwest flight attendants are famous for singing songs, telling corny jokes, and even making birthday crowns out of peanut packets. Southwest calls it Positively Outrageous Service. These acts get customers to tell others about their flight, giving advertising to the airline at no additional cost to Southwest. Hundreds of case studies about Southwest have proven year after year that this customer engagement is a big contributor to their success.
From an amenity standpoint, I think the next step is free Wi-Fi. It's not cheap, and of course airlines want some ancillary revenue from the product. One way to do this is through sponsorships. Airlines could sell marketing opportunities to tech companies like Google, Microsoft, or even video game apps. When a customer logs on, make them sit through a 30-60 second video. Passengers wouldn't find it bothersome since they're getting free Wi-Fi.
Cellular provider T-Mobile is already giving its subscribers free texting and one hour of Wi-Fi service on every flight that's equipped with Gogo Wi-Fi. JetBlue provides free Wi-Fi in a tiered service. The slower bandwidth is free, or you can pay $9 per hour for their high-speed offering.
Another area of potential improvement is in baggage handling. With most airlines now charging for checked baggage (Southwest is again the exception) passengers are boarding the plane already frustrated by being fleeced for additional money. If they arrive at their destination and their bag is missing, it doesn't matter how much they enjoyed their flight.
They leave with a bad taste in their mouth, that they will be sure to remember when it's time to book their next reservation. Both Alaska and Delta have been testing the use of RFID technology in their bag tags, making it possible to track baggage through each step in the transportation process, much like you'd see if you're expecting a package delivery from FedEx.
With the use of RFID, airlines seem to be moving in the right direction toward all-around customer service, instead of focusing only on making the flight a positive experience. All other things being equal, it is becoming more important than ever before for airlines to focus on the entire passenger experience.
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