eastwest101
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- Oct 26, 2010
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Some recent market research screenshots here pointing out the latest research - looks like Bain/Virgin are thinking about fine-tuning/fiddling with ancillary revenue/extras bundles and trying to ascertain peoples priorities about what they are prepared to pay for and what they aren't. I didn't screen shot it, but the first part of the survey seemed to be really interested in what I would be interested in paying for when booking leisure flights vs work/business flights at various lengths of time and with various numbers of people in the traveling party.
Seems to be quite a detailed look at how they present and price potential optional extras and how/if they get "bundled". This sort of stuff is presented many times with different tweaks and emphasis so they are really trying to drill down into consumer and pricing behavior.
Needless to say my responses were along the lines of "do bundling at your peril", make Economy X better and be transparent and flexible about the optional extras i.e. don't "bundle" like Jetstar does....
Some free field but text limited feedback fields are available. No questions about long-haul and/or widebody international choices or partners, no questions about their competitors (e.g. Qantas, Jetstar, Rex or Bonza). Interesting that some questins were about bundling increade status& points earn on upfront seats without any extra legroom and also possible better SC/points earn on their Economy X product.
Feel free to discuss, but I can see a temptation to go down the "drip pricing" and or "bundling" additional revenue cul-de-sac that Jetstar has gone down.
I get that they want to appear competative price wise on flight aggregator sites but I think its dangerous territory for Virgin Australia, as I pretty much assume that any Jetstar flight with the bundled stuff that I want (and also don't need) is almost always going to be more expensive and a less competitive product than any full service or hybrid competitor (e.g. Qantas, Virgin or Rex), and there is still that issue with booking Jetstar flights in a mixed intinerary with Qantas flights that make Jetstar too much of a risk (i.e. expensive/missed connections issues and no through checked baggage). The only time I would go to the bother and effort of pricing out a full Jetstar bundle and fare through the time consuming and laborious drip pricing process is somewhere where Jetstar has no competitor. So in my case the opacity and bundling actually work against Jetstar.
Seems to be quite a detailed look at how they present and price potential optional extras and how/if they get "bundled". This sort of stuff is presented many times with different tweaks and emphasis so they are really trying to drill down into consumer and pricing behavior.
Needless to say my responses were along the lines of "do bundling at your peril", make Economy X better and be transparent and flexible about the optional extras i.e. don't "bundle" like Jetstar does....
Some free field but text limited feedback fields are available. No questions about long-haul and/or widebody international choices or partners, no questions about their competitors (e.g. Qantas, Jetstar, Rex or Bonza). Interesting that some questins were about bundling increade status& points earn on upfront seats without any extra legroom and also possible better SC/points earn on their Economy X product.
Feel free to discuss, but I can see a temptation to go down the "drip pricing" and or "bundling" additional revenue cul-de-sac that Jetstar has gone down.
I get that they want to appear competative price wise on flight aggregator sites but I think its dangerous territory for Virgin Australia, as I pretty much assume that any Jetstar flight with the bundled stuff that I want (and also don't need) is almost always going to be more expensive and a less competitive product than any full service or hybrid competitor (e.g. Qantas, Virgin or Rex), and there is still that issue with booking Jetstar flights in a mixed intinerary with Qantas flights that make Jetstar too much of a risk (i.e. expensive/missed connections issues and no through checked baggage). The only time I would go to the bother and effort of pricing out a full Jetstar bundle and fare through the time consuming and laborious drip pricing process is somewhere where Jetstar has no competitor. So in my case the opacity and bundling actually work against Jetstar.
