Very few people like their airline experience anymore. Even the pilots were upset about process. The airlines were at one time known for luxury, civility and a unique travel experience. Now they’re busses that fly. The conversation changed from having an experience to a pricing haggle. American Airlines is trying to change the conversation but it may be too late. They’ve pulled out of Orbitz.com because they saw it as a place for us to have “price wars” over tickets. They say they want the conversation to be different. I applaud that (even if I don’t believe it). When the only motivation your customers have for choosing you over someone else is one thing (in this case price) then there’s only one way to win, dominate that category. The problem with trying to win a price war is two fold.
How to not compete on price
1. Offer things others don’t. Then they can’t compare you to anyone else. When Apple introduced the iPad there was no comparable product. People still knocked it for not being a laptop but it wasn’t a fair comparison. It was incomparable.