I am fascinated to note that British Airways appears to be moving away from the concept of delivering customer value and is focusing solely on the balance sheet. Over the last three months, BA has abolished meals on short flights, cut luggage allowances and has just introduced charging extra for the privilege of reserving your seat. At the same time, it has just launched a business-only service from London City to the US. Confused? You should be.
I don't think I'm alone in thinking that BA has lost its way and is increasingly devaluing its value proposition which hitherto has been based on providing an excellent customer experience and brand clarity. Competition with low-cost airlines will be increased, not decreased, by its recent moves as the competitive playing field is being levelled by BA itself.
BA may well boost flagging revenues in the short term but at the risk of alienating its loyal customer base and thus destroying its hard-won value proposition.
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Having tried to fly Ryan Air over the summer holidays BA will have to do a lot more wrong to sink that low.
ReplyDeleteBA seem to be in a death spiral at the moment, emulating everything that people despise in Ryanair i.e. extra charges at any opportunity whilst neglecting the bit that people do like about Ryanair i.e. a very low basic fare. You have to feel sorry for the frontline staff who have to defend the these decisions.
ReplyDeleteI always feel sorry for customer-facing staff who have to defend/explain strange decisions taken by senior management teams. All the more reason for BA to communicate with clarity and confidence, both internally and externally.
ReplyDeleteMost of all, however, I passionately believe they must ask, listen and act upon what their customers have to say about where BA's value truly lies.