Carry-On Bag Fees? What's Next? Charles Gaudet Says It’s Time for Airline CEOs to Resign

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With Bankruptcy, Bailouts, and Cries of Poverty Echoing Airline Boardrooms, Gaudet Says It’s Time for New Leadership

airlines carry of fees

Customers are sick of high baggage fees, poor service, inflexible policies, lost baggage, and delayed flights. The business strategy needs to change.

Executives often fall short of recognizing that customers have all the power. There’s more competition and options available to them than any other point in history, and the key to succeeding in this environment is to keep your eye on the customer...

On April 3, 2012, Las Vegas-based Allegiant Airlines announced that they would begin charging a $35 fee per flight for carry-on bags. This is the second airline to make such an announcement since Spirit Airlines implemented a $45 dollar fee for carry-on bags that do not stow under the seat. “This is just another example of big business losing touch with its customers, and narrow mindedly focusing on business profits,” says PredictableProfits.com founder, Charles Gaudet.

“Executives often fall short of recognizing that customers have all the power. There’s more competition and options available to them than any other point in history, and the key to succeeding in this environment is to keep your eye on the customer,” Gaudet continues. “Instead of another bailout or bankruptcy, it’s time for investors and regulators to demand new leadership.”

Gaudet suggests that airline executives should consider the following when trying to improve their customer experience:

  •     What does your ideal customer expect from a good flying experience?
  •     What are more ways can we create a good customer experience for our passengers?
  •     What ways can we make the reservation process easier, more convenient, and enjoyable?
  •     What process, information, and training needs to be in place for our pilots, airline attendants, and employees to make sure an enjoyable customer experience is the number one priority?
  •     How can we make our customers feel special, valued, and appreciated?
  •     What methods are in place to communicate with our customers and make sure that their needs are being addressed?

“Airline executives have stopped asking themselves, ‘how can we provide our customers a better advantage, benefit, experience, or value by flying our airlines?’ and they decided to focus on price. Companies that complete solely on price end up becoming commoditized entities with low customer loyalty and high customer attrition,” says Gaudet.

“When you look at the exceptions, namely Southwest and JetBlue, they are not always the least expensive, but they constantly rank as having the highest customer loyalty and the best customer experience,” continues Gaudet. “It shouldn’t come to much of a surprise that they are also two of the most profitable airlines in the industry.”

For more information on how to increase your small business profits and create a more customer-centric organization, please visit http://www.PredictableProfits.com and sign up for the free newsletter.

ABOUT CHARLES GAUDET:
Gaudet started his first business at just four years old, and has been involved in entrepreneurial enterprises ever since. Upon finding himself in millions of dollars of debt and under enormous stress at the age of 24, he and his wife systematically grew their first multi-million dollar company. Gaudet has traveled much of the world studying from business, political and social leaders studying entrepreneurial, marketing and business excellence. He is widely regarded as a marketing expert for consistently delivering windfalls of profits to his clients, unveiling opportunities that have been previously under-utilized or have gone unnoticed.

He is the founder of PredictableProfits.com, the creator of the Predictable Profits (TM) methodology and the author of the popular blog at http://www.PredictableProfits.com/blog.

ABOUT PREDICTABLE PROFITS:
Predictable Profits is a leading small business marketing company and a division of Managed Marketing, LLC. The company specializes in finding overlooked marketing opportunities commonly found in most small-to-medium sized businesses, and creating actionable marketing strategies for increasing a company's profits. You can read more about Predictable Profits by visiting the company's website at http://www.PredictableProfits.com.

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Charles E Gaudet II
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