Showing posts with label benefit. Show all posts
Showing posts with label benefit. Show all posts

Friday, 16 March 2012

How long haul business class was transformed


In the 1990s, there was a battle royal between airlines over long-haul business class.

In fact, the competitive situation seemed to me to be like angels being danced on the head of a pin, so slender were the real differences between the various players. One would offer a 45 degree seat recline, another an extra four inches of legroom, while a third would offer bone china crockery.

But in practical terms they were all so close together that customers bought primarily on price. Everyone was losing money.

So British Airways set up a big innovation workshop. People from every part of the airline plus several regular long-haul business class passengers. Some sixty of us in all. I designed and facilitated the workshop for them – in Dubai – and people flew in for it from around the globe.

Mostly on day one we brainstormed possible wishes for improvement. I was astonished by the services that business class passengers might wish for: massage my feet, cool my brow, peel me a grape, champagne intravenously and so on and so on.

Then, towards the end of the day, quite quietly, one of the passenger participants said: “You know, I’d trade all that, every bit of it, for a decent night’s sleep.” And what that meant, to him, was to have a flat bed, just like the folks in First Class.

It was as though the clouds had parted. Here was a genuine difference. After all, the majority of long-haul flights are overnight ones.

But identifying the breakthrough insight was just the beginning. BA then had to work out how to deliver the new benefit without sacrificing half the passenger density. And this they did using their “herringbone” layout.

Altogether it transformed BA’s long-haul business class – Club World as it’s branded – in terms of reputation, share, sales, price-point and profitability.

And for some reason or other, their competitors failed to respond for several years. But that’s another story.