February 28, 2006

Why Airlines Land Leisure Passengers

by Henry H. Harteveldt

with Carrie Johnson, Chloe Stromberg, Brian Tesch

Executive Summary (This is a document excerpt)

Leisure travelers may publicly deride airlines when talking with friends, but the truth is that most — 81% — routinely select one airline over another when they fly. Is this a sign of blind love? No. Airlines satisfy most travelers, but few connect emotionally with their leisure customers, which is an indicator of customer loyalty. An analysis of six major US airlines shows that only Southwest Airlines truly distinguishes itself. For airlines, and especially older network lines, to prosper, they must stop trying to be all things to all people and focus on one of three rational attributes — value, technology, or product — that spurs an emotional bond between the airline and its primary group of passengers.

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