Public Relations & Social Marketing Insight

United recently announced that it’s joining Delta and American in creating a new Basic Economy fare class, one tier below Standard Economy. This no-frills tier cuts a few of the remaining “frills” of Standard Economy, like overhead bins and pre-assigned seats.

It’s a move to help the major airlines compete with discount airlines like Spirit and Frontier. Spirit advertises itself as “a cheap seat for a cheap-ass” and models after Ryanair which famously considered charging passengers £1 to use the inflight toilet.

A lot of brands offer a continuum of basic to premium, but I think there’s risk to brands that try to stretch this far, literally from “cheap-ass” to first-class. Many travel brands in particular follow a model of low base prices and constant aggressive upselling. But in the process, they can forget all about the impact on customer experience.

Rafat Ali of Skift described how travel brands market to customers as “hate-selling”....

Brand loyalty is more fickle than many marketers imagine it. Marketers often overestimate the role of consumer brands in consumers’ lives. In the world of FMCG, consumers are generally loyal to a repertoire of brands, not to a single brand.

This overinflated conception of brand loyalty can lead marketers to focus too much on current customers than on attracting new ones. In 2010, Byron Sharp rattled a lot of firmly held beliefs in marketing with his book, “How Things Grow”. He asserted that brand penetration is much more important than brand loyalty.

As Byron Sharp put it at an event last year, “We are loyal switchers. We don’t feel disloyal to Kellogg’s if we buy another cereal.”...