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‘a la carte’ Business

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For those of us that love travel the thought of cheap or even non-existent airfare seems like the absolute dream. The Icelandic airline, WOW Air, has been talking about doing just this.  The company already specializes in low airfare, however, Skúli Mogensen, the CEO, sees more opportunity for business growth than just that.  If the customer had other channels through which they could spend their money, then the airline ticket itself wouldn’t have to be some exorbitant amount.  WOW Air is thinking about an “a la carte” experience.  This means that if you want early boarding or drinks and snacks while onboard, then it’s an extra cost to you.  That being said, if you choose not to partake in any of that then your trip across seas just became very inexpensive.  

WOW Air is also thinking about weaning themselves off of passenger revenue almost entirely. Their ancillary costs could go way beyond what passenger revenue could offer.  Data collection, in the same way that websites such as Facebook use, could also revolutionize the way airlines see their passengers and the way they treat them.  

This idea is not just applicable to airlines.  What about car rental businesses or even hotels? The concept of an “a la carte” type system is one that should be taken seriously by companies that are struggling to keep up their revenues. This is a way of thinking out of the box that could be a win-win for everyone.  This could even have monumental effects on the economy.  People that were not able to access traveling often, now have the opportunity to do so.

This method is almost like the practices of the consulting world.  We ask the client exactly what they need/want out of their business and then tailor a complete and on-budget plan for them. Working for some sort of equity in the company could definitely lower upfront costs for them as well.  We believe that it’s becoming more of a trend to really look after the customer experience rather than just chase revenues.  Many companies say that they have the best intentions in mind but sometimes that’s questionable.  Practicing methods, such as the one stated above, ensures that everyone is happy at the end of the day.    

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