Morning, everyone! This week I had the pleasure of attending the Asia Pacific Aviation Outlook Summit here in Sydney. A 3-day gathering of the airline and travel industry glitterati packed with presentations and pontifications about the future of air travel, and the travel industry in general.
After flying on, writing about and booking tickets with airlines for years it was great fun to go to a conference devoted to the business of air travel. And what became apparent to me is that when it comes to business travel, airlines are pretty tough to keep up with.
As Cafe regulars would know I've devoted a few Friday Mornings lately to talking about Virgin Blue's quest for the Australian corporate market. And if the presentations I heard this week prove to deliver what was talked about, any possible leap frog plans past Qantas that Virgin had could prove to be very tough to deliver on.
It boils down to simple economics: the Qantas Group is profitable, despite all the groaning about costs and constant (and very publicised) battles with some categories of employees. Qantas' CEO Alan Joyce at the conference this week put it in very plain terms: they are making money. And when you make money, you can spend money. And when you can spend more money than your competitors, you'll end up leapfrogging well out of their league.
Joyce spoke at length about the 8 to 9 figure investments (yes that's tens to hundreds of millions of dollars) in airport operations and passenger experience technologies they've started to just roll out, and it is obvious they are moving into a new generation of convenience for business travellers. I'm soon to get my new Qantas Frequent Flyer card (got my "personal" email from Alan himself letting me know it's on the way!) and after what I heard this week I can't wait to try it out.
I've written lately about comfy seats, in-flight entertainment, air staff that try to do wonderful things for you, and all that good stuff. But time after time, in study after study, the things that business travellers tend to rate as most important when choosing an airline (assuming they have a choice of course) is convenience, reliability and capacity - and Qantas is nailing those facets well beyond the rest of the market.
With the new virtual check-in, and soon-to-come personal bag tags, as a busy traveller I'll be able to waltz into the airport minutes before my flight, stroll past the RFID kiosks which will pick up my information from the radio chip embedded in my Frequent Flyer card, toss my bag with similarly ID'd bag tag attached onto the waiting conveyor, and voila - I'll be checked in and on my way. No stopping at a touch-screen, and certainly I won't have to stand in line and talk to a person (heavens no!) to check in. It doesn't get more convenient than that.
And it probably didn't come cheap - which again is why Virgin will continue to struggle to capture the corporate market as I would predict that this new technology will be a huge hit with road warriors. As Virgin ekes out a profit, Qantas' money train seems to keep rumbling along just fine- "tank you very musch" as the Jolly Irishman Mr. Joyce would say. Deep pockets can buy big things, and this "frog" has some big legs. Going to be tough to get the jump on this....
Thursday, July 29, 2010
Thursday, July 22, 2010
Virgin's Business Class Bliss - the V Australia Sky Try
Morning everyone! After a couple of weeks off the Barista is revived, refreshed and ready to tackle all things travel. And much of my refreshed state comes from a truly fantastic holiday to Fiji. Which, interestingly enough, started off with a flight experience that has (at least in my mind) led me to believe that Virgin Blue's new boss John Borghetti has the future right where he probably wants it.
As I've said in previous editions of the Cafe, I was struggling to figure out how Virgin's new boss was going to loosen the bear hug on the corporate travel market that Qantas currently enjoys. But thanks to a terrific experience on V Australia (or maybe it was too much Fijian kava) things have started to crystallise in my mind about some things that Virgin Blue can start using to make inroads into the business travel market.
As a first-time flyer on V Australia, I have to admit even though I had heard the advertising and some feedback from others who've travelled on them, I was expecting a more Virgin Blue-like experience. Imagine my pleasant surprise then after boarding the plane that besides a flight attendant crew who all looked younger than my son, there was very little Virgin Blue and a whole lot of something else.
That "something else" was what you just don't seem to get these days on other airlines, and that's a feeling that you're in for a whole new experience. Yes, the colour schemes are from Virgin Atlantic and so is the pop/rock music piped in (which sure beats hearing Qantas' "I Still Call Australia Home" anthem over and over again) but the plane itself just feels more cool, more comfortable, and more unique than anything I've been on lately. The other "something else" was the crew - just as young, laid back and better looking than I am as is the rest of Virgin's staff but they just seemed to adapt their approach to the passengers better than other crews I've travelled with lately.
For example, our flight was to Fiji so obviously it was a holiday-heavy flight. However in Business class, there were several travellers who looked as though they were either coming from or going to a business meeting. As opposed to assuming everyone was off on holiday, the crew in the cabin took the time to not only say hello but also stop and query the nature of the passenger's journey. With Mrs. Barista, Barista Junior and yours truly already in our shorts and sandals it was obvious what our story was, but not so obvious was what the gentleman across the aisle with the Tumi laptop bag and phone glued to his ear was up to. Just saying a quick hello is fairly Virgin Blue or Qantas-like, but a "what will make your trip with us more comfortable?" is what V Australia seems to be about.
Now onto the actual experience on board: with mood lighting, cool colour schemes, big touch-screen TV's with on-demand content available for you right from the moment you sit down until arrival at the other end, and completely lie-flat seats, this biz class product is a real winner. Coupled with excellent food and, of course the requisite sit-down bar, the entire V Australia flying experience was a treat. As their adverts for the SYD-NAN route say, you'll wish the flight was longer. And I certainly did.
However - and this is the "Hey John, listen up!" moment- I was actually more impressed with the Premium Economy product. Not so much as saying its the best long-haul Premium Economy product in the sky, but rather that I believe that this product, installed in the first few rows of Virgin's domestic aircraft, would give Virgin Blue a differentiation in the domestic business class sector rather than the half-hearted attempts at doing so they currently have on board.
The V Australia Premium Economy seat is covered in very comfy, soft leather, has useful (ie- not painful) footrests on the seat in front, has generously-sized on-demand TV screens that, coupled with free on-board Foxtel, would really entertain the biz traveller and make it feel like a more international-type product rather than a rigged-up domestic seat with an extra drinks tray. Throw in a free welcome glass of bubbly in one of V Australia's cool and rather large champagne "schooners" (nothing like a big fat drink after a long day to calm the nerves!) then if I had the chance to fly biz class domestically this way I'd be all over it.
For certain, it will take a lot more than one comfy seat to send the corporate traveller who's drunk on Qantas Frequent Flyer status and points staggering over to Virgin Blue. But I'm sure John's got all those other aspects of engendering corporate loyalty all figured out. It's the actual flying experience on Virgin that I've said before still has a long way to go, but I think by taking a few pages out of their sister long-haul product then DJ could have a flying chance at it.
As I've said in previous editions of the Cafe, I was struggling to figure out how Virgin's new boss was going to loosen the bear hug on the corporate travel market that Qantas currently enjoys. But thanks to a terrific experience on V Australia (or maybe it was too much Fijian kava) things have started to crystallise in my mind about some things that Virgin Blue can start using to make inroads into the business travel market.
As a first-time flyer on V Australia, I have to admit even though I had heard the advertising and some feedback from others who've travelled on them, I was expecting a more Virgin Blue-like experience. Imagine my pleasant surprise then after boarding the plane that besides a flight attendant crew who all looked younger than my son, there was very little Virgin Blue and a whole lot of something else.
That "something else" was what you just don't seem to get these days on other airlines, and that's a feeling that you're in for a whole new experience. Yes, the colour schemes are from Virgin Atlantic and so is the pop/rock music piped in (which sure beats hearing Qantas' "I Still Call Australia Home" anthem over and over again) but the plane itself just feels more cool, more comfortable, and more unique than anything I've been on lately. The other "something else" was the crew - just as young, laid back and better looking than I am as is the rest of Virgin's staff but they just seemed to adapt their approach to the passengers better than other crews I've travelled with lately.
For example, our flight was to Fiji so obviously it was a holiday-heavy flight. However in Business class, there were several travellers who looked as though they were either coming from or going to a business meeting. As opposed to assuming everyone was off on holiday, the crew in the cabin took the time to not only say hello but also stop and query the nature of the passenger's journey. With Mrs. Barista, Barista Junior and yours truly already in our shorts and sandals it was obvious what our story was, but not so obvious was what the gentleman across the aisle with the Tumi laptop bag and phone glued to his ear was up to. Just saying a quick hello is fairly Virgin Blue or Qantas-like, but a "what will make your trip with us more comfortable?" is what V Australia seems to be about.
Now onto the actual experience on board: with mood lighting, cool colour schemes, big touch-screen TV's with on-demand content available for you right from the moment you sit down until arrival at the other end, and completely lie-flat seats, this biz class product is a real winner. Coupled with excellent food and, of course the requisite sit-down bar, the entire V Australia flying experience was a treat. As their adverts for the SYD-NAN route say, you'll wish the flight was longer. And I certainly did.
However - and this is the "Hey John, listen up!" moment- I was actually more impressed with the Premium Economy product. Not so much as saying its the best long-haul Premium Economy product in the sky, but rather that I believe that this product, installed in the first few rows of Virgin's domestic aircraft, would give Virgin Blue a differentiation in the domestic business class sector rather than the half-hearted attempts at doing so they currently have on board.
The V Australia Premium Economy seat is covered in very comfy, soft leather, has useful (ie- not painful) footrests on the seat in front, has generously-sized on-demand TV screens that, coupled with free on-board Foxtel, would really entertain the biz traveller and make it feel like a more international-type product rather than a rigged-up domestic seat with an extra drinks tray. Throw in a free welcome glass of bubbly in one of V Australia's cool and rather large champagne "schooners" (nothing like a big fat drink after a long day to calm the nerves!) then if I had the chance to fly biz class domestically this way I'd be all over it.
For certain, it will take a lot more than one comfy seat to send the corporate traveller who's drunk on Qantas Frequent Flyer status and points staggering over to Virgin Blue. But I'm sure John's got all those other aspects of engendering corporate loyalty all figured out. It's the actual flying experience on Virgin that I've said before still has a long way to go, but I think by taking a few pages out of their sister long-haul product then DJ could have a flying chance at it.
Tuesday, July 6, 2010
It's BULA time...The Barista is off to Fiji.
Greetings Cafe goers - the Barista is closing up shop for the next two Fridays as I take a long-awaited break to Fiji. Looking forward to flying without a laptop for once and also to check out V Australia's product. I promise to be more useful in my review of the on-board experience than I was last week in my useless ruminations about Virgin Blue...or is it Virgin Australia now? Can't keep it all straight...
Anyway, all the best to my Aussie customers for the school holidays and I'll have the Cafe back open on the 23rd of July. Cheers!
Anyway, all the best to my Aussie customers for the school holidays and I'll have the Cafe back open on the 23rd of July. Cheers!
Thursday, July 1, 2010
The Most Useless Travel Blog Posting Ever
Good morning, everyone. I know (or at least I hope) your weekly visits to the Cafe are insightful, interesting and useful - but I think today I may just disappoint.
I'm intrigued by the recent moves in personnel and public statements being made by new Virgin Blue boss John Borghetti as he continues to reiterate that Virgin Blue's future is based on a significant growth in corporate business. Just this past week it was announced for example that he's poached a bunch of his former Qantas colleagues to take on senior roles in Brisbane. And given that he was instrumental in building up Qantas' business products over years down in Mascot I certainly am sure he knows what he's doing.
However, as a frequent business traveller, and someone who flew Qantas predominantly for nearly 6 years and recently started flying on Virgin Blue, my curiosity is based on wondering how on Earth Virgin Blue is going to take a slice of Qantas' stranglehold on the Australian business travel pie. Because much of that curiosity stems from the fact that having flown Virgin Blue nearly every week over the past few months I have absolutely no clue how they are going to pull this off.
I certainly do not profess to know what drives the satisfaction of every single business traveller out there. But having logged my fair share of miles all in the name of whatever organisation I happened to be working for at the time, I do think I have a good idea of what business travellers are looking for in an airline.
But I really, truthfully, have no idea what I would tell John and his old and now new cronies there at Virgin Blue how they're going to capture the business travel market. Thus, today's Cafe being the most worthless travel blog post ever.
What I can tell the Virgin Blue team however, are some things about travelling for business on Virgin Blue that I would think that, if changed/edited/deleted altogether would be a great start:
- Terminal experience: OK, so this is a tough one, given that airlines have only so much control and influence over Macquarie Airports (oops, sorry - I mean airport operators) to enhance the airside experience. That being said, the difference between Sydney Domestic Terminal 2 vs. 3 (Virgin vs. Qantas, basically) is significant. I'm not talking about shopping or food- I'm talking about feel. Most savvy business travellers today in an era of mobile/online check-in are breezing into the terminal with only minutes to spare before boarding and don't give a rats about shopping or eating. The light, airy feel of Qantas' Terminal 3 compared to the dark, low-ceilinged rabbit warren of Terminal 2 makes me want to cut those minutes down to one single minute. T2 in Sydney (and don't even get me started on Melbourne) needs a serious overhaul.
- The "fun" factor: I don't have any specific issue with this, as I enjoy a sharp-witted flight crew and genuinely friendly welcome as much as the next person. What I don't like is when those who are tasked with my safety and onboard comfort put that fun above their job. The problem with the flight crew on Virgin from a business perspective is that they don't pay enough attention to why I am travelling. I don't need a joke after a long day and I'm buried in my laptop as soon as the seat belt sign is off, I just need a "hi there, do you need anything?" and then move on. Even if Qantas' flight attendants aren't always the warmest (generalisation of course, there are some very nice ones) they at least have the "attend" part of the job down pat.
- Make a decision on the front of the plane: the current "Premium Economy" is neither Premium nor good economy. Let's face it: flights in Australia aren't all that long, so why have a product that doesn't really give you any significant difference in the on-board experience? Qantas' domestic business class may not necessarily be "worth it" (again, given relatively short flights) but at least the difference in the product is noticeable.
- Narrow planes = narrow opportunity: Virgin needs to get bigger planes on the more popular routes. Like the earlier points around the "light and airy" feeling in the QF terminal vs. the DJ terminal, there is still something infinitely more comfortable being in economy on board a plane with two aisles rather than one. Every flight on Virgin Blue just reminds me of travelling in the USA, aka: Boeing 737/Airbus A319 hell. No matter that the seats are leather, or that there is a seat-back TV in front of me, I would rather be on a wide-body jet any day of the week. Especially to Melbourne, which is such a short flight that having a wide-body plane for a 50-minute journey seems luxurious. Business travellers like luxury, no matter how small it may seem, and having to cram on board single-aisle aircraft when you could go on something bigger just doesn't cut it. And yes - I am saying I prefer a creaky old wide-body 767 to a brand-new 737.
- Free Foxtel: I would have to think that the most clear-cut differentiator is that Virgin offers 24 channels of live-to-air TV on the seat back in front of you rather than stale Channel 9 news updates with the ingratiating Deborah Hutton winking at you from out-dated overhead monitors. I'm sure JB has already thought of this, but if you want corporate loyalty - give us free Foxtel!
Again, as I have said numerous times, I can't imagine how difficult it must be for an airline to offer various pre-flight and on-board experiences and capture market share all in the name of profitability. So if John Borghetti ever did shimmy up to the Friday Morning Cafe and order up some advice from the Barista, I'm not sure I could truly help him out. But as an avid and well-seasoned traveller, I would hope that my useless advice could perhaps find some value somewhere, somehow. Like JB's goal to achieve 20+% share of the corporate market...we dare to dream....
I'm intrigued by the recent moves in personnel and public statements being made by new Virgin Blue boss John Borghetti as he continues to reiterate that Virgin Blue's future is based on a significant growth in corporate business. Just this past week it was announced for example that he's poached a bunch of his former Qantas colleagues to take on senior roles in Brisbane. And given that he was instrumental in building up Qantas' business products over years down in Mascot I certainly am sure he knows what he's doing.
However, as a frequent business traveller, and someone who flew Qantas predominantly for nearly 6 years and recently started flying on Virgin Blue, my curiosity is based on wondering how on Earth Virgin Blue is going to take a slice of Qantas' stranglehold on the Australian business travel pie. Because much of that curiosity stems from the fact that having flown Virgin Blue nearly every week over the past few months I have absolutely no clue how they are going to pull this off.
I certainly do not profess to know what drives the satisfaction of every single business traveller out there. But having logged my fair share of miles all in the name of whatever organisation I happened to be working for at the time, I do think I have a good idea of what business travellers are looking for in an airline.
But I really, truthfully, have no idea what I would tell John and his old and now new cronies there at Virgin Blue how they're going to capture the business travel market. Thus, today's Cafe being the most worthless travel blog post ever.
What I can tell the Virgin Blue team however, are some things about travelling for business on Virgin Blue that I would think that, if changed/edited/deleted altogether would be a great start:
- Terminal experience: OK, so this is a tough one, given that airlines have only so much control and influence over Macquarie Airports (oops, sorry - I mean airport operators) to enhance the airside experience. That being said, the difference between Sydney Domestic Terminal 2 vs. 3 (Virgin vs. Qantas, basically) is significant. I'm not talking about shopping or food- I'm talking about feel. Most savvy business travellers today in an era of mobile/online check-in are breezing into the terminal with only minutes to spare before boarding and don't give a rats about shopping or eating. The light, airy feel of Qantas' Terminal 3 compared to the dark, low-ceilinged rabbit warren of Terminal 2 makes me want to cut those minutes down to one single minute. T2 in Sydney (and don't even get me started on Melbourne) needs a serious overhaul.
- The "fun" factor: I don't have any specific issue with this, as I enjoy a sharp-witted flight crew and genuinely friendly welcome as much as the next person. What I don't like is when those who are tasked with my safety and onboard comfort put that fun above their job. The problem with the flight crew on Virgin from a business perspective is that they don't pay enough attention to why I am travelling. I don't need a joke after a long day and I'm buried in my laptop as soon as the seat belt sign is off, I just need a "hi there, do you need anything?" and then move on. Even if Qantas' flight attendants aren't always the warmest (generalisation of course, there are some very nice ones) they at least have the "attend" part of the job down pat.
- Make a decision on the front of the plane: the current "Premium Economy" is neither Premium nor good economy. Let's face it: flights in Australia aren't all that long, so why have a product that doesn't really give you any significant difference in the on-board experience? Qantas' domestic business class may not necessarily be "worth it" (again, given relatively short flights) but at least the difference in the product is noticeable.
- Narrow planes = narrow opportunity: Virgin needs to get bigger planes on the more popular routes. Like the earlier points around the "light and airy" feeling in the QF terminal vs. the DJ terminal, there is still something infinitely more comfortable being in economy on board a plane with two aisles rather than one. Every flight on Virgin Blue just reminds me of travelling in the USA, aka: Boeing 737/Airbus A319 hell. No matter that the seats are leather, or that there is a seat-back TV in front of me, I would rather be on a wide-body jet any day of the week. Especially to Melbourne, which is such a short flight that having a wide-body plane for a 50-minute journey seems luxurious. Business travellers like luxury, no matter how small it may seem, and having to cram on board single-aisle aircraft when you could go on something bigger just doesn't cut it. And yes - I am saying I prefer a creaky old wide-body 767 to a brand-new 737.
- Free Foxtel: I would have to think that the most clear-cut differentiator is that Virgin offers 24 channels of live-to-air TV on the seat back in front of you rather than stale Channel 9 news updates with the ingratiating Deborah Hutton winking at you from out-dated overhead monitors. I'm sure JB has already thought of this, but if you want corporate loyalty - give us free Foxtel!
Again, as I have said numerous times, I can't imagine how difficult it must be for an airline to offer various pre-flight and on-board experiences and capture market share all in the name of profitability. So if John Borghetti ever did shimmy up to the Friday Morning Cafe and order up some advice from the Barista, I'm not sure I could truly help him out. But as an avid and well-seasoned traveller, I would hope that my useless advice could perhaps find some value somewhere, somehow. Like JB's goal to achieve 20+% share of the corporate market...we dare to dream....
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