I came across a classmate’s blog on luxury airline flights (which can be read here) that spiked a familiar topic in my mind. The article talked about Singapore Airlines offering a superior, $23,000 flight. Robbie pointed out that the airline is potentially hurting its business due to a low demand of such a high priced ticket. I completely agree considering the demand for regular and business flights are much more popular and taking up space for luxury ticket holders turns away many viable customers.
Luxury Singapore Airline Seating – maximumbhp.wordpress.com
As I was reading the blog, I reconciled a particular lecture in which we discussed disruptive innovations. Airplanes, nowadays, are disruptive innovations for the first-ever invented airplanes. Today, a huge population is able to purchase an airline ticket without having to break the bank. Similarly, coach airline tickets are disruptive innovations for luxury seating since they are attainable by a much broader clientele and require less space, making efficient profits. Knowing this, I find it strange for an airline to devote so many resources into a narrow-market division. To maximize profits, wouldn’t it make more sense to attain large numbers of customers at lower prices than a small handful at a high price?
Though it is understandable that some people can easily afford a luxury flight (and are willing to spend $23,000) I think the airline should minimize the space used for these tickets to around 5-10 seats. That way, the company can still offer deluxe seating to those who can afford it, but aren’t left with large empty spaces. Also, since the supply will decrease, demand will rise, making these high priced flights even more desirable. Wouldn’t you like to say you’ve flown in a throne once in your life?
Peer Blog: https://blogs.ubc.ca/robbiegrills/2014/10/02/small-volume-of-luxury-or-large-volume-of-general/