海角大神

United is committed to its customers and its bottom line, the company suggested Tuesday.

As part of United Airlines鈥� Investor Day, the company unveiled plans for a new fare class. Set to debut in certain markets from January, 鈥淏asic Economy鈥� fares are the result of almost a year鈥檚 work by the airline. Customers are limited to one personal item, receive assigned seat arrangements, and don鈥檛 receive the same rewards points as economy class passengers. Onboard, though, amenities and services are the same.

With Basic Economy fares, the company hopes to strike a new balance between low prices and quality customer service, along the lines of popular low-cost carriers such as Southwest Airlines and JetBlue. The fare signals United鈥檚 changing attitude toward budget travelers: This group can provide an answer to slim profit margins, while quality customer service may keep them coming back to United better than any loyalty program could.

鈥淚t鈥檚 probably a win-win: They can fill their plane with smaller gaps, and there are going to be people who [the new fare] will definitely speak to,鈥� says Ceridwyn King, assistant professor at Temple University鈥檚 School of Tourism and Hospitality Management in Philadelphia, in a phone interview with 海角大神.

The airline industry is well-known for its narrow profit margins, which make having every seat filled each time a plane takes off critically important. Meanwhile, online travel websites have made it easier than ever for customers to find the cheapest fares 鈥� with little mention made of what 鈥渆xtras鈥� are included in that fare.

That business model works well for ultra low-cost carriers such as Spirit or Frontier, who tack on additional charges for everything from hand luggage to snacks. But it鈥檚 left so-called 鈥渘etwork carriers鈥�, such as United, Delta Air Lines, and American Airlines, scrambling to maintain their brand while filling their planes.

For United, which ranks as the least profitable airline in a 2015-2016 study by global management consulting firm Oliver Wyman, the Basic Economy fare is an attempt to diversify its options and appeal to a price-conscious audience, both within and outside United鈥檚 existing customer base.

鈥淚t鈥檚 definitely changing 鈥� the products that customers feel are most important to them and what we鈥檙e delivering,鈥� Jonathan Guerin, a United spokesperson, tells the Monitor in a phone interview.

Eliminating options like roll-aboard carry-on bags helps create a 鈥渕ore smooth boarding process,鈥� because there鈥檚 less need for space in overhead bins, he explains. And assigned seating means that the airline can fill vacant seats, earning United more money than if the seat were left empty.

At the same time, passengers are 鈥渟till receiving that whole United experience鈥� 鈥� including snacks and Wi-Fi 鈥� onboard the plane, Mr. Guerin says.聽

It鈥檚 a new approach to brand loyalty for the airline, suggests Professor King, who studies loyalty programs in the tourism industry. United will not offer the same rewards for Basic Economy passengers as for the rest of its customers聽but may win repeat business with its in-flight experience.

鈥淯nited understands that a loyalty program doesn鈥檛 mean loyalty,鈥� King says, noting that loyalty programs are costly for airlines, which have to provide free flights. But 鈥渋n service organizations ... what really makes us loyal is the service they provide.鈥�

The archetype of brand loyalty in the air travel industry, many say, is Southwest Airlines.

鈥淲e refuse to nickel-and-dime our customers ... that just doesn鈥檛 fit with our brand,鈥� explains Southwest spokesman Dan Landson in a phone interview with the Monitor.

The airline offers two free checked bags, as well as two carry-on items, for budget prices. Southwest chief executive officer Gary Kelly, speaking to the Global Business Travel Association in Orlando last year, said the airline 鈥渨ould lose a billion dollars鈥� if it started adding fees and trimming services.

Unlike the new United fare, Southwest also allows families with children ages 6 and under to board earlier and sit together, meaning families can take advantage of the best-value fares.

Given Southwest鈥檚 success with customer-friendly policies, United may find that it can do more for its customers than the current Basic Economy fare offers, while maintaining low prices and quality service.

The company plans to keep in touch with its customers to see how they feel about the new option. Asked about United鈥檚 ability to compete with Southwest and JetBlue without offering roll-aboard carry-on bags and family seating, Guerin said, 鈥淚t鈥檒l definitely be something that we鈥檒l take a look at鈥� as time goes on.