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What American Airlines Can Teach Us

by Doug Davidoff | Jan 26, 2007 11:44:59 AM

The airline industry is one of the most commoditized industries in the world. From a marketing perspective, the airlines' biggest challenge is that they are virtually unable to create demand.

This article by George Will highlights a challenge we should all be aware of and it is worth reading (while it does not deal with commoditzation directly).

Here's what I found most interesting.  Gerard Arpy, American Airlines' CEO, says, two considerations determine the choices of most air travelers -- schedule and price. The Internet has simplified comparing prices over every route, and, he says, a price difference of even $3 will drive people elsewhere, "no matter how strong your brand, or how good your product."

If you fail to create value IN EVERYTHING YOU DO, the distance between you and an airline is shrinking.