Hi, it's Glenn and I’m calling from Chicago, and it's Thursday, the 17th of March.
This week, as I mentioned on the prior call, I'm joined by our newly appointed Senior Vice President of Marketing Dennis Cary, and today we're going to talk to you about moves we're making with Economy Plus nationwide, with a very special focus on taking advantage of revenue opportunities in the Chicago market.
As I said recently in a speech to the Chicagoland Chamber of Commerce, the Chicago market is vital to our company's success. Chicago is the central crossroads of business travel for the nation, and O’Hare is the last two-carrier hub in the United States, with both ourselves and American.
Chicago is also incredibly important to us in terms of our footprint and our brand identity.
We are a Chicago company with loyal customers who reside here and connect here…and who appreciate United's global reach. We play a major role in the Chicago economy and our business partners here value our products and our services. And we like that fit and that connection.
While Chicago is our hometown, the market here is very competitive.
We offer the best service from Chicago – including the most flights to the most destinations – and now we offer, clearly, a superior product.
We have an overall value proposition – a clearly differentiated offering – that our discriminating business travelers prefer; in contrast to our competitor, who is busy adding back seats throughout coach class.
Our superior product, combined with exceptional customer service, is going to generate more revenue than our competitors -- and that's our belief.
So, Dennis, it’s time for leg-to-leg combat. Many of you may already have seen today’s Chicago newspaper headlines announcing our new ad campaign.
Dennis is going to discuss how Planning, Marketing and Sales have teamed up to develop an integrated plan to improve O'Hare profitability by earning more loyalty from our high-yield business travelers. So with that, I’ll kick the call over to Dennis…
Dennis:
Thanks, Glenn. And I have to say, it’s a real kick for me to be here with you to talk about what we’re doing to extend our leadership position in Chicago.
Our research shows that seat comfort ranks very high on frequent business travelers’ list of reasons why they choose a carrier. Many of them say, and our research shows, that they're willing to pay a modest premium for more space.
We also know that customers believe American is better than United when it comes to space and comfort in Economy Class – even though American is currently taking away legroom. American is about two-thirds of the way through their project to eliminate More Room Throughout Coach, but customers are still giving them credit for the product.
American is a good competitor that delivers quality products, but as they add back seats, as you said, we will have a leg up. We want to make sure that Chicago travelers, in particular, know that United is now the only carrier with the option of more legroom in Economy.
New advertising will begin running next week in Chicago with tag lines like, “Fly American and you could kick yourself. Literally.” Or, “The Straight Story on our Legroom vs. American.”
Now I spent 13 years at American prior to joining United last summer, and it’s clear to me that United and American are now taking different paths. We're taking the one that I believe will attract more premium customers and improve our bottom line.
In addition to increasing Economy Plus awareness among Chicago business fliers, we've also begun to enhance products and services in the Chicago marketplace:
We recently repositioned weekday flights bound for key business destinations to depart from the B Concourse at O’Hare
We've also improved meal service on some key business-oriented flights
We've refreshed the Red Carpet Clubs at O’Hare, and
We're rolling out a best-in-class, 70-seat regional jet product that will be the only product out there with a First Class and Economy Plus seating, among the regional jet competitors. So what I’ve outlined today is just a small fraction of our comprehensive plan to win the Chicago market. The Sales team, in particular, with new tools, a revitalized approach to creating a total package of value for our customers, and now with a clearly superior product to sell, is committed to earning more business from our Chicago-based customers.
So with that, back to you, Glenn.
Glenn:
Thanks, Dennis. Thanks for "kicking it" back to me.
It is clear that we are choosing a different tack than some of our competitors, as Dennis has just mentioned.
We are making a specific choice to give customers what they want, because we know that people still value a differentiated product, and we also know that they value amenities such as pillows.
So while we'll continue to reduce our costs at every opportunity, we will also continue to play to United’s strengths:
Our unmatched worldwide network that can take customers all over the globe;
And United’s portfolio of products that gives us the flexibility to put the right product in the right market at the right price. That includes adding tailored service in business markets for high-yield customers…but more improvements to come in the days ahead. As we all know, it’s about products, service and offerings that our customers value most.
That’s all for now. Until next time, take a moment to kick back, enjoy the ads, and as always, stay United.