Thursday 5 May 2011

Less easy Easyjet

Easyjet's decision to hike debit card fees to from £ 5.50 to £ 8,- a transaction which costs them around 20p,- and credit card ones to £8 plus 2.5 % of the total ticket value indicate a move towards a less friendly image.

Up to now Easyjet have been the Waitrose of the UK low cost operators, selling much the same as the others but in better, more customer orientated wrappers and nicer overall product packaging. This has been a differentiator which has notably made them more acceptable to the business market as well as to many leisure travellers. People shop at Waitrose ,- and pay more,-although many of their products are the same as anyone else's because they sense a different ethos and there is a greater feeling of trust. Price apart, customers like to do business with people they like and they will pay a reasonable premium to do that.

A growing customer irritation with all airlines but especially the low costs is the build-it-yourself tariff which follows the initial headline low basic ticket price. What started out as a means of showing non airline related taxes and may have been reasonably acceptable is now no longer so. First came the combination of "Taxes" with "Other Charges", notably fuel surcharges . These were simply additional cash to the airline. After that came a plethora of other initially customer choice add-ons and then ones which they simply could not avoid. The result is that the original price quote has become almost irrelevant and a source of suspicion and distrust. Easyjet was careful not to lead the way down this path so did not come across as more user friendly than some. They were the smiling face of Low Cost. Customer sentiment swung their way as a softer option. Nobody likes to feel that they are about to be done. If people wanted "hard nosed" then they knew where to look for it and it wasn't Easyjet.

It would seem that following a few changes at the top,the company may be saying "To hell with all that,- we want the money and don't care if it hits our image." This move isn't of itself conclusive evidence of that approach but it is an indicator of a cultural shift which may not be a wise one. Easyjet may reckon that as there is no bigger UK player that comes over as significantly better/cuddlier at present an adverse change in brand perception is a risk they can take. It does though undermine a powerful differentiator. Accountants can always quantify the immediate revenue benefit but, as ever, nobody can prove the downsides . That's why those, along with any dissenting voices, are easily brushed aside. Easyjet was built on fun, energy , up for it and good to fly with. They didn't do things that upset the customers. That stance has made them a lot of money and kept them ahead of the pack.

Amber light to the orange people. Keep the zing and bounce. Don't irritate.

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