drink coupons vs. wifi connectivity

[SeniorNotso]

So give it away!

[safado61]

I'm a teetotaling, frequent flyer, A-lister.  I'm in a conundrum of having drink tickets but no use for them.  I usually give them to a flight attendant to play Santa for their favorite passengers.

I like the free-internet-in-lieu-of-alcohol idea.  I'd also be thrilled if SWA offered a non-alcoholic, premium something, e.g., candy bars, a non-alcoholic beer (O'douls), cookies, bacon, etc.

[LindseyD]

Admittedly, bacon sounds like a great option. Will forward to the Rapid Rewards Team, @safado61 😉

[ybean]

THank you!!!!!!!!

[jagilliam]

So you're telling me four drinks are cheaper than that bandwidth cost for a flight?  I highly doubt that. 

[chgoflyer]

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@jagilliam wrote:

So you're telling me four drinks are cheaper than that bandwidth cost for a flight?  I highly doubt that. 

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Significantly.

Satellite bandwidth is an emerging technology, and is very expensive. Soda and alcohol are relatively cheap.

http://fortune.com/2015/07/01/flight-wi-fi-travel/

[ybean]

we are deviating from the main point, but I am willing to play...

the bandwidth is a perishable item and the alcohol is not. If someone doesn't drink the alcohol, it is still there tomorrow to be resold tomorrow. The bandwidth, like hotel rooms and like airline seats, if not filled to capacity cannot get put on the shelf and resold tomorrow. Thus, goes back to my original point - give it away once a year, at very little cost actually, as a joint venture between provider and airline to market the trial. Use the existing drink coupons as the ticket. Marketing 101.

And by the way, the video clip provided spoke only to people's willingness to pay, not to the actual cost, but I appreciated and enjoyed it anyhow. Thank you for providing.

[chgoflyer]

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@ybean wrote:

we are deviating from the main point, but I am willing to play...

the bandwidth is a perishable item and the alcohol is not. If someone doesn't drink the alcohol, it is still there tomorrow to be resold tomorrow. The bandwidth, like hotel rooms and like airline seats, if not filled to capacity cannot get put on the shelf and resold tomorrow. Thus, goes back to my original point - give it away once a year, at very little cost actually, as a joint venture between provider and airline to market the trial. Use the existing drink coupons as the ticket. Marketing 101.

And by the way, the video clip provided spoke only to people's willingness to pay, not to the actual cost, but I appreciated and enjoyed it anyhow. Thank you for providing.

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Unfortunately, I don't think you understand how satellite connectivity works.

Southwest pays for what it uses. More people downloading more data = more costs.

And that cost is more than the $8 customer's pay.

This article is a bit old, but the prices really haven't dropped much since.

http://tmfassociates.com/blog/2013/11/10/the-cost-of-inflight-connectivity/

The point I had hoped the video I posted earlier would make was more about how different carriers position and price their internet services. JetBlue gives it out for free as a market differentiator. The legacies partner with Gogo to provide a service for their business customers at near a break-even point. Southwest went with Row44 (for now) to offer a service that their customers were demanding, but that's more focused on being an in-cabin entertainment system (based on "bring your own device") than providing usable internet connectivity. Because the cost to provide that internet connectivity is high, and the income generated by it lower than the cost, they're not going to be giving it out free if they can avoid it. 😉

[msturtz]

@chgoflyer it's actually worse than you said...  You said Southwest buys bandwidth from a satilite provider.  The reality is they contract the service to Row44, now owned by a media conglomerate.  I believe Row44 installs the equipment and provides the service, and they get the money -- somebody chime in if I'm completely wrong here.  But that's why the cabin crew can and frequently does offer "make good" with free drinks, but they can't do anything about wifi at all.

[chgoflyer]

Southwest contracts with Row44 as a "partner," and the details of that agreement aren't public. My udnerstanding is that it's essentially a break-even; they provide the service and get the revenue at a net-zero cost to Southwest. Customer service reps will refund your $8 fee on request, which presumably is deducted from Row44's earnings. My earlier comments about bandwidth costs applied to Row44 not Southwest. If more people used more bandwidth then the agreement between the "partners" would change. There's likely a variable scale involved now, or alternately a bandwidth cap in place that controls Row44s costs.