David J. Danto
Principal Consultant,
Collaboration/ AV / Multimedia / Video / UC
Dimension Data
Director of Emerging
Technology
Interactive
Multimedia & Collaborative Communications Alliance
eMail:
David.Danto@DimensionData.com Follow Video &
Technology Industry News: @NJDavidD
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If Airlines Were Restaurants
Some years ago a very popular and funny
article called “If Airlines Sold
Paint” made fun of the arcane and ridiculous pricing
models that commercial airlines used for their ticketing.
Airlines have come a long way since then, but most of the changes
haven’t helped the flying public – made up of business and leisure
travelers. Instead, they’ve helped
airline management and investors at the
expense of the flying public – and usually also at the expense of airline
employees. So to bring this examination
by contrast concept forward into the modern age of air travel, I present If
Airlines Were Restaurants.
Customer: Hi, I’d like a table for
two please.
Restaurant: Welcome to our restaurant
sir. Regrettably we don’t have any
tables available right now. Our first
available reservation is in six hours.
Customer: I don’t understand – I see
that entire section empty – there has to be over a hundred empty tables!
Restaurant: Well, yes – those tables
are empty, but all the plates, cutlery, dishes and other tools needed to
service that empty space have been stored in a desert for the last few
years. We’re only servicing customers
from these twenty-five tables on this side.
Regrettably (for you) that puts them in high demand.
Customer: Those are twenty-five
tables? It looks like one big table with
everyone squeezed together in a tiny room.
Restaurant: Well, yes. In order for us to minimize our cost of
operation we’ve had to squeeze everyone much closer together into this one
small room that used to only hold a few tables.
As you can see, the diners here realize they have no choice, so the
table is always full. It really never
gets any better.
Customer: That’s awful. OK, I’ll take the reservation in six hours.
Restaurant: I’m sorry again sir, but
in the time we’ve been talking about it the reservation available in six hours
was sold to somebody else. The next
available reservation will be two days from now.
Customer: Well, that’s just
insane. I don’t have to take this, I’ll
go to another restaurant.
Restaurant: Sir, the government has
allowed most of the restaurants chains to merge. Many of the locations that used to serve food
are now closed. There are only four
major restaurant chains right now, and I think you’ll find that we all have
about the same number of service items stored in the desert. We’ve also made sure to consolidate our
operations, so that the likelihood of you being able to eat at another
restaurant near ours is very low – you’d have to travel a long way – to another
state – to find another restaurant.
Customer: What would you do if I
opened my own restaurant down the block?
Restaurant: Oh, sir, you’d never be
able to open your own restaurant. While
in theory you are allowed to compete with us in a free-market economy, nowadays
you’d need a heck of a lot of money to buy the needed restaurant
equipment. The only place to get that
kind of funding is from bankers and Wall Street investors, and they wouldn’t
give it to you because they want us to keep the number of diners low to
artificially inflate the price of a meal.
Our blue plate special for example -- the one that used to cost $300 --
now costs $600 -- and that’s just for the food.
If you want plates, forks, knives, napkins, water or anything else with
that – those will be extra charges. The
typical blue plate special is now actually $900…then an extra $100 for the
natural gas surcharge to cook it.
Customer: Natural gas prices are rock
bottom now. Why is there still a
surcharge?
Restaurant: Once we restaurants add a
surcharge for any reason it never goes away.
$1,000 is the total meal actual cost…unless of course you had changed
the time of your reservation before you arrived – that would be an additional
$200 tacked-on as well.
Customer: $1,000 for a blue plate
special!!!! What are you nuts! Your
waiters and waitresses must be millionaires by now…
Restaurant: Well, actually, no. We fired all our waiters and waitresses. Can you believe they actually wanted health
and pension benefits from us just for working seven days a week, 24 hours a
day? We replaced them with an
outsourcing company that supplies us workers and pays them minimum wage and no
benefits.
Customer: Do outsourced workers do
their job with the same care and skill?
Restaurant: Of course not, but the
extra money left over can be used to pay our management extra millions in
compensation, the reduced operating costs drive up our stock price…and then, on
top of that, the stock options we pay our management also go up in value.
Customer: I’ve just about had it
with this situation. I don’t care how
much it will cost, I have the money saved in a family trust, I’m going to open
up my own restaurant down the block and give you some competition anyway.
Restaurant: Oh, no sir. You can’t open up competition down the block
from us. We own all the restaurant slots
in this neighborhood. You can’t just have
one because you want one. You’d have to
buy one from us…and they’re not for sale.
Customer: So what you’re saying is
that even if I had the money and could invest in my own restaurant, you can
prevent me from accessing the needed slot to run a restaurant? The whole point of de-regulating restaurants
years ago was to increase free-market competition to the benefit of the
consumer. What it apparently actually
did is allow a small cabal of restaurant companies to control the whole market
so that competition is actually impossible.
You’ve made your management and Wall Street wealthy while cutting jobs
and job benefits, and at the same time artificially reducing consumer options
by arbitrarily removing previously available choices and alternatives.
Restaurant: Yes, yes! That’s it! We’re so happy we had this opportunity to
listen to your thoughts and needs - because they are so important to us - and
explain how they influence our management decisions. We know you have a choice when picking
restaurants and we appreciate that you picked ours (instead of traveling to the
next state at your cost and finding only more of the same limited choices.)
This article was written by David Danto and
contains solely his own, personal opinions.
All image and links provided above as reference under
prevailing fair use statutes.