AAdvantage is the frequent flyer program of American Airlines. Launched May 1, 1981, it wasthe first such loyalty program in the world, and remains the largest with more than 50 millionmembers as for 2005.Miles accumulated in the program allow members to redeem tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and servicesthrough partners. The most active members, based on the amount and price of travel booked, aredesignated AAdvantage Gold, AAdvantage Platinum, and AAdvantage Executive Platinum elitemembers, with privileges such as separate check-in, priority upgrade and standby processing, or freeupgrades. They also receive similar privileges from AA's partner airlines, particularly those in oneworld.As for “Three-Class Transcon” was aimed at improving American’s competitive advantage in product and service, by improving 3 elements of expanded marketing mix for services: People, physical evidence and process, along with product, price, place and promotion.
Marketing Mix
New Product:
More flexible travel schedule, intermediate product, in-flight service, productdesign, food and beverage service
.
American had an offering of the best possible product asManaging Director ,Ron Miller said.
Price:
Domestic Pricing
People:
Customers- JFK-LAX attracted some of the most influential and glamorous travelers.People who place high value on comfort and international travel.
Employees Inside American
: Sales personnel, ticket and reservation agents, terminal staff, pilots, flight attendants, ground crew.
Employees Outside American
: travel agents, corporate travel departments, AAdvantagemembers and security analysts.Both inside and outside employees would have to undergo new training.3
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