Monthly operational bulletin, Vol. 18, Issue 8, September 1988

              Monthly Operational Bulletin
To: All Pan Am Flight Attendants From: In-Flight Service Headquarters - MIA
A
CORPORATE LIBRARY
VOLUME XVIII, Issue September 1988
XVIII, Issue 8
n 1988	3	1988
PAH AMERICAN WORLD AIRWAYS
Dear Colleague:
As the summer travel season comes to an end, I am pleased to report our traffic worldwide increased 12.6 percent during May through August compared with last year, and we led TWA in market share for a second consecutive year. Undoubtedly, it was a formidable challenge to respond to such unusually high loads and your efforts are indeed recognized. Thank you for a job well done!
The summer momentum continues with the introduction of “Eurosaver” and “SuperPrice” fares. These promotions are a key element in our long term strategy to improve revenue performance by reducing Pan Am’s reliance on “middle men,” consolidators who buy large quantities of tickets from Pan Am at reduced prices, mark them up, and sell them to the public. Our new marketing focus is to return to the retail market.
While “Eurosavers” are competitive with fares offered by consolidators, we will be able to retain between 20 and 25 percent more revenue for each ticket sold. For example, a consolidator might purchase New York/Paris tickets from Pan Am at $370-$400 each. In turn, the consolidator sells those tickets to the public at $430-$500. Pan Am, meanwhile, can offer a $499 “Eurosaver” fare directly to the consumer. Clearly, this fare is competitive with that being offered by the consolidator but we keep most of the revenue (minus a retail travel agent commission), or almost 20 percent more revenue for each ticket sold. Additionally, because Pan Am is selling the ticket directly, we have better control over the capacity offered at this fare level.
October also marks the introduction of new customer service programs such as Platinum WorldPass, World Class Cuisine — distinctive menu selections expressly for WorldPass members — and, to facilitate the check-in process, advance boarding passes for all classes of service. Specific details about these service enhancements will follow in a separate bulletin.
Pan Am held on to its premier position in the Atlantic this summer, carrying more passengers to Europe than any other carrier. This fall, we will continue in our endeavor to return our Company to being a recognized leader in customer service standards.
Regards,
H. E. Adler