More for Less!

Welcome back – first blog since the madness of the coach hire industry summer.

What struck us most over the summer was how clients in ‘season industries’ pay more and get less.

As discussed on previous blogs we monitor customer feedback on our service levels rigorously! Our current average rating on some 1,700 reviews this year is 3.87 out of 5 for 2011 – which also represents 98.5% customer satisfaction.

However, when you look at the breakdown between peak and off peak our customers rate us in excess of 4 out of 5 during non peak but score us onaverage 17% during peak season. At the sametime coach prices accross the industry are 22% higher during the peak season.

So next time you are on a commuter train – squashed in amongst the other standing passengers – look around at the many customers accross many industries who accept less for more and accept it bacause its peak season.

It appears coach hire – as with other industries – does not get customers to shift the supply and demand equilibrium, but merely change the economic rent due to the operator.

So this begs the question – just how big a premium is required to change customer in peak coach hire season, or by corollary just how high a price would the market stomach in June and July.

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