Contemporary Business 14th Edition by Louis Boone, David Kurtz

تمرين 30

Case 13.3 Pet Airways Handles Pets With Loving Care: Pet owners want the best for their dogs and cats, as evidenced by the $50 billion pet industry in the U.S., including everything from grooming services to squeaky toys. One area that has received little attention is travel. Although owners can find lodging that allows pets, and they can purchase travel carriers and gear, until recently there was little choice when it came to transport. If the animal had to travel long distance, it was relegated to the cargo hold of a plane. A couple of years ago, that changed when Dan Wiesel and Alysa Binder wanted to be able to transport their Jack Russell terrier safely and comfortably. So they started a pet transport business called Pet Airways. "There are 80 million pets traveling around the U.S.," says Alysa Binder. "There's definitely a market for this. We're part of the pet community-we understand." Wiesel and Binder contracted with a firm that flies Beechcraft 1900 aircraft, selecting this plane for its versatility and safety record. They had the planes retrofitted to accommodate pet carriers in the main cabin. They launched their reservation system online and spread the word via social media. When traditional media heard of the new company, Wiesel and Binder appeared on such television shows as Good Morning America and The Today Show, as well as in magazines and newspapers. Because of this publicity, Pet Airways has spent nothing on advertising. Its greatest marketing challenge has been educating the public about their service. "Because we're the first to market, we have to tell people what we're all about," explains Binder. Pet owners who want to book their animals on a Pet Airways flight make a reservation on the airline's Web site, http://www.petairways.com. One hour before departure, owners check in at the Pet Lounge. Pet passengers are boarded in their carriers, attended to by professional pet Attendants who accompany the animals on the flight, checking on them every 15 minutes to make sure they are secure and comfortable. Once the plane has landed, owners (or designated recipients) collect their pets in the Pet Lounge. Pet Airways currently operates flights to nine cities around the U.S. Alysa Binder says the firm's goal is to reach 20 cities in the next 18 months. She notes that customers are willing and eager to pay for the service, considering it reasonable compared to traditional airlines. Pet Airways fares start at $149. By comparison, American Airlines charges $100 for a pet to travel beneath a seat and $150 as baggage; Delta charges $150 and $275 respectively; and Northwest charges $150 and $225 respectively. Binder remarks that her customers don't usually consider price anyway because "we aren't the same as general carriers. It's a completely different service. People know that." Pet Airways customers can register to receive the company's newsletter, which includes insider news on special flight deals and other promotions. They can join the MyPAWS Club, which offers a 40 percent discount on pet supplies at the Pet Airways online store, a 10 percent discount at pet-friendly hotels, 10 percent off at 1-800-PetMeds, 5 percent off on pet health insurance from Pets Best Insurance, and discounts and free samples from other Pet Airways partners. Wiesel and Binder saw an opportunity in the market-place and jumped at the chance to offer a safe, reliable solution for pet owners to transport their pets. "On Pet Airways, your pets aren't packages, they're passengers."
-Outline Pet Airways' pricing objectives. How might these change over the next five years? Ten years? What do you think the best pricing strategy for Pet Airways should be? Why?