On a recent flight, I attempted to understand the inconsistent operating procedures between the airline industry and the hotel industry.

Both cater to virtually the same clientele; both have perishable inventory; and both have highly transparent pricing. But their methods of catering to their customers, differentiating products and yield managing are vastly different on many levels.
 
During the past few years, hotels have been forced to add more and more amenities in order to meet guest expectations (wireless Internet, flat-screen TVs, comfortable beds, complimentary breakfast, iPod hookups, etc.). Meanwhile, most airlines have taken more and more away (hot meals, movies, and, of course, the free peanuts).

In the process, the differences from one airline to the next have blurred. Sure, some are deemed low-cost carriers, but the reality is that there really isn’t much of a difference between those and most major airlines. Airfares, extra charges and service levels do not vary significantly. Frankly, service levels on the so-called budget airlines often surpass those of the larger carriers.

Part of the problem may be most airlines attempt to cater to all segments under one brand name. Airlines house all of their segments in one cabin, with luxury, midtier and economy staged front to back. Could you imagine a hotel with Super 8 on the lower floors, Marriott in the middle floors, and Four Seasons on the upper levels? Some guests would get white tablecloth breakfasts and others would get a bagel at the kiosk.

While some properties do have mild variances in their product offering on different floors (e.g. concierge levels), catering to every market segment under one roof would simply dilute brand value in the hotel industry.

The hotel industry possesses a barometer of brand scales that provide a plethora of options. If you want a free breakfast, free Internet and a manager’s reception in the evening, you know where to stay. If you want top-notch service and to be pampered beyond belief, regardless of the added costs, there are numerous options there, too.

Perhaps it would be a worthwhile experiment for the airline industry to take some pointers from the hotel sector and brand each flight appropriately. Wouldn’t people enjoy Embassy Suites Airways where you know you’ll get a decent breakfast on your morning flight? How about a Courtyard Airline for business travelers that offers Internet access and tray tables that can fit more than just your laptop? And who wouldn’t love the aroma of fresh-baked chocolate chip cookies on Doubletree Airways? (A Monaco Airline with a fish bowl on every tray table might be a stretch.)

And while hotel brands had the bedding wars, why don’t the airlines compete to develop more comfortable seating? A Heavenly Seat on an airplane would be most welcome.