Will United Continental Holdings Inc (UAL)’s Better Food Strategy for First Class Passengers Work?

United Continental Holdings Inc (NYSE:UAL) is going to revamp its first class menu to grow sales. The company has been struggling in sales as customers feel that its service is just not up to the mark. So will United Continental Holdings Inc (NYSE:UAL)’s new food strategy work? That was the topic of discussion between Phil LeBeau and Seth Kaplan from Airline Weekly on CNBC, recently.

United Continental Holdings Inc (NYSE:UAL)

“[...] Giving those high value business travelers what they want, when they are competing really for their business, without over-improving the product. For people who are stuck with what they get because as you know they are flying that airline anyway. The challenge is that sometime you have people on the same flight, who are both kinds of passengers [...],” Kaplan said.

Kaplan then went to elaborate that if  United Continental Holdings Inc (NYSE:UAL) serves meals on routes, in which other airlines don’t, that can help United Continental Holdings Inc (NYSE:UAL) in acquiring  high value customers. LeBeau is not sure of the exact reason why United Continental Holdings Inc (NYSE:UAL) is changing its menu. According to him United Continental Holdings Inc (NYSE:UAL) has been suffering for many years due to its poor service.

“[...] I think at the end of the day this can only help United Continental Holdings Inc (NYSE:UAL). It doesn’t hurt them and really what people want, [...] you want to have prompt service, you want to have friendly service, you give me that and you leave on time, I am happy. You give me a meal that’s great, but it’s not going to be the reason that I fly,” LeBeau added.

Disclosure: None

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