Why has Alaska Airlines's inflight Wi-Fi usage decreased by 20% on transcontinental flights since the new pricing structure was implemented?

Introduction

Alaska Airlines' inflight Wi-Fi usage decrease of 20% on transcontinental flights following a new pricing structure implementation is a concerning trend that requires thorough investigation. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications for the airline's digital product strategy.

Step 1

Clarifying Questions (3 minutes)

• Considering the pricing change, I'm wondering about the specifics. Could you provide details on how the new pricing structure differs from the previous one?

Why it matters: Understanding the pricing change helps identify potential user pain points. Expected answer: The new structure increased prices or changed the pricing model (e.g., from flat-rate to tiered). Impact on approach: Significant price increases might suggest price sensitivity as a primary factor.

• Looking at user segments, I'm curious about the impact across different traveler types. Has the decrease been uniform across business and leisure travelers?

Why it matters: Different user segments may have varying price sensitivities and usage patterns. Expected answer: The decrease is more pronounced among leisure travelers. Impact on approach: This would guide our focus on specific user segments for further investigation and targeted solutions.

• Considering potential technical issues, have there been any reported changes in Wi-Fi performance or reliability coinciding with the pricing change?

Why it matters: Technical issues could be a confounding factor in the usage decrease. Expected answer: No significant changes in performance metrics have been reported. Impact on approach: If performance has degraded, we'd need to investigate technical root causes alongside pricing factors.

• Thinking about competitive factors, have any major competitors introduced new in-flight Wi-Fi offerings or pricing in the same timeframe?

Why it matters: Competitive pressure could be influencing customer expectations and behavior. Expected answer: No significant changes from competitors during this period. Impact on approach: If competitors have improved their offerings, we'd need to consider market positioning in our solution.