Marketing Strategies by Airlines • • • • • Frequent Flyer strategies Service Discounts No frills Some unique strategies Frequent Flyer strategies • Most common : Frequent flyer miles • Followed by most leading Airlines of the world • Reward customer loyalty • Targeted at the business travelers Frequent Flyer strategies • Cathay Pacific: Economy class ticket converted to business class • Regular customers get special passes and enjoy shorter check-in times Service • Important component in a customer centric industry • Food, Drinks served • Television, radio, telephone, internet connections • Airport lounges • More and more airlines are focusing on the intangible services Service • “Bringing humanity back to the airline industry” - Jet-blue • “We have moved the focus away from elephants to people” - Aeroflot Discounts • Aeroflot: Early Bird discounts taking into account students influx in a particular season • Different fares depending on the time of booking • Discounted fares on return flights No frills • Revolutionary concept first introduced by Southwest Airlines in 1971. Relied on word of mouth advertising • Operated between Dallas, Houston and San Antonio • Also a pioneer in introducing the concept of twotier fares • Model of no business class, fewer cabin crew, internet sales and no free food. No Frills • Ryan-Air in Europe • Deccan Airways in India • Some of the No Frills airlines expected in Indian skies in the near future : Kingfisher, Wadia Group, Royal Airways, Best West, Inovs Air Visa Airways and Inter Globe, Alliance Air and AirIndia. • This concept is particularly suited for Indian conditions Some Unique strategies • Indian Airlines : 16 tickets for Rs 65000 on any domestic sector • West-jet Airlines : “More smiles with West-jet” • Air New Zealand’s deal with American Express. “Two for One” ! • Jet Blue’s “In-flight Yoga” !!! • Yoga instructors from Crunch Fitness on board