Wednesday, 17 August 2016

Strategies used by Airlines


Hello readers, so I will be writing about airlines. Air Asia which is the largest airline in Asia started with 2 aircrafts and as today they have 82 aircrafts. Strategies employed by Air Asia includes offering cheaper fares while providing quality at the same time. They have a large target market of 500 million individuals or more. Their distribution channels were designed in such a way to make booking and travelling easier for their customers. They use marketing and brand development to stay competitive in the market. They promote a culture that encourages a strong team which in turn provides excellent customer services. They are also make customers know their fleets are safe and reliable.

Pricing strategy used by airline companies includes the peak user pricing, where prices are higher at during peak periods and lower during non-peak periods. It should also be noted that the individual that travel for less distances are more sensitive to prices as compared to individuals that go for long distances. Airline companies also differentiate their products, it could be from the way their staff are dressed to the way they paint their airplanes to the quality of the food served on board.

Technology is used to minimize cost among airlines companies as well as partnerships which enables them to have more fund as a result of more participating parties, this leads to them having more fleets, more journeys and more destinations, thus reducing the fixed cost of the airlines, which will in turn reduce the cost they charge to customers. Fuel used by the company should be managed effectively and efficiently in order to minimize it cost A loyalty scheme is also used to retain customers. 

Allowing customers to book for their tickets in advance also enables airlines to secure more customers. When tickets are also flexible it promotes their products. The space available on airplanes are also used to attract more customers. The quality of staff must be good this will enable  the airline companies to provide high quality services since services are intangible, heterogeneous and perishable thus the ambiance of the airline must be good. Airlines must be timely. That is all for today.

Thank you for reading this article, keep checking out my blog regularly, cheers!




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