It offers passengers comfort, amenities and attentive personal service from its highly trained staff. Yet SIA is also the lowest-cost airline among its key competitors. Costs per available seat kilometer are lower than those of most other Asian airlines and just one-third the level of some traditional European airlines.
The global economic downturn created a thriving market for low-cost, no-frills airlines, pressuring more up-market airlines into looking for new strategies for differentiating their service. This has led to the consolidation of four main business models for airlines.
No-Frills Airlines Travelers are very sensitive to cost, particularly for short flights. No-frill airlines can offer very low prices by eliminating unnecessary luxuries, like in-flight meals or business-class seating.
Given the high level of congestion at most hubs, low-cost airlines can also take the less expensive late-night and early-morning slots to further drive costs down. Network Airlines Network airlines and mainline carriers follow a more traditional strategy, offering comfortable flights with a relatively high level of amenities.
What customers value in an airline depends considerably on the length of the flight, and mainline carriers may be perceived as a better proposition for long-distance flights. Network airlines that decide to cut costs by reducing the quality of in-flight amenities and service risk becoming stuck in an undifferentiated middle ground.
But at the same time, cost reductions can be achieved by means of improvements in processes and logistics. For example, in a hub and spoke system, services from smaller airports are fed into a central hub, increasing coverage and seat utilization while keeping costs down.
Video of the Day Brought to you by Techwalla Brought to you by Techwalla Regional Airlines Regional airlines can compete by providing service in areas where there is not sufficient demand to attract service from major network or no-frills airlines.
Those carriers tend to operate shorter sectors using low-capacity aircraft. They can either deliver passengers to the hubs of major airlines or fly in mainline markets during times and days where the demand does not warrant the use of the larger planes operated by mainline carriers.
Charter Airlines Charter airlines tend to differentiate by using a vertical integration strategy. Their low-cost flights are integrated to a chain that includes travel agencies, hotels and ground transportation providers.
While some can compete directly with low-cost carriers, most will use their vertical integration to generate demand in areas where seat-only service would not be competitive. · Transcript of Emirates Strategy. Ahmed Assad Emirates Marketing Strategy MARKETING STRATEGY Market Strategy PRICING STRATEGY Goal and Objectives Through an extensive marketing campaign (representing 5% of total budget), increase consumer awareness of Emirates Airline, emphasizing their points of difference by 40% within three year pfmlures.com Airline pricing and high growth = strategy + tactics Mar 6, Last month Tom Bacon recommended three tools to help airlines flying new routes approach forecasting in a more strategic way.
These two points of differentiation—service and low costs—are the twin elements of SIA’s repeatable model.
It maintains service levels through recruitment procedures, intense training, and a well-developed culture, all combined with regular innovation, such as offering on-demand entertainment in all pfmlures.com /pfmlures.com This approach enables the airline to make a profit, without pricing itself out of the market.
Being Both a Technology Leader and Follower SIA is often the first to innovate in order to enhance the pfmlures.com · And Emirates isn’t stopping there, with the airline promising “to eventually enable passengers to have unlimited free access to Wi-Fi” at 35, feet. “We’ve always viewed Wi-Fi as a service and a value-added part of Emirates’ overall product, rather than a revenue stream,” said Sir Tim Clark, President of pfmlures.com://pfmlures.com PURPOSE The purpose of the assignment is to analyze the marketing strategy of Emirates Airlines.
INTEGRATION OF MARKETING MIX PRICE Emirates Airline is using the premium pricing strategy, which is to offer a higher price than what other airlines in the market offer.
Emirates Airline is using this strategy because it serves luxurious pfmlures.com