The future is mobile

Given the rapidly changing interactional/behavioural habits of the traveler, it has become important for airlines to target them where they can be found. Close your eyes and think for a moment about what the word mobile phone means to you: I’m quite certain that most of the readers here will at once think of an iPhone, Android phone, Blackberry or a similar device. It seems that the growth of social media – Facebook and Twitter primarily – as a valuable engagement tool to drive business goals has only helped create a more complex landscape. The growth of iOS and Android (especially iOS which is not just available on phones but on iPods and iPads as well), coupled with the ability to create custom apps to target customers and offer them value-added services right on their cellphones has changed the way airlines are thinking about customer engagement and driving revenue, customer service etc. In the past we’ve illustrated how mobile has been an important part of various airline initiatives in the social era: travel distribution, social loyalty and location-based-service initiatives. However, this case-pack deals purely with how airlines have specifically created mobile apps (in particular, on the iPhone and iPad) to engage customers while driving revenue and customer service as well.

Before we move on to the case-pack, here is a checklist of ways in which airlines have tried to differentiate their apps while offering value to their customers:

1. Booking: Some airlines, such as Turkish Airlines, have made it ridiculously easy to book tickets from within the apps in a crazily small amount of time. Customers love it of course: the easier and quicker you make the booking process, the more likelihood that the sale will be completed.
2. Convenience: British Airways allows boarding by flashing the QR code powered boarding passes that can be shown directly from an iPhone. Way to go paperless!
3. Travel inspiration: Lufthansa and KLM have created apps that are excellent at making the users of their apps drool at the prospect of travelling to delicious destinations on these airlines.
4. Complimentary travel services: A number of airline apps now allow customers to rent a car, know the weather and do more at their destination that is not strictly airline-related.
5. Augmented reality: A new player but one with huge scope for engaging the customers who’re usually more than happy (and mostly fascinated) to use the service for things such as navigating an airport or finding places to redeem loyalty points (Qantas).

That’s it, for now! Enjoy the case-studies!

Do let us know what you think of this Top 10 case-pack. Comments, suggestions, brickbats are all welcome in the comments section below. Alternately, you can tweet us @simpliflying.

• Top 10 Travel Distribution Initiatives by Airlines: Reinventing the booking cycle to drive revenue (from #eftamerica)
• The Always Connected Traveler – how mobile will transform the future of travel [Infographic]
• The Top 10 Viral Videos by Airlines (plus bonus videos)
• Q&A: How Brands Can Perform Real-Time Customer Service on Social Media
• [Presentation] How airports can track passengers, throughout the Evolving Traveler Life Cycle

But as as we have long suspected, the traditional press release is rather dead and buried. Granted, it’s not dead in the truest sense of the word; however, it is undeniable that social technologies have morphed press-releases beyond recognition. Gone are the boring, wordy releases that used to accompany every major announcement in the industry. Welcome to the new age of social engagement!

Social media for route launches

Airlines these days have begun smartly leveraging the power of social media while making new product and route announcements. Forget the one-page release announcing the nature and benefits of the new route. These days, there are dedicated campaigns being run by airlines (as well as airports) to draw attention to their new routes and planes.

Witness the wide-ranging strategies adopted – as illustrated in this new case-pack – there are examples of special discounts to Twitter followers, elaborate “guess the route” contests on Facebook, contests that challenge the artistic abilities of fans and followers, even “name the plane” contests. All these attractive engagement campaigns are managed wholly online. Some airlines have gone as far as spending nothing on traditional advertising for new route launches. The benefits of social engagement campaigns are for all to see:

1. Immediate access to a very specific group of target audience that is responsive to incentives.
2. Online engagement offers the benefit of two-way conversations that enable easy sentiment-tracking and real-time feedback analysis, rather than one-way broadcasts.
3. The ability to attract and engage the audience where they are most likely to be at (eg. Facebook) makes it more easy to make them willing listeners and customers.
4. The ability for engagement programs to become money-spinners (ie, revenue drivers) is plain to see because of the viral nature that such campaigns can don. Your fans will talk to their friends who will talk to their friends and so on.
5. The ability to fill up the seats sooner for a new route – through all of the above.

With these points in mind, we present to you our new case-pack on the Top 10 Route Launches by Airlines & Airports via social media. Special thanks to Mark Scourse from 3Sixty for his inputs on how airports do it. You can hear both Shashank and Mark speak at the World Routes Forum in Berlin in Oct, 2011.

Let us know what you think of the case-pack. Thought we missed someone? Thought we nailed it? Tell us in the comments or tweet us @simpliflying.

• Top 50 case-studies of airlines and airports excelling in social media
• The Big Flight: How Malaysia Airlines is using social media to launch their new A380
• Branding 2.0: Top 10 Facebook Contests by Airlines
• Best Airports in Social Media: Top 5 Airports nominated for the SimpliFlying Awards for Social Media Excellence 2011
• The Top 10 SimpliPresentations – Celebrating 200,000+ views on SimpliFlying’s SlideShare channel

Contests to engage and develop advocates

As an engagement strategy, I believe that contests are far underused, given that they require targeted customers to opt in, take action, and when employed strategically, turn those customers into brand advocates. Given that airline analysts can easily predict what capacity goes unfilled, and the contest can be restricted to giving away those seats that would likely leave empty anyway, airlines can get a great return without giving away much. After all, what is the incremental cost of a butt in a seat that would otherwise go empty—ten, twenty dollars, tops?

I was a huge fan of Cathay’s “Why I Love Japan” contest. They also had an innovative contest where participants submitted dessert recipes, with the winning concoction actually being served on board. Now, they have launched another innovative contest to celebrate/amplify the launch of their newest destination—Chicago.

A contest for launching a new route!

As Hong Kong boasts among the most unique and iconic skylines in the world, Chicago also prides itself on its amazing modern architecture. Playing off this synergy, Cathay has launched a “Blending Borders” contest through Facebook, which gives participants the very broad, open-to-interpretation task of “blending these two iconic cities into one.”

While the instructions drop photography, sculpture or illustration as hints, the contest welcomes any medium, and suggests that “the options are as wide as your imagination.”

The winning prize? Two tickets to Hong Kong, a cultural Feng Shui architectural tour (courtesy of Hong Kong’s tourism board), a feature on Cathay’s Facebook fan page, and finally a display at some airports.

By incorporating Facebook, Cathay is building its influence online and reaching a potentially wider audience than through its e-mail list. By partnering with the Hong Kong Tourism Board, it is adding relevant incentive and value to the promotion without having to spend anything, simply by leveraging its brand. And by using what will undoubtedly prove to be a pretty impressive display of art online and at its airports, Cathay is getting creative work that would otherwise be done by an agency for the cost of a few tickets! You think global ad agencies take on projects for just a few thousand dollars? Not hardly.

So, overly “cautious” airlines out there…pay attention to what Cathay Pacific has been doing, and take notes! This far underused engagement tactic could very well help you build invaluable, potentially viral, brand advocacy and ultimately lead to—yes—more butts in seats.

What do you think? Let’s hear your thoughts in the comments, or over on Twitter (@simpliflying or @airticulate)

• Cathay Pacific unveils new Business Class seats and staff uniforms!
• Experience Cathay Pacific without stepping on the plane
• SPECIAL FEATURE: An exclusive look at Cathay Pacific’s new Business Class seats
• Cathay Pacific wants you to create a dessert on Facebook, and serve it in-flight to you!
• Is Cathay Pacific Business Class the best way to get from New York to Hong Kong?

Hence, from July 2011 onwards, you will be able to vote for the SimpliFlying Hero each month, from three nominees we put together (or you suggest). Additionally, we have decided that all SimpliFlying Heroes deserve a six month free membership to SimpliFlying Tribes, as opposed to the current one month. And that’s in addition to all the fame and the coveted certificate.

So without much further ado, please allow me to reveal the SimpliFlying Heroes nominees for July 2011 (…drumroll…): Jill Fletcher from Virgin America, Alison Russo from Lufthansa USA and Ali Bullock from Cathay Pacific.

Here’s a brief description of each of the nominee’s work at their respective airlines.

Jill Fletcher, Virgin America

Virgin America has been on the cutting edge of experimenting with social media and customer engagement this year. For example, passengers who are flying on Virgin America between the airline’s home airport in San Francisco and either Boston, Chicago O’Hare or Dallas airports between July 1 and September 30 will be able to check out a Google Chrome book at their gates. During their flights, they can test it using a free in-air WiFi pass.

Prior to that, the airline used Squabbler to create a viral video competition for their ads, they named a plane with a Twitter hashtag, partnered with Foursquare for an in-flight game, and ran several promotions that trade check-ins on location-based services for rewards like plane tickets and frequent flyer points. The best part is that the customer service they provide through social media, with a limited staff has given them a 96% positive sentiment online!

And Jill Fletcher has been part of the core team of two, leading the day-to-day engagement from the front.

Alison Russo, Lufthansa USA

While Lufthansa globally has been doing a great job engaging customers, the team in the US has been more adventurous and achieved great results too. They did a brilliant job with the A380 launch flights to JFK recently. And the real claim to fame are the two key projects launched by the team – MySkyStatus last year and Cloudstream, earlier this year.

The daily engagement on social media is handled by Alison, who does a great job for managing social media at a legacy airline, which can often be a challenge given the organizational structures.

Ali Bullock, Cathay Pacific

Cathay Pacific Airways has been the leading legacy airline in Asia engaging customers proactively, and effectively too. They’ve left other worthy competitors like Singapore Airlines, Emirates and Qantas light years behind in their efforts on social media. And one of the key players leading the charge from Day 1 is Ali Bullock.

Ali was instrumental in creating “Meet the Team” campaign where you can interact online with Cathay Pacific’s crew and learn more about them. He and his team also created the “Art of the Dessert” contest, which crowd-sourced the best recipes online. And in the last Airlines on Twitter report, Cathay Pacific was rated as having the best food reviews on Twitter!

Among other efforts like the Rugby Seven’s competition, the most impressive had been the launch of the new Business Class, where almost 3000 bloggers from around the world were flown in the Hong Kong to witness the unveiling and try out the product!

So, what’re you waiting for? Vote now for your favorite!

Know someone who’s worthy of being a SimpliFlying Hero?

Simpliflying Heroes are individuals recognized for outstanding social media use in the world of aviation. Do you know of somebody who uses social media effectively in their airline or airport to achieve specific business results? Or do you think you fit the bill?

Then go ahead and nominate someone by emailing us at heroes [at] simpliflying [dot] come. You can bring them a step closer to being recognized by SimpliFlying for their efforts.

• For bringing us MySkyStatus and Cloudstream, the SimpliFlying Hero for July 2011 is Lufthansa’s Alison Russo
• Vote for the SimpliFlying Hero of March 2012: KLM vs Estonian Air vs SAS
• A revamped SimpliFlying Heroes initiative – Vote for the Jan 2012 Hero now!
• For leading KLM into social media, Lonneke Verbiezen is the SimpliFlying Hero for Feb 2011
• Vote for the SimpliFlying Hero of April 2012: bmibaby vs JetBlue vs Virgin Atlantic

1. 99.8% of all tweets are about service item issues – like flight delays, baggage inquiries and other customer service issues that’d typically go to the call center
2. While the number of airlines on Twitter has increased 10% to 184, 27 of all airlines make up 80% of the tweets (this number stood at 30 last month)
3. While Delta still remains the airline receiving and sending most tweets, it only replied to 11% of the tweets it received, as compared to 18.2% last month
4. While there’s a 250% increase in tweets about Timeliness, it is also the worst rated item in terms of satisfaction, with a score of -81.6
5. Air New Zealand has the highest global satisfaction score of 107.6 this month, unseating Cathay Pacific, which scored 107.7 last month

More interesting data and facts in the infographic below. Enjoy!

• Airlines on Twitter in May 2011: AirAsia and TAM Brazil hot on the heels of Delta Airlines
• Airlines on Twitter Monthly Report for August 2011: Cebu Pacific joins the big league and scores high!
• Airlines on Twitter in June 2011: Delta Airlines is the breakaway “listening and talking champion”
• Eezeer and SimpliFlying launch airline monthly twitter report – Delta leads Twitter use, and customer service is in!
• Airlines on Twitter Monthly Report for July 2011 reveals that more airlines have Twitter accounts than loyalty programs

These are very exciting times in the airline industry. Last month, I shared a number of vital statistics about airlines’ twitter usage at a keynote in San Francisco [view presentation]. While those gave a good overview of how the industry is using the platform, one key aspect was lacking – the social media landscape for is constantly evolving, and a report produced once doesn’t do it justice. While we felt we should produce an ongoing report on that, we didn’t really have a data source for all the latest and greatest statistics.

That’s when Arnaud from Eezeer got in touch [remember? Eezeer = real-time airline reviews], and mentioned that they’re looking to produce a monthly twitter report from all the data they’ve been gathering from travelers. One thing led to another, and the end result was this first infographic that you see below – full of startling data about how airlines (and travelers) use Twitter. The best part is that this report will be released monthly – so look out for this every month in our infographics section (latest by the 5th of each month).

Airlines on Twitter – Oh…the stories data tells

While you drool over the data in the infographic below, I thought I’d highlight some interesting stories, which may not stand out on first glance:

1. You’ll see that twitter use among airlines is spread out globally – with Top four airlines featuring Delta, TAM Brazil and AirAsia (Malaysia!)
2. While there are 168 airlines on twitter, only 77 are actively tweeting, and 80% of all tweets come from just 30 airlines (17%)!
3. While Delta Airlines replies to the most number of tweets, it’s AirAsia that replies to the largest percentage of tweets to an airline – over 40% of tweets are replied to – that’s some serious effort, and this is way above the industry average of 24%
4. While customer service is the most important function being addressed on Twitter (due to its real-time nature), it’s comfort & security that’s on the rise – remember how @TimF10 was helping American Airlines passengers with security setup at AA terminal at LAX?
5. Long-haul low-cost carrier AirAsia X has come out ahead of legacy carriers like Cathay Pacific and Asiana in the quality of customer service provided on Twitter. And it’s Azul from Brazil that’s leading in the “comfort and security” space.

The conclusion from all this – twitter use is on the rise. Some airlines are adapting quickly to travelers’ increased use of social technologies. But not all have a strategy for this, and we’ll figure out in the upcoming months who are the flukes and who are the real deal.

Exciting times!

• Airlines on Twitter in May 2011: AirAsia and TAM Brazil hot on the heels of Delta Airlines
• Airlines on Twitter Monthly Report for July 2011 reveals that more airlines have Twitter accounts than loyalty programs
• [Infographic] Airlines on Twitter – April 2011 data reveals the need to focus on Customer Service
• Airlines on Twitter in June 2011: Delta Airlines is the breakaway “listening and talking champion”
• Airlines on Twitter Monthly Report for August 2011: Cebu Pacific joins the big league and scores high!

A fantastic way of involving the customer in the brand – what I call brand co-creation, which is now possible thanks to social media. I’m up for some home-made dessert – are you?

I still stand by my belief that Cathay Pacific is way ahead on social media, when compared to most other legacy airlines. What do you think? Anyone with a sweet tooth thinks this is a good idea? Let’s hear it in Comments or over on Twitter

P.S: Special thanks to Dennis from CX to drop me a line on this!

• Airlines go on a crowdsourcing binge – co-creating their brands with travelers
• Vote for the SimpliFlying Hero for July 2011 – Virgin America vs Lufthansa USA vs Cathay Pacific
• Is Cathay Pacific Business Class the best way to get from New York to Hong Kong?
• Cathay Pacific’s “Blending Borders” Campaign: Engaging Customers from Hong Kong to Chicago
• Three ways the Cathay Pacific brand can come alive by infusing social media into the People site

1. Legacy airline brands come with legacy baggage

Unions, legacy systems, government bureaucracy, old planes, old workforce, high costs, bankruptcy… these are all words that can be easily associated with Air India, Alitalia, Japan Airlines, Air Canada and many more legacy airlines. And these are all aspects that do not allow these airlines to function efficiently in the current climate.

The airline industry has evolved drastically in the past decade. With each new shock (9/11, SARS, H1N1…) we see new stars emerging, which have streamlined costs, efficient operations and specifically targeted markets they go after. And they beat the hell out of monolithic airlines that legacy carriers have become. Just read CAPA’s report on Japan Airlines vs Air Arabia to get a glimpse into what I’m talking about.

2. Legacy airline brands are not agile enough

Like an elephant trying to shake off bees attacking it, legacy airlines look clumsy trying to shake off what they call threats – low cost carriers, low premium demand, fluctuating oil prices, consumers’ reactions on social media etc. In fact, these should be looked upon as opportunties. Let’s look at airlines’ approach to social media, for example.

United Airlines is still struggling with responding to “new media” sensations like Dave Carroll’s “United Breaks Guitars”, as Southwest Airlines interacts with its fans on Facebook and JetBlue helps over a million of its customers on Twitter.

Singapore Airlines is still not on social media, just as AirAsia is making merry in its backyard. And there’s no point arguing about different market segments. I’ve flown AirAsia this summer with folks in a suit with a laptop, mostly heading to Kuala Lumpur in the morning and returning to Singapore in the evening. No wonder the 777s Singapore Airlines fly on this route are flying half-full.

A lack of agility among legacy airlines results in lost opportunities. And this is proving deadly.

3. Legacy airline brands are “stuck on stupid”

At the aviation summit in Sydney, the CEO of AirAsia X caused a bit of murmur in the audience with his opening slide entitled, “Bastardising the Low Cost Model”. You want to know why? Because most airline executives are “stuck on stupid” (a term coined by Seth Godin in Tribes). They want to carry on the practices of yester-years in today’s changed environment. And that makes them look stupid. Nothing against them personally, but why can’t airlines have multiple business models? In fact, it’s the airlines which are questioning the traditional legacy model, or even the traditional LCC model, who stand to succeed. The rest will perish.

Who to look out for?

Who’s doing it right? In my opinion, airline brands to look out for are Lufthansa (and family), Qantas & JetStar, LAN Airlines (kings of Latin America), Southwest (which continues to innovate) and AirAsiaX. Airlines that have great potential, but need to wake up and smell the coffee to lead in the future too – Singapore Airlines, Cathay Pacific, Thai Airways and Delta Airlines.

So, what do you think? Is there a future for legacy airlines? What do airlines need to do to serve the customers better, and turn a profit consistently? Let’s discuss in the comments or over on Twitter (@simpliflying)

• More good news, and Airline SEO Executives Network
• AirAsia X: a brand with a huge potential, but remember, “you’re only buying the flying”
• Announcement: February will be “Indian Aviation Month”
• Five reasons why budget airlines in Asia are successful
• CAPA’s Airlines in Transition conference, and what I learnt from five airline CEOs about the future

As mentioned in my review of the website earlier this week, the site not only features informal bios written in first person, but also formal and informal shots of everyone from flight attendants to baggage handlers. It’s good for getting acquainted with the faces behind the scenes at one of the world’s best airlines. But as I browsed through the profiles, I felt I wanted to do more…I felt like literally getting in touch with some of these people, with whom I could relate to. So here are three proposed next steps for the Cathay Pacific people micro-site.

1. Allow active interactions among visitors: One of the key enablers of engagement in social media is that anyone can share his or her thoughts about anything, in public, and garner responses. On the People site, visitors can currently share the URL on Facebook, Twitter and other leading social media sites. But that’s about it.

   How about allowing people to comment on the photos? And allowing the featured staff to reply to these comments. Of course, all of these can be moderated. But the interaction among visitors and between staff can make the site much more engaging and interactive

2. Get these people on Twitter: If the purpose of the campaign is to reveal the faces behind the brand, then the micro-site is a good first step. The next step should be to allow “fans” to talk with some of the more popular staff on Twitter. The staff need not be on Twitter all the time, but having a profile like Heather Poole or Captain Ron can certainly be helpful in getting interactions going.
3. Meet the people session: Engagement is fruitful when not just done online, but offline too. Cathay Pacific can hold a competition where winners can get to meet some of the staff featured on this micro-site. Connections formed with the brand (and the people) at such events can be long-lasting.Another way to get the staff featured online acquainted with the “fans” is to publish when they’ll be on duty next, like at the airport check-in counter, or in-flight. And “fans” can meet the people on duty, by booking a flight that’s coinciding with the person’s duty timing. This might even help boost sales for Cathay Pacific!

What are your thoughts about where this campaign can go next? Let’s discuss in the comments or over on Twitter (@simpliflying)

• Cathay Pacific reveals the faces behind the brand, in an interactive way
• Coming soon: SimpliFlying Buzz, the first airline marketing and branding portal on the web
• Virgin America’s online community – bull’s eye, or a flop?
• Cathay Pacific wants you to create a dessert on Facebook, and serve it in-flight to you!
• Boston to New York for $7? Can someone explain why?

That’s partly because airlines have acted like faceless organizations all this while. You seldom get to interact with the people behind the brand. And that’s exactly what Cathay Pacific has tried to overcome, with their micro-site showcasing its people.

Meet the people – in a different light

On the people site, you can get to know better not only Cathay’s customer-facing staff like the Pursers or the Customer Service officer at the airport, you can learn just as much about the cargo handlers and the aircraft dispatchers. The flash-based interactive website literally has people “flying around” and once you click on them, you encounter two photos and a bio. The photos include one taken in black-and-white, in non-Cathay attire, and the bio is written in 1st person. All this adds a personal touch to the site.

The bios written in a way most people can relate to those featured. Anecdotes like “I was a Primary school tutor before I joined Cathay Pacific – may be that’s where I learnt to be patient,” only help to strengthen the connection.

The effort has become very popular internally as well, since an insider told me that now there’s a long list of staff with diverse backgrounds who want to be featured on it.

How un-legacy of Cathay…

Legacy airlines are generally not agile and like to play it safe. Especially with new media and technologies that are unproven. For example, Singapore Airlines till date doesn’t have an iPhone app, and is not on Twitter, Facebook or any other social media platform. But Cathay has chosen a different path.

About exactly one year ago, Cathay gave us the virtual cabin tour where you could experience their planes without even stepping on-board the aircraft. And now, they have come up with this brilliant initiative around its own people.

The aim of this initiative is to showcase the diversity of its staff, and give a glimpse into the lives of the people who serve the Cathay customers every day. And I think Cathay has achieved this aim elegantly. Although it’s difficult to tie such efforts directly to revenue, I’m sure Cathay has won the hearts of many with the site.

What’s next?

Cathay is certainly heading in the right direction. For next steps, instead of speculating, I’ll bring to you, SimpliFliers, an exclusive video interview with one of the key people behind this initiative in a couple of days, right here. And I’ll let you be the judge yourself.

For now, I’d love to hear what you think about this initiative and how it can be improved further. Why aren’t other airlines doing something like this? Let’s discuss in the comments or over on Twitter (@simpliflying)

• Three ways the Cathay Pacific brand can come alive by infusing social media into the People site
• Cathay Pacific wants you to create a dessert on Facebook, and serve it in-flight to you!
• Cathay Pacific unveils new Business Class seats and staff uniforms!
• Experience Cathay Pacific without stepping on the plane
• Is Cathay Pacific Business Class the best way to get from New York to Hong Kong?