Note: This is Part 1 of a three-part series on LCCs and loyalty. The first part offers five compelling reasons to start thinking about loyalty. The second provides three easy ways to track loyal customers. The final part will offer five no-cost (nearly!) solutions to driving loyalty.
Before you raise your eyebrows, let me declare that yes, I do know why you might be slightly surprised to read the title of this article. You might say that LCCs exist to carry customers cheaply from one point to another without offering peripheral services or caring about customer loyalty because everyone will come if your price is low, right? You might say that LCCs themselves couldn’t care less about cultivating loyalty or building loyalty programs because that would be an unnecessary investment of time and resources. Right? Wrong! This article will build on the premise that while LCCs have been doing one L (low-cost) well, they need to start thinking about an equally important L – loyalty!
Before I go on to my thesis, let me state upfront that I am not talking about creating loyalty programs. I’m only concerned with …
The new Singapore Airlines’ low-cost-long-haul subsidiary, Scoot, has been officially unveiled. The quirky name only confirmed the rumors going around for a couple of months, amid lots of chatter about the appropriateness of the brand identity. Everyone seemed to have something to say about the name of the airline, the livery or even what this would mean for Jetstar and AirAsia X.
Scoot will be flying ex-Singapore Airlines Boeing 777s to Australia and China initially, then expanding the fleet to 16 aircraft by 2016 and adding destinations too.
From a PR perspective, I’d say this is close to a dream launch. After all, the aim is to get the world talking about it, even if the brand is polarizing.
A polarizing brand gets [famous] people talking
Remember Rico? The furry Air New Zealand mascot? Just as many people hated him as those who loved him. The same can be said about Richard Branson’s acts when promoting the Virgin brand – you either love him or hate him.
When it comes to branding, a polarizing image not only gets people talking passionately – they take sides and defend themselves too. The result may not be …
Despite a number of US based airlines going bust in the past few months, and all the talk of consolidation and more bankruptcies in Europe, the budget airlines in Asia seem to be doing rather well.
Tiger Airways, based out of Singapore, is expanding into Australia rapidly and there are talks of starting a Korean hub. Air Asia is doing better than ever on regional routes, and now starting long haul budget travel as well. Even though the growth of Indian budget carriers has slowed, they are still doing well, given the state of the industry in the rest of the world. The fact that ever more Asian airports are coming up with budget terminals is testimony to the fact that demand will increase in the near future. So what is it that other airlines can learn from the Asian budget carriers to be more successful?
The airline industry is so dynamic that airlines need to keep coming up with innovative ways to make money to stay in business. This is especially true in the case of budget carriers or Low Cost Airlines (LCCs). One key characteristic of LCCs has been their point-to-point service, moving away from a hub-and-spoke model to save costs. But a new trend, in a totally opposite direction, has recently emerged, as first pointed out by the ITA Travel blog.
LCCs have started serving multiple P2P sections, effectively like a hub and spoke model. Tiger Airways customers can book two flights in one booking using their Flight Combo feature, effectively being able to travel from Chennai to Perth via Singapore, or from Darwin to Hanoi via Singapore. Air Berlin in Europe allows similar flexibility to passengers, flying via Düsseldorf in Germany.
Tiger Airways route map
The latest kid on the block is Air Arabia, the extremely popular Sharjah, UAE based airline. As mentioned on Popagandhi, they have formed a joint-venture with Nepal’s Yeti Airlines to launch a new budget carrier flyyeti.com, offering destinations in Southeast Asia and even Hong Kong based out of Kathmandu. So you can fly from Yerevan, Armenia to Hong Kong via Sharjah and Kathmandu (I’ve been to Armenia, and trust me, it’s not easy to get to that place, and you don’t want to fly Aeroflot). So why does this make sense for LCCs?
