Thursday, 6 December 2007

The secret to increasing airline profitability in a tough market

Even in tough market conditions, successful low cost airlines deliver impressive profits.

Their secret? Ancillary revenue innovation.

Whether by introducing new products or un-bundling existing ones, the best low cost carriers repeatedly find new ways to increase their passenger's spending.

Now, savvy airlines, who've already optimised pre-travel web and email touch-points, have spotted a "communication gap" starting when a passenger leaves home, ending when they board their flight. Bridging this gap, creates a new, departure day, ancillary sales channel for the airline and its affiliates to offer upgrades, last minute travel essentials and other flight-related purchases.

The passenger's mobile phone provides the perfect channel for conducting a departure day dialogue. But, to encourage passengers to opt-in to this service, airlines must offer them something of value. Typically this means providing passenger's with mobile flight information, updates and reminders.

If passenger's value this free information, they'll willingly sign-up for the service. And, by ensuring the free information appeals to the broadest possible audience, you'll create the largest possible audience for your departure day sales channel.

Here are 5-tips if you want to create a departure day dialogue

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