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Created by : Adesh Dalvi, Marketing Executive, TAJ  | 09 23 2009 12:29:00 +0000
Industry : Transportation/AviationFunctional Area : Strategy Execution(Strategy & Execution)
Activity:  106 views;  last activity : 07 06 2010 20:18:09 +0000

With Big players in the Airlines are making inroads with their full service into the low-fare airspace, and this is making existing budget carriers change the strategy and these days they are going beyond price advantage and handing out sops to attract and keep passengers and create loyalty of sorts towards them.


http://www.traveldealsfinder.com/wp-content/uploads/2009/06/yatra-goair-flights-offer-278x300.gif

Where these carriers are either giving away gifts or offering discounts at hotels, restaurants, and retail stores against the boarding passes. Low-fare carriers such as IndiGo, SpiceJet, GoAir, and others are  considering  this as the most effective way to counter loyalty programmes that are being offered by full-service rivals like Kingfisher,Jet airways, Air India and Paramount.

So what do  you think guys will this strategy work from the low-fare airlines and can they compete against Full service rivals?

 
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I think this kind of strategy works at the moment and also there is increase in the domestic airlines as they carried 26% more passengers than in the same period last year, which was helped largely by cheaper fares and a reviving economy.  These carriers are either giving away gifts or offering discounts at hotels, restaurants, and retail stores against boarding passes will make more loyal customers for these low-fare airlines, and these low-fare airlines have a good future ahead and will create loyal customers for them if they are tapped in a right way.


By Adesh Dalvi, Marketing Executive, TAJ  | 09 23 2009 12:29:00 +0000
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