Budget airlines marketing report

Résumé du document

This report is aimed at researching into the budget airline industry, in the hope to find a gap in the current market, which we can implement. This is a difficult task, as there is a huge amount of competition already in the market and everything imaginable has been tried by one company or another in an attempt to break into this market, most of them have failed and gone into liquidation because they have been unable to compete with the major competitors like Easyjet. We need to discover some type of niche product or service that can therefore give the company some competitive edge to gain sales and hopefully market share.

Extraits

[...] However, it is very well deserved. Executives would have easy access to Gatwick Airport thanks to rail services such as the Gatwick Express (takes less than 30 minutes from Victoria Station to the airport) and the Thames link (takes 40 minutes and operates from most train stations in London). Taxi and coach services also operate from and to Gatwick airport. Our aircraft will land at Shanghai Pudong Airport, which is located 30kms away from Shanghai city centre and benefits from easy links such as rail services, very cheap taxi and coach Price To make a competitive budget airline, pricing is a crucial part in its marketing mix. [...]

[...] The oil price is sometimes affected by politics as well. Due to the effect of high priced oil in the beginning of this year, several major airlines have imposed fuel surcharges on their flights for the spring and summer. For example, British Airways announced in May 2004 that it was to add 2.50 per flight sector 5.00 return trip) as a separate fuel surcharge to its fares in the UK. In response to this, low-cost carrier Easyjet announced that it would not be imposing any surcharges on its tickets. [...]

[...] Since budget airlines such as Easyjet and Ryanair started up there have been a growing number of holidaymakers taking out of season weekend breaks. Traditionally the British public would take weekend breaks within the UK. Now that flights are as cheap as driving it has allowed the public to travel to other countries to enjoy their cultures and experience new surroundings. Small businesses tended to have international meetings over the telephone. Now that budget airlines fly regularly to cities all over Europe it has allowed more businesses to meet up to do business. [...]

[...] Furthermore, having only one aircraft means lower maintenance and operating costs. By having new planes, it is obvious that maintenance will not be as expensive as for an old plane. It will also reduce the consumption of oil (new aircraft consume 30% less than 10 year old ones) Direct Sales Selling tickets through the Internet or by telephone eliminates all the fees and commissions (usually around of the amount of the ticket) paid to travel agents and corporate booking systems such as Amadeus. [...]

[...] On Internet, TV, business newspapers, etc. Therefore, according to Jobber's new product launch strategies (2004, p384); companies that combine low prices with heavy promotional expenditure are practicing a rapid penetration strategy. The aim of our airline is to gain market share rapidly, Easyjet and Ryanair when they just launched have successfully attacked British Airways by adopting this new product launch strategy. The above table shows that the British Airways price between London and Shanghai is just as expensive as London to New York. [...]