American Airlines has a few strengths that puts the company above their competitors. Good hubs, loyalty programs, strong brand image, the largest airline fleet, good maintenance and infrastructure standard, are just to name a few. The regions dominant U.S. carrier came along with the company’s innovative mind to buy routes that encourages spreading hubs in the most tourist attracted places. Hubs increase rewards become broader redeeming meaningful awards as you fly across the globe with American. American Airlines AAdvantage program awards miles and Elite Qualifying Dollars for every airline affiliated with the oneworld alliance.
Rationale for Quarter 6 Decisions: Trans-Caribbean Airways decided to dual-designate with a major Airline carrier because it will allow us to get the benefits network of a major carrier route. It will also afford our customers unlimited travel network with other
(3) Finally we implement our segmentation by optimizing our products/services for that particular segment and communicating the decision made. Answer: (b): United Airlines segments its global markets using psychographic data collected about its customers. It divides them into the following categories: Schedule optimizers: These type of costumers aim to reach their destination by a certain specific time and select their flights accordingly. Mile accumulators: These customers go out of their way to take flights that will build up their air miles entitlement. Quality vacationers: These customers treat the travel as a part of their holiday experience and therefore they fly with carriers that provide extremely superior services.
The crew delivers a more personalized service, including singing occasionally a song during flight, and their “bags fly free” policy, such extras differentiate them from other carriers. On a more strategic level, Southwest increases customer engagement through their comprehensive loyalty program (tracking of status). But the biggest offering is their Companion Pass, that enables frequent traveller to choose a person that flies free with them for a year. 4. Cult Loyalty – Optimization of the social bond.
The company will require developing plans that will see them increase their presence in both the domestic and international market. However, the company must first prioritize on increasing their presence in the domestic market. That plans that will involve frequent flights to all the major cities in the U.S.A. Currently, the company has six major focus cities; New York JKF, Fort Lauderdale, Los Angeles, Orlando, and San Juan. While these cities continue to be profitable to the company (CAPA Center for Aviation, 2015), they should consider increasing their access to other cities as well.
Segmentation makes the way easy for United Airlines to grow and expand, because UA uses segmentation to target those groups of customers whom it finds an opportunity to develop. Segmentation enables United Airlines to identify opportunities in the market, achieve marketing objectives and maximize the efficiency of marketing efforts by using a different strategy for each segment. Segmentation also gives the company a better understanding of its clients, the services they need and the methods of payments. In addition to that, it helps to achieve a successful targeting. For example when united airlines chooses the right variables and does a proper market search for market segmentation it will be able to select one or more segments that it will serve profitably as well as easily.
As a full-service airline, Qantas has identified and configured its niche consumers “willingness-to-pay” and focused all its strategic activities around it. The company’s business model as a full-service airline offering a large number of benefits in terms of flexibility to travel large number of destinations, connectivity to different hubs at major international airports, flying long distances, different travel class of “comfort’ including Business and First amongst others. The operational effectiveness of Jetstar versus its parent airline, Qantas is also a major hindrance. Besides the cannibalization fear, the fact that the airlines industry is very high on competitiveness, with other players on the international scene having the infrastructure (more number of planes) and financial prowess to effectively counter the launch of a smaller player like JetStar, should also be considered. Jetstar would need to invest heavily in infrastructure and advertising.
Millions of people rely on the airline industry to travel quickly and efficiently between cities in the United states and throughout the world. Since 1978 where, when laws were put in place to promote competition in the market, the nation has relied on competition among airlines to promote affordability, innovation and make service improvements. The constant improvement of airlines and airplanes would in theory lead to lower prices for consumers. In recent years, however, the major airlines have raised some of the fares and the quality of the service has decreased. Competition is essential in any market as it avoids a high market concentration which consequently almost leads to higher ticket prices to be cheaper and always causes prices to increase and consumer surplus which is defined as the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay to decrease.
JetBlue was founded on the history of American aviation, in 1999 with an initial capitalization of $130 million. JetBlue 's strategy was to combine common sense with innovation and technology to "return humanity to air travel". David Needleman founded Jet Blue based on his own experiences and seeking to improve the expectations of his clients, collaborators and associates, thus making the service excellent. . Despite the competition, JetBlue has had ambitious growth plans, focusing particularly on the needs of users who were not satisfied, such as itineraries, high fares and commuters when traveling, among others.
Expanding flying route is one of the firm’s strategies to serve more passengers. As a result, Nok Air is often the first choice in customer’s mind. In addition, by reaching the destination where its competitors cannot, Nok Air can gain valuable benefits. Since there is no competitor in that destination, Nok Air is the monopoly in that specific area. As a consequence, the firm can compete in price and can set any level of price that Nok Air prefers.