How To Make The Lowest Air Fare Strategy Of Airlines Really Effective?

In the airlines industry, it is quite a well known fact that the airline which provides

the lowest air fare is bound to succeed most of the times, in most of the markets of the world. This also points to the fact that people world over do not mind travelling on cheap air tickets. In fact, it is this vast majority of people willing to buy the cheap air tickets that contributes substantially to the airline revenues and its growth. So much so, that even the new entrant airlines, in the aviation sector, prefer to play the lowest air fare card in order to win substantial customers early on. Not surprisingly, therefore, the low-cost carrier model has seen such widespread success.

What is even more surprising is to find that even the full service carriers or the airlines which are known to be well recognized luxury brands turn to the reduction of fares in case they are faced with problems. Cutting the fares is oft-played card to win back the customers which they have lost to their competitors. Even after an airline has gone down the bankruptcy path and is in the mode of reorganizing its business, slashing the rates of air fares is one of the most common strategy to get the customers to have a feel of its new avatar. It is a crucial part of the strategy to turn profitable yet again, to maximize the revenue inflows and to capitalize on the market shares.

But, cheap air tickets cannot work wonders in vacuum. There has to be sufficient support from the other factors. There is a need to think on what the customers would expect from the airline and how the airline is able to deliver it to them in the best possible way. If the customers want the airline to be safe and punctual, what would it need to improve its safety standards and remove the misconceptions of the customers. Also, it would need to devise the ways and means to achieve a better on-time performance rate. In a nutshell, the cheap air tickets need to be backed up with the other must-haves which the passengers would require the airlines to provide to them.

Airlines will have their competitors as well and these have to devise a strategy to beat them by offering innovative and better services. This can be done if there is a clear benchmarking of their offerings with those of the competitors, finding the areas where they are lacking vis--vis competitors and, also, identifying the new promising areas which can bring them more passengers. There is clearly a lot to be done at the operational and strategic level, in addition to providing the lowest air fare to passengers, if the airline is to come back strongly in the market again. Airline cannot expect to be successful if it solely banks on cutting the fares. A lot more is required to be done in this respect.

by: Shawn Parker

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