5 ways to unleash ancillary revenues for airlines, while leveraging the brand

Post on 27-May-2015

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These were slides first presented by Shashank Nigam for the ancillary revenues and airline branding webinar, conducted by SimpliFlying.com.Learn how you can: * Make un-bundling work to suit your customers' lifestyles * Entice customers through "reverse-bundling" in the recession * Maximize existing revenue channels, without compromising the brand * Cultivate new revenue channels using Web 2.0 tools, like Facebook, Twitter and blogs * Increase conversion rates for ancillary channels * Keep the brand intact while earning more per customerThe webinar includes eye-opening case studies from leading airlines like RyanAir, AllegiantAir, AirAsia, Virgin Blue, JetBlue, Southwest and Singapore Airlines.

TRANSCRIPT

Airlines 2.05Waystounleashthepoten/alofancillaryrevenuesinadownturn

About the Speaker

• Founder & CEO, SimpliFlying

• Authority in airline branding

• Columnist - Interbrand’s BrandChannel

• Co-author of two books on branding

Thepotentialofancillaryrevenues...

Letthenumbersdothetalking

Thepotentialofancillaryrevenues...

£221m

£221mWhatRyanairearnedfromancillaryrevenues

£3.81

£3.81WhatEasyJetearnsperseat,fromancillarysources

77%

77%

RiseinAirAsia’sancillaryrevenues

63%

63%ofairlinemanagersbelievethatancillaryrevenuesarethefuture...

Q:Domanagersknowhowtomakeancillaryrevenuesworkforthebrand?

A:Probablynot!

“Ifeelnickelanddimed”

“beingtreatedlikecargo!”

“Chargingforwaterisahumanrightsviolation”

MostcommentedarticleonSimpliFlying!(71comments)

Ancillaryrevenuesneedtobeinsyncwithbrandstrategytoworkinthelongterm

5

5waystounleashthepowerofancillaryrevenuesinadownturn

Personalizethecharge‐knowyourcustomerandoffersomethingrelevant1

Whyhavethesameoffersforallyourcustomers?

Peppersprayforyoungwomen?

Peppersprayforyoungwomen?

Wheel‐chairfortheoldfolks?

Peppersprayforyoungwomen?

Wheel‐chairfortheoldfolks?

Nametagsforunaccompanied

minors?

Reverse‐bundling,themoreappealingwaytochargeinadownturn2

Howaboutoptingout,insteadofoptingin?

Choosingahead:Airlinebene]itstoo,isn’tit?

Cultivatewinningpartnerships3

SingaporeAirlinesboardingpassprivileges

Anyoneforacasinousingyourmiles?

Howaboutsellingmagictrickson‐board?

Usesocialmediadodrivein]luenceandsales,evenifindirectly4

Pamperthein]luencers.TheFordFiestastory

Tweet!Tweet!$!$!

Gowherethecustomeris!

Alwayskeepthebrandinmind,forlongtermancillarygains5

YourairlineneednotdoeverythingRyanairdoes!

Inconclusion...

Ancillaryrevenuesmaylooklikeeasymoney...

Ancillaryrevenuesmaylooklikeeasymoney...

butgettingthemright,andin‐syncwithbrandstrategytakeswork.

It’s not the strongest of the species that survives, nor the most intelligent. It is the

one that is most adaptable to change.

Charles Darwin

Questions

Shashank Nigam

shashank@simpliflying.com

Jeff Ogden

jefflogden@gmail.com

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