Traditional and low cost airlines - marketing strategies

Angela L.

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Traditional and low cost airlines - marketing strategies

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Themes

Airlines, traditional airlines, low-cost airlines, Air France, Transavia, EasyJet, Ryanair, COVID-19, air transport market, domestic flight, internationnal flight, marketing mix

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Abstract

The airline industry has undergone profound changes in the space of a few years. First of all, because of increased digitisation, but also because of other so-called low-cost companies which have emerged and which have disrupted the traditional aviation pattern. This has been a great thing for the economy and especially for the tourism sector, as more consumers have been able to consider the idea of going on vacation, as transport costs have become more affordable for many of them. Traditional airlines have been forced to review all of their marketing strategies, including communication policies, in particular, in order to continue to appeal to an increasingly large and increasingly complex customer base. It was the same with the massive arrival of digitalisation within companies because it forced them to rethink the relationship with their customers; a relationship that has taken a radically different turn, especially with the arrival on the market of the new generations, namely the end of Generation Y and Generation Z.

The air transport market
1. Numbers
2. The different airline models
3. Market trends and prospects
4. Regulatory bodies
5. Impact of COVID-19 on the market
Marketing strategy of traditional companies
1. Traditional companies: particularities
2. Air France: the marketing mix
3. Competition from Air France
4. The group's strategic objectives
Marketing strategy for low-cost companies
1. History of low-cost airlines
2. Low-cost figures
3. The objectives and expansion of the target example of Transavia
4. Comparison of low-cost airlines
5. Low-cost: a threat to other groups?
Low cost vs traditional: comparisons
1. Air France and EasyJet comparison
2. The image of the two types of companies

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Extract

[...] Traditional and Low-Cost Airlines - Marketing Strategies The airline industry has undergone profound changes in the space of a few years. First of all, because of increased digitisation, but also because of other so-called low-cost companies which have emerged and which have disrupted the traditional aviation pattern. This has been a great thing for the economy and especially for the tourism sector, as more consumers have been able to consider the idea of going on vacation, as transport costs have become more affordable for many of them. [...]

[...] The two models are destined to survive because as we said, they are not aimed at the same target markets. Despite the desire of low-cost companies to win over the customers of traditional airlines, the standard companies still have an undeniable success, in particular, because of their notoriety and the obvious comfort onboard, not to mention the various insurances which are not offered by the other companies, such as the exchange and refund of tickets among others. These insurances are very important for a large majority of consumers, especially for those planning a long plane trip. [...]

[...] In addition, since the traditional airlines created their own low-cost airlines, Air France and Lufthansa have recovered a significant number of market shares. Transavia has a total of 17 million seats and Eurowings more than 36 million in 2019. In the future, forecasts indicate that the Air France subsidiary should experience strong development. C. The objectives and expansion of the target example of Transavia Low-cost companies do indeed want to increase their customer base in the long term, by offering competitive prices. [...]

[...] Traditional methods of communication remain active regardless whether it be on television, radio or postings in magazines and travel agencies. The company claims to be a French company, with slogans that always relate to France. The loyalty program allows travellers to benefit from attractive promotions throughout the year. C. Competition from Air France The group's competitors are numerous since consumers' choice in transport does not stop with the plane in this very competitive market. First of all, low cost, with groups like Ryan Air, in particular, EasyJet and Norwegian, which over the years have managed to do well by offering travellers offers at unbeatable prices. [...]

[...] The second and third parts were devoted to the marketing strategies of traditional and low-cost companies. We spoke more specifically of Air France, its competitors and the company EasyJet. We also talked about the differences between low-cost carriers and the threats these carriers represent for all so-called traditional carriers. Finally, we talked about the comparison between low cost and other airlines, more particularly those between Air France and EasyJet. The image of companies is mainly conveyed on the net, with a strong presence on social networks, which allows them to maintain interaction with consumers over the long term, and even to promote discounts on certain routes. [...]

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