Business Aviation
Article | December 28, 2021
The unprecedented wave of Covid 19 created significant turbulence in the aviation industry that made the industry face daunting new challenges. However, as airlines continue to respond to the challenges, the marketers remain focused on paving the way for quick recovery.
Whereas, aviation experts admitted that this black swan event impacted the airline industry roughly. The impact of COVID-19 on airlines was forced to face bankruptcy, destruction of financial packages, and complete changes in the airline industry in terms of security. Therefore, while keeping the fact that COVID-19 will have longer-term repercussions, it’s imperative the airline industry would quickly reduce the impact on its stakeholders and operations. And for this, airlines need to go beyond conventional thinking and come forward in using technology to dig in for the long haul.
Airline Industry: Riddled with Challenges Amid COVID-19
Given the airline market behavior during the Covid-19 crisis, it has many opportunities to target different marketing segments through direct and indirect channels. However, some complexities that challenged building an effective marketing strategy were:
Drop-in Revenues
According to KPMG, commercial revenue has been a rich source of income in airline businesses; it contributed more than 50% of inclusive revenues in the airline industry. However, a large share of revenue is generated by marketing which has completely dried up with minimum footfalls. Reduced economic growth, absence of remote work arrangements, and loss of operational models have been some of the fallen parts of the airline industry to deal with this new reality.
IATA, at first, stated that airline revenues could fall by $314 billion in 2020 owing to COVID-19, which is a fall of 55% compared to 2019. However, further analysis revealed that it fell $419 billion more in the same year. Also, the second quarter of 2020 saw a nearby decline to $43.5 billion in revenues compared to the projected baseline, a reduction of more than 1%.
Impact on Future Investments
The impact of COVID-19 on airlines was much on the plan for future investments and asset building. These areas posed significant challenges for airline businesses and investors to monetize assets or repurpose them to create shareholder value. In other ways, competition from newer asset-light businesses also posed an additional challenge on asset building and profitability.
How has Airline Industry Retorted to the Pandemic?
Most businesses have reduced all new investments, freezing shares, maintenance, and partnership costs. These have been the extreme response expected in the war—COVID-19, which is even gimmer than war.
But, despite all the impact of COVID-19 on airlines, airlines have responded with alacrity. The crisis made them stand by quickly developing new business processes and operations, research models. In a longer time, changes in the airline industry weren’t so significant. Airlines are also witnessing a radical shift in their development priorities and unique opportunities to conduct research. The desire to provide additional pressure on revenue management systems to predict demand more accurately has also been the core force of development. Let’s understand more under the following points:
Technology Makeover
In a progressively evolving digital-only landscape, the technology carries more value if used well. Investing in the right tools and technology can help monetize assets better and significantly improve operating efficiency and customer experience.
Refocus on Cost-line
Innovations in marketing strategies, technology can suggestively change the cost of providing services for both airlines and airports. It can help give more pressure on both affordability and profitability. This area of transformation can stimulate significant savings in operating costs and could become the norm for the best performance of marketing.
Innovate
COVID-19 has spawned the best inventions and innovations. The value of data and technology that you have access to today cannot be overstated. Yet, the aviation industry has shown the resilience to come back stronger and smarter. Therefore, there is a necessity for a thoughtful, analytical, and consistent approach to reforms to help the industry function at a newer and higher altitude and redefine its new normal. The changing geopolitical marketing scenario and impending operational shifts globally demand a swift and nimble approach. Advantageous changes in airline industrial policy in COVID-19 will be required to feat the opportunity, with accrete marketing strategic gains and create a better future.
In a nutshell, airlines had to reinvent how they looked at bookings, employee management, and revenue management, as the previous curves were no longer relevant, and the training data used for machine learning algorithms were no longer valid. Now, airline businesses are exploring novel ways to shorten the old methods used in forecasting, pick up on trends more quickly, and incorporate demand adjustments made by manual revenue management users.
Finally, the writing is evident on the wall—as airline stocks continue to falter (by 16 to 20%), the industry needs to go beyond conventional thinking and use technology to dig in for the long haul.
Airline Marketing: Path to Recovery with 3 Important Tech-Strategies
Inclusion of Advanced Analytics
In the next five years, airline businesses will proceed to develop their ability to install advanced analytics. Although the industry has been using advanced data and analytics, there are expectations that marketing leaders will expand the entire value chain of analytics more progressively. Data-backed analytics will render insights to pinpoint geo-specific interventions for maximum ROI.
While traditional sources of competitive advantage for airlines such as products, networks, technology will continue to gain importance, it is believed that increased usage of data science and advanced analytics will help the industry to augment these sources to deliver notable performance improvement.
Rapid Adoption of Data Science
The aviation industry is part of the change, too, in terms of technology development. Airline Technologies in Covid is radically varying the way businesses connect with their customers. The data required is allowing businesses to take informed steps towards operational efficiency. While embracing new technologies, changes in the airline industry are witnessing the addition of artificial intelligence (AI) to the maximum so that businesses can operate in the post-COVID-19 scenario.
Control of Digital Solutions
As airline market behavior during the Covid-19 crisis has incurred changes in the airline industry, the control of digital solutions has come to the rescue. The solutions are in need to shift resources and efficiently scale to maintain operations. Digital tools can help with a wide range of business efficiency, sales and revenue management, marketing, and network planning.
Opportunities to Reimagine in Post COVID-19 Era
Here are the significant ways in which it could be done.
Operating Model
Airlines today need a data-driven operating model with a mindset that pushes accountability across each touchpoint in the business journey. Marketing teams should be organized around journey stages keeping technological aspects on board. The operating model should be accompanied by KPIs that should be measured across the customer journey and regularly shared with every team member.
Digital Transformation
The airline industry could consider stepping up IT, digital, and automation investment now. The crucial strategies for digital transformation are driving data-driven platforms and personalization. Tracking business interaction at every touchpoint with the brands and their products enables better predictive analytics. This means integrating digital solutions with enterprise systems and making the data available at the point-of-sale for sales associates to view, interpret and recommend products accordingly will enhance the convenience of operations. In the case of point, airlines businesses can respond to the faster recovery of short-haul flights by investing in direct sales, owning the customer relationship.
Also, relationships with IT and its providers could be re-considered and explore from a technologically perspective. Beyond this, other initiatives which involve efforts like using data in smarter ways to enhance decision making, requiring some investment to yield significant payoffs, are in the line of digital investments.
Virtual Reality
Gone are the days with COVID-19, when customers were physically involved in the airline business and running it successfully. Unfortunately, the panic of the pandemic is here to stay as a part of our life. So, companies will need to think out of the box. Several tools are available in the market today to avoid physical interactions. Brands have introduced their own ‘Virtual test and try’ tools for marketing and sales purposes.
For instance, Guerlain invested in gamification and launched a mobile game called ‘WeChat’ to promote its sales deck. Similarly, to enhance the operational desk, Lancôme introduced ‘Virtual Mirror’ - an augmented reality virtual makeover app.12 ‘Modiface’- a Canadian AR and AI company, was purchased. Its product performs virtual try-on simulations and is enabled to support live video for all airline operations.
So, the crisis and issues the airline industry facing in the Covid‑19 on revenue generation will still be intensely felt in 2021-2022, as it was earlier. But it is expected that the coming quarter of 2021 will show improvements compared to the previous. This means the industry, which was moving from a decline of 7% in the first quarter of 2021, will see a decline of 35.2% in the fourth quarter compared to the projected baseline.
How to Plan a Marketing Strategy for your Airline Company?
Being in the market already, you can understand where the roots of a marketing campaign come from. Nearly all the airline businesses arise their marketing activities from their vital target group or according to the demand to promote a new product.
There is no solitary way to create a marketing campaign because it involves many company-specific details. Here, you will need to understand how you can stay ahead of your competitors in the marketing field to yield revenue.
Here is a brief sum-up of some valuable points that can help you.
Stick with your Customer Segment: Business or corporate travelers differ in their travel behavior and priorities. So, while you run a marketing campaign, it should highlight this factor as a prime concern.
Focus on the Product you will Market: This point covers that you need to consider that all the product dimensions (digital, physical, service) to market should consider on parameters like how do you want it to market, what are your secondary aims, and how can you benefit from customer actions.
Foster Interaction: So, try to keep as much interaction with your customers as possible. It does help to build loyalty, establish relations with your brand, and source valuable data about your customers. By doing this, you will be able to create a personalized experience for them in the future.
Be loyal: As long as you are not an ultra-low-cost airline operator, you will perhaps have to reward the loyalty your frequent customers give you. Special offers, discounts, and loyalty programs make your brand a company to stick with forever.
Keep an Eye on Competitors: As the airline market has high competition and competitors, your team creating a marketing strategy must include two key elements: your market position and your competitors.
And the last, you must maintain a balance between competition and customer loyalty at any cost.
Frequently Asked Questions
What are the top three issues the airline industry is facing in the Covid‑19?
Although the airline industry faced several challenges, the worse challenges were:
Sluggishness in travel/travel bans
Loss of revenue
Data loss
Which airlines have been most affected by coronavirus?
The list of airlines worst affected by covid-19 goes as:
China Southern
Hainan Airlines
Singapore airlines
Japan airlines
Korean Air & Asiana
Middle Asia
British Airways
United Airlines
What is the future of the aviation industry after covid-19?
From the perspective of the COVID-19 scenario, the aviation industry needs to pick itself up and begin rebuilding. From hygiene and health standards to aircraft data management to monitor an aircraft’s components and onboard equipment can transform airline operations.
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Air Transport
Article | July 6, 2022
A New System That Aims to Create Carbon-Neutral Aviation
Scientists have achieved an amazing breakthrough in the development of carbon-neutral fuel for the aviation industry. An aviation fuel production system that uses water, sunlight, and carbon dioxide has been put into action. Its design was published on July 20th, 2022, in the journal Joule. The dream of achieving carbon-free aviation could become a reality with this development.
“We are the first to demonstrate the entire thermochemical process chain from water and CO2 to kerosene in a fully-integrated solar tower system.” - Aldo Steinfeld, Professor, Study Corresponding Author, ETH Zurich
The aviation industry accounts for approximately 5% of the global anthropogenic emissions that contribute to global climate change. The industry heavily relies on kerosene, commonly known as jet fuel, a liquid hydrocarbon fuel derived from crude oil. There are no clean options to power commercial flights on a global scale at the moment.
Production of Synthetic Kerosene
This breakthrough, with the help of solar energy, makes it possible to produce synthetic kerosene from water and carbon dioxide instead of crude oil. The amount of CO2 emitted during kerosene combustion in a jet engine equals what is consumed during its production in the solar plant. It is what makes the fuel carbon neutral, especially if the CO2 in the air is captured and directly used as an ingredient, which could be possible in the near future.
As part of the European Union's SUN-to-LIQUID project, Steinfeld and his colleagues put forward a system that uses solar power to generate drop-in fuels—synthetic alternatives to fossil-derived fuels like kerosene and diesel. Solar-produced kerosene is consistent with the current aviation infrastructure for allocation, fuel storage, and use in jet engines. It can also combine with fossil-derived kerosene, according to Steinfeld.
High Hopes for the Future
Steinfeld and his team began scaling the construction of a solar fuel manufacturing plant at the IMDEA Energy Institute in Spain half a decade ago. The plant has 169 sun-tracking reflective panels that redirect and concentrate solar radiation into a tower-mounted solar reactor. This concentrated solar energy then powers redox reaction cycles in the reactor’s porous ceria structure, which is not absorbed but can be reused. It transforms the water and carbon dioxide into syngas, a customized mixture of hydrogen and carbon monoxide. This syngas is then injected into a gas-to-liquid converter and is finally converted into liquid hydrocarbon fuels such as kerosene and diesel. Steinfeld and his team are working on amping up the reactor’s efficiency from the current 4% to more than 15%.
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Defense and Space
Article | June 8, 2022
Whether you’re a small, newer airline looking to make a splash in the online world or a niche brand wanting to expand your customer base, you’ll need the right aviation marketing strategies in your arsenal. Similar to any other industry in today’s market, digital strategies are non-negotiable for brands in the aviation space who are hoping to connect with customers online and restore customer confidence in the aftermath of COVID-19.
And if you’re looking to take your brand to the digital skies, you need impactful strategies that help you offer a seamless customer experience. Let’s look at five strategies you can use for your aviation marketing strategy.
Aviation Marketing through Social Media
Visibility is a hugely important goal to achieve for any business. After all, how can you hope to attract new customers if no one knows about you? This is especially true and important for smaller airlines or those not operating in the commercial space. For example, when the average customer thinks about traveling by plane, they probably aren’t considering private airlines.
But if customers see content online about airlines, perhaps even highlighting that some private airlines fall in their price range, things can change. Once customers are aware of your company, you’re one step closer to securing a sale. The key is getting in the picture in the first place—something social media can do.
In addition to visibility, use social media to keep your customers informed. Despite us seemingly living in a post-COVID world, uncertainty is still a big factor that customers and airlines alike have to consider. Positive coronavirus results or transmission outbreaks can throw a wrench in travel plans right up until check-in, but social media offers a way to keep customers informed with live information and updates.
Airlines can use social media platforms like Twitter to post live updates on flights, including regular information on delays, but also more unexpected and yet super useful updates on things such as weather conditions at their destination.
And if you’re looking for international aviation marketing strategies as a multinational company, social media is a great way to connect with customers across territories too, thanks to its global reach.
Digital Customer Service Strategies
We saw during COVID-19 how important it was to provide quick, accurate information to customers, with things like up-to-date websites, live social updates, and automated texts for flight changes. These strategies all helped to streamline customer service offerings, as well as free up helplines and customer service booths at airports, and they have helped establish a new benchmark when it comes to customer service.
Having a solid customer service strategy in place is more important than ever—specifically, having one that’s responsive, flexible, and digital. This means offering smart chatbots that can assist with frequently asked questions, detailed guidance online addressing common challenges that customers face, and over-the-phone support in multiple languages that can enhance an international aviation marketing strategy.
Customer service might not seem like it matches with airline marketing, but going above and beyond for your customers is essential in creating the right reputation for your brand. Establishing your company as a gold-star service provider will not just give you something to shout about online, but it will also keep customers loyal and engaged with you too.
Mobile Solutions
We all know that the future is mobile—and it’s no different for aviation companies, who have that same pressure to keep up with technological advancements if they want to provide the best service possible for their customers.
Smartphones are an integral part of all of our lives, and they’re now just as important as ever, as people are taking their digital identification with them on their travels. Aviation companies must recognize the company they keep in the travel space, where mobile apps support customers on their journeys and trips—from navigation to weather and accommodation to ridesharing. Without an interactive app or fully mobile-friendly site, an airline’s strategy for marketing won’t be as impactful.
Customers used to have to carry printed versions of their flight documents in order to board, including boarding passes and booking confirmations, but things aren’t so paper-based anymore. Digital wallets that keep boarding passes safe and apps that store customers’ flight information are the norm now.
Mobile apps are also fantastic for driving loyalty programs. With an interactive app where customers can collect and cash in loyalty points, you not only provide an easy way for customers to enjoy their rewards, but also make flying more accessible and cost-effective.
In a post-COVID market, there is even more of an emphasis on contactless travel—another area where mobile solutions can play a key role. Phones allow consumers to have all their information handy, and other contactless technology helps facilitate airport management.
Content that Creates Real Connections
Digital content has the potential to reach a wider audience and, more importantly, turn readers into customers, so it should be included in any airline marketing strategy. Showing customers exactly what your company can do for them, and how you do it, is crucial for establishing strong branding and customer relationships. It’s how airlines can differentiate themselves from their competitors and add value to their services.
Meaningful content that your audience will trust includes user-generated content that offers real insights into what it’s like to be a customer of your company, such as honest reviews and feedback from real customers. You can deliver this content in a variety of ways—e.g., blogs, videos, social media, PR—but however you choose to do so, be sure to keep the story at the forefront of your narrative to create those all-important connections with customers.
Omnichannel Digital Experiences
Alongside social media, there are a slew of other digital channels that should be considered in your digital strategy. This is hugely important because of the myriad ways that consumers interact with the online world nowadays. If it’s not live Twitter updates, it’s check-in reminder emails. The point is that brands need to be present across different platforms and digital mediums in order to provide a competitive and effective experience for their customers.
For airlines, it’s about making sure that no matter what device a customer is using, their journey is cohesive and streamlined. They should be able to switch seamlessly between your website on their laptop and emails on a tablet, with the right information easy and quick to find in a consistently branded way.
It’s also worth considering that people tend to carry multiple devices with them while traveling, making it even more important for airlines and airports alike to offer omnichannel digital content to their customers.
Conclusion
Whatever part of your aviation branding or marketing you need support with, the team at TPT Digital can take your brand to new heights. The 2022 Aviation Festival is a great opportunity for learning, connection, and collaboration—come and say hello to us there!
Also, get in touch if you’d like to discuss how TPT Digital can support your paid social media content. We’re happy to give you a free quote.
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Business Aviation
Article | August 31, 2021
Let’s be honest!
Customers support advertising. But they seek out information.
In a marketing world where advertising reigns, aviation customers want well-researched, proficiently crafted informative content that tells stories, explains products, and helps them make smart decisions.
Content: Builds Credibility and Influence with Information
When you make a decision, you seek out the most credible sources of information available on the internet or off the net. However, for many aviation consumers, content types like publications, blogs, whitepapers, and other high-quality are the most preferred to read.
A consistent flow of information maintains the credibility of your publication and communication with your clients, customers, or stakeholders. This can only be possible when you have a good content marketing strategy.
Good content marketing, as marketers say, is an all-hands-on-deck affair. Strategizing, content production, analysis, audits, and reviews play a vital role in creating great content marketing ideas. In addition, you need to coordinate with different departments to meticulously create a plan of action that hits the right audience at the right time with an accurate message.
But remember, even if you plan it in the right way, things can go wrong. And you might feel that nothing more can be done, even having perfect airline marketing strategies.
So, in such a moment of disparity, for your aviation marketing, it’s helpful to revisit some of the most amazing content marketing strategies successful stories out on the internet to get inspired and give a new perspective to your next content marketing ideas.
Content Marketing: Stories
Let us have a look at the excellent content marketing success stories. The following examples showcase the suitable approaches you can have for your next content marketing campaigns. So, take a look and learn to craft a better strategy.
JetBlue’s Campaign Towards Passenger Concerns
The airline industry has had its share of ups and downs in executing airline marketing strategies and airline advertisement plans since the pandemic outbreak in 2020.
Under such conditions, low-cost airline JetBlue showcased its brand stand above all these struggles. Their content marketing strategy that creates compelling, engaging, and informative content consistently helped convey the brand message to the audience and build brand image.
The Strategy
JetBlue’s content marketing ideas focus on humanizes its approaches. For example, the company launched a campaign that awarded passengers with rewards points.
The airline’s digital marketing strategy, at every level, has a unique way of providing information to its audience and offering solutions. This way, it offered the clients more reasons to engage with its brand. The brand used blogs and media coverage to engage with its clients. Here are the following content strategies it used:
Timely published airline articles attracted instant attention of visitors to the website. The information provided in the article was about the usage of technology and successful collaborations to ease the operations.
Filled the website with timeless articles that served information to overcome the pandemic challenges and provide value in real-time.
Always tried to go with the trends, latest news, and updates. As updates were in time, it maximized clicks and engagements.
The Outcome
Content published and strategies implemented successfully enabled JetBlue to acknowledge their audiences’ concerns. The information provided solved the persistent problems of the audience. This approach resulted in a significant hike in the percentage of website visitors, which eventually grew traffic.
Copa Airlines’ DotDigital
Copa Airlines, like other airlines, also wanted to streamline the operational processes allied with content marketing campaigns, emails to target the most of audiences, and stabilizing its market position. It was all because the manual process took up a long time and contributed to accuracy errors.
As part of its recovery plan, it also wanted to become more agile in its email and content marketing by synchronizing the gap between website visits and email triggers to focus actively on capitalizing on the demand.
The Strategy
Copa Airlines’ partnering with dotdigital, a marketing and engagement platform, successfully implemented the campaigns. It focused only on active audiences and accurately understand the purpose. By employing powerful content creatives to create and automate email copies with variations, it was able to restructure the process and added personalization that subjected audiences’ demands and preferences.
The Outcome
Copa enhanced its brand visibility, which boosted conversions by 2%. This result led to a 14% hike in revenue, thus improved its ROI.
With the addition of automation and personalization, Copa also experienced an 11% drop in unsubscribe numbers. This pointed towards the increased engagement of audiences with the new content marketing strategy.
AirAsia’s Media Business Expansion
AirAsia’s topmost concern towards its business expansion was content marketing, media, data, and adtech. The brand wants these functionalities to perform on the top in revenue growth and lift its performance in 2021 & beyond.
To grow its business, it focuses more on engagement and providing value to its audience. It seeks to build a more substantial base of audiences than before. Since early 2020, the brand accelerated its digital business by demonstrating product offerings through blogs, video, and chats. The content information provided through the content marketing strategy was more authentic, relevant, and delivered significant value to customers.
The Strategy
The brand runs campaigns using self-service adtech and content platforms. The company has a deal with Universal Music Group (UMG), through which it created RedCarpet that focuses on smart campaigns with the help of content creation capabilities.
The Outcome
The critical part of the RedCarpet initiative is it created multiple partnerships signed for the upcoming quarter of 2021. It also introduced flexibility in tech offerings to the customer through various content generation on its website and social media channels. But, most importantly, the brand took a step ahead to enhance content services as a publisher. This is a new investment straightaway to become the pandemic warrior in the airline industry.
The brand envisions surged engagement among customers and potential audiences once travel restrictions are lifted. Thus, AirAsia’s database will have more users in the coming years.
Frequently Asked Questions
Why is the need to educate audiences in the airline industry becoming necessary?
Today consumers are becoming smart. They are saturated with businesses offering the same repeated product or service. So, being educated help them to make informed decisions. And creates loyalty towards the brand along with a long-term relationship.
How can content marketing help to address target audiences in the airline industry?
Content marketing can help in addressing the queries of the client at various levels of the process. This strengthens a positive outlook towards the brand and probably motivates them to become part of the brand.
How to use content marketing to increase brand image in the airline industry?
Follow these steps to increase your brand image using content marketing:
Create a brand that tells a story about offerings to the audience
Research on the unexplored side of your industry which is still untouched and thus attract eyeballs to drive your brand
Think of expanding content created out of your research
Create evergreen content pieces
Create a live website and include the easiest ways for visitors to approach
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