Aviation Technology
Article | June 2, 2022
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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Aviation Technology
Article | July 26, 2022
Failure is beneficial for many reasons. But important is to manage and survive the onslaught of errors. With respect to bold attempts like adopting a new strategy, making judgments about the market, bad publicity, launching new products or services, and more like these often make airline marketers discourage due to a little or huge foul.
The list also includes branding. Airline branding mistakes are often seen when businesses try either to aim to re-position in the market or create awareness among customers. If you are making branding mistakes, then remember that a combination of poor communication and ineffective brand planning causes one of the worst branding disasters!
Aviation Branding Mistakes of All-Time
Branding any airline company is challenging. When bad decisions about branding strategies happen, it costs huge to businesses. And most of the aviation businesses do it habitually. On this note, mistakes could happen in various ways. But some aviation branding mistakes shouldn’t be ignored at all. Mistakes can hurt your business hard. So, let’s highlight the common mistakes that can happen while branding for aviation and how you should avoid them.
Implementation of Rigid Strategies
Implementation of rigid branding strategies for aviation results in economic slumps
Airlines need flexible marketing strategies to control the cost of labor and acquisition in order to balance the brand image.
-Lauda, Marketing-In-Chief, Southwest Airlines
While any significant shift in airline business strategy, like the pandemic forced, usually takes two to three years to implement. Therefore, you should design branding strategies that could afford the room for adjustments. In addition, those strategies will revive your older market position. Failing to do so could lead your airline company’s image to suffer a massive loss.
So, what can you do ahead?
Implement unique branding strategies for aviation to strengthen the value of your company. For this, you need to work and pay attention constantly to existing and potential customers you deal with. By understanding their perspective, marketers will be able to bring uniqueness to strategies. Following this process will ease you to adjust and cope up with the current economic condition.
Overlooking SEO
The entire aviation industry is going digitalized, especially after the pandemic fall. SEO is one of the most significant areas of digital marketing. So, if you do not master SEO, you are lagging behind competitors in branding for aviation. Your target audience/existing audience should never find difficulty in discovering your brand. This is the only rule of conducting tested SEO practices. It is because overlooking SEO means your customers are gone.
So, here’s what to do instead.
Try to find out what keywords are becoming relevant every day. Keep a watch at what keywords your competitors include to rank their brand name. Check relevant keywords for your brand message. Also, make sure about the trending keywords and how they are being searched. After you have mastered this metric, create branding strategies that are fit for your company.
A Disconnect with Audience
Failing to connect with an audience is the most significant mistake. Conducting inappropriate research on target audiences makes it hard to know how to connect with them. To understand it, you will have to think creatively and strategically simultaneously. For that, your team should create the best marketing design materials to attract a wide net of customers.
What can you do more?
While you connect with customers, an innovative perspective on your upcoming plans should be out of the box. Thinking in this way will help to reveal the gaps, problems, and undiscovered opportunities to make your brand better. Also, you will get deep insights about customers by directly reaching out through social media. You can use forums, email campaigns, loyalty programs, and other ways to connect.
If you overcome this mistake, you will be able to connect with your potential customers. To have your criteria is essential. And then, you would be surprised to know how enthused some customers will be about a glimpse into the potential future of a product or service they will gain from your company.
Becoming too Generic
Coming across too generic ideas of branding for aviation will give a bad impression on your airline company. So, what constitutes this aviation branding mistake? Let’s know here
• Depending on stock imagery
• Forgetting on your core branding elements—for example, using a generic logo
• Having a similar brand name as competitors’
• Offering a similar product/service similar as competitors’
• Usage of non-specific/non-industrial terms in marketing materials
These points mean that the more generic your brand will showcase, the less unique you appear to the audience. A generic brand reflects being unprofessional, slapdash, or uninteresting. It’s clear—who would want to buy products or services from.
What should you do instead?
If you can offer a better or different picture of your airline brand, do it, even if you have to raise your budget. Connect a great designer and take full advantage of their experience.
Your designer can help with much more than the standards of the branding work. Do some market research for brand promotion/positioning strategies to understand deeper. By doing so, you can leverage the complete value expertise and implement it in your branding techniques.
Branding is One-time Action
The action of branding in one time only is an old-school industry policy of aviation. Today is the era of digitalization, where still many existing aviation companies are practicing this approach. If your company falls in this category, then hold on and restrict it now. This is the time when your airline company needs a tangible branding suite, humanization approach. It should also include the defined message, value, logo, and other elements. However, the work doesn’t stop with these elements. The fact is, branding is an endless process.
So, what do you need to do?
You need to work diligently by keeping a very sharp razor focus on every effort associated with the branding process. So that you can continue to carve your company’s position in the market and stand out. Also, this will help your company stand out in customers’ minds. And hence, this will automatically strengthen your brand.
Putting Branding Responsibilities on One Department
Branding efforts are not only reserved for the marketing department. Instead, it should involve efforts along across departmental actions as well.
There could be multi-departmental knowledge that could save you from poor branding. Might your marketing team’s efforts like the design or PR do not necessarily work perfectly. It's also possible that they ideate a similar design repeatedly. And you may be unknowingly making significant aviation branding mistakes. Those mistakes must have damaged the credibility of the strategies and the motive. A lot of companies work for branding only with the marketing team. That is why they lack in many other parts of branding. If you have a similar working process in your company, you need to think again!
So, how to go ahead?
To create an effective aviation branding, involve the sales, customer service, IT, networking, data analyst department on board. By collaborating with them, you can initiate many efforts to create purposeful solutions for audiences. Even the representatives of each department can involve and create target-proof branding strategies for aviation.
Devaluing the importance of social media
Devaluing the power of social media has been one of the most common and costly aviation branding mistakes businesses are making. From being active on it to acting on the audience’s activities has a lot of differences in-between. Many companies listen, but they don’t hear. The problem is they don’t show to their audiences. And thus, results in disconnection among audiences.
So, what can you do instead?
In the current time, the travel market is now more fragmented with the continuous shifting behavior of travelers. In this case, social media’s role is becoming significant. It’s one platform where you can obtain feedback by creating polls, communicating, and engaging with marketing tricks. It's a free and paid platform. You have every reason to take advantage of it to showcase your company and brand message to a wide net of audiences. Doing it regularly—keeping your content relevant and updated- will make your brand image evergreen.
Save your Airline Company with Branding Bloopers
Now you must have gained some insights on how to avoid branding mistakes. So, it's time to bid farewell to branding mistakes. Remember that consumers, context, and quality design should be at the forefront of your mind when you begin with branding planning. It’s crucial to hone on the right branding strategy because it’s an important way to position your aviation company in the market.
The airline business is the biggest team sport in the world. When you are all consumed with fighting among yourselves, your opponents can run over you every day.
– By Gordon Bethune Former CEO of Continental Airlines
Frequently Asked Questions
What are the other airline branding mistakes businesses usually make?
Mistakes happen every day in airline businesses. But some common mistakes can cost a huge to a business. Here are some more airline mistakes:
• Aviation businesses tend to implement competitors’ tactics that become entirely different from their original business structure or current and future plans of action.
• Businesses do not think of investing in an aviation advertising agency.
• Usually forgets the purpose behind the brand creation.
• Create fake brand values
What should airline businesses avoid in brand planning?
While creating a brand, the airline businesses should avoid the following things:
• Underestimating your customers
• Untracking your marketing efforts
• Unwilling to invest
• Broad targeting
• Lack of USP
• Lack of research
What do airline customers want from airline businesses?
Airline customers are broad. They look for a wide array of services and products. So, your customer will always want some basic yet valuable things like committed customer service and satisfaction, easy approachability, content to understand solutions, and easy ways to invest.
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Businesses do not think of investing in an aviation advertising agency.
Usually forgets the purpose behind the brand creation.
Create fake brand values"
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Lack of research"
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Business Aviation
Article | December 28, 2021
Can the aviation industry have a net zero-carbon emissions? Can technology assist in achieving net-zero emissions?
Presently, customers are taking more flights than ever as the industry is set to grow post-pandemic effects. Data from IATA shows that the UK aviation industry alone ejected thirty-seven million tonnes of CO2 into the atmosphere in 2020. That’s an average of 9% more in tonnes of emission the industry recorded in 2018.
The warnings are transparent. In the latest reports of Intergovernmental Panel on Climate Change (IPCC), the effects of global warming are escalating.
“We know the challenges of climate change the world is facing. It has only continued to intensify,”
-Nicholas Calio, president and CEO of Airlines for America
Airlines are subsequently embracing their actions towards the recovery of their business. There is a need to take even braver, more momentous steps to address this challenge.
Airlines have been focused on carbon offset programs for years. It has previously invested in projects and organizations that assist in reducing the impact of CO2 emissions.
In March 2021, the U.S. airline industry announced that its market leaders are committed to achieving zero carbon emissions by 2050.
The aviation industry is currently rising at between 4% and 5% a year. And the number of passengers will double every 15-20 years. How will the industry let fly with zero emissions? Certain plans strongly focus on the increasing use of sustainable aviation fuel and jet fuel. These fuels are produced from sources such as plant oils, municipal waste, agricultural residue, fossil fuels, and other interim steps.
The blog accumulates some of the best ways that aviation has unveiled on the grounds of zero carbon emissions.
Escalating the Use of Alternative Fuel
The escalating use of alternative fuels is perhaps the most significant proposed carbon reduction initiative for sustainable aviation fuel (SAF) usage. Sustainable fuel is going to be created from plant or animal material. One of the examples is waste oil.
It is studied that SAF has the potential to cut life-cycle emissions from aviation by 80%. It can be blended with conventional jet fuel without making major changes in aircraft designs. But, as technology is concerned with SAF usage, it can be eight times more expensive than conventional jet fuel. SAF currently values less than 0.1% of the almost 300 million tonnes of fuel that commercial airlines use every day.
some companies are taking regulatory incentives in joint efforts with aviation after looking at the costs and ensuring that more SAF is used in the future. Let’s see which corporate companies are setting commendable aviation-related commitments.
Microsoft partnered with Alaska Airlines. Together, they are working to cover CO2 emissions to make their employees’ travel safe by introducing SAF credits.
FedEx has committed to purchase 13 million liters of sustainable aviation fuel from Red Rock Biofuel. It is a part of their long-term net-zero emission strategy.
Express GBT created an alliance to help in increasing supply SAF to under carbon reduction initiative and become zero carbon-emitting by 2050.
Industry-Wide Efforts
The path to climate recovery with zero airline emissions will require a collective effort from all industries. This also includes governments. They must take responsibility for the impact of certain activities, products, and policies have on the environment. The production of fossil fuels is one of them. So, the aviation industry must reduce its dependency on fossil fuels for air travel.
Industries such as energy, road transport, infrastructure, manufacturing, and finance are being collectively responsible for creating a risk-free airline emission. For example, policies of energy transition must include a change in the production plan. Road transport efforts should be advanced by designing electric vehicles. Manufacturers should bring in new technology to support the creation of lightweight engines and aircraft parts. All of them should join hands for a sustainable future for aviation.
The Role of Government Investments
Government bodies play a crucial role in heading up carbon reduction initiatives. The initiative will have solutions such as new aircraft technology and more efficient infrastructure and operations. It also includes the development of zero-carbon energy sources like hydrogen and electric power generation.
According to IATA, 1.8 gigatons of carbon will be required to sustain the aviation industry in 2050. The prediction can achieve 65% of carbon for sustainable aviation fuels.
What are other solutions in demand to commit to addressing a zero-emission environment? It includes:
Fuel-producing companies are to bring large-scale, cost-competitive sustainable aviation fuels (SAF) to the market.
Governments and air navigation service providers (ANSPs) eliminate inadequacies in air traffic management and airspace infrastructure.
Aircraft and engine manufacturers produce more efficient aircraft engines and propulsion technologies.
Airport operators provide the required infrastructure to supply cost-effective SAF.
Airline Firms Decarbonizing Aviation
Presently, aviation is driving towards a new chapter of growth. And the pillars of growth are the firms that are continuously making efforts to make aviation a risk-free industry.
Let’s see how aviation firms are contributing to making a zero-carbon emission sky for safe air travel for the future.
Delta Airlines
Delta and Aviation Climate Taskforce are initiating technological innovation and accelerating the research and development of emerging technologies. Emerging technologies refer to reducing CO2 footprint production. They are focusing on their approach towards medium-term solutions, near-term solutions and long terms solutions.
The mid-term solutions include synthetic fuel. The near-term solutions focus on emerging bio-based Sustainable Aviation Fuel (SAF) pathways. And long-term solutions include hydrogen technologies. ACT will aim to support the advancement of these technologies through two crucial pillars:
An Innovation Network
A Collaboration Forum
JetBlue
JetBlue went carbon neutral for all its flights. It went through carbon offset programs in partnership with the CarbonFund.org Foundation. The investment included solar, wind, and hydrogen-energy project initiatives.
Apart from this, JetBlue also invested in hundreds of global carbon offset programs to support renewable energy efforts.
“views carbon initiative as a platform for other industry-wide environmental improvements that support lower emissions.”
-JetBlue
The best part is that JetBlue also invested in sustainable aviation fuel on flights. They are currently operating from San Francisco International Airport.
American Airlines
American Airlines changed its strategy of using traditional jet fuel. The airline has committed to purchase 9 million gallons of SAF to lower CO2 emissions in the next three years.
Southwest Airlines
On Earth Day 2021, Southwest Airlines announced it would continue to support the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL). NREL works to develop cost-effective low-carbon aviation fuels that are generated from waste.
The airline SAF will play a vital role in getting the atmosphere carbon neutral and will be able to achieve carbon neutrality by 2050. On this, NREL estimates that wet waste typically produces enough energy to provide about 20% of jet fuel consumption.
How Will the Industry Embrace Greener Air Travel Once It Returns to the Sky?
There is a buzz that travelers are now becoming more conscious of the environment. Inspired by Greta Thunberg, a Swedish climate change activist after the pandemic, a growing wave of eco-conscious travelers are choosing to fly with more environmentally friendly airlines. They are also opting for other means of transportation.
As the aviation industry accounts for 2.5 percent of global carbon emissions, travelers now want to be associated with greater environmental awareness. They are taking some essential steps such as:
Asking whether a flight is necessary for travel
Booking a flight that travels nonstop
Keeping a check on airlines that promote carbon reduction goals
On the other hand, airline companies today are opting to monitor themselves. They are doing it within the parameters of emissions, manufacturing, and embracing technological aspects.
Frequently Asked Questions
How can air travel become more environmentally friendly?
You can follow some travel tips such as:
Opt for a direct destination flight
Find alternatives to travel other than flight (if not necessary)
Carry lesser or lighter luggage
Try to produce lesser waste
Choose a sustainable flight
How are airline firms reducing emissions from their flights?
Airline firms are continuously working towards reducing emissions in several ways. They are:
By retiring old aircraft
By updating air traffic routes to reduce fuel consumption
By investing in newer technologies in the manufacturing process and other fields
By participating in electricity generation and other sources of fuel generation
Which are the most eco-friendly airlines?
The most eco-friendly airlines are:
Air France
United Airlines
JetBlue
Delta Airlines
Virgin Airlines
Alaska Airlines
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Business Aviation
Article | August 31, 2021
The airline industry has been an extremely tough marketplace. It takes a lot of effort to stand out from the competitors and to run business amidst everyday challenges to become top airlines in the country or worldwide. Yet, out of all this, the airline industry has maintained its dignity and has been successfully driven through market challenges.
Aside from the unique dynamics of the current COVID-19 crisis, marketers before used aviation marketing tactics in a standard way. But, the sudden outbreak of the COVID-19 pandemic made aviation marketing exceptionally challenging for airlines worldwide to forecast demand and kickstart airline businesses in the future.
But, as of now (after a year and half months from the pandemic outbreak), there is a lot of excitement about airline branding, airline marketing strategies, airline advertisements, and more. As a result, businesses are becoming confident that revitalizing their strategies would now take off effortlessly. Yet some challenges and many other uncertainties need to be addressed regarding the fast-changing business models, travel demand, revenue generation, sales, stability, and a lot more in the restart period.
Let’s put some light on those uncertainties in the airline industry.
The Uncertainties
As per IATA (2020), the change in the airline business model creates additional uncertainty. It has been observed that the present state of the economy is the ultimate game of risk to airline revenue management and planning. This includes airline marketing strategies, airline advertising campaigns, and prospects of branding as well.
The recent shift in business patterns have been caused and triggered by various events such as:
A sharp decline in demand stimulation techniques applied by airlines
Signs of disruption entering the market in the wake of the COVID-19 situation prevailing in countries
Disruption of profitable plans for future
Changing consumer behavior
Missing data connections and collection
As a result, these uncertain events demand a call for action across the entire airline sector value chain. The call must be initiated based on creative marketing strategy, prioritizing personalization, sustainability, and profitability.
Now, the question ascends, why does your marketing team need to think out-of-the-box altogether to re-create airline marketing strategies.
Read about it next!
Why Airline Marketing Strategies Need to be Out-of-the-Box
With the changes occurring in airline market dynamics, airline businesses have to reshuffle their marketing strategies. They have to be quick as novel opportunities are continuously pouring in. Despite the current situation that has put the airline market under stress, it has provided the foundations for a range of new blue ocean opportunities. This is where you can hop on those opportunities to re-scale your business.
Therefore, the internal and external variables have to be considered in any forecasting activities of airlines, including revenue management, pricing, network, and marketing planning. In other words, game-changing strategies are born of thinking out-of-the-box—a leap into the unexpected.
Here, creating effective aviation marketing strategies will fulfill the need to pursue a new product differentiation and revenue management angle. Doing so will also instill confidence back into the base of your airline business, including stakeholders. This is how your business can become successful again.
By now, you must have understood that this is where the power of marketing in aviation can play a vital role in diminishing all the challenges. But before your marketing head towards creating robust aviation marketing strategies, you should first know about the approach of 3 Cs to make a successful marketing venture.
3 Cs to Consider While Marketing Your Aviation Business
Marketing, as per the current scenario, will require rock-hard strategic preparation. Similarly, in aviation marketing also, your team needs to ensure consistent preparation. This continuous process will help the business build progressively in a constantly changing aviation business environment and fluctuating demands.
Following this approach will help better in building innovative strategies and simultaneously exploring a wide range of possibilities.
Contrast
Before your marketing team heads to the stage of the plan, consider the assumptions bracing up in the current airline industry’s status. Then, your strategists should get hands-on to identify the possibilities to come ahead along with its results.
Constrain
Keep a look at the limitations stirring in the current airline market scenario. Then consider how the prevailing weaknesses can be converted into strengths to become successful among your competitors.
Context
To create out-of-the-box airline marketing strategies, which include airline advertisements, airline advertising campaigns, and more, you should plan to have a different context to stand out terrifically among other airline companies. In addition, marketing this way will give you surprising insights and help you emerge afterward through challenges that occurred due to the pandemic.
Now that you are aware of the critical things to consider in creating airline marketing strategies. It is time to go ahead with creating strategically planned strategies.
Here are some effective strategies discussed that would help to revitalize your airline business.
6 Airline Marketing Strategies
Introduce Loyalty Programs
The airline business is known for its range of offers of loyalty programs according to the target audience. Nearly all airline businesses create their ways to cater programs to a particular audience group or in general. However, loyalty programs work the same at the core, but to encourage audiences in the current time, you can offer different perks to them. So, be creative in creating campaigns, and you will find that your loyalty programs are capitalizing on your revenue and benefiting customers together.
Distinguish your Brand and Position Yourself
Branding and positioning have become essential for businesses operating in this pandemic time, where the market is now hugely competitive. So you have got to be quick to get your company identified by your customer base as well as the target ones.
While proceeding in this manner, your best strength will distinguish you from your competitors serving in the same area. To make your brand image outstanding, you need to study customer demographics related to airline services.
On the other hand, depending on the brand image you want to cultivate, you may need to create airline advertisements accordingly. It is because your brand will communicate a message to the worldwide population. And it’s important to consider how you want your target audience to think of you before you brand and position yourself through advertisements, social media platforms, and more. This is how you will be able to position yourself in every day changing aviation market dynamics.
Be Creative with an Airline Advertising Strategy
Out-of-the-box airline advertising strategies can help your business outshine amidst insane competition arising. It is because now you have to adjust according to the modern world scenario. Here, creative content plays an important role. Moreover, as you must be working remotely, the idea of using content marketing will massively support your advertising strategy. It would engage and inspire customers to leverage your services, and, ultimately, your revenue will take off once again.
Introduce Paid Ads
Now that you have a planned airline advertising strategy, you can also consider introducing paid ads in it. Yes! With the help of paid ads, you can target a location-wise audience more precisely.
Paid ads also help in revenue generation and collaborations. These aspects are directly proportional to the profit earned out of implementing strategies. For example, paid ads may involve videos creation on YouTube to create brand awareness on your website, landing pages, or content (articles, blogs, etc.) page. By doing this, your brand value is going to skyrocket than what was it before.
Set a Strategic Social Media Campaign
Social media campaigns are the best ways to reach your customers and target audiences under airline marketing strategies. Spreading your brand voice through different social media platforms will help you humanize your brand and deepen relationships with a larger population. In addition, other airlines use social media to reward customer loyalty, so you can also indulge in activities for the same.
For this, your marketing team should study which platforms your customer base visit frequently. Then, based on your research, you can do promotions, provide updates, make announcements, expand services or give some behind-the-scenes look of your company to customers as well as targeted audiences. It is because they appreciate participating in such events and get satisfied by relying on your company.
During an interview with Media 7, Didi Horn, Chief Executive Officer at SkyX, made a statement. He told,
“We have found that Linkedin has contributed the most to brand awareness over the years. In our business, there’s a very specific and niche target customer that we want to reach, so we don’t hesitate to invest in doing what it takes to build strong, lasting relationships.”
Marketing leaders like Didi Horn and more are becoming successful with their marketing activities on LinkedIn. Similarly, you also use LinkedIn—as one of the most influential social media platforms to spread the word about your business activities and reach out target audience easily.
Practice Influencer Marketing
Yes, you heard it right! Influencer marketing is booming in the current pandemic scenario. This is the best way of earning better ROI. Implementing influencer airline marketing strategies would help realize your business goals.
So, what goes under this marketing strategy?
The formula of storytelling through content is considered beneficial to increase airline business. Adding transparency in the strategies can also be one formula while practicing influencer marketing. Implementing this strategy will attract more audiences because they get influenced by interesting content, storytelling, company behind the scenes. This humanizes the brand altogether, giving audiences a factor of trust and loyalty.
As you have entered a completely different business scenario in the airline industry, your company needs robust marketing strategies.
It’s important to understand that change may be predictable, but growth isn’t. Business growth highly depends on all the little things you do consistently to make it happen. Since you’re competing with many other airline companies, developing a strategic aviation marketing plan can boost sustainable business growth.
Frequently Asked Questions
What is an airline marketing strategy?
An airline marketing strategy is a well-planned method in action that businesses create to fulfill goals such as boost revenue, surge engagement with customers, create brand visibility, positioning, target potential audience, and a lot more. Companies invest time and money to create a robust plan so that businesses can run effortlessly.
Why is airline marketing strategy important?
Airline marketing strategies are important for airlines to stand out firmly among the competitors, position their brand, create awareness among the existing customer base and attract more and more potential audiences through various online platforms.
What are the top 3 marketing strategies for the airline?
Although the marketing strategies involved in a business are critical, the top ones can be the following.
Email marketing
Social media
Paid media advertising
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