Aviation Technology
Article | July 26, 2022
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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Aviation Technology
Article | June 2, 2022
The aviation industry has allowed people to connect the world in unimaginable ways. Due to this, it has contributed massively to social and economic development globally.
However, the aviation sector produces nearly 1.8% of annual carbon emissions. It is almost half of the total growth in carbon dioxide emissions in the last twenty years due to the expansion of flights, increasing routes, and airline sizes.
In the loop, the commercial aviation sector has also been affected by climate change. The change is due to increased noise levels, air pollution, and waste production.
According to the International Energy Agency (IEA), the industry recorded 2.8% of global CO2 emissions in 2019. But now, the industry has pledged to be carbon neutral by 2050 through a focus on a critical low-carbon strategy, says IATA. By looking at this futuristic development, airline businesses are becoming more and more optimistic.
The Action Plan
The aviation industry has taken steps to reduce rising carbon emissions. The industry had framed targets that included carbon-neutral growth before the pandemic. But the pandemic compelled the industry to make some critical decisions. One of them is to fasten the action plan for low-carbon development.
McKinsey recently studied the industry’s emissions. According to the report, the industry's aviation emissions would be reduced by 18 to 35 percent by 2030. However, as the aviation industry’s growth is recorded from Asia, including India, China, and Southeast Asia, decarbonization can only work if airlines from these nations actively participate in the development.
“For aviation, zero-carbon is a bold, audacious commitment. But it is also necessary.”
-IATA Director General Willie Walsh
Airlines and other businesses are under pressure to make rapid progress towards lower emissions. It is because breakthrough technology like hydrogen-powered planes has started manufacturing.
For example, British Airways, Delta Air Lines, Inc., and United Airlines Holding Inc. have already made net-zero commitments by introducing hydrogen-powered planes. Similarly, JetBlue Airways Corp has set a target of 2040 to introduce low-carbon planes in no time.
So, by looking at above comitments, how will aviation progress in terms of low-carbon development? What are those fundamental ways that’ll guide the industry to see a sustainable future in real life?
4 Ways Aviation will Look Forward to Reducing Carbon Emissions
Green Fuel
Aviation considers green fuel as one of the quickest paths to low carbon development. Green fuel can be a game-changer in lessening carbon emission impacts. But, furthermore, it can lead to drastic climate change. Green fuel, also known as sustainable aviation fuel (SAF), is made from renewable sources such as plants or waste.
As per IATA, SAF can cut carbon emissions by nearly 80%.
But specific concerns like cost and availability are equally essential to think about. For example, the United States and other countries consider subsidies to decrease prices and increase supplies. They are practicing this due to limited availability. Also, some airlines are blending small amounts into the fuel they buy for their aircraft.
Other concerns, such as planes running properly on pure SAF, are also highlighted. In addition, flight engines based on petroleum fuel rely on their oily qualities to lubricate parts and function appropriately. So, it's unclear if green fuels offer that amount of strength in their engines to fly a flight.
Despite so many heated concerns (that are valid), the industry still looks good as Boeing (BA.N) studies the above issue. It has even committed to ensuring its planes are certified for 100% SAF by 2030.
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Lower Carbon Technologies
Technological improvements to lower carbon emissions include retrofitting existing aircraft, adopting the latest fuel-efficient aircraft, retiring old aircraft, and others.
Several ongoing electric or hybrid-electric aircraft technology projects are in the pipeline. They are being identified to enter the industry between 2022-2030. In contrast, some of them are already in service.
Developments in Infrastructure
The International Civil Aviation Organisation (ICAO) has created plans to reduce fuel burn and greenhouse gas emissions (GHGs). The plans have been forwarded to optimize communication, navigation, surveillance (CNS), and air transport management (ATM) regarding zero-carbon development.
Apart from this, airlines are also working to align emission cuts with investments. Consumption of fuel usually covers 20-30% of operational costs. It is one of the highest costs of an airline business. So now airlines are considering adopting fuel-efficient flying and airport operations.
Collaborations
Today, aviation needs more stakeholders for a sustainable future. They can only increase the efficiencies and development of SAF.
Stakeholders from technology providers, oil companies, and energy production could drive demand and help bridge the cost gap. For instance, airlines commit to buying SAF at a particular price or at a different price than traditional fuel jets. These factors could eliminate market risks for fuel suppliers.
Next, airlines can work with B2B customers willing to pay for the decarbonization initiative. For example, airlines could use loyalty-program rewards as incentives for every customer to choose airlines that use SAF. Collaborations like these can help the industry accelerate its low carbon emission initiatives.
These Top Airlines Commit to Using New Technologies
Aviation industry leaders aim for 30% of the aircraft to operate with the help of new technologies by 2030. They strongly support the introduction of hydrogen and electric-powered planes to the market in order to reduce the industry's carbon footprint.
So, let’s see the airlines and their commitment to creating a sustainable aviation future.
Air New Zealand
Air New Zealand’s initiatives such as True Target Zero accelerate the adoption of zero-emission aircraft worldwide. Air New Zealand is delighted to work with other industry leaders working towards net-zero goals.
“Air New Zealand pledges to put low carbon solutions in place for all our smaller domestic and regional flights in the future. However, we know that the drive to decarbonize the aviation industry is impossible for one airline to tackle alone. Rather it’s a joint venture, and it's all about joining hands together.”
-David Morgan, Chief Operational Integrity & Safety Officer, Air New Zealand
Mokulele Airlines and Southern Airways
Mokulele Airlines, the largest intra-state carrier in America, has already worked for many years as a maven to bring electrification to its air transportation system.
“We are satisfied to join the World Economic Forum in seeking a global public commitment to promoting sustainable air travel.”
-Stan Little, Chairman & CEO, Mokulele Airlines and Southern Airways
Braathens Regional Airlines
The airline has the ambition to make its flights fossil-free by 2030. The airline has included electric planes, and with its partnership with True Zero Aviation, it is taking steps to accelerate towards actual low carbon emissions.
Can Aviation Make a Difference in the New Path of Development?
There are a lot of positive aviation stories from all over the globe. However, aviation also has some barriers to the new path of low-carbon development. Nevertheless, aviation can undoubtedly make a difference by introducing technologies, implementing result-driven strategies, implementing the right tools, and many more.
But from the customers' perspective, choosing to fly less can be another good reason to reduce an individual’s carbon pollution. The reduction can be up to 50% each year. So even avoiding long-distance flight travel could make a significant difference to aviation.
Business travelers could adopt or choose to use virtual meeting technology. These could be other crucial factors limiting the carbon footprint in the atmosphere.
Whatever you choose to opt for, it is high time to contribute to a more sustainable aviation sector for the future.
Frequently Asked Questions
How can airlines reduce their carbon footprint?
Airlines can introduce more efficient aircraft. Efficiency in technological aspects, reduce flight delays, and increase the use of sustainable lower-carbon or alternative fuels. Also, investment plays a vital role here. They can invest in emissions initiatives and promote low-carbon travel.
How can an airline achieve its carbon-neutral goals?
An airline can explore hybrid and electric aircraft technology to reach carbon-neutral goals, reduce carbon emissions using SAF, and embrace fewer flight routes (distance).
Do aircraft harm the atmosphere?
Aircraft create very polluting elements and are highly challenging means of transport. Indeed, air traffic represents less than 2%-3% of the global CO2 emissions, yet it transmits direct CO2 emissions than cars on roads.
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Defense and Space
Article | June 8, 2022
Airplane travel is one of the most convenient means of transportation. Consequently, air travel is growing, and aircraft need to be more efficient. Furthermore, in the aftermath of the pandemic, the aviation industry appears to be committed to ensuring a sustainable airflight future. So, for this, aircraft need to be more efficient in production costs and fuel consumption.
An aircraft design depends on three of the most critical aspects. The first is the factor of reliability. Aviation is the only industry where it is impossible to overlook, rectify, or investigate a failed flight mechanism on the spot. The second factor is the need to minimize the weight and volume of its components to withstand load and fluctuating temperatures. And, the third factor is that it shows extreme concern from an environmental perspective. Temperatures on the ground can reach 60 °C and even -80 °C in the stratosphere, with supersonic aircraft reaching temperatures of over 200 °C.
As a result of these factors, the aircraft lubrication system and its requirements are critical. From an economic perspective, servicing and maintenance are a significant part of airlines' expenses after the purchase. In addition, the replacement of parts can cause airplanes to remain grounded for an extended period. Such circumstances can lead to a loss of time and money simultaneously.
From a safety aspect, failures at every level should be avoided. Failures like the shutdown of engines or breakage of engine parts can lead to aircraft failures or even crashes. So, by knowing all these issues around air travel, you can easily understand the interest in aircraft engine oil.
An Innovative Lubrication System for Aircraft Engine
Aircraft turbines revolve at up to 18,000 rpm (revolutions per minute). Due to this, internal temperatures can rise compared to the ambient temperature outside. So, aviation engines need an efficient oil-based lubricant to less pollute the environment and sustain long-distance air travel.
Recently, researchers in the EU-funded ELUBSYS project developed a novel way to use specified aircraft engine oil to promote efficiency and reliability. For this, SAF (Sustainable Aviation Fuel) is in high demand. Moreover, the project's innovative oil production will also help reduce an airline’s operating and maintenance costs. In this way, Europe’s aircraft manufacturers are way ahead in supporting future aircraft engine development.
“Aircraft engine turbines rotate at a very high speed with the help of the classic rubberized oil-seals used in the aircraft engine. The extremes of temperature and friction involved would destroy them. Yet aircraft engines need to stay lubricated.”
-Vincent Thomas of Techspace Aero in Belgium
Apart from this, the piston engine looks promising for the aviation piston engine industry. However, it seems like a piston engine holds an optimistic future in fuel economy. Now, with the inclusion of piston engines, there is more importance to using piston engine oil in the lubrication system for an aircraft engine.
So, how piston engine will be the game-changer for aircraft?
Piston Engine—A Game-Changer in Fuel Economy
Numerous aviation firms are developing a new type of internal combustion engine. Such engines promise a notable boost in fuel economy while also plummeting greenhouse gas emissions. In addition, start-ups like EcoMotors, Achates Power, and Pinnacle Engines are building variations on piston engines with the help of specific piston engine oil.
The engines serve as combustion chambers where fuel is ignited. That makes engines lighter in weight and faster in their operations with greater power density. In this way, piston engines result in less energy waste and thus operate more efficiently.
“The technology is worthwhile. However, it is a completely different concept compared to conventional engines,”
- Dean Tomazic, Vice President of FEV in Auburn.
There are more success stories from the aviation piston engine industry. These stories predict that, indeed, aviation is going through a significant transformation.
Another significant achievement comes from Pinnacle, based in San Carlos, Calif. It is developing a four-stroke, gasoline opposed-piston engine. The company’s founder, Monty Cleeves, invented a sleeve valve that ensures energy is used for propulsion instead of getting wasted after converting into heat.
Functions of the Lubrication System for Aircraft Engine Oils
What are the significant functions of lubricants in aviation oils and engines?
It is the function that realizes the importance of things. Isn’t it? So, to realize the importance of aircraft engine oils, it’s crucial to show the potential of the aircraft lubrication systems.
1 Friction and Wear Reduction
Lubricants reduce friction and wear in an aviation engine. The aircraft lubrication system deals with cooling, sealing, clearing, and fighting corrosion and rust in the engine.
Airplanes that are used seldom need the thorough protection from rust and corrosion that good aviation oils can provide. Also, frequently flying airplanes need lubricants for smooth engine operations and functions to avoid failures.
2 Acts as a Cooling Agent
But it is critical to use good aviation oils as lubricants. Oil is a heat-transform medium. Thus, a suitable oil should be used so that lubricants can keep the engine cool and smooth.
3 A life Saver of Aircraft Engines
Lubricants help in extending the life span of an aircraft engine. If an aircraft uses good aviation oil, for example, SAF, biofuels, and more, then there are fewer chances of any engine repairs. In this case, piston engines are the best fit for aircraft with high demand. Piston engines use highly lubricant piston engine oils, which increase the longevity of aviation engines.
Let’s look at some key takeaways from the market study of aircraft engine oil.
Aircraft Engine Oil: Key Takeaways from its Market Study
Commercial planes and business jets will likely witness high aircraft lubricant oil sales.
According to IATA, mineral oil demand is expected to rise by 25% by 2030.
Bio-based oils will dominate the aviation industry in response to soaring environmental concerns.
Maintenance, repair, and operations (MRO) activities will emerge as crucial parts of aviation to drive the global aviation lubricant market.
Lastly, what’s understood is that aircraft engine oil is the engine's lifeblood. Thus, the engine must function efficiently to encompass the length between overhauls.
Frequently Asked Questions
What does engine oil do in an aircraft?
Engine oil functions as a coolant. Up to 40% of an aircraft’s cooling comes from engine oil. Oil creates a seal between the piston rings, which reduces wear and friction andprovides better compression with increased fuel efficiency.
How is the engine oil lubricated?
Engine oil is lubricated with seals using air, which holds back the oil. Air and oil need to be separated. The air eventually vents out in the form of heat. That is why good oil is necessary for aircraft for lubrication.
What are the essential functions of engine oil?
The essential functions of engine oil are:
Minimizes friction and reduce wear
Cleans the engine
Transfers heat
Prevents corrosion
Forms a seal
Cools the engine parts
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Business Aviation
Article | October 13, 2021
Skift research shows that 90% of airline marketers have dropped their marketing budgets due to the pandemic.The pandemic brought massive changes in marketing. Due to this, CMOs navigated through restricted availability of resources and shifted airline companies’ guidelines for months.
CMOs find increasingly difficult to rely on conventional financial and managerial aspects like typical cost setting—the way profitability was being achieved, fuel consumption, accounting decision making, investments, manufacturing and more. Due to these challenges, airline brands are bound to sternly reevaluate their current and future marketing process to maintain a steady flow of income and increase ROI.
So, it’s quite possible that your marketing tactics also may have suffered due to the pandemic. Right? And now you must think, “How much should your budget be for marketing?”
It’s an important question. It’s because most aviation businesses do not have a considerable aviation marketing budget. The answer to your concern lies here, “spend the least amount that achieves your business objectives.”
A lot has transformed since the outbreak of the pandemic. Yet, there are novel opportunities in aviation marketing activities. So, let's take a closer look at some of the opportunities that might help control your aviation marketing budget.
Opportunity No.1: Invest in Paid Advertisements; they are cheap!
Paid advertisements are becoming cheaper. These are in higher demand when it comes to aviation marketing.
It makes sense because the way digital advertisements are making money is going to benefit marketers. First, the paid ads drive the cost per click (CPC), so investing here can increase the ROI. Second, as the pandemic forced companies to focus on all-digital processes, as it prompts the audience to spend more time online. Resultantly, traffic on the web is up, and there are lots of ads. It means ads are cheaper.
Even conversion rates are increasing now. It’s because the ads online are evolving at the same rate as it was before the pandemic. Therefore, you must take advantage of paid ads to start with controlling your aviation marketing costs.
Opportunity No. 2: Determine your Annual Customer Value
The key to having controlled aviation marketing costs is to have an average customer revenue. If you haven’t calculated yet, then you should begin with it. Begin tracking the effectiveness of your sales and marketing efforts. Once you begin with it, you will calculate how much money is spent on every customer or a new customer.
The other important aspect to consider is how wisely you spend the dollars in a limited budget. And that’s where a marketing plan comes into action.
A well-improvised marketing plan may include proper tactics, tools, and platforms. But to implement all these things effectively requires an adequate budget. However, how to use them requires a thorough analysis and experts’ experience. Usually, marketers make a mistake by spending too much on a single marketing tactic. And this results in a considerable loss.
So, to control your budget, be intelligent to concentrate on a selected marketing tool and platform. And then spend dollars on it. Tapping on this approach, you will create a cost-effective marketing plan, which will give better marketing results.
Besides, your customers might equally feel satisfied by getting worthwhile results. Well, in reality, it will be easy for you to determine the annual value of money spent on each customer.
Opportunity No. 3: Review Investment Plans
When looking at the aviation marketing budget, it’s advisable to review investment plans carefully. The investment plan is crucial when you need to control your aviation marketing. Having an in-depth knowledge of it can lead you to save big. Also, it might bring opportunities further for your airline business.
For example, in December 2019, JetBlue announced a marketing structural cost program. It aimed at producing $250-$300 million by 2020 through cost savings. According to the company’s 2020 annual report, the program emphasizes these points:
Technical marketing operations
Planning, automation, and executing efficient activities online .(Like on a website, social media platforms, online campaigns, and more)
• Decreasing distribution costs
• Tax reformation
All these aspects demonstrate opportunities to propel business growth.
We are extremely excited about the potential for increased business demand with the costs and tax cut.
- Glen Hauenstein, President of Delta Airlines.
So, consider if you can reduce, delay and/or eliminate non-essential marketing tasks or not. Then, find opportunities to help you do a transition from costly, inefficient technological aspects to more cost-efficient technology, thus, driving more valuable results.
The bottom line is that you must understand where it makes sense to cut costs and where to make the proper investments because it's about bolstering your airline business. With the help of this, you can create value for customers, partners, and investors in no time.
Opportunity No. 4: Encourage Innovative Digital Engagement
Some of the top airlines like Delta Airlines and its marketing teams use innovative engagement methods through digitalization. Yes! After being hit by the deadly pandemic, Delta lost $60 million in cash each day. Delta CEO Ed Bastian revealed that Delta airlines reduced 80% of its operation.
“Delta will weather the storm by sticking to our shared values of honesty, persistence, and service to our customers and our communities. We encourage digitalization to the core. And that has helped our customers easy to connect us.”
- Delta CEO Ed Bastian
With this approach, Delta further forecasts its revenue to rise by 90% by the end of 2021.
So, you can see how investing in digital methods can help revenue rise without going out of budget or crossing the budget line.
When you introduce automation, AR, VR in your aviation marketing efforts, it will drive value from existing customers and engage potential customers. For example, you can create innovative videos for social media, visual online campaigns, presentations, and more.
Finally, remember to “Have Patience and Carry On”
It is critical to managing finance, especially in global disasters like coronavirus. However, today's marketing budget may seem exhausting when aviation businesses compete each day. But it is helpful at the end of the day!
Controlling your aviation marketing costs will lead you to increase your ROI. And this way, you will get valuable prospects, which is even more critical in the current scenario. Moving ahead with not-so-hard marketing budget control, you will require powerful leadership, top competency with courage and empathy, and the correct data, of course. So, having all these aspects and proactive measures in place, you will be able to outshine again.
So, which one of the opportunities are you going to implement first?
Frequently Asked Questions
How do airline businesses do marketing?
Marketing is the best practice to build trust among airline customers. The marketers offer rewards to customers so that they become loyal to an airline brand. They also run campaign activities, provide rich informational content, produce videos to educate and motivate customers. This is how engagement increases along with loyal numbers of customers.
What are the leading airline expenses?
The leading airline expenses are as follows:
The employment process expenses. These expenses are the most critical operational cost of an airline (33.5%).
Fuel expenses (19.6%).
Sales and marketing expenses. They are approximately 15.7% on the rise.
How do airlines control the marketing budget?
There are several ways the airline controls its marketing budget. A few of them are:
By conducting fuel-saving strategies
Operation procedure simplification
Introducing automation
Technology implementation
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