What is Fare Marketing?
Fare Marketing is the strategy of leveraging fares as the primary message for customer acquisition and conversion. Airlines use their best real-time fares to attract customers to book directly on their website, and make it easy for customers to book the fares they want from any page.
Why should airlines adopt a Fare Marketing Strategy? The cost of travel has the highest impact on what airline leisure travelers will choose to purchase from. With Fare Marketing, airlines can communicate their lowest fares to travelers and drive them to pages where they can easily find the best fare and make their purchase.
In today’s digital world, airlines must execute best-in-class Fare Marketing strategies if they intend to compete with Online Travel Agencies (OTAs) and Meta Search Engines (MSEs) for business and customer loyalty. As online entities, OTAs and MSEs are able to focus all of their considerable technical resources towards Fare Marketing to target travelers across the web and guide them seamlessly from their initial flight search all the way through purchase, reducing direct channel sales for airlines and reducing user loyalty to airlines.
With Fare Marketing, airlines can target and convert travelers by broadcasting the lowest real-time fares for flights they are searching for, and transform any page into a flight booking page to drive qualified traffic into the booking engine.
Airlines are not publishers, they are retailers.
Inspiration, Destination, and Personalization do not get travelers to buy tickets (<0.1%). Travelers do not go to airline websites to read about trips and get inspired, so airlines should not waste resources trying to convinve a traveler where to go. They should sell them a flight to get where they have already decided to go.
Publishers create high volumes of content to keep visitors on their website for extended amounts of time and on as many pages as possible because they profit from the number of ads a visitor sees:
Websites that make revenue from conversions to not waste their resources on inspirational content, they prioritize making searching and booking easy:
Fare Marketing is commercial alignment.
By using a Fare Marketing strategy, the airline’s Revenue Management and Digital Marketing departments are better able to align and accelerate fare optimization.
- Digital Marketing / eCommerce departments use Fare Marketing to broadcast fares across all digital channels and get immediate feedback on how effective those fares are at driving traffic to pages and the page conversion.
- Revenue Management is able to optimize fares rapidly based on what the Digital Marketing department sees as a result of the fares Revenue Management makes available. Whit this infromation they can quickly change fares and have those new fares displayed across all marketing channels, for instant feedback.
Fare Marketing is measurable.
The impact of Fare Marketing is directly measurable with metrics including:
The number of page visits as a result of Fare Marketing
Length of time & number of searches on a page
The number of visitors that complete a transaction