The Value of Fare Marketing for a Low-Cost Carrier (LCC) Digital Strategy
Four Low-Cost Carriers share their marketing strategies to attract and convert customers
Low Cost Carriers (LCCs) offer affordable travel options to attract customers, who now have more choices than ever when it comes to travel. OTAs have disrupted the industry by aggregating and commoditizing airlines to attract LLC customers.
EveryMundo customers Frontier, Flyadeal, Play and Volaris, joined us at Outperform for a panel discussion on how LCCs can maximize their competitive advantage and grow their direct channel.
Click the tiles below to jump to each airine’s session highlights, or watch the full session here.
Post-COVID, Frontier has seen a change in the way that their customers are traveling and how often. The airline has developed products and services to meet the new demand to visit friends and family, like their “GoWild! All-You-Can-Fly-Pass” which is a pass for a year or a season that covers all flights, the customer just needs to pay taxes.
EveryMundo products enable Frontier to manage an average of three sales per week with a small team. The airline uses Fare Marketing across all touch points, from audience acquisition, conversion, building loyalty. They partner with EveryMundo to market their low fares, and these passes to reach customers, convert them, and have them keep returning. Frontier values customer loyalty because they can better deliver on customer interests and reduce the cost of acquiring new customers.
Frontier explains how EveryMundo products bridge communications between their Marketing and Revenue Management teams, and how they are taking advantage in renewed travel demand:
“We rely on EveryMundo for the personalization that it offers. With EveryMundo we can offer a dynamic fare in one of our channels that customers can click on and convert with right away. They don’t have to go hunting for the fare, we lead them right to the fare that they’ve seen in the ad, which is critical to build trust with the customer.”
Volaris is the largest carrier in Mexico, where 70% of the market is dominated by Ultra Low-Cost Carriers (ULCCs). Volaris has a strategy to attract people who have never flown before, who often take long bus rides to travel to destinations. The airline has found that once these passengers try flying for the first they don’t want to go back to the bus, 80% will want to keep flying.
See what Volaris’ Head of Marketing had to say about their acquisition strategies as the largest LCC in Mexico:
“EveryMundo products are scalable and enable our customers to help other customers find the low prices, because when somebody finds a really low price it will stay on the airTRFX pages so they can go exactly the date and the route where the low prices are now.”
flyadeal is the only LCC out of Saudi Arabia and has positioned itself as the “Fly For Less” airline, with a commitment to customers that if they book 14 days in advance flyadeal will be the cheapest for their. flyadeal doesn’t run weekly or monthly promotions, instead opting for a National Day campaign where they sell $10 fares.
Using demand data generated by FareNet, flyadeal’s Marketing and Revenue Management tams can collaborate to optimize inventory management and sales by route. Because more than 90% of sales come from the website the airline is able to use the demand on the website to improve fares.
Hear how flyadeal uses Fare Marketing to drive demand and conversions, and what they think the future of AI will be for their industry:
Play is a new LCC brand coming into the marketplace and competing with much larger European and North American carriers. They must also compete against European low-cost carriers with routes to their home market and connections via Reykjavik into the U.S. or into Europe.
Using EveryMundo products, Play has been able to collaborate across departments, from Revenue Management and Pricing to the Digital Development team in order to use demand data to implement sales tactics at scale across multiple markets quickly without restrictions. Having the tools to market real-time dynamic pricing across multiple markets has helped their teams execute more strategically and given the new airline confidence in its growth trajectory.
Play shares how Fare Marketing products have enabled them to drive acquisition through their direct channel and increase brand awareness: