Promotion Tactics In The Airline Industry

981 words - 4 pages

Promotion has become a big aspect after the tragic event of September 11. The way this industry has attracted people to them has changed. Airline companies have struggled with making new ways to market their products. Especially since most US airlines stayed off television for months after September 11. This was one of the key ways off attracting customers to the industry. Some companies even stopped Domestic E-Fares (Konrad & Sandoval, 2001). Today airline advertising focuses on price, rather than the pleasure of the flying experience. Companies use the radio, newspapers, billboards in big cities, tops of taxicabs and sides of buses to put their ads on. Even coffee cups in restaurants are starting to be used for advertisement. The industry has turned more toward e-commerce to keep business going as the economic slowdown and post September 11 security fears continue to ground many travelers (Dignam, 2002). Also, many of the people in the US now use the Internet to get the best prices so this is where advertisement needs to be. Doing this way of promotion also helps the industry reduce the cost of sales and improve customer satisfaction. In addition to selling tickets over the Internet, they're using special Web and email promotion pricing to keep seats filled (Wagner, 2002).
One big promotion that most of the companies in the use is the frequent flyers miles program. People collect miles when they do some of their daily activities, such as using their credit card. This is one of the most well known promotions that the airline industry is doing. There are many benefits for consumers that use this program. It offers you discounts, special privileges such as pre-boarding, you can get future benefits, get discount coupons, provides you with special credit card offers, may allow you to add your points through other activities, and it gives you leverage if you have problems with the miles. This all sounds good but along with the benefits comes some restrictions. They can include more blackout dates, required Saturday night stay over, increase in the number of needed mileage points, smaller selection of airlines to use your miles with and restrictions on you ability to give your points to other people. One of the newest ways of gaining points has just come out. Some companies now offer you points if you leave the airport more than 5 minutes late. If bad weather is in affect then this rule isn't used. Also consumers can get bonus miles if they are unable to board a flight within 20 minutes. One of the biggest offerings is the jet bridge guarantee. Passengers will get 100,000 miles if they have to board a plane by crossing the tarmac. These new ways to earn miles has all come out to try and show people that the airline industry is doing its best to keep their customers happy and safe ("Air Miles," 2002).
Many companies have been trying to beat their competitors by...

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