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How airlines' marketing strategy changed in a year marked by a price war

12.11.2009, 16:20 7

Airlines' pricing policies are totally shattered, with allreductions topping 20% for plane tickets being launched bycompanies in a bid to maintain their market share. Thus, regularairlines have come to "throw" onto the market tickets at prices ofas low as 9 euros (no tax included), a fare that one year ago wasrarely registered even in low-cost carriers' offers.

Romanian regular airlines, as well as the international onesoperating domestically, have adjusted their marketing strategy thisyear as air traffic has declined by at least 10% since the start of2009.

Airlines have "thrown" onto the market 9-euro tickets forforeign destinations, tickets as much as three times cheaper forthe business class, as well as packages including, beside thereturn tickets, two nights of accommodation at a five-starhotel.

" (...) Air traffic demand dropped as expected during a crisisyear (...). As a reaction to this phenomenon, changing the pricingpolicy seems the fastest and most efficient method," stated PaulaArdelean, sales vice-president of Carpatair, the main rival ofTarom state-owned carrier on the market of regular airlines, put at400m euros.

All regular airlines have kept their old price structures, andin parallel added new fares, adjusted to current conditions. Thelatter led to a 20% reduction in the average fare.

The years of economic growth pushed airlines to buy moreaircraft and boost the number of flights to meet rising demand."Amid the crisis, though, the oversized supply against demand hasbeen dramatically felt. This has led to a tight competition betweenoperators to maintain their market share and to a war of prices,"Ardelean specifies.

Air France KLM has put up for sale several 589-euro returntickets on the Bucharest-New York route. "Price policies needed tobe adjusted to market conditions to attract customers. Whereas lastyear there were price cuts for short periods, these offers are nowcoming for longer periods and at a higher frequency," statedAlexandru Dobrescu, the company's general manager.

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