"You can't have a midlife crisis in the airline industry because every day is a crisis." — Herb Kelleher
Why do I love this quote from the co-founder of Southwest Airlines so much?
Because it reminds me of why I like the game of business so much...
Where there its big pain, there is giant opportunity.
Remember this ALWAYS.
Wherever there is a pain point, an inconvenience, fierce competition - there lies a giant, profitable opportunity. You just need to uncover it.
We all know that the airline industry operates on notoriously small margins.
"These days no one can make money on the goddamn airline business. The economics represent sheer hell."
— C.R. Smith, former CEO of American Airlines
In fact, the CAPA (Centre for Aviation) has lowered it's forecast for 2020 airline margins in its latest 'world airline industry operating margin model'.
This report was issued July 2019, by CAPA, the global aviation analysis company, which employs a team of expert aviation analysts to provide commentary on the industry.
The research indicated that the industry remains cyclical, however is currently in the bottom section of this cycle.
So what to do?
Well, we love nothing better than a strategy challenge, so I wanted to share with you 3 of our top strategies we would focus on right now if we were running an airline...
1. Building Emotion
Focus on creating EMOTION, not on selling tickets. This is always our top recommendation - for any business or brand - and is especially true for airlines. When value exceeds price, people will buy tickets. How do you increase that value?...You build and emotion that they can only find with your airline. That they resinate with, that they connect with.
How would we do it?
Tell a story - with your customer has the hero of the story. Think of the airline as an enabler to them living that story. The airline is the 'movie character' that supports the main hero.
2. Personalisation
Personalised experiences are the future. From loyalty programmes to customised inflight experiences, to bespoke travel advice - the more you can understand your customer and make them feel special, the better you will do. Many airlines are not doing this well, so the opportunity is huge. Segment your market, learn what makes them tick, and crate a strategy to implement this.
How would we do it?
Build a relationship with each customer - and find a way to do it at scale.
3. Connecting 1:1 with customers
Does this seem hard? Well I can promise you it is a lot easier than making no money. Connecting with your customers, via messaging, email, phone, in person - is something that had become lost. But it is on the way back. Why? Because it works.
How would we do it?
TikTok Instagram Facebook, text messaging, direct messaging.....there is no excuse for not having a conversation with each of your customers in their inbox.
What would you do if you were running an airline? Let me know.
We have never been more optimistic about the outlook for airlines, because we know that with the right thinking, great opportunity is always behind the next door.
Talk soon,
Geoff