Value addition versus value creation

The feature of value-added has to be there at the start of the planning stage, which simply means that the value has to be created with the product itself. However, value-adding could be implemented at any subsequent stage if the existing value is not enough or if there is no value at all.

Published at: http://toostep.com

Airline branding book review: Flying high in a competitive industry - secrets of the world’s leading airline (SIA)

There is one more link between Singapore Girl and the integration of differentiation strategy with cost-leader strategy.
By reflecting natural femininity, grace, and warmth, the girl is acting in a lady-like style. Ladies highly care about their social (public) profiles compared with their private lives.

Seemingly, Singapore Airlines adopted the same style by investing in all “visible” aspects of operation and tightening the belt “behind the scenes.”

Published at: http://simpliflying.com

Randy Petersen of Flyertalk on social media and frequent flyers - Part 2 of 2

What is remarkable in the speech of Randy Petersen is the link between current users of social media and the future generation of business executives who will be using the airline services.

Regarding Randy and his achievements, the professional popularity can not be accurately measured by the number of Twitter followers alone.


Published at: http://simpliflying.com

Randy Petersen of Flyertalk on airline branding - Part 1 of 2

Airline brand loyalists choose to fly a specific airline due to a deep emotional connection and for accumulating air mileage as well.

It is true that your most valuable customer is like your best friend. He’s there for you even in the tough times. However, we have to be careful with the analogy considering the fact that there is no business exchange between friends.

To a great extent, frequent fliers are loyal customers. I would be flying my preferred airline as long as its fares, schedule, and service are meeting my expectation. Otherwise, no one can blame me for putting my loyalty aside and finding another service provider who cares about my needs. For me, loyalty loses its meaning when it is one-sided.


Published at: http://simpliflying.com

CEO reveals what makes SpiceJet a leading airline in India in a frank interview

It is a quite achievement for an airline to start operation in mid 2005 and receive the Skytrax’s award of best Low Cost Carrier for India in 2007.

Published at: http://simpliflying.com

Hilarious MadTV video about airline fees - the ancillary revenues push can sometimes go wrong

What was an out-of-line idea in 2007 is the face-slapping reality of 2008 and 2009.


Published at: http://simpliflying.com

Ancillary revenue: A boon or a bane for the airline brand?

The ancillary revenue is both boon and bane depending on the type of carrier applying it.

So, it is bane for legacy carriers which are already charging high rates for their services. Those air carriers are presumably providing the basic air service plus a reasonable amount of amenities depending on their service philosophies and their market competition. They are not supposed to collect additional charges (ancillary revenues) or otherwise they will negatively affect their brands. For Singapore Airlines to collect additional charge for the emergency-exit row seat is an example of a practice which is on conflict with the brand.

On the other hand, the ancillary revenue is a boon for low-cost carriers. They are presenting themselves as providers of the basic flying services. For increasing their operating revenues, they have to consider ancillary revenues. Of course, collecting the ancillary revenues does not jeopardize their brands as long as they are staying away from asking the passengers to pay for using the toilet.

Putting the nomenclature aside, the reality is that both legacy carriers and low-cost carriers are out there to make money. They are adopting various pricing policies in such a way to make them profitable. Legacy carriers are depending on traditional bundled air fares while budget carriers are depending on a group of unbundled fare components.

Published at http://simpliflying.com