Question

Topic: Strategy

Ideas For Incentive For High-profile Customers

Posted by Anonymous on 500 Points
Hi all,

I manage the B2C online sales and marketing functions for a European airliner in Middle-East. As you can guess, the majority of the tickets sold via online are the cheapest economy class tickets. All the promotions that we do also target the economy class customer. But every now and then, we sell a business or once-in-a-blue-moon, a first class ticket online. The sales can be termed as "purely accidental" and that is the part I want to change. I'd like to get ideas on how I can incentivize the business and first class ticket buyers so at least those of us who have bought it accidentally do consider us on their next purchase, while considering:

1. They are generally high net worth individuals with limited or no time.
2. It shouldnt only incentivize them for their past behavior but also include some brand-involvment or should push future purchase.
3. I need to remain cost-effective with the whole thing.

Really looking forward to your comments and suggestions...

Regards
Amir

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RESPONSES

  • Posted by CarolBlaha on Member
    If a business traveler works for a corporation the majority are bound to their guidelines which means coach.

    The majority of the times I have upgraded were thru miles. And standing at the counter, I constantly hear other frequent fliers asking to upgrade thru miles. This means they can get the upgrade without dealing with corporate restrictions. Its not about how much $$ they personally make.

    The exception are the travelers that have to go on very long flights. Some corps understand a travel worn employee is not prodecutive. So market to the corpo sending employees to Singapore, China.

    Do you know your buyers? Are they in that group?

    The self employed biz owner doesn't have the corpoation to answer to. The things that might incentize me might be partnering with that group that lets you have expedited seurity -- or access to the lounge for your airline. I just flew Delta-- they'll let you use their members lounge for $25 one time use. Include that with an upgrade.

    The tmes when I have upgraded on my nickle were romantic getaways-- honeymoon, anniversary, special occasion. I think that would be a great group to market to.
  • Posted by Jay Hamilton-Roth on Member
    Can your customers purchase the same tickets from other companies? If so, then you need to distinguish yourself from your competition. For first class tickets, it's obviously not about price. It's about comfort/luxury. So, how can you pamper your customers better? A free limo ride to/from the airport? A thank you gift (chocolates, perfume, flowers, etc.)? Courier ticket delivery (if you're not selling e-tickets)? Free use of noise canceling headsets (if the airline doesn't already provide them in first class)?
  • Posted on Member
    IMHO I think the only realistic approach to your problem, given your goals and the restraints you've placed on yourself...

    Is to woo 1st Class passengers away from other airlines. That subset already exists. Go after them!

    Realistically speaking, trying to get a typical coach passenger to REGULARLY upgrade to 1st and pay the additional fare is tres difficile if nigh on impossible.

    Flying coach is not always a matter of economics, but a mindset.

    I can afford to fly 1st, but I don't, simply because I know that the cheapest seat gets to the same destination at the same time. The money I save for a few hours of being cramped can be spent on other things I'd get more pleasure from...
  • Posted by michael on Member
    Amir,
    You were clearn the first time....I think.

    The question is how much information are you gathering about your C or F class passengers when they purchase? Whose frequent flyer program do they belong to? What alliance?

    Since you're focusing on the online market, clearly you don't have the ear of the travel agency that MIGHT be able to steer high yield business to you.

    Gathering information is not as hard with airline tickets because most people want an email copy of their itin or a confirmation of the ticket number. Within that email you can include a link for future purchase....within a limited time.

    High yield passengers still want a "deal".

    Michael

    Are the premium cabins shown on the first page, or are you focuses only on fare deals?
  • Posted by CarolBlaha on Member
    Michael is right-- as someone who has sold to some high profile people (think Aspen CO) -- those people accumulate that $$ by wisely managing it.

    One manufacturer of a high end furniture line wanted me to rep them. I asked why does this tiny sideboard cost $5K wholesale. They told me "just go to Aspen and they'll buy it" Oh really? I who obviously knew the market better than them, declined the contract.

    You need a better plan than just to say "these guys and gals can afford it". I can afford it, but I might not part with it.

    And, your 1st post said you sell upgrades "once in a blue moon" -- and that you wanted to market to those not purchasing an upgrade. This 2nd one says "they already are buyers" So do you want to market to existing clients or existing potential upgraders?

    There are so many places you can go with incentives. If you can't do airport, how about like at my Safeway-- I earn miles. Or fusion market with Men's Warehouse or Cache for women? They have points programs. Or Best Buy, Discover. Discover is cool cause you can do a redeem $40 and get $60. I was just at a funeral and Discover doubled my redemption at Enterprise.

    I think you should tie into an existing program rather than start your own. It's got to be a good, really good deal for me to add another card in my wallet.



  • Posted by michael on Accepted
    Amir,
    Not a voucher...a link. Vouchers get lost. Links get bookmarked. If it's a link they can forward to other high-yield passengers that's even better. Not every airline has that ability. You may not have been given that freedom. Pity.

    Another option...again it all depends on your local sales budget...is to contact a limo company and offer free limo(if it's not already part of the tariff) within a certain number of miles. Keep in mind, the limo company wants this business too and they may be willing to do a joint promo with you.

    Michael

  • Posted by michael on Member
    Amir,
    Email me on the side and we can chat more if you'd like

    Michael

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