Offering Cheap Air Tickets For More Market Share: Is It A Flawed Strategy?

The factors of supply and demand are the main reasons behind this uncertainty in the pricing of the notes. The price is the primary consideration for people. Even when the level of comfort and quality of service are more desirable, certainly made an allowance and charging this airline is chosen for the booking that offers the best range of flight. As people look for cheap flights, airlines are engaged in the war on the price of the ticket to win maximum market share. The airlines are willing to take a shot at short-term profitability to gain market share on which you can pull on the long term. But it is worth using this strategy?

There are many flaws in this strategy. Although the low price air are able to attract fliers quickly and increase the employment rate of the airline, at the expense of others, helps to pick up more market share in the short term, it will take a lot more to keep this market at the moment where cheap tickets will not be on offer.

So, be careful that the differentiation of products and services must be scheduled in advance so that most people that travel with him once he is willing to do so again, regardless of the price of airline tickets. For this reason, the supply of cheap airline tickets must be part of a larger strategy to retain customers doing their discover this differentiation in quality of product and service. If this was not done, then you lose the ability to have different booklets.

Another point to demonstrate that it could be a bad strategy, is that in a highly competitive environment, other airlines would be cut prices as well, making the flyers to take their services at the same time, when the carrier only a reduced rate or at another time. As well, a pattern of transferring customer's market shares for the airlines will emerge, dictated by whoever offers the best prices.

Because passengers are likely to keep moving the loyalty, the strategy to compensate for losses incurred because of the offer will be proven wrong in the long term. Assuming that it is a wrong strategy, can airlines far with it? Competition is an important factor in setting prices, which cannot be ignored and could not be any other, a more convincing to bring more to the airline. But to find a paid job, use this opportunity, it is appropriate that these deals are available when the airline is ready to show a much improved product and service that provides a better customer experience.