The Marketing Strategy Of Air Asia Tourism Essay
Air Asia was set up by Dato Tony Fernandes in 2001. Air Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. Air Asia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia with a fleet of 72 aircrafts. Air Asia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. Now, Air Asia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Today, through the corporate philosophy of “Now Everyone Can Fly”, Air Asia has sparked a revolution in air travel with more and more people around the region choosing Air Asia as their preferred choice of transport. [1]
1.2 Success
Now when everyone wants to take plane to travel to other place, their first choice almost will be Air Asia. The slogan of Air Asia, ‘Now Everyone Can Fly’ is remembered by everyone. It gives everyone a mindset that Air Asia is a very low fare airline and becomes a good choice for everyone. In additional, Air Asia had expanded its company to global and already well-known in global nowadays. It lets the people of Malaysia feel proud to the Air Asia airline. Besides that, Air Asia also gets many awards such as Asia Pacific Low Cost Airline of the Year 2004, and so on starts from 2003. Until 2010, Air Asia already gets more than 50 awards. Those awards verify that Air Asia’s ability to success.
1.3 Aim
The aim of Air Asia strategy is to analyze the marketing strategy of Air Asia as a Low cost-airline. Besides that, this will also determine if Air Asia has a chance and market opportunity to expand their business in European market, specifically the UK market. In addition, this paper also aims to analyze the marketing strategy used by this airline industry in Asia and also the UK market. Marketing tools and instruments will be used to assess Air Asia. This paper will also compare Air Asia with its main rivals in the UK market, analyze the competitiveness of the airline industry and provide recommendations for entering in the European market. [2]
1.4 Methodology
Data collection was conducted through searching with internet. We had gone through many websites and visit it to find the information of the Air Asia. Internet had provides many information of Air Asia to us such as background of Air Asia and so on. After we study the information of Air Asia, we analyze the information and generate it to write in this long report. Beside that, we collected data through the mass media such as television. Advertisements that been displayed in the television give us the information of how Air Asia advertises themselves in an attractive way to attract their target audience. In the advertisement, we able to see how Air Asia portray themselves in this service by using slogan that keep in consumers memory. The advertisement do contain some information’s of services that provided by Air Asia to respectable customer.
1.5 Scope
This report is to examine the business strategy of Air Asia. Business strategy that been implement by Air Asia is one of the good ways to examine the well known level of Air Asia among public. The main area that we focus in this report is to study and understand the factors that cause Air Asia to be so successful in this industry. Previously, Air Asia faced some problem therefore they change their business strategy. These changes enable Air Asia to solve their problem and obtained many of awards in this few years. Thus, the business strategy that use by Air Asia is very effective and efficiency.
2. Findings
In general, the findings indicated that Air Asia is a very successful airline in Malaysia. It is well known as low-cost airline. Over the years, Air Asia had received more than 50 awards for their excellence start. For example, it has been given the World’s Best Low Cost Airline awards by Skytrax for the year 2010. Air Asia is famous not only because of the low cost. While it also because of other business strategy of Air Asia. Thus, business strategy of Air Asia is the important key for the successful of Air Asia.
2.1 Advertising
One of the reasons why many people will choose Air Asia rather than other airlines in Malaysia is because of the advertising strategy been implemented by Air Asia. Air Asia does their advertising through television and newspaper. The advertising of Air Asia keep emphasizes their slogan, ‘Now Everyone can fly’. The slogan of Air Asia is very easy to let people keep in memory. With the slogan, majority audience will remember that Air Asia is their first choice to choose and cheap. In the newspaper, Air Asia uses a colorful and big image to advertise it. This can grab majority the target audience attention and will let people to use few seconds view the advertisement of Air Asia. Thus, the advertising of Air Asia is very efficiency and effective that can cause Air Asia to become so successful.
2.2 Services
Beside that, Air Asia also provides a good service to their customer in order to attract their customer to come back after first time travel with Air Asia. First, Air Asia provide a service that pay attention to customer’s safety. It partnering with the world’s most renowned maintenance providers and complying with the world airline operation to ensure every plane in safety condition that can look after customer safety. Air Asia also uses Streamline Operations to make sure that processes are as simple as possible. It cans faster the service that provides to customer. It also provides a no seat assignment service to customer. So that, customer can freely finds their seat that comfortable for themselves. In additional, Air Asia also has provided an in-flight magazine to customer. It can take away their customer bored when in the plane. This is the first in-fight magazine that had provided by an airline in Malaysia. So, services are also important factors that that causes Air Asia so successful. [3]
2.3 Package
From the informative website www.airasia.com, you can book different types of packages directly from Go Holiday, Air Asia’s vacation imprint. Asiatravel.com is Asia’s largest hotel and flight reservation services. It offer over 60,000 hotels and resorts worldwide and flight departure points from major countries in Asia and all parts of the world. All flights and hotels can be booked on instant-confirmation basis. Everyone can fly with Air Asia at amazing low prices and provide different hotel package. [4]
2.4 Promotion and Low Cost
Air Asia is the most successful cheap airfare airline in Malaysia. “Now Everyone Can Fly”, it is Air Asia slogan. Generally, people have to book early with Air Asia so that can get the cheapest airfare. If the customer book late, the airfare will be higher, but it will still be cheap. Air Asia does promotions by television, in the newspapers and in tabloids. Besides that, Air Asia also promotes the brand by sponsoring The Amazing Race Asia along the show and also to have a sponsorship deal with Manchester United (MU). It also send newsletter by email to register customers to inform free seats promotion for flight to some cities in Indonesia such as Surabaya, Bali and Lombok. Low cost airlines begin with two initial cost advantages arising from the very nature of their operation: higher seating density and higher daily aircraft utilization. With the average fare being 40-60 % lower than its full-service competitor, Air Asia has been able to achieve strong market stimulation in the domestic Malaysian air market (Thomas 2003). [5]
2.5 Internet
Airasia.com is an online travel booking site and offering reasonable selection of airfares. It allow customer to online booking flight tickets. Air Asia is a Malaysia world’s best Low-Cost Airline that provides flight, corporate information, planes and Online Booking. Among all the payment methods credit card would be the best choice, however you can choose debit card too if you do not possess a credit card. Overall Air Asia online booking process is very easy and fast. Air Asia is helping regional airline in Malaysia and south-east Asian destinations. Beside that, schedule of domestic and international flights and Asia’s largest low fare and no frills airline is operated by it. [6]
2.6 Awards
In year 2003, Air Asia website had voted as the most popular website for online shopping in the 11th Malaysia Internet User Survey conducted by AC Nielsen Consult. Air Asia also gets an award of Obtained Malaysian Superbrands status by Superbrands International. Besides that, Air Asia gets CIO TOP 100 Honoree for excellence in strategic IT deployment and Developing Airline of the Year 2003 by Airfinance Journal in the same year. The Air Asia’s owner, Tony Fernandes gets the CEO of the Year by Business Times and American Express in year 2003. While in year 2004, Air Asia gets more than 10 rewards. In year 2005, Air Asia had received seven rewards. In year 2007, Air Asia gets six rewards and year 2006 gets about 5 rewards. Beside that, Air Asia gets more than 18 rewards in year 2008. In the year 2009, Air Asia also gets more than four rewards. In year 2010, Air Asia gets the awards of Masterclass Global CEO of the year, World’s Best Low Cost Airline and Air Asia voted the Air Cargo Industry Newcomer Award at the ACW World Air Cargo Awards 2010. [7]
3. Conclusion
“Now Everyone Can Fly”, it is Air Asia slogan. Many customers first choice almost will be Air Asia. Air Asia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. It gives everyone a mindset that Air Asia is a very low fare airline and becomes a good choice for everyone. Beside that, Air Asia does their advertising through mass media such as television and newspaper. Air Asia had expanded its company to global and well-known in global nowadays. In additional, Air Asia also trains their staff to give a friendly service to customer, it provided an in-flight magazine to customer so that their customer would not feel bored. The good service is an important business strategy to make Air Asia become very successful. And, Air Asia also free seats promotion for flight to some place. In conclusion, Air Asia is one of the award winning and largest low fare airlines, so it is the most successful cheap airfare airline in Malaysia.
4. Recommendation
The recommendation that we give to Air Asia is they should join venture with Virgin Group. First, Air Asia need to put more effort to set up a pan-Asian low cost airline with Virgin Blue, which is a low cost carrier of Virgin Group serving Australia and New Zealand mainly. Virgin Blue has suggested it may extend services to south-east Asia. Therefore, setting up a join venture with Virgin Blue can help Air Asia to grow in Asia even further. In the same time, it also can help Virgin Blue to extend services to south-east Asia.
Beside that, Air Asia should also introduce smart card which is compatible with the existing ticketless booking. It can offer two kinds of smart cards to their customer. The first kind of smart card is for ordinary travellers. It will be offer instant rewards when topped up and offering greater value than its purchase price. For example, a customer buys RM1, 000 cards may be worth of RM1, 500. This card can also be used by other people with the same family name as the cardholder. And, the second kind of smart card will be offer to unlimited travel for frequent flyers. When priced provisionally at RM1, 000, cardholders will be allowed make as many trips as they want within a specified period.
In additional, Air Asia should cut down the additional charge that customer need to pay. Customers need to pay by themselves when they need anything in the plane. Although the ticket fee is low, others such as the food and beverages in the plane are expensive. Thus, Air Asia needs to reconsider to cut it down to attract more customers.
