Cut Costs  The Low Cost  Airline Way
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Cut Costs The Low Cost Airline Way

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Cut Costs  The Low Cost  Airline Way Cut Costs The Low Cost Airline Way Presentation Transcript

  • Cut Costs The Low Cost Airline Way
  • Digital entrepreneurs should study the masters of digital cost cutting, the low cost airlines:
  • Low cost airlines cut travel agents out of the booking process, and sent their customers to the web. saving 12% of the cost of a flight.
  • They then made their customers print tickets out themselves thus cutting out check-in staff.
  • By refusing to transfer bags from flight to flight, low cost airlines then cut costs further. But this also allowed them to claim fewer lost bags than full-fare airlines.
  • Then, by flying to secondary, less congested airports they cut costs further, but also became the most punctual airlines in the world.
  • Secondary airports meant they could also promise to get leisure travelers to beautiful countryside faster.
  • Then the low cost airlines sold click-thru ads on their websites to hotels and car hire companies. Empty space on their websites became a big profit center.
  • Then they flexed their muscles: they established that they could move their flights from airport to airport on a whim.
  • As a result, the tables turned. Low cost airlines stopped paying airports to land. And regional governments started paying them to fly tourists in. $
  • By the early 2000s, low cost airlines had captured the entire marketing budget of some tourist boards. $$$ $$$ $$$ Why spend money on marketing when government will do it for you?
  • Digital innovation involves cost cutting.
  • Extract from Download: http://bit.ly/mobmania which im reading from seat 23b Presentation design @jessedee