The future of Low cost airlines...Position on “convenience” than cost…

There was so much anxiety and time, when I did my first travel, more than a decade back, and that is when AirAsia was busy marketing its low cost carriers in India to Kuala Lumpur. 

LCC (Low cost carrier) became trendsetter for the airline industry and crowd-puller, enabling many first timers like me to take the air-route.

However, almost a decade later, I could see most of the LCC’s have either disappeared or changed their business model trying to re position themselves as hybrid carriers.

In this article, I have tried to address few key things, which I could see most low cost airlines are missing.

Low cost cannot be, just low cost … It should be easy and convenient:

Do not market on cost; say, it is more convenient taking your, airline. (Airline XX, “Now flying made easy”)

1)     Convenience comes from ease of doing business with you. First focus on reducing the time, customer is involved with you during the journey.

·      3 hours for an international flight before boarding, at least 1 hour to collect baggage for a 2-3 hour flight. It sounds ridiculous, doesn’t it? “You spend 4 to 5 hours to make a travel worth 1.5 to 2hours”

2)     Collect and deliver baggage via various touch points and drop points.

·      Is airport the only place, where I could deposit my baggage?

·      Can customers drop baggage in their nearest convenient mall or in a Starbucks coffee joint?

·      Similarly, can customers get their baggage delivered rather than waiting?

3)     Effective queue management: (Why there is no Queue Management at airline counters – You just cannot follow a FIFO(First in First Out))

·      I haven’t seen automated queue management deployed in any airline counter. Can’t airlines take banks as a reference point here?

4)     Empower your agents:

·      Most airline agents does not even know whom they are servicing, until they get the customer’s passport or ticket in hand.

·      Why can't, servicing/ sales and Check-in be done using mobile / tablets / hand printers.

·      This will help to free our agents from the stagnate check-in desk.

5)     Ancillary is not only about meals and entertainment?

·      Ancillary is a savior for Low cost / No frill airlines.

·      However, airlines needs to be innovative on, what can be their ancillary offering.

·      Quiet zone, customized meals, hold bag for a fee, Bring your own device, rent a movie / content (there’s still a lot, I will write a separate article for it).

6)     Aircrafts can be the same, but follow different configuration:

·      I am tired of these standard seats, which airlines offer.

·      Why can’t we have an XL seat? Kids zone (including Kids seating?), Quiet Zone, Drinkers zone, Chat zone?

7)     Airline retail should be intelligent / innovative: (Remember you get to serve the premier customers with good disposable income)

·      Airline retailing is not only about airline merchandise and high-street merchandise.

·      Be practical and sell retail essentials as well as luxury.

·      Follow trends like, pre-book, click and collect (this saves boarding a default goods trolley to airlines), make to order (customize product), direct home delivery.

8)     Re-work on your auxiliary offering:

·      Now think and sell, what customer will actually need here.

·      Auxiliary revenue is not limited to cab booking and hotel booking. (Think on a broader angle of convenience)

·      Do not leave the customer stranded and guide them until they leave the airport / reach their destination.

·      Some might need a cab /hotel booking /quick refreshment/ Map / International Sim/Data Pack/ Umbrella / travel guide, porter service (The list could be big)

9)   Rework on yield management:

·      Yield management is not always about demand and forecast.

·      How quick can the airline react to competitive pricing? How can we stimulate demand?

·      How can you dispose the unsold inventory? (Think about un-conventional channels)

·      3rd party partnership (involving others from travel industry) should be effectively used.

10)  Rework on product / Service offering:

·      Yes, airlines sell tickets, plus hotels and cab service. However, is that all, A focus on convenience for customers will help you to re-think on your product offering.

·      Pay early travel later

·      Regional Passes for frequent travelers

·      Dine at an airport instead of the flight.

·      Also help customers with more options of self-servicing. (Customers with infant can’t check-in online, customer’s cannot change their spelling by themselves - I do understand the airline systems, but that cannot stop airlines from restricting customer servicing)

In short, it is time for Low cost airlines to evolve to the next stage. Low cost, created the industry but LCC’s cannot keep competing on price points, to differentiate themselves from the crowded market space. It is time Low cost carriers think about convenience/ disruption/ challenge convention/ think about new way of doing business. Travel has become essential to people and so should be airlines.  

People will look forward to airlines, which will offer convenience and adds value for the association held.