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Relationship Marketing in Top UK Airlines - Essay Example
Customer convenience is a key element in marketing airlines on the Internet. The relationship between an airline and the people it serves has become one of the most important factors in an airline's success. The customer used to be an afterthought in business plans, but companies are beginning to realise that a good relationship with customers means a successful business…
All three have a website on the Internet and accept booking online. EasyJet and Ryanair have put low prices over customer convenience, while British Airways continues to put service above price.
In 2001, the attacks on the World Trade Center and Pentagon reverberated throughout the world, especially with airlines because commercial aircraft were used in the attack. British Airways and other major airlines announced massive job cuts while the low-cost airlines surprisingly reported increased profits. Why would a company like easyJet outperform the giant British Airways Two possible reasons were development of deregulation and an open skies policy put into place which allowed low-cost airlines the freedom to compete with low 'no frills' prices (Discount airlines 2006). The idea was to eliminate unnecessary costs with customers paying much lower prices for tickets while giving up certain creature comforts (Welcome to Companion Website, 2001). The major reason for the success of low-cost airlines, however, was instituting marketing through the Internet, offering online booking for the first time.
By 2002 Ryanair and easyJet had operating margins far above traditional airlines, including 45% more than British Airways. ...