Marketing plan for malaysian airlines

The airlines do not focus on the combination of quality and good service at a fair price; its focus is instead only on providing ultra low cost. It also charges customers for value added features and services. Thus the pricing is value added pricing. When compared to the competitors of Spirit for operating costs per seat mile; it is lower compared to other major airlines. The important points like encouragement to demand stimulation and preference for its low-cost model makes it successful for its low-cost pricing strategy.

70% of seats are sold at the lowest two fares.30% of seats are charged at higher fares. The last 6% are sold at the highest fare

Marketing Plays a vital role in a business, because of marketing the business can offer their offerings and to their customers and provides the services. Marketing is a combination of 4 P’s which are Product, Prize, Place and promotion, to Analysis the marketing of this business, I am explaining the

1. Instead of 16 different prices, American simplified its pricing structure to include only 4 kinds of fares: a first-class fare, a coach fare that can be bought anytime before flight time (full-fare), 21-day advance-purchase fare, and 7-day advance-purchase fare. The new fare structure was expected to reduce administrative labor costs related to managing different fares by $25 million annually. The change was also

Even if the company can have a strong position against its buyers due to the business characteristics the close relationship that the customers have with the travel agencies gives their a greater influence over the ticket price.

* Market. The market is a huge weakness with the economic downturn and people flying less, they are having a harder time to keep the basic fares down low enough for people to fly.

Airline tickets have an elastic price when booked in advance. Long run consumers and organizations have time to shop around for the best fare. For example, to book a one-way ticket in coach class on December 8, 2009 for February 14, 2010 from Atlanta to Orlando the ticket price has a base price of $94 plus $10.60 for taxes and fees for a total cost of $104.60 whereas a one-way ticket for the same flight if booked on December 8, 2009 for December 8, 2009 has a base price of $305 plus $10.60 for a total cost of $315.60 (Delta, 2009). Short-run the airline ticket cost is inelastic because passengers are willing to pay a high price for any short-notice travel due to family emergencies or last-minute business meetings.

Leisure travelers overall will be made better off by the new fare structure. These travelers have more flexibility and can take advantage of the advance purchase discounts and Saturday-night stay discounts. An exception to this is leisure travelers who had found “loop holes” in the old fare system by using “creative ticketing” and waiting for deep discounts. These leisure travelers may pay higher rates because the deep discounts will no longer be offered.

fares to establish profitability and loyalty. However, they are not always the cheapest, so their

All the three classes have state of art features, which are combined with the highest quality services. Making the experience of a passenger a memorable one.

Since the airline industry is a direct product of market conditions, it is greatly affected by all externalities. Many people noticed a decline in travel after the September 11th tragedy occurred due to safety concerns. When there is a huge increase in fares that definitely interferes with the demand for travel; it causes the price of tickets to continue to rise since a clear correlation between supply and demand exists. When the economy is doing well in terms of the employment rate, and when the dollar is strong people have the tendency to travel more (Jerram,1998).

Its leading premium product name remains as an important differentiator among the industry. SIA is famous for delivering quality service. The airline’s air stewardesses, also known as the Singapore Girl, dressed in the unique “Sarong Kebaya”, is a key element of SIA’s product differentiation strategy. Through branding they have conveyed the message that Singapore Girl implies the symbol of world-class service experience. Quality service has become a strengthen factor for SIA, their strong brand name has given them the chance to charge a best for their products due to the additional value that consumers gain on the service that SIA

Fares Management-To enable Malaysia Airlines to distribute fares more efficiently around the world and to improve pr icing decisions.

d. a price that includes both the cost of the product plus transportation to the buyer

*One method of adjusting the demand is that the airline company can reduce the price or offer promotions during the low peak season to attract