Qantas Market Segmentation

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The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. …show more content…
Recently Qantas has partnered up with Emirates in an effort to channel Europe-bound travellers through Dubai International Airport in a mutually beneficially arrangement, an example of business-to-business geographic segmentation marketing. Qantas encourages tourism by broadcasting the same television and print advertisement to both international and domestic customers with iconic images of Australia. This is a marketing strategy that serves multiple purposes, it stimulates Australian tourism abroad while firmly associating Australia with Qantas and also encourages ‘brand loyalty’ from Australians who wish to support their country. Because of the large variety of airlines both internationally and domestically, Qantas has marketed themselves towards service; they are the only “full-service” airline in Australia.

The demographic characteristics of customers can be broken down by the class they choose to fly. First Class is chiefly attracting high-income earners, who are concerned with a high level of service and enjoy an air of exclusivity. These are knows as “comfort seekers” and they can include business magnates, federal politicians, sporting stars and a-list celebrities. The First Class market is highly concentrated; less than 3% of passengers will choose to fly First Class but those customers make up close to 30% in revenue for the airline (Keen and Strand 2007). Because the focus is on service and

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