Week 3 – Lesson 1: Smart Pricing Strategies for a New Tech-Driven Full-Service Airline
As the marketing manager of a new full-service airline focused on short domestic routes, my pricing goal would be straightforward: making flying fast, fair, and worth repeating. Most people decide on a quick trip at the last minute, so pricing must reward loyalty, reduce friction, and feel transparent. Drawing on successful airlines, here are three smart pricing schemes I would put in place:
- Loyalty-based smart pricing (instant recognition). Frequent flyers should be recognised immediately—not one year later. For instance, by implementing loyalty-based dynamic pricing, this would allow frequent travelers to access better fares and useful perks on short routes (free seat selection, priority boarding, or one checked bag). The trick is to make it simple and digital: customers can clearly see that “You saved X because you fly with us.”
- “QuickPass” subscription for short routes. For domestic customers who fly often, I’d offer a monthly or annual QuickPass—a fixed fee that includes either a set number of flights or guaranteed discounted fares on selected routes. This provides cost certainty to customers and ensures that booking seems effortless—great for those traveling quickly without worrying about price every time.
- Transparent bundles + tech-first add-ons. As a full-service airline, customers hate surprises at checkout. I would have clear bundles (Basic / Standard / Premium) to offer, and make add-ons visible from the start. Because we present ourselves as innovative, we can include smart extras that feel valuable: flexible rebooking options, “fast-track” security partnerships where available, and dynamic upgrade offers delivered through the app.
Conclusion: In the context of short domestic travel, loyalty increases when pricing is personal, predictable, and transparent. Our airline could use smart rewards, a simple subscription option, and tech-driven clarity to build repeat customers quickly.
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