Some said it was a PR stunt; others said it was a desperate attempt to compensate for dwindling passenger counts; while others felt the brilliant idea was a sign of things to come. Whatever your perspective, it looks like JetBlue Airways, a NY-based low cost carrier, has the right idea.
On August 19, after only a one week window, JetBlue closed its All-You-Can-Jet Pass offer after an “overwhelming demand” for passes that allow unlimited travel on JetBlue for an entire month for only US$599. The price includes all taxes and fees for domestic travel within the US and holds no blackouts or other restrictions. As long as travellers book three days in advance, they can fly as often as they’d like from September 8 to October 8. JetBlue is not divulging how many passes it actually sold, but has stated that the intent was to limit the amount of passes handed out to ensure that passengers are able to travel without the challenge of finding seats.
The strategy has worked in increasing publicity, pre-paid ticket counts, and even raised JetBlue’s stock price 4.7%. Whether the promotion will actually increase profitability, well we will have to wait to see, but the move has certainly reinforced a new theme for airlines: get passengers in the seats and make up the money by up selling them.
Onboard passenger spend has been a theme within the airlines for several years now, and the goal to shift operations from focusing on profitability through ticket sales is rapidly leaving the conversation. Focusing on the sale of high margin items in-flight while your passengers are within arms reach is one of the few ways that airlines are starting to see profitability spikes. The sheer number of possibilities that are available to airlines through GuestLogix’ new merchandising OnTouch™ service have kept strategy meetings constant since its launch back in early June. Natural offerings of airport transfer vouchers at the 50 busiest airports in the world, to more targeted offerings of Broadway theatre tickets on flights into New York or theme park passes at many of the world’s most popular parks are all available, and the only dilemma has become, “how do we pick what to implement first?”
These initiatives will be a significant part of GuestLogix’ first annual User Group Conference being held on September 22-24 at the Sheraton Centre Toronto. Discussions on retail initiatives, technical advancements, as well as day to day strengthening between GuestLogix and its partners mark the first event of its kind in the industry.
There is still opportunity to be a part of these strategic sessions. Click here for more.
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