ABSTRACT

This chapter discusses the importance of brand as a key differentiator within the airline industry and some attributes of successful brands. The important part of strategy is to focus on the alignment between value to the customer and the value of the customer to the airline. Legacy carriers have added not just products but also introduced overly complex product differences. The best strategy in this increasingly competitive marketplace is to segment it and only offer core products that are aligned with core competencies and the customer base. Everyone in the travel chain is trying to win customer loyalty by trying to own the customer so as to capture an increasing share of the customers' mind and wallet. Customer loyalty is no longer an easy matter given the multiple parties involved in the travel chain and given that the customer now has many independent sources of information.