Will AirAsia Transform into an E-Commerce Giant?
by Can KURT
AirAsia, the Malaysia-based low-cost airline renowned for its ticket sales to popular destinations in Asia and Europe, has gained attention for its expansive network. However, did you know that the company employs an unconventional sales strategy to achieve this?
In November 2019, AirAsia made a remarkable move by starting to sell tickets for other airlines through its own website, airasia.com. While the airline currently only sells flights for other carriers to destinations it does not serve, this initiative was explained by AirAsia’s co-founder and CEO, Tony Fernandes, as part of a bigger vision to transform AirAsia into an e-commerce giant. Fernandes states, “This is just one of the innovations that is part of a larger vision to make AirAsia the region’s one-stop travel shop.”
Sales Policy Offering More Options
The Malaysian airline sells tickets of different airlines for destinations it does not fly to. In fact, this interesting and logical policy, which has caused the name of the company to be mentioned, increases the preference of its customers by diversifying their travels, and also contributes to the diversity and development in the aviation sector by having a positive impact on the interaction between itself and its customers with other airlines to which it sells tickets.
Low Cost and Competitive Structure
The company, which prefers a low-cost structure as a strategy, aims to employ as few staff as possible in order to keep its flight costs to a minimum, and to sell tickets online and directly to the customer! It also provides single-class flights and charges extra fees for additional services, rather than providing multiple flight classes like other businesses that charge high fees. The affordable and wide range of destination tickets offered to customers through this strategy take AirAsia ahead in the competition within the industry.
High Number of Sales with Web Page and Mobile Applications
The Malaysian airline, which aims to sell online and directly to customers, has no problems achieving this goal. The company, which provides approximately 85% of its ticket sales from its own website and mobile application, minimizes marketing and distribution costs in this way.
Wide Option, One Stop Sale
AirAsia takes on the role of being a single seller selling tickets from many airlines. In this way, customers who want to fly can easily access the most suitable ticket from AirAsia’s mobile application or website, instead of browsing through different sites. In short, AirAsia takes its business model to the next level by preventing its customers from confusion and wasting time.
Additional Services
The airline offers many options within the scope of additional services; By offering baggage services, food and beverage services, hotel reservations and in-airport transportation services as additional services, it raises business-customer interaction to a higher level while generating additional income.
Great Convenience Provided in Reservation and Change Transactions
Of course, the fact that one airline sells tickets from many airlines brings to mind reservation and change problems! However, AirAsia considers the answer to this and guarantees that it will support its customers in any problems encountered during these processes. Customers can perform these transactions from the business’s own mobile application and web page.
Digital Ads
The Malaysian airline usually advertises in digital media. In these advertisements, the company tries to reach a wide network by emphasizing high reliability and customer friendliness for its low-priced flights. AirAsia seems to continue to make a name for itself in the aviation industry with its low-cost airline strategy, affordable prices, customer-friendly strategies and extraordinary structure.
References
Ambrose, S., & Waguespack, B. (2021). Fundamentals of airline marketing. Routledge.
studycorgi.com/airasia-companys-business-excellence/
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