Promotional and Marketing Activities in Travel and Tourism

easyJet case study

source: www.easyjet.com easyJet airline company ltd.

Background
From 1987 onwards, there was deregulation and an open skies policy within the uropean !nion. "his opened up opportunities #or additional airlines to enter in to what was at that time a high cost, highly competiti$e, %ut restricted uropean market #or air tra$el. easyJet Fast Facts
"hese &Fast Facts' a%out easyJet are taken #rom a presentation made in (cto%er )**+ %y the ,arketing ,anager o# easyJet -orth .est ngland:

Launched November 1995 No frills, low cost short-haul airline Strongest European low-cost brand Dense point-to-point networ
! most popular airports ! large population areas

9" aircraft ! average age #ust $%5 &ears highl& utilised fleet 1'' routes between 55 e& European airports &oungest fleet in Europe

History and Development "he company was #ounded %y /telios 0aji12oannou. easyJet has grown #rom o##ering #lights %etween din%urgh and 3ondon 3uton and 4lasgow and 3ondon 3uton, to o##ering 19) routes #rom 59 uropean airports. "he routes stretch #rom 2n$erness in the 0ighlands o# /cotland 6north7, to 8thens in 4reece 6south7, and #rom Faro in 9ortugal 6west7 to "allinn in stonia 6east7. 2nitially the company used two :oeing 7;7 aeroplanes. "here are now 9; planes in the #leet.

source: www.easyjet.com easyJet airline company ltd.

easyJet %ecame a 9u%lic 3imited <ompany in -o$em%er )***. 2n )**) /telios 0aji12oannou retired as <hairman and resigned as a =irector o# the :oard, %ut he and his #amily continue to hold a majority shareholding. 0e also controls other easy4roup companies including easy,oney, easy<ar.com, and easy>alue. easyJet operates independently #rom the other companies in the group although there are agreed cross1marketing acti$ities where one company will include in#ormation a%out another company's products and ser$ices within their promotional material. Sta From /eptem%er )**+, ;,7)7 employees were working #or the company. "his was an increase in just one year o# ;55 mem%ers o# sta##. <a%in sta## dress in orange coloured tops re#lecting the company's in#ormal corporate style. "he company we%site states that &ties are %anned e?cept #or pilots@' (##ice sta## are also encouraged to dress casually.

source: www.easyjet.com easyJet airline company ltd.

Products and Pricing

easyJet is now an esta%lished &no #rills' airline, pre#erring to pro$ide economical air tra$el %y cutting out the e?tra products and ser$ices that add to the o$erall cost o# the air #are. /telios %ased his operation on a %asic ser$ice airline operation in the !nited /tates known as >alue Jet. "he we%site www.easyjet.com states the company philosophy is to keep costs low %y: ABemo$ing the unnecessary costs and &#rills& which characterise &traditional' airlines.C "he ,arketing ,anager #or easyJet -orth .est ngland e?plained in her autumn )**+ presentation: easyJet is not !ust a"out "eing t#e c#eapest$ its a"out giving customers %#at t#ey %ant or t#e lo%est cost&
eas&(et aim to deliver ! safe, comfortable, on-time flights from local airports to ma#or cit& destinations at a competitive fare )ustomer lo&alt& is generated b& delivering this on a dail& basis E*tras +food,drin s- can be purchased but aren.t included in the price /&ou pa& for what &ou want, not what &ou don.t want0

(#at does )lo% cost* mean+ 8li

1oo earl& pa& less 2ne wa& fares 3rice of seat varies based on demand for flight 4im to alwa&s be price competitive, even for business travellers boo ing late Late seat availabilit& is created b& aiming to sell out ever& flight on da& of departure 4ll fares are fle*ible - change passenger details for small fee plus difference in fare No restrictions to obtain cheapest fares

Place'Distri"ution
"he airline's headDuarters are at 3uton 8irport to the north o# 3ondon %ut the company operates #rom a num%er o# %ases throughout the !E and mainland urope. asyJet o##ers a high #reDuency o# #lights on short1haul and medium1haul routes. "here are 1+ crew %ases at :el#ast, :erlin /chone#eld, :ristol, =ortmund, -ottingham ast ,idlands, din%urgh, 4ene$a, 4lasgow, 3i$erpool John 3ennon, 3ondon 3uton, 3ondon /tansted, 3ondon 4atwick, -ewcastle and 9aris. 2n order to keep prices low, easyJet has to keep the company's costs down. easyJet %egan operations %y only accepting telephone %ookings, paid #or %y credit card. "elephone %ookings cut out the need to run a chain o# %ooking o##ices, helping to minimise operating costs. 2n just a #ew years, sales practices changed considera%ly. :usiness growth e?ploded when the company introduced an internet %ooking ser$ice in the late 199*s. :y the spring o# 1999 one in three %ookings were made o$er the internet. 2n (cto%er 1999 one million seats had %een sold using the internet. "he company marked this achie$ement F and recei$ed lots o# positi$e 9B 1 %y presenting the one1millionth passenger with #ree #lights #or a #ull year. :y ,arch )***, less than si? months later, the %ookings had dou%led to two million and three months a#ter that, %ookings $ia the internet had tripled. "he internet now pro$ides the most cost1e##ecti$e distri%ution channel. "he internet is $ital to the continued success o# easyJet as a low cost organisation.

,ustomers
A.e o##er 1G; million uropeans the chance to #ly #rom con$enient local airports to urope's most attracti$e destinations, sa$ing %oth time and moneyC. /ource: easyJet 8nnual Beport and 8ccounts )**+ =uring the year ended ;* /eptem%er )**+ easyJet #lew )+.; million passengers. 8t #irst easyJet attracted the younger end o# the market. Houng people who had good 2" skills, were on a #i?ed %udget, and who were less concerned a%out %uilt1 in e?tras and #lying late at night or $ery early in the morning. 2t was not long %e#ore #amilies, older tra$ellers and %usiness passengers recognised the price ad$antages o# the easyJet product. 8s computer sales grew and people %ecame more #amiliar with the internet, the easyJet o##er reached an e$er1widening audience. easyJet make the same o##er to %usiness customers as to the general pu%lic. :usinesses can take ad$antage o# the same low price o##ers a$aila%le to leisure tra$ellers. /et up in )**;, easyJet:): is the section o# the we%site www.easyjet.com that is dedicated to %usiness users #rom the tra$el trade and corporate community.

Promotion
Slogans asyjet has used a num%er o# slogans or strap1lines. &"he .e%'s #a$ourite airline', stresses the emphasis placed on internet %ookings %y the company. "his slogan was also created %ecause it was similar to the :ritish 8irway's slogan &"he .orld's Fa$ourite 8irline'. :y producing a similar slogan easyJet was a%le to reduce the impact o# :8's slogan, as it was no longer uniDue. 8t the same time easyJet makes the most o# the additional e?posure that using such a similar slogan %rings, as each time the :8 slogan is seen the $iewer is likely to %e reminded o# the easyJet message, and the #act that it is gently poking #un at the :8 slogan. "he sloganIstrap1line on the main page o# the easyJet we%site in ,arch )**5 was &<ome (n, let's #ly@' F a direct command and encouragement #or potential customers to join in and take action.

Pu"licity "he 3." &#ly1on1the1wall' documentary series &8irline' shown on 2"> is %ased around the passengers and sta## at easyJet. "he airline was #irst approached a%out the possi%ility o# #ilming during mid 1998, a#ter a #irst series with :ritannia 8irways was discontinued. "he #irst easyJet series was %roadcast in January 1999, and the cameras ha$e %een with easyJet almost constantly e$er since. 2n )**; it was 2">'s most popular #actual programme with a total o# 75 million $iewers. "he programme has %een sold to countries worldwide, including -ew Jealand, 8ustralia, and Japan. "he programme #ollows passengers and sta## on journeys and during important moments in their li$es. .edding proposals, %usiness trips, and once1in1a1li#etime e?periences ha$e all %een #ilmed, %oth happy and sad. "he programme also aims to educate the airline's passengers concerning its rules and regulations F some o# the highlighted issues relate to missed check1in, incorrect tra$el documentation, and the carriage o# prohi%ited items.

source: www.easyjet.com easyJet airline company ltd

Advertising Bight #rom the start easyJet took a completely di##erent approach to ad$ertising. ,any ad$ertisements are a result o# teamwork %y the sta##, rather than using e?pensi$e e?ternal agencies.

T#e (e"site "he easyJet we%site is the main method o# ad$ertising. 2t pro$ides details o# #lights as well as %ooking #acilities. 2t also pro$ides links to other &easy' companies #or car hire, tra$el insurance etc. Discounts and Special - ers easyJet special promotions apply only to the internet. 8s an incenti$e, internet %ookings recei$e a discount. <ustomers are there#ore reDuired to %ook online in order to access the discounted #are. .alentines Day Promotional ,ampaign 2n early )**5, the #ollowing encouragement to %ook a #light to a romantic destination appeared on the easyJet we%site:

0a$e you %ooked your >alentine's =ay surpriseK

>alentine's =ay is less than a month away F and ha$e you %ooked that romantic trip yet #or that special personK easyJet o##ers #lights to many $ery romantic cities all o$er urope: 9aris, Bome, >enice, -ice, :arcelona 1 old #a$ourites you can't go wrong with@ :ut why not surprise your partner with something a little out o# the ordinaryK 2magine yoursel$es huddled up together, walking arm1in1arm through %eauti#ul cities like 9rague, :ratisla$a, :udapest, or .arsaw. (r go really mad and #ly o## to #antastic winter cities like "allinn or Erakow@ 4o on, hurry up to %ook a surprise %reak #or the person you lo$e@ 8nd once you'$e %ooked your #lights, $isit easyJet0otels to #ind that wonder#ully romantic little hotel #or just the two o# you... 8nd %ook a hire car with uropcar+easyJet.com to gi$e yoursel$es e$ery opportunity to get away #rom it all and #ind that $ery special restaurant where you can %e alone together... /core some serious %rownie points with the lo$e o# your li#e this year F %ook your romantic %reak now@ <ustomers interested in the romantic %reak only had to click on the orange writing to make their %ooking. "he &product' detailed in this promotion is no di##erent #rom the regular easyJet product. 2t is simply a re1packaging or re1#ocussing o# the e?isting product. "he

destinations are the same as are the prices, %ut the company has &placed' the o##er in a di##erent location within the we% site and at a speci#ic time o# year. "his makes the most o# the pu%licity generated %y the greetings card and hospitality industries which e$ery year put on %ig >alentine's =ay ad$ertising campaigns and promotional e$ents. :y adding a speci#ic promotion to an e?isting we% site and using e?isting customer data%ases to email the promotion direct to pre$ious customers, easyJet can Duickly and economically target a promotion at people who already ha$e a history o# %uying their products. 8s %ookings are online the company can also identi#y the impact o# the promotion #rom the le$el o# acti$ity within the li#etime o# the promotion 6January1Fe%ruary7.

/n ormation and ,ommunication Tec#nology

"he e##ecti$e use o# 2<" has %een the secret o# easyJet's success. :y keeping prices low and making it easy #or the customer to access the product, easyJet has completely trans#ormed the general pu%lic's $iew o# %oth air tra$el and, to some e?tent, the use o# the internet. Begistering with easyJet.com allows the customer to check on the status o# their own li$e %ookings 6and make changes to them i# necessary7L check their tra$el history and reDuest a replacement con#irmation email any time %e#ore the #light, as well as recei$e regular updates relating to promotions, and launches o# new routes and schedules.

T#e Future
T#e Futures Brig#t Growth in Low Cost Travel
New 2perators 5 more #obs, lower costs, more choice New 6outes 5 more opportunities E*tra 7re8uenc& 5 more productive,en#o&able use of time

Who Benefits?
9ood for 1usiness 9ood for :ourism 9ood for )onsumers and 6esidents 9ood for Local 9overnment

T#e Futures Brig#t easyJets commitment

"19" &ears plan of growth indicates over 9; new aircraft +4irbus New destinations to networ )onsolidation of route networ +#oining up the dots where there is demand-

Further in#ormation a%out easyJet is a$aila%le #rom the we%site: www.easyjet.com