Strategy Dynamics Briefing 63: Rivalry example – low-fare airlines

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Many airlines struggle for profitability because fares are so transparent and customers can so easily switch. Only the limited number of services that less busy travel routes can support limit this otherwise frictionless movement of customers’ choice. The customer rivalry frameworks from briefings 50-53 are therefore directly applicable to airlines. In the full-service sector, some genuine loyalty to specific airlines is common, driven by frequent-flyer programs as well as by customers’ experience of reliability and service with specific firms. Loyalty ...

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