In the current economic downturn, the travel industry has taken a hard hit. The challenge of getting people to spend their hard-earned money on leisure travel is rising by the day. Convincing people to travel has now come down the strategic marketing plans set forth by industry leaders. To me, airline marketing has always been interesting to observe. Each company takes their own individual approach to grab the consumer and convince them that they need to fly a specific airline. Two airlines have launched marketing campaigns geared toward the recession.
JetBlue has recently launched a program that refunds plane tickets to those who are laid off from their jobs before the flight. “JetBlue launched the program not because customers were asking for refunds, but because the airline has noticed that passengers are waiting to the last minute to buy tickets, a sign of nervousness about their finances.” (Wall Street Journal)
Under its new Promise Program, customers who book flights between Feb. 1 and June 1, 2009, and lose their job on or after Feb. 17 may be eligible for the refund. JetBlue’s fares are usually nonrefundable, but with the Promise Program the traveler listed on the itinerary can request a refund for up to nine customers traveling on one reservation.
“JetBlue is committed to helping customer’s book stress-free travel plans, and based on their feedback we made adjustments to our refund policy to allow them to book with confidence,” Robin Hayes, executive vice president and chief commercial officer for JetBlue said in a statement. “This price promise allows them to book early and take advantage of our low fares without worrying they will lose their money if they need to cancel their trip due to job loss.”
JetBlue’s latest marketing effort is also a great idea for businesses that are cutting back on business travel. With the Promise Program, customers will be able to feel comfortable about making travel arrangements even with rumors flying around the office about layoffs.
On the other hand, Allegiant Air is taking an opposite tactic from JetBlue by expanding their service and targeting a niche market of smaller cities throughout the country. The airline was the most profitable domestic carrier in 2008, and wants to continue to grow. Allegiant believes that small-town Americans will continue to buy getaways to escape from the daily grind.
So in the end, which marketing plan will win? The one that promises financial security or the one that offers a chance to leave all worries behind for a few days? Only time will tell.