Airlines usually offer a number of promotions for their passengers. There are the discounts on flights or low cost travel packages using different mixes products and services or even the loyalty programs in the form of rewards programs which lead to providing the lowest air fare tickets to the customers. The offer of cheap flights to the customers is done on a regular basis by the way of providing them some specific membership benefits. These are also offered to the customers as some special one-off discounted rates. Some of the basic reasons behind these rather unseemly offers, on which the airline is bound to take a loss of profitability, are:
Beating off the Competition
The competition in the aviation sector is quite severe. The airlines are more inclined towards cutting the prices to rake in more customers and bookings. For the price sensitive markets and where the buyers are not loyal towards any particular airline and they are more likely to buy the tickets due to their low prices, the airlines can bring in such prices which the competitors would not be able to match. This is typically done when a new airline is looking to make some ground and get a sizeable market share and the older ones might want to deny it this advantage.
Gaining New Customers
The airlines might also feel the need to gain more new customers, besides the ones which fly regularly with it. So, gaining the new customers is their top priority and they have to move up and down the price slabs in order to gain these new customers. It would like the new customers to try its flight experience for once and reducing the prices of the tickets could be a good motivation for the people to gain new customers.
As a Part of Celebrations
If the airline wants to celebrate some special event, it might not restrict the merry-making to its offices, but might also involve the customers by providing the lowest air fare flights. These special events could be the founding day of the organization, the special anniversary day or on achieving some reward or recognition.
When the lean season is approaching and the airline fears that the traffic will get the dip, it might announce the cheap flights for the lean season by months in advance so that it gets its fights booked to good measure during the ongoing prime season itself. Here the timing of the offer makes a big difference.
To be Top-of-mind Brand
Whatever might be the reason of offering the cheap flights, it is quite clear that the airline is able to make itself a top-of-the-mind brand for at least some time, till the time the offer is valid and it is receiving the rush bookings. This is also a good branding strategy in order to make the people aware of the existence of airline.