Luxair Regionale Fluggesellschaft im kompetitiven Umfeld · • Market & Competitive Environment ... Luxair Dynamic Pricing Strategy & Revenue Management ... Improve B2B Communication,

Luxair – Regionale Fluggesellschaft im kompetitiven Umfeld

Gastvortrag am Lehrstuhl für Marketing & Handel, Universität Trier

Alberto O. Kunkel , MBA

(Vize-Generaldirektor Tour Operating und Sales & Marketing)

Dr. Martin Jager

(Direct Sales & CRM Manager)

29. Januar 2014

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1. LuxairGroup: Passionate – Caring – Responsible

2. Luxair Luxembourg Airlines: Marketing Management

• Market & Competitive Environment

• Marketing Strategy & Vision

• Marketing-Mix

• Retention & Customer Loyalty

3. eCommerce Future – Mobile Strategy & eServices

Agenda

3 Passionate - Caring - Responsible

About LuxairGroup

A major regional player in ‘Greater Luxembourg’ area, with

its primary focus on: Comfort, service quality & safety, setting the benchmark as ‘carrier of choice’

Turnover 446.7 (mio EUR)*

Staff 2,309*

Founded 1961

Activities Luxair Luxembourg Airlines

LuxairTours

LuxairCARGO

LuxairServices *2012


Structure


• Luxembourg Airlines Company formed 1948

• Reorganization and name change to ‘Luxair - 1961

Société Luxembourgeoise de Navigation Aérienne’

• Launch of commercial activities, LUX-Paris and LUX-Frankfurt

with Fokker F27. 1962

Sustained and fast growth.

• First Holiday flights to Nice and Palma 1964

• LuxairTours launched 1968

• First freight warehouse 1968

• New Cargocenter built 1996

• Repositioning - ‘Building a New Airline’ 2006

• Economic crisis 2008

History


Executive Committee

Adrien Ney

President and

Chief Executive Officer

Martin Isler

Executive Vice-President

Airline

Thomas Czypulowski

Senior Vice-President

Information Systems

Alberto O. Kunkel


Tour Operating,

Sales&Marketing

Michel Folmer

General Secretary

Laurent Jossart


Finance

7 Passionate - Caring - Responsible 7

• Passengers 1,374,810

• Revenue p km (thousands) 1,660

• Seat Load Factor 73.4%

• Passengers at Luxembourg Airport 1,919,880

• Flight hours 37,291

• Meals served 1,689,000

• Freight handled (tons) 638,068

• Staff (average 2012) 2,309

Key facts


• LuxairTours – Quality Sunshine Holidays

• Happy Summer – Best Value Beach Holidays for Families

• Metropolis – European City Breacks

• Discoveries – Cruises and Circuits

• Excellence – High-Quality Packages

• State-of-the art Cargocenter

• 293,000 m2 cargo infrastructure

• Annual capacity of more than 1 million tons

• 1,919,880 Passengers assisted

• 1,689,000 Meals served

• 37,291 aircraft movements, Management of +500 vehicles

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• Marketing-Mix



Agenda


Market & Competitive Environment

INDUSTRY • Regional Carrier

• European Network

• Economies of Scale

Adapt to industry standards

through global systems

Network & Codeshare Strategy

MARKET

• Small Catchment Area

• Regional Complexity

• Challenge of Direct Customer

Reach

Differentiation to keep regional

advantage through CRM,

eServices and customer focus

MARKET

DEVELOPMENT

• Low Cost

• Cost Efficiency

• Dynamic, Permanent Change

Focus on services related to

strategic targets

Competitive & dynamic offer

Cost reduction

TECHNOLOGY • Central Industry Standards

• Mobility

• Early Adopter

Integration and management of

state-of the art systems & tools

E-COMMERCE

• Personalisation

• Global Technology

• Key Industry Driver

• Complexity

Customer Retention through CRM,

eServices & state-of-the art online

and mobile presence

REGULATIONS • International & Airline

• EU Legislation (passenger rights,

consumer protection, etc.)

Adopt to industry standards, full

alignment with legislation


Paris

Brindisi, Catania, Genoa,

Lamezia, Milan, Naples,

Palermo, Rome, Turin,

Venice, Verona

Bucharest, Budapest,

Vienna

Cracow, Warsaw

Athens, Berlin, Bilbao,

Bologna, Bremen, Dresden,

Frankfurt, Hamburg,

Helsinki, Leipzig, Lisbon,

Munich, Sofia, Stockholm,

Venice

Istanbul

Network & Codeshare Strategy

Network: 43 Destinations – 18 operated by Luxair, 25 Codeshare Destinations


Munich

Cooperation Example with

Lufthansa:

From Luxembourg via

Munich to the World

Cooperation Example: From Luxembourg via Munich to

the World – 3 Daily Flights to the Hub Munich

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• Marketing-Mix



Agenda


• Modern fleet founded on highest standards of quality,

comfort and safety

• Easily accessible airport with modern infrastructure, incl.

Luxair Business Lounge, Business Check-In, Buy Bye

Shops

• Same-day-return options

• Attractive Fare Structure as of 99€ for Leisure Travellers,

maximum Flexibility for Business Customers

• Miles & More Bonus Miles on all Services

6 Embraer ERJ 145 - 49 seats

6 Bombardier Q400 - 76 seats

3 Boeing 737-700 - 141 seats

2 Boeing 737-800 - 186 seats

Luxair Luxembourg Airlines – Fly in Good Company

Reference Carrier of the Greater Region – Connecting the

Greater Region to Europe, and Europe to Luxembourg


Our Home Base: Luxembourg Airport

Luxembourg Airport – At the Heart of Europe

Modern Airport: Qualitative architectural Concept and innovative

Design with Focus on Fast Connections, Comfort & Flexibility

Service Quality based on Dedicated Luxair Check-In, Service &

Ticket Desks, Buy Bye Shops, Luxair Business Lounge, etc.

Direct Access: Thanks to a highway network right on its doorstep,

Luxembourg Airport is easy to access from anywhere in the

Greater Region (e.g. less than 45 km from Trier via A1 Highway)

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• Adapt our Services to our

customers expectations

• Enhance our Service

ranges and quality

• Anticipate market trends

• Be qualitative and

competitive

LUXAIR

New Customer Strategy

• Mobility and flexibilty for

our clients

• Save time and access to

improved comfort level

• Luxair as preferred travel

choice due to customized

offers & services in line

with personal demand

Best Value for Money Best Feeling for Money

Customer

New Travel Experience

CRM

LUXAIR as FULL SERVICE CARRIER

DIFFERENTIATION – FOCUS ON TARGETS – CUSTOMER LOYALTY

Luxair Full Service Carrier Strategy

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• Marketing-Mix



Agenda

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How to play the Marketing Mix

PLACE

Focus: Direct Sales Web

Plus: Corporates & TAs

PRICE

Dynamic Pricing

Price Differentiation based on

Flexibility & Service Levels

PRODUCT & SERVICE

Standardized Products & Services

Business Class vs. Economy

Class

PROMOTION

Newsletter Actions

Multiple Online Entry Points

Flyers & Offline Campaigns

Image Brochure & Sales Events

Customer-Orientation

ALL CUSTOMERS

CRM

Customer Feedback & Behavior will lead to

Learning Effects for Future…

Target Options

BUSINESS vs.

LEISURE PURPOSE


Dynamic Pricing Strategy & Revenue Management

Luxair Dynamic Pricing Strategy & Revenue Management

Dynamic & Simultaneous Pricing to Optimize Profitability based on 1. Capacity & Seat Load Factor,

2. Customer Behaviour & Advance Purchase Time, 3. Route Steering & Booking Class Management

Price Differentiation: Commercial Fare Families based on Fare Rules, Product Features & Flexibility Needs

New Luxair Fare Structure as of September 2013

99€ – 280€* 280€ – 550€* 650€ – 950€* 600€ – 900€* 900€ – 1250€*

* Ø Price Range per Commercial Fare Family: Return Flight, all incl.!


Commercial Fare Families – Fare Rules & Features

FARE RULES

Change/Refund Changes & refund not

possible

Changes possible, no

refund Flexible & refundable

Changes possible, no

refund Flexible & reundable

Name Change No No No No No

Changes No 85€ Free 85€ Free

Net Fare Refund No No 100% No 100%

PRODUCT FEATURES

Baggage

Allowance 20 KG 20 KG 20 KG 30 KG 30 KG

Hand Luggage 1x7 KG 1x7 KG 1x7 KG 2x7 KG 2x7 KG

Lounge Access No No No Yes Yes

Business Class

Check-In No No No Yes Yes

Miles & More

(International) 125 Miles 750 Miles 1.250 Miles 1.250 Miles 2.000 Miles


Focus on Entry Price Level from 99€*

Return Flight + “Best Value for Money”

Entry Price Strategy from 99€* Return Flight for the most

beautiful cities in Europe, full Luxair Service included

Proactive Price Communication and Luxair Special Actions

with Focus on Direct Sales Web

“Best Value for Money” Formula: Attractive Entry Price

Structure for Leisure Customers together with Luxair

Service Quality Standards

Attractive Entry Price Strategy from 99€* Return Flight


Price incl. taxes

and charges

Online check-in and

seat reservation MyLuxair

Business Lounge

(C-Class+ M&M Status Members)

Complimentary food, drinks &

newspapers onboard

Award and Status Miles

with Miles & More

Best Business Schedule & Centrally

located airports

Baggage Allowance:

20 kg (Eco), 30 kg (C-Class)

Hand Luggage:

7 kg (Eco), 2 * 7 kg (C-Class)

Product & Service – Luxair Value Proposition


Exclusive advantages – tailor-made for you

Fully flexible and refundable

Baggage allowance of 30 kg and hand luggage of 2 pieces

Valuable 2000 Miles & More Award / Status Miles

Save valuable time

Check-in online and save 20 minutes at the airport

Boarding Pass directly on mobile phone as a 2D barcode

Choose your seat onboard with the eServices free of charge

Travel in complete tranquillity

Dedicated Business Class check-in desk at Luxembourg Airport

Access to Business Lounges at various Airports

Check-in open right up until 30 minutes prior flight departure

More comfort and service quality

A quality onboard service provided by multilingual staff

Delicious Business Class meals, large choice of drinks/wines

Large choice of selected up-to-date newspapers and a choice of 5 magazines

Product & Service – Luxair Business Class


Place – Focus on Direct Sales Web

Main Website www.luxair.lu in 3

languages, best offers & services,

valuable info about the Luxair World

Sales 2013: Ca. 180,000 Luxair

Bookings (Pax), Growth Rate: +29%

vs. 2012

Modern Infrastructure, State-of-the Art

Booking Tools, MyLuxair, Newsletter

Subscription Options, etc.

Additional Country Microsites

UK Microsite www.luxair.co.uk,

DE Microsite www.luxair.de,

FR Microsite www.luxair.fr,

IT Microsite www.luxair.it

Welcome to www.luxair.lu

http://www.luxair.lu/

http://www.luxair.co.uk/

http://www.luxair.de/

http://www.luxair.fr/

http://www.luxair.it/


Place – Social Media

Follow us on Facebook

36,600 Luxair Fans + 23,900 LuxairTours Fans on

Facebook (Re-Duplication versus 2012)

Access to recent Sales Actions & Special Offers,

Games & Surveys, City Tips & Events etc.

Next Step: New Social Media Strategy, Dedicated

Community Management with External Agency


Business Customer Communication – Luxair

Business Traveller Newsletter

Luxair Premium Business Newsletter

CRM-Based Premium Business Newsletter Concept

“Luxair Business Traveller News” with 2 Editions / Year

Objectives: Push Sales Figures with Focus on Business

Purpose, Improve Luxair Brand Awareness & Image

Approach: Proactive Communication of Valuable Insights

& Key Product Features, Focus on Quality & Services

CRM-based Targets: +40k Business Purpose Customers

with ca. 50% Full Personalization (like “Dear Mr. Jager”)


B2B Communication – Luxair Travel Agency

Newsletter

Luxair Travel Partner News

New Travel Agency Newsletter Concept – Multi-Topic

B2B Newsletter based on Quarterly Editions

Objectives: Improve B2B Communication, Push Sales

Figures, Inform Travel Agency Partners about Luxair

news

Approach: From Single B2B Mailings to Quarterly

Editions … and A Dedicated Luxair TA Extranet in Future


Leisure Customer Communication – Luxair

Leisure Newsletter Subscription

Luxair Online Newsletter Service

Our Online Newsletter is a very convenient tool, and

brings our subscribers a useful mix of information related

to our flights, promotions, last minute offers or travel

suggestions

In a nutshell, this is the best way to stay tuned and

never miss out our latest offers

Simply Subscribe via www.luxair.lu !



Promotion – Luxair Leisure Newsletter Examples with

Focus on “Best Value for Money”

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• Marketing-Mix



Agenda


Register: Become a member free of charge to enjoy multiple benefits

Earn Miles: Hotels, flights & travel, shopping & lifestyle, car rental,

etc.

Spend Miles: Flight awards & upgrades, hotels, gifts & presents, etc.

Business Lounge Access, Waitlist Priority, higher Baggage Allowance,

Guaranteed Seats up to 24 h before Flight, Free Flight Vouchers, etc.

Luxair as Fully Integrated Miles & More Partner

Raise your Status Step by Step – Enjoy more

Advantages and Benefits with each Status Level

Luxair as Full Partner of Miles & More – Europe’s

largest Frequent Flyer Program

Senator

Distinguished by Esteem

Valuable High-Level Privileges with the Personal Note


HON Circle Member

The Principle of highest Recognition

Exquisite Services & Benefits for an Exclusive Circle

Frequent Traveller

Privileges to experience

The Entry to the World of Status Customers

Base Member

A World to experience

Miles & More – Your Partner with real Added-Value

Miles & More Status Levels


Miles & More Promotion Example

Miles & More Silver Promotion: FTL Status is within Reach!

CRM-Based Miles & More Action to reach Frequent Traveller Status based on

Flight Target of 15 Return Flights (=30 Segments) in 2013

Objectives: Customer Retention and Loyalty, Incremental Business via Flight

Targets, Customer Added-Value

Approach: Proactive Communication of Frequent Flyer Status Advantages

(e.g. Business Lounge, higher baggage allowance, exclusive service hotline,

etc.… ) to encourage Incremental Flight Bookings by Customer


CRM-based Luxair Loyalty Actions

Luxair Loyalty Actions

CRM-Based Loyalty Actions on selected Key

Destinations with Flight Targets based on Customer

Subscriptions

Objectives: Revenue Protection, Win Market Share,

Customer Retention and Loyalty, Incremental Business

Approach: Flight Targets in a Predefined Flight Period: 5

Return Flights = 1 Free Ticket, 4 Return Flights = Gift

Voucher, TOP 5 Customers = Flight + Hotel City Trip

Results: CRM-Target Customers with +40% Flight

Activity in Average during Action Period!

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• Marketing-Mix



Agenda

CUSTOMER ADDED-VALUE

• Feel Free Experience = Customer Choice

• Fast Travel Experience = Save Time & Ease

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• E-Services – Convenient Travel :

Facilitate Sales & Customer Services

through all Distribution Channels

• Fast Travel – Full Self-Service Suite:

Speed up Passenger Journey &

Address Customer Demands for more

Choice, Convenience, Control

IATA E-Services & Fast Travel

Vision

New Luxair eServices Vision

New “Luxair Feel Free Experience”

Vision

LUXAIR KEY ADVANTAGES

• Image: Modern Services in line with Industry Standard

• Perception: Comfort & Flexibility for our passengers

• Efficiency: Process Speed, Efficient Handling, Long-

term Return on Investment


Luxair eServices – Save 20 Minutes at the Airport

Web & Mobile Check-In

Save 20 minutes at the airport and check-in

online directly from home or from office – or even

via your Mobile Phone!

Arrive at the airport with your boarding pass in

hands: Print your boarding pass or receive it as

a 2D barcode directly on your mobile phone

Select your seat in advance: Window or aisle?

Take advantage of our free seat selection

service


MyLuxair – Your Virtual Lounge on the Web

Retrieve and easily manage your Bookings

Save your Customer Profile Details for your next Booking

Subscribe to the Luxair Newsletter and benefit from Special Offers

Subscribe to SMS Alerts Services in Case of Irregularities

Choose your preferred Seat on Board

Check-in online or via your Mobile Phone – convenient, fast and easy

Print out your boarding pass or get it directly on your mobile phone

Contact our CallCenter in a fast and personalized Way

Already 25,000 Members, simply register via www.luxair.lu

MyLuxair




Luxair unveils its Brand New Mobile Website

mobile.luxair.lu

Stay fully connected and updated when you are on the

move. With Luxair’s brand new Mobile Site mobile.luxair.lu !

Optimised for Smartphones and tablets: Access to Mobile

Check-In, Flight Status, Business Lounge Finder, City

Guides, and many other valuable Services

NEW! Book your next Luxair Flight with Ease directly

from your Mobile Phone now!

Smartphone usage increased heavily since 2010: 70% of

passengers carry a smartphone! Booking tickets via mobile

phones expected to rise from 2% of passengers to 7% by 2015.*

* Source: SITA Passengers Self Service Survey 2012.

http://mobile.luxair.lu/?utm_source=target_en&utm_medium=EMAIL&utm_content=campaign_link_mobile-luxair&utm_campaign=new-mobile-luxair_06-2013

http://mobile.luxair.lu/cms/luxair.php?p=EN,,,11.51,,,

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Documents

Luxair Regionale Fluggesellschaft im kompetitiven Umfeld · • Market & Competitive Environment ... Luxair Dynamic Pricing Strategy & Revenue Management ... Improve B2B Communication,