Typically we think that airlines will segment their customers by class of seating, such as economy class, business class and first class. In this market segmentation example for airlines, five distinct market segments are identified each having quite distinct needs and different evaluation and purchase approaches. These five market segments as shown in the following diagram as well are:. These are non-business consumers that are frequent travelers via airlines. Generally they would be older consumers, perhaps retirees, who have the time and money to holiday quite frequently.
Market Segmentation Of Virgin Airlines Free Essays
But these are just part of our story. When we first started flying in , the world was changing rapidly. In the UK, boom time had arrived, and a lot of people had more money to spend, with a greater desire to explore the world. And what a dull, grey experience that was. With a parent brand that had owned a music label and record stores, we used marketing and public relations to our advantage. We flew to desirable destinations. We came up with innovative new products and services that would make the journey much more fun.
Furthermore, Virgin Atlantic is one of the few global airlines that is entirely long-haul driven, from a network and aircraft perspective. It is known for being very brand-oriented with luxurious lounges, like the Clubhouse in London Heathrow. Since the partnership with Delta was formulated, Virgin has scaled back significantly in many of its global markets and focused more heavily on services to the North America region. It has occasionally swapped out metal with Delta on several transatlantic routes, including London to Atlanta, Detroit, Seattle, Newark, and Los Angeles. Its operations from Heathrow are concentrated around key business markets in the U.
Thus, personalization must:. Airlines have a complex and granular segmentation in place already in the form of fares. Certain customer segments purchase the lowest fares available, and others pay increasingly more — up to the full fare. Fare-based segmentation is behavior-based, not based on demographics or purpose-of-trip or psychographics. All customers can purchase the lowest fare - if they agree to the restrictions - and all have the option of the full fare.