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Isentia airline industry - the 3 key questions for 2016


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Isentia Media Research for Airline Industry in Asia Pacific area

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Isentia airline industry - the 3 key questions for 2016

  1. 1. 3 real questions: • Will Asia Deliver Growth • Top Airlines vs Top Customer Airlines • Building Resilient Demand 14th February 2016
  2. 2. 2 IS ASIA GOING TO DELIVER THE GROWTH IT PROMISES? 1. DISPOSABLE INCOME GROWS IN ASIA 2. UNCERTAINTY BREWS, DESPITE LOW OIL 3. YOUNG ADULTS ARE YOUR BEST BET 4. PREMIUM AIRLINES NEED TO FIG Despite a smaller wallet compared to UK and USA, Asian markets command an increasing trend of growing disposable income. Between 2013 and 2015, India’s disposable income grew +10.2%, along with Vietnam (+7.5%), Thailand (+3.5%) and Philippines (+4.4%). Source: World Bank, Euromonitor 2015 With greater financial freedom and desire for regularly unique travels, young adults or tertiary students represent a key market segment, between age 18 – 29 years ago. 73% of this segment rely on Review Sites to make travel choices, and make digital purchases mainly through Metasearch providers. Source: Amadeus; WTA 2015 23% of International Travelers are Young Adults. 270M Travelers USD 3,000 Average per Trip • Unique Places • Local Experiences • CV Building • Personal Branding • Trendsetter Low-cost Carriers moving into premium options continue to threaten more than profitability. It threatens entire demand growth for flagship carrier flights. While there is a small rebound from Premium Economy, the demand is too low to recuperate losses. Low oil prices give premium airlines a much needed relief on profitability. It is a business imperative to use the financial flexibility to invest heavily in growing customer loyalty and remain as a choice for consideration. Source: WTA 2015 60.0% 70.0% 80.0% 90.0% LCC Premium Passenger Load Factor (%) APAC 77.6% 80.7% 71.5%
  3. 3. 3 TOP AIRLINES VERSUS CUSTOMER CENTRIC AIRLINES 5. INDUSTRY AWARDS ARE NOT SO VALUABLE 6. CUSTOMER REVIEWS HAVE REAL IMPA 7. SOCIAL MEDIA IS A NORM, AND IT’S NOT FOR FREE The coveted awards from various associations and recognition bodies, have distinct differences with the reality of a customer-driven business. Airlines with honours claiming to be the best, may not truly prevail in the customer’s eyes. Airline players are focusing on an aged and almost irrelevant metric. Using actual market data, it is clear not all brands are doing so well as Skytrax suggests. 1. Qatar Airways 2. Singapore Airlines 3. Cathay Pacific Airways 4. Turkish Airlines 5. Emirates 6. Etihad Airways 7. ANA All Nippon Airways BUZZ INDEX SENTIMENT PERCEPT ENGAGEMENT INDEX 1. Singapore Airlines (9,279) 2. ANA All Nippon Airways (3,375) 3. Emirates (3,355) 4. Cathay Pacific Airways (2,266) 5. Etihad Airways (472) 6. Qatar Airways (438) 7. Turkish Airlines (175) 1. Qatar Airways (+41.6%) 2. Cathay Pacific Airways (+36.2%) 3. Etihad (+31.8%) 4. Singapore Airlines (+23.2%) 5. Emirates (+21.1%) 6. ANA All Nippon Airways (+8.7%) 7. Turkish Airlines (-8.0%) 1. Qatar Airways (24.9 EI) 2. Etihad Airways (9.1 EI) 3. Emirates (7.5 EI) 4. ANA All Nippon Airways (7.0 EI) 5. Singapore Airlines (4.1 EI) 6. Cathay Pacific (2.0 EI) 7. Turkish Airlines (0.9 EI) Do You rely on online reviews to Trust a Brand? Source: BrightLocal; TripAdvisor; Isentia Brand Erosion Brand Erosion Brand Erosion Airlines who do not invest in community management and social media as the key form of customer service, loses customer loyalty quickly through increased frustration. Your customers rely on online reviews as a form of word-of-mouth to make decisions. The bigger the ticket cost, the more consideration. Programmatic variations of prices only matter assuming the entire sales process is kept in-site. Source: SocialSprout; MyCustomer 2015 Which Platform Do You Turn to for Customer Service Queries? 65%believe Social Media is more effective than Call Centres and EXPECT a reply within 12 Minutes. 51613 61000 45260 0 20000 40000 60000 80000 Glassdoor Indeed PayScale Social Media Manager Salary (Annual) Source: Isentia Source: Isentia Source: IsentiaSource: Isentia
  4. 4. 4 BUILDING A RESILIENT DEMAND 8. Capture as much Relevant Data 9. Integrate Primary and Digital Researc 10. Use Dashboards Correctly 11. Hold Agencies Accountable It’s not all about Twitter or Facebook. In order to map a necessarily complete customer relationship journey, Airlines need to look after their Blind Spots – which are platforms outside their control, usually Earned Media. Airline Digital Data Sources Average Length per Post by Platform New methodologies developed in 2015 exist to use primary research metrics, applied onto a scalable and unbiased digital data set. Website Data Digital Data POS/Sales Data CRM/ Loyalty Data • Consumer Insight • Path to Purchase • Customer Journey Tracking • Content Effectiveness • In-Flight Experience • Travel Triggers • Marketing ROI • Airline Perception KLM Airlines Generate $25m in Annual Revenue from Social Media Marketing. Top 5 Common Misuses  Competitive Benchmarking  Marketing ROI  Target Segmentation  Content Effectiveness  Consumer Insights  Strategy Planning Only Uses of Dashboards Customer Service Crisis Alerts Top Line Scanning Basic Auto Reporting A savvy business professional will always question the true effectiveness of any marketing campaign. High buzz does not equate to actual growth in target audience. Are you meeting your real objectives? 5 Key Questions for your Marketing Agency a. How clean is the data b. How do these metrics roll up to Sales and Leads c. What is the methodology to measure Brand Trust d. What is your sample size for research e. Where do my customers seek information of me You might think this is great because buzz increased. However, very few voices (or new entrants) were engaging in the community. Source: IsentiaSource: Isentia Source: Isentia Source: Isentia
  5. 5. Adamson Alagan DID: +65 6593 9891 Email: Josh Drasta DID: +65 6593 9888 Email: Gwen Tan DID: +65 6593 9888 Email: