Transformation of Asiana
Asiana Airlines launched a large-scale corporate innovation process to focus more on online marketing and kick off its Early Bird Promotion, which is similar to those of low-cost carriers (LCCs). At the same time, it is planning to overhaul its mileage system in an attempt for profit maximization.
The new promotion program, which is launched next month, is characterized by a great discount for customers who purchase tickets early. This is similar to the marketing programs of many LCCs for providing some seats at a very low price three to six months ahead of boarding. This is the first time that Asiana Airlines sells such tickets on a regular basis, although it has provided some one-off events to this end.
The decision is to better reflect consumer needs. Every day when the Early Bird tickets of LCCs are for sale, a huge number of people flock to their websites to freeze them. This implies that the majority of airline customers prefer an inexpensive price to quality services. For the time being, Asiana Airlines is going to run the new system mainly for those heading for China, Japan, and Southeast Asia.
The company is supplying more special-price tickets online than before, too. At present, it provides a 10 percent discount for those buying tickets on its official website, mobile website, and mobile application, while cutting the price by up to 70 percent for customers flying to and from Gimpo, Daegu, and Jeju. It has applied a 5 percent discount to some economy and business class seats of international flights since late last year, and added 10 percent to the mileage since earlier this year as well. Asiana is going to give more benefits to mobile website and mobile application users.
The airline is also renovating its mileage system in order to encourage its customers to use cash or cards instead of mileage. Currently, 70,000 miles are required for an economy class ticket for the Americas, and 60,000 miles have to be paid to move from economy to business class during a low season. However, the latter’s price is about triple that of the former for customers who pay by cash or card.
“The transition, in fact, has already been predicted since President Kim Soo-cheon took office, in that he is the very person who enabled Air Busan to take root faster than other LCCs,” said an industry insider, adding, “The change is likely to accelerate down the road because the president has a strong will to renovate the company.”