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Cut Costs The Low Cost Airline Way

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Jesse Desjardins - @jessedee
Jesse Desjardins - @jessedee

Low cost airlines cut costs in several innovative ways: 1) They cut out travel agents and sent customers directly to their websites for booking, saving 12% per flight. 2) They had customers print their own tickets, cutting out check-in staff. 3) By refusing to transfer bags between flights, they cut costs and claimed fewer lost bags than competitors. 4) Flying to secondary airports cut costs and improved punctuality while getting customers to destinations faster.

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Cut Costs The Low Cost Airline Way
Digital entrepreneurs should study the masters of digital cost cutting, the low cost airlines:
Low cost airlines cut travel agents out of the booking process, and sent their customers to the web. saving 12% of the cost of a flight.
They then made their customers print tickets out themselves thus cutting out check-in staff.
By refusing to transfer bags from flight to flight, low cost airlines then cut costs further. But this also allowed them to claim fewer lost bags than full-fare airlines.
Then, by flying to secondary, less congested airports they cut costs further, but also became the most punctual airlines in the world.
Secondary airports meant they could also promise to get leisure travelers to beautiful countryside faster.
Then the low cost airlines sold click-thru ads on their websites to hotels and car hire companies. Empty space on their websites became a big profit center.
Then they flexed their muscles: they established that they could move their flights from airport to airport on a whim.
As a result, the tables turned. Low cost airlines stopped paying airports to land. And regional governments started paying them to fly tourists in. $
By the early 2000s, low cost airlines had captured the entire marketing budget of some tourist boards. $$$ $$$ $$$ Why spend money on marketing when government will do it for you?
Digital innovation involves cost cutting.
Extract from Download: http://bit.ly/mobmania which im reading from seat 23b Presentation design @jessedee

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Cut Costs The Low Cost Airline Way

  • 1. Cut Costs The Low Cost Airline Way
  • 2. Digital entrepreneurs should study the masters of digital cost cutting, the low cost airlines:
  • 3. Low cost airlines cut travel agents out of the booking process, and sent their customers to the web. saving 12% of the cost of a flight.
  • 4. They then made their customers print tickets out themselves thus cutting out check-in staff.
  • 5. By refusing to transfer bags from flight to flight, low cost airlines then cut costs further. But this also allowed them to claim fewer lost bags than full-fare airlines.
  • 6. Then, by flying to secondary, less congested airports they cut costs further, but also became the most punctual airlines in the world.
  • 7. Secondary airports meant they could also promise to get leisure travelers to beautiful countryside faster.
  • 8. Then the low cost airlines sold click-thru ads on their websites to hotels and car hire companies. Empty space on their websites became a big profit center.
  • 9. Then they flexed their muscles: they established that they could move their flights from airport to airport on a whim.
  • 10. As a result, the tables turned. Low cost airlines stopped paying airports to land. And regional governments started paying them to fly tourists in. $
  • 11. By the early 2000s, low cost airlines had captured the entire marketing budget of some tourist boards. $$$ $$$ $$$ Why spend money on marketing when government will do it for you?
  • 13. Extract from Download: http://bit.ly/mobmania which im reading from seat 23b Presentation design @jessedee