Select Page

Brand Equity of 3 Low-Cost Airlines Based on Consumer Behavior

June 2018 – October 2018

Category Analysis – Low-Cost Airlines
Regions: Malaysia

The global low-cost airlines market is expected to reach $207,816 million in 2023, which represents a CAGR of 8.6% for the period 2017 – 2023.  The rise in economic activity due to increase in purchasing power of consumers, increase in travel and tourism activities, urbanization, lifestyle changes, consumers preference for ease of travel with non-stops and low cost flights added with increase in e-literacy leading to online booking has led to an overall increase in travel industry. The online user conversations reveal interesting insights into consumer preferences and their dislikes. This report offers an in-depth analysis of the low-cost airlines market in Malaysia to identify the potential investment opportunities. The emerging trends are discussed in detail to determine the potential of low-cost airlines market and to gain stronger market foothold.

 

Methodology

The analysis is based on customer reviews and conversations online in the segment. The analysis results presented are completely unbiased and not based on any subjective judgement. The source data used for the analysis are user conversations available publicly online like public forums and social media.

40,981

Total number of customer conversations analyzed

Low-Cost Airlines Industry Overview

Low-Cost Airlines Industry Growth Drivers

The growth of low-cost airlines market is credited to the rise in economic activity within Malaysia. The constant surge in travel, travel & tourism industry has led to the significant growth of low-cost airlines. Tourists across the world now prefer to travel in low-cost service carriers. Travelers are looking out for non-stop travel and carriers that have frequent service.

Yet another major reason for the growth of low-cost airlines is the increase in purchasing power of middle class households in Malaysia especially in the developing regions.  High level of urbanization has led to the changes in lifestyle of the middle class groups that has led to a drastic preference of consumers towards low-cost service providers.

Further to all the above reasons, another major growth driver of low-cost airlines in Malaysia is the high internet penetration across Malaysia.  In 2017, 80 percent of the Malaysian population were using the internet. In 2023, this figure is projected to grow to 86 percent. 

Brand Equity of 3 Low-Cost Airlines Based on Consumer Behavior

Consumer buying behavior refers to the study of customers and how they behave while deciding to buy a product that satisfies their needs. It is a study of the actions of the consumers that drive them to buy and use certain products.

Study of consumer buying behavior is most important for marketers as they can understand the expectation of the consumers. It helps to understand what makes a consumer to buy a product. It is important to assess the kind of products liked by consumers so that they can release it to the market. Marketers can understand the likes and dislikes of consumers and design base their marketing efforts based on the findings.

For example, consumer buying behavior is studied by consumer researchers and their aim is to know why women buy moisturizers (to reduce skin problems), the most preferred brand (Olay, L’Oréal), how often do they apply it (twice a day, thrice a day), where do the women prefer to buy it (supermarkets, online) and how many times do they buy it (weekly, monthly).

Understanding consumer behavior is essential for a company to find success for its current products as well as new product launches. Every consumer has a different thought process and attitude towards buying a particular product. If a company fails to understand the reaction of a consumer towards a product, there are high chances of product failure.

Through a detailed analysis of 40,981 online consumer conversations, Clootrack has listed down the top 4 drivers that consumers consider while booking low-cost airlines in Malaysia. 

1. Quality of the Airline Service

Customer conversations reveal that airline service quality affects the adoption of particular airlines by customers. Consumers are put off when there is a shortage in pilots that can lead to cancellation of flight routes. Consumers are expecting the best on-time arrival rate with flights maintaining schedule.  Other areas where consumers expected high quality was in the meals, hygiene and multimedia entertainment.

In Malaysia, customers are asking for options to reserve their seats online, either at the time of booking, or when they perform online check-in. Consumers are looking forward for full service airline that can offer passengers comforts such as checked baggage, blankets and pillows, recliner seats and more leg room. The user conversations suggest clearly that those low-cost airlines should maintain service quality as it tops the chart of adoption of airlines.

2. Size of the Seats

Many times, consumers feel that it’s not worth to forego a comfortable seat in exchange for any offers or discounts. They give a high prominence for the seats that are like business class seats with very good legroom. Consumers feel that one or two extra inches of seat pitch (distance from one row to the next) can make a huge difference in comfort and productivity. Consumers are now adding seat preference as one of their main search criteria along with date and destination while choosing the seats. SeatGuru.com can come handy to find information about the seats where you can select a flight and browse airlines and their seat maps.

3. Demand for Flat Seats

As per market research, 67 percent of consumer feels it’s important to have seats that fully recline. When it comes to booking a flight, it is not just about the destination and food and the customer service. A lot of it depends on the seats. Consumers are asking for seats that can be fully converted into beds. Consumers who are mostly on long-haul flights can immediately hit the ground running, instead of spending the next day in recovering from a sleepless flight on the seats that did not offer flat beds. Flat beds can fully recline and come to a horizontal position giving the customers the most comfortable sleep. Furthermore, consumers like to see airlines give them privacy and space, that remind the passenger of the comforts of home.

4. Punctuality of Airlines

According to a survey report, the most punctual airline in the world is Latin American airline Copa Airlines with 89.79% of flights on time. With a high rate of competition in the aviation industry, one factor that can set apart one airlines from the other is the on-time performance of the flights.  Consumers are rating an airline as the best, based on their punctuality. Consumers do not wish to spend hours drifting around in a duty free shop just because of a delayed flight. Airlines have to take care of computer glitches, airline rush hours, aircraft maintenance and conveyor belts that could lead to a larger delay.

Brand Equity

Consumer perception, which is a combination of knowledge and experience, towards a brand and its products, builds brand equity. The perception that a consumer segment holds towards a brand directly results in either positive or negative effects. Customer perception or consumer perception plays a major role in buying behavior. Hence companies are going the extra mile to create a pleasant and happy customer experience for its customers. Companies are ready to spend money and effort to influence customer perception and drive profitable consumer behavior.

Brand equity is an indicator of the company’s strength and performance, specifically in the public markets. In simple terms, brand Equity is the loyalty, perception, and awareness of a customer towards a brand. Brand equity can be created over a period of time by offering products that give a memorable experience, excellent quality, and highly reliable products to its customers. 

In this report we have presented the relative significance of each driver in the form of a graph that can be used to compare the degree of importance consumers attach to various factors. Download the detailed report for free to get to know the brand names in the below chart. The detailed report also covers list of features that delight users and several other interesting insights. 

Enter your email below to get this report for FREE.

Brand Equity

Consumer perception, which is a combination of knowledge and experience, towards a brand and its products, builds brand equity. The perception that a consumer segment holds towards a brand directly results in either positive or negative effects. Customer perception or consumer perception plays a major role in buying behavior. Hence companies are going the extra mile to create a pleasant and happy customer experience for its customers. Companies are ready to spend money and effort to influence customer perception and drive profitable consumer behavior.

Brand equity is an indicator of the company’s strength and performance, specifically in the public markets. In simple terms, brand Equity is the loyalty, perception, and awareness of a customer towards a brand. Brand equity can be created over a period of time by offering products that give a memorable experience, excellent quality, and highly reliable products to its customers. 

In this report we have presented the relative significance of each driver in the form of a graph that can be used to compare the degree of importance consumers attach to various factors. Download the detailed report for free to get to know the brand names in the below chart. The detailed report also covers list of features that delight users and several other interesting insights. 

 

 

Enter your email below to get this report for FREE.

Top 4 Emerging Trends Based On Online Conversations

As more and more people choose to fly, airlines have gone extra mile to enhance the passenger’s experience, loyalty, and satisfaction by offering low-cost flights, a variety of entertainment, better seats, better connectivity, and much more facilities. 

Air travel experience starts from the time the consumer starts to search flights and goes beyond landing. Factors such as the higher competition and rising consumer demands are changing the way airlines do business.  The emerging trends in this industry are pushing airlines to prepare itself to embrace the latest developments in the industry.

Here are 4 trends that are driving the airlines story in the future?

1.Through Check in

Through check in happens when your boarding passes and baggage tags are issued on check-in itself, up to your final destination. Consumers prefer to have airlines that are upgraded to give passengers a comfortable journey. Consumers travelling want to save time and the hassle of checking their baggage as they end up wasting time in collecting their bag and re-checking it. Consumers might as well prefer to book flights that take care of through check in.

2. Bid And Buy For Services And Upgrades

Many airlines offer a way to compete for unsold premium cabin space by bidding for it. The bidding process offers people who have already booked tickets to bid for an upgrade. When a bid is successful, most airlines give the consumers certain perks and benefits of the upgraded class such as lounge access and extra baggage allowance.

Consumers want to see airlines to offer more of such bids for upgrades that allow them to move from economy to premium.

3. Better Loyalty Management

Loyalty programs encourage customers to fly their favorite airline that otherwise might not be their best choice for a trip. Airline customers like to accumulate miles for which they go extra way to book the tickets with a particular airline. Some airlines are offering onboard programs such as redemption choices for example, a glass of champagne for 500 points or Wi-Fi access for 1,000 points. Consumers are considering the loyalty programs as one of their main criteria for booking with airlines.

4. Bundled Airport Facility Offers

A complete passenger experience including airlines and airport service performance is very critical and emerging as an important trend. The airport facility offers should include additional facilities and improvements to enhance passenger safety, security and cargo movement. Airline lounges should provide facilities such as hot showers, food and beverage and a place to rest or do work without any additional charge.

Detailed Report

Do you want to know the positive words that consumers are using in their online conversations about low-cost airlines? Learn more about the factors that delight customers, brand wise positive and negative keywords and much more. Download the pdf version of the complete report for free.  Enter your email at the end of this report and we’ll send it to you for FREE.

Send this Report to Email