Hitit was hosted by Reginal International Magazine of ERA (European Regions Airline Association) and shared its opinions on fares and balancing revenue and cost in the airline industry. Can airlines increase their revenue and build their brand recognition and loyalty at the same time? Hitit responded to this question by referring to the popular “Branded Fares” concept.



A Golden Goose: Improved revenues per passenger

Data and industry reports show us that the strong demand for air travel continues. Airlines strive to keep their costs down and nowadays the most popular option is improved revenues per passenger. This idea has brought about the so-called “Branded Fares” concept, which has become an emerging best practice for maximizing ancillary procurement from passengers. The benefits of Branded Fares is the targeting of specific customer segments. This leads to a higher conversion rate and improved up-sell and cross-sell opportunities, that are appreciated by passengers, who receive discounts on their favourite ancillaries, over the unbundled options. In addition, Branded Fares is an opportunity for airlines to build brand recognition and loyalty. As such, Hitit believes that putting the ‘brand’ in Branded Fares allows airlines to supplement fares with their own approach and attributes and allows customers to select the products that fit their preferences. A smartly-designed presentation of Branded Fare packages, that clearly shows the included and optional services and features, increases conversion rates and promotes better customer retention.

Benchmarking the Branded Fares approach of LCCs and FSCs

“The industry is experiencing a convergence towards a more hybridized Branded Fare approach both from LCCs and FSCs. LCCs see the value in having bundled packages, while still keeping their ancillary up-sell opportunities open, FSCs take a similar approach, to become more competitive while keeping their prestigious brands and core customer base intact.”

Data accessibility: The key point of a customer-centric approach

“The next step to build upon Branded Fares is taking an even more customer-centric approach towards better personalization. One of the key challenges of implementing fully-featured personalization is the vast amount of data that needs to be collected, processed, and made available at very short notice, while keeping the running of such a system cost-effective.”

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