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What do you do if your aviation services are not priced competitively?

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Discovering that your aviation services aren't priced competitively can be a daunting realization. In an industry where safety and reliability are paramount, undercutting the competition isn't always feasible or advisable. Instead, you need to find a balance between cost-effectiveness and maintaining the high standards expected of aviation operations. This can involve a multifaceted approach, including revising your pricing strategy, enhancing your service offerings, and communicating value to your customers. It's critical to understand that while price is a significant factor, it's not the sole determinant of success in the aviation industry.

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1 Assess Costs

To address non-competitive pricing, start by conducting a thorough cost assessment. Examine every aspect of your operation to identify where you can reduce expenses without compromising safety or service quality. Consider negotiating with suppliers for better rates, optimizing fuel consumption, or investing in more efficient technology. Streamlining processes and eliminating unnecessary expenditures can often lead to significant savings, which can then be passed on to customers in the form of more competitive pricing.

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Colleen McCauley

“Women should try and do the impossible. And when (if) they fail, their failure should be a challenge to others.” ~Earhart
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Reassess your pricing structure; you may not always win the client, but if you can come back with reasonable pricing you may gain their business and they will likely come back again. Clients can easily be put off and feel like you are price gouging them, if you come in too high.

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Jyri Ketola

Management Expertise for Airline Industry
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Profitability is the basis of business, without profitability the company has no future! In such a situation, the company must check whether it is following its own vision and strategy. Very basic, but important. In a very competitive environment, like aviation, you may drift into the mainstream and the visions of your own company will be forgotten. According to the topic, the costs should be mapped carefully and checked to which processes and customers they are related. Puting it simply, after this, it's time to make corrective decisions!

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2 Add Value

If you can't lower prices, consider adding value to your services instead. Enhance the customer experience by offering amenities that competitors don't, such as complimentary refreshments, Wi-Fi, or additional loyalty program benefits. Training your staff to provide exceptional service can also make a difference. By creating a more attractive overall package, customers may be willing to pay a premium for the added value they perceive in your services.

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Alexander D. Torres Anzardo

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You can try to add value by focusing on the overall customer experience. For example, you could offer unique personalized souvenirs, free WiFi, or exclusive merchandise. Additionally, you could enhance the in-flight entertainment or provide premium services such as comfortable seating or gourmet meals. Try to create a memorable and enjoyable experience for passengers, you can differentiate your services and attract customers even if your prices are not the lowest.

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3 Innovate Services

Innovation is key in aviation. Introducing new services or improving existing ones can set you apart from competitors. This could mean investing in the latest aircraft technology, offering unique in-flight experiences, or developing a user-friendly booking system. By being at the forefront of innovation, you can justify higher prices because you're offering something the market sees as new and valuable.

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Jyri Ketola

Management Expertise for Airline Industry
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I think we all value friendly and knowledgeable service in the end. Punctuality and reliability are important in our operating environment. Information and handling of exceptional situations always remain in the customer's mind. He tells many people about the bad treatment. So, why not focus on the basics along our service chain? This does not exclude the development of functional and user-friendly distribution and reservation systems, etc. Why fix something that works, in the name of innovation!?

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4 Market Effectively

Effective marketing can help communicate the value you offer and justify your prices. Focus on the unique aspects of your service that justify a higher cost, such as exclusive routes, superior safety records, or exceptional customer service. Use customer testimonials and case studies to showcase the benefits of choosing your service over cheaper alternatives. Remember, it's not just about being seen; it's about being seen as the best option available.

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5 Build Relationships

Building strong relationships with your customers can lead to increased loyalty and willingness to pay for your services. Personalize your interactions and show that you value their business. Consistent, positive engagement can create advocates for your brand who may be less sensitive to price changes. Additionally, partnerships with other companies can provide mutual benefits, such as shared marketing costs or bundled service offerings.

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6 Review Regularly

The aviation industry is dynamic, and so should be your pricing strategy. Regularly review your prices in relation to your costs, value proposition, and the competition. Be prepared to adjust your strategy in response to market changes, new regulations, or shifts in customer preferences. Staying agile and responsive to the market will help ensure that your aviation services remain competitive and profitable.

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Jyri Ketola

Management Expertise for Airline Industry
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In my experience the key role to review company's market position and industry development is with the executive board. The managing director do not have time for that. He or she is in charge of running the daily activites. The members of the executive board must represent expertise from the company's various operational areas and bring their expertise to the company's disposal. The regular and continuos reviews of aviation industry and own company's position in the market needs open and trusting communication between the executive board and the managing director. This is the way to succeed and stay one step ahead of the competition; thanks to cost-effective operations!

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Narasimmaraj Nagendrababu

Deputy General Manager - Cabin interiors at Airworks group
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If your aviation services are not priced competitively, you might consider conducting a thorough market analysis to understand your competitors' pricing strategies, adjusting your pricing model to offer better value to customers, improving your service quality, or offering unique services that differentiate you from competitors. Additionally, you could consider implementing promotional offers, discounts, or loyalty programs to attract more customers.

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What do you do if your aviation services are not priced competitively?

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1 Assess Costs

2 Add Value

3 Innovate Services

4 Market Effectively

5 Build Relationships

6 Review Regularly

7 Here’s what else to consider

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