With the ever-growing tumultuous nature and dynamic pricing of the aviation industry, consumers often have a confusing relationship with the service providers. In this assignment, I’ll be analyzing the market segmentation of three such major aviation companies – Spirit Airlines, JetBlue and American Airlines as they are each known for a different purpose they solve and have slightly different target markets. Here are some examples of how these airlines segment their markets:
Spirit Airlines: Spirit Airlines is known for offering low fares and targeting budget-conscious travelers. Their main target market includes leisure travelers who are looking for a cheap way to get from point A to point B and don’t prioritize the comfort of the journey. They often fly to smaller, secondary airports, which helps keep their costs down and allows them to offer lower fares. They also cut down their costs by restricting all services like entertainment and Wi-Fi, increasing passenger capacity per flight, and running more trips in a day with the same staff.
JetBlue: JetBlue is a mid-priced carrier that focuses on providing a comparatively high-quality travel experience for its customers with a slight price bump. They target both leisure and business travelers, and aim to differentiate themselves by offering in-flight amenities like free Wi-Fi and entertainment options. They also offer a loyalty program to attract frequent travelers and try to find the right intersection between low cost and comfort.
American Airlines: American Airlines is a full-service carrier that target both business and leisure travelers that choose comfort and better service and differentiate themselves by offering a range of in-flight amenities, such as first-class seating, in-flight entertainment, and airport lounges. They also have a loyalty program and different price points for different customers based on their spending power. Through multiple corporate partnerships, frequent travel options between multiple locations and wide presence, they have become the largest operators of their category.
Below is the market segmentation based on various other factors :
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