Compare And Contrast American Airlines And Spirit Airlines Distribution Strategy

Decent Essays
There are nearly 1700 airlines operating around the Globe, from the small regional carriers to the international fleets, all competing for ticket sales with a myriad of marketing methods (airlineupdate, 2017). Ticket distribution and pricing systems have become very sophisticated, harnessing big data to maximize seats sold and price point tolerance. But not all airlines have the capitol or the need to run and maintain a complex data analytics department. In this paper, we will look at two airlines and compare and contrast their distribution systems and marketing techniques.
American Airlines and Spirit Airlines operate their distribution and marketing departments in very different ways. We will start with American’s methods and then contrast

Related Documents

  • Decent Essays

    American Airlines Group gains 57% of its revenue from domestic operations. As of 2014, the domestic market position ACSI score for American Airlines is 66 and is ranked number 4 at 12.7% in airline market share with 73.79 billion domestic revenue passenger miles. American’s market share dropped from 15.9% in 2012 but gained 8.5% in market share when American merged with U.S. airways creating American Airlines Group. As for the international market, American Airlines Group has 23% in Latin America and a low revenue of 4.9% in the Pacific region. In 2013, American gained 10% in the Atlantic region, 8.2% in Latin America and a 1.6% decrease in the Pacific region…

    • 111 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Sun Country Airlines (SY) has a very unique marketing strategy for its niche, but its advertising has definitely proven effective. Sun Country has found its role in the airline industry, not as a legacy or a low-cost carrier, nor as a charter company (even though charters account for a large portion of their business), but as an airline in its own lane. This small hometown airline has weathered the storm through two bankruptcies, corrupt ownership, 9/11, and a recession or two. Sun Country is based in Mendota Heights, Minnesota, and majority of its 1,300 employees are born and raised in Minnesota. All of the marketing budget is spent in the Minneapolis/St Paul area attracting locals from the frigid winters to the warm destinations of Mexico and the Caribbean.…

    • 722 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    John Winthrop's Beliefs

    • 226 Words
    • 1 Pages

    This relates to the American…

    • 226 Words
    • 1 Pages
    Improved Essays
  • Improved Essays

    Spirit Airlines Supply

    • 834 Words
    • 4 Pages

    Following the decline in airfare prices offered by Spirit Airlines, Inc., it resulted in an increase in the demand for more flights, along with more airplanes. Because they were capable of “accurately forecast business cycle fluctuations in economic growth,” they were successfully able to incorporate the purchases of new Airbuses to be implemented launched in the near future, (Baker College, 2015, p. 8). Because Spirit Airlines, Inc. has proven to be successful following their unbundling technique, other airline companies are…

    • 834 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    May 7, 2016 Blake Baez 8101 S Clear Creek Rd Killeen, TX 76549 Dear JimBob Irate, We sincerely thank you for letting us know about your recent experience traveling with Delta Air Lines. On behalf of Delta Airlines, I apologize that our service did not meet your standards, and as an organization, we appreciate you taking your time to share your concerns with us.…

    • 235 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Fees make up approximately one third of Spirit’s total annual revenue (Nicas, 2012). Changing to the ULCC business strategy enabled Spirit Airlines to transform from a struggling, loss-generating carrier to the leading American value-focused airline in just a few years. This rapid growth has also pleased investors, as the company’s stock has increased approximately 250% since its IPO in 2011 (and at its high at the beginning of 2015 was double that). Based on the available data along with the recent drop in oil prices, it appears likely that Spirit’s expansion will…

    • 712 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    This shows the vitality of the analytics reports being generated on a daily basis and, is just one area to quote from a much wider avenue of prospects. The cloud based digital data management platform has helped Delta Airlines in exploring fragmented digital data of its travelers’ decisions for years now. As a part of Softcrylic’s ongoing commitment to the partnership, more sophisticated revenue generating models with real time data intelligence are to be proposed. About TapestryKPI: Born out of Softcrylic’s Data & Analytics division, this analytics solution targets four digital verticals-…

    • 376 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    After reading this article I noticed the importance of the way an organization can create a sales pitch that will benefit the ticket sales. The process of selling tickets provides a welcoming feel for the consumer, which relates to their ability to allow the organization to create a relationship between the two. The benefit from generating a mutual bond with the consumer lets the organization to have a lifelong bond that maintains the sales process as a whole. The process of funneling customers toward a specific aspect of sales is the best way to target them. In addition the data is used to separate them in groups within consumer escalator.…

    • 571 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Ticketmaster’s innovative changes were inspired by listening to their customer base, through social networking, data mining, and observing feedback. In this case, being transparent with a customer base helped Ticketmaster remedy the issue that was plighting their business.…

    • 1064 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    9/11 Case Study

    • 1159 Words
    • 5 Pages

    As it began to appear that the aviation industry’s economic status was starting to improve, the industry was faced with three more worldwide disasters; an increase in jet fuel prices, a declining economy, and Hurricane Katrina (Money.cnn.com, 2014). Airlines began making operational cuts in order to stay afloat financially and rise above their competition during this financial crisis (Money.cnn.com, 2014). Delta airlines cut seats on international and domestic flights and reduced and ended flights flying from “Cincinnati to London 's Gatwick Airport and Frankfurt” and “Atlanta and Detroit to Mexico City” (News, 2014). To remain competitive during this economic downfall Southwest Airlines, one of Delta’s competitors, cut non profitable flights, added fees, and continued to have airfare sales and promotions to gain new and keep old customers (News, 2014). This was a rough and unsteady period for the aviation industry.…

    • 1159 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    For any business to remain profitable and competitive, it is important for it to keep changing its business model and to continue updating its strategies (Casadesus-Masanell, R., & Ricart, J. E. 2010). These strategies will help keep the business on the right track with the changing business environment. Southwest has changed its business model and strategies over time in an effort to maintain their competitive advantage over its competitors. In today’s ever-dynamic environment, a business needs to change its model of doing business while keeping simple operational methods to ensure that the business does not collapse. Southwest is a company carrying out its business in the airline industry.…

    • 500 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Air Mail Act Of 1925

    • 666 Words
    • 3 Pages

    In the 1930s, Eastern, United, American, and Transcontinental and Western Air (TWA) became the main domestic airlines dominating commercial air travel (Van der Linden, 2015). Then, as air travel started to escalate, airport operators began to provide a simple…

    • 666 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    According to Elliot, Southwest is known for its customer service and higher prices, while Spirit is known for its low rates and poor customer service. This essay will discuss Elliot’s point of view on the subject and the evidence he uses to support his claims. In Elliot’s article, he suggests Southwest Airlines is the better of the two airlines. This is evident in the language that is used in “A Tale of Two Airlines.”…

    • 791 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Eastern Airlines, once one of the largest iconic airlines in the industry, known for its growth due to The Air Mail Act of 1934, also became known for it ’s power struggles and a an ongoing to war with themselves, precisely between management and workers. Like many carriers in the industry during the 1970’s and 1980’s, Eastern was subjected to difficulties due to deregulation which brought on competition within the market, airfare wars as well as waged wars against competitive rivals and in-house management. During those times mostly all industry carries struggled to keep their business up and running and out of bankruptcy, however many lost the battle and were subjected to hostile takeovers, mergers as well as eventually closing their doors…

    • 1329 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    The airlines website is currently responsible for over 75% of sales. (Southwest, 2015). Global Level Strategy Organizations that apply the global level strategy treat the world as largely one market and one source of supply with little local variation. Importantly, competitive advantage is developed largely on a global basis.…

    • 900 Words
    • 4 Pages
    Improved Essays