How can I increase the market share of my airlines?
I own a small airline that functions locally in Nepal. We are 3 partners and do not suffer from any communication gap or other problems between ourselves. We operate with 4 flights and fly locally over here from Biratnagar to Lukla. We are keen to know how we can increase the market share of our airlines by any means. We do lack a bit of money but we can invest a good sum of it if the product seems to be profitable. As it is an airline, there has to be huge additional working capital that is inserted which helps us to further expand our business.
Moving forward to the main question, I would like to put forward an empty and open box of suggestions which you fill with your valuable proposals. Spending money is something that has to be done very wisely and by giving it deep thought. I pose a question in front of all of you to please guide me through whether I should spend my money (capital) on advertising, increasing flight qualities, decreasing booking charges, etc.
Please do give a valid reason with your suggestion for the same.
The airline business uses a direct channel of distribution which shows how we do not need to maintain any special contacts. I look forward to some good and valuable advice which could help me and my partners work better as a whole.
Which market are you trying to serve? Are you the Ferrari or the Kia? Knowing your target market will determine where you want to spend your capital.
If you are trying to attract high-income people, invest in the quality of the experience.
If you are trying to attract low-income people, you are competing on price, so you should invest in making your costs cheaper so you can be the lowest cost on the market.
If you are trying to attract mid-income people, do something in between.
Offer VIP treatment
Offer a membership for frequent fliers
Give toy planes to kids when they fly with you