tiger
Customers are not willing to part with luxury despite decrease in cost.
Tiger airways target the people who are travelling on limited budgets, primarily younger adults, students and low wagers. According to the website of Budget carrier Tiger Airways, they have promised the lowest airfares: At least 40 per cent less than the average lowest fare in Singapore. In exchange for the lower cost, the travelers have to sacrifice on comfortable seats and leg space.
People are willing to give away greater luxury for travelling at lower cost.
STRATEGY: A $1 online promotional airfare to Bangkok or Phuket for a limited period available less than one third of tickets, while more than two-thirds between $40 and $140 each way. Tiger airways relies highly on social media websites and on budget travel websites. Through this Tiger Airlines has created a segment of customers which would in near future also travel via airlines. People can now undertake journey via planes which they could not earlier contemplate of.
RESULT: The public showed its desire for budget travel, flooding the carrier's reservation website and recording 4.5 million hits.
Tigerair has reported net and operating losses for the quarter ending 31-Dec-2013 (3QFY2014) as all four of its subsidiaries or affiliates were in the red. The group’s core operation in Singapore, which operates half of the group’s fleet, was unprofitable for the second consecutive quarter as overcapacity led to a significant drop in both yields and load factors.
The outlook for Tigerair Singapore for 2014 is bleak as market conditions remain unfavourable. The group will be adding several more aircraft into the Singapore market, exacerbating the overcapacity situation.
If Tigerair can weather the current storm, the outlook for 2015 is brighter. Tigerair Taiwan is expected to launch in late 2014, absorbing some of the group’s excess aircraft, while Tigerair Australia and Indonesian affiliate Tigerair Mandala should be in a better
Tiger airways target the people who are travelling on limited budgets, primarily younger adults, students and low wagers. According to the website of Budget carrier Tiger Airways, they have promised the lowest airfares: At least 40 per cent less than the average lowest fare in Singapore. In exchange for the lower cost, the travelers have to sacrifice on comfortable seats and leg space.
People are willing to give away greater luxury for travelling at lower cost.
STRATEGY: A $1 online promotional airfare to Bangkok or Phuket for a limited period available less than one third of tickets, while more than two-thirds between $40 and $140 each way. Tiger airways relies highly on social media websites and on budget travel websites. Through this Tiger Airlines has created a segment of customers which would in near future also travel via airlines. People can now undertake journey via planes which they could not earlier contemplate of.
RESULT: The public showed its desire for budget travel, flooding the carrier's reservation website and recording 4.5 million hits.
Tigerair has reported net and operating losses for the quarter ending 31-Dec-2013 (3QFY2014) as all four of its subsidiaries or affiliates were in the red. The group’s core operation in Singapore, which operates half of the group’s fleet, was unprofitable for the second consecutive quarter as overcapacity led to a significant drop in both yields and load factors.
The outlook for Tigerair Singapore for 2014 is bleak as market conditions remain unfavourable. The group will be adding several more aircraft into the Singapore market, exacerbating the overcapacity situation.
If Tigerair can weather the current storm, the outlook for 2015 is brighter. Tigerair Taiwan is expected to launch in late 2014, absorbing some of the group’s excess aircraft, while Tigerair Australia and Indonesian affiliate Tigerair Mandala should be in a better