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Brand Marketing at a Time of Heightened Price Sensitivity

In: Beyond the Low-Cost Business

Author

Listed:
  • Josep Francesc Valls Giménez

    (ESADE Business School)

Abstract

The airline companies took a radical “no-frills” attitude right from the start. Moreover, the extras they had included before (newspapers and magazines, in-flight meals, complimentary drinks, seat reservation, loading excess baggage, etc.) all became new sources of income. As time passed, practically all these cost-cutting policies were adopted by the classic companies. British Airways and Iberia even took the risky step of asking their clientele about charging for excess baggage. It is clear that travellers will never give up the most basic benefits offered by all airlines (transport and safety), but millions of travellers are willing, if the price is low enough, to travel to airports at some distance from the destination, or to pay for their own food and drink or excess baggage as long as these two key factors of carriage to a specific destination and air safety are retained (even agreeing to walk a short distance if necessary).

Suggested Citation

  • Josep Francesc Valls Giménez, 2013. "Brand Marketing at a Time of Heightened Price Sensitivity," Palgrave Macmillan Books, in: Beyond the Low-Cost Business, chapter 3, pages 118-144, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-27753-4_4
    DOI: 10.1057/9781137277534_4
    as

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