14 Jul Alaska Air's Promotional Model
What is this?
Promotion model to sell empty tickets: promotion of flight tickets based on travel intention. E.g. the airline offered discounts based on wave heights, as measured by monitoring stations at 14 locations across the Hawaiian Islands. Discounts, which were good for flights throughout much of November, ranged from 10 percent for 10 foot swells, to 30 percent for swells bigger than 21 feet.
Why is it interesting?
A customer who undercuts the competition is probably someone who always looks for the cheapest fare, and would defect if the price was right. But someone who plays along with a game about wave heights, is someone who can be groomed and grown into a more lucrative future customer.