Subscription offers A resilient business model To fight COVID-19 Iñaki Uriz, CEO of Caravelo
Crisis are a constant in aviation Gulf war 9/11 SARS Global crisis Covid-19 1990 2001 2003 2008 2020
But COVID-19 looks particularly severe 300 Asia Pacific - Billions RPKs per month (Seasonally adjusted) COVID-19 ‘SARS-shaped’ 200 100 SARS 2003 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Months after crisis Note: Estimated scenario with existing data to month 2 (Feb), then follows broad pattern of SARS
Operational impact Business impact Flight disruptions Revenue collapse Cancel flights Search extra financing Adjust network Aggressive cost cutting Repatriate crew & paxs Layoffs Refund & Rebook Creditor negotiations ... ... Impossible to avoid! Impossible to mitigate?
What would have happened to your revenue if... #% of it was based on a subscription model?
The airline industry - transactional model Volaris v.pass - subscription model Chinese weekly World Airlines Revenues and bookings of flight departures Index v.pass subscription product 10,5k 115 Revenues -82% -25% Bookings 1,9k 82 1-Jan 21-Jan 25-Feb 1-Nov 1-Jan 1-Feb 10-Mar Nov-19 Dec-19 Jan-19 Feb-20 Mar-20 Apr-20
Are you prepared for post Covid-19? What will your airline do different to generate and capture demand?
“Opportunity is always present in the midst of crisis” - Chinese word meaning ‘crisis’
Now is the time to set Unlock fast, healthy up a subscription offer and resilient recovery Demand COVID-19 Recovery An attractive Avoid price war long-term offer and dangerous in exchange of market clear passenger dynamics commitment 2 - 6 Months 4 - 9 Months
Join the Subscription Economy Transform passengers into subscribers… in weeks Controlled acquisition cost Hyper-loyal customer base to properly retail Stable revenue stream and passenger flow
Strengthen your business for the next “virus” Gulf war 9/11 SARS Global crisis Covid-19 ??? 1990 2001 2003 2008 2020 ????
Bringing airlines and passengers closer together Iñaki Uriz, CEO /ium
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