Subscription offers A resilient business model To fight COVID-19 - - PowerPoint PPT Presentation

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Mar 14, 2023 34 likes •155 views

Subscription offers A resilient business model To fight COVID-19 Iaki 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

SLIDE 1

Subscription

ffers

A resilient business model To fight COVID-19

Iñaki Uriz, CEO of Caravelo

SLIDE 2

Crisis are a constant in aviation

Gulf war

1990

9/11

2001

SARS

2003

Global crisis

2008

Covid-19

2020

SLIDE 3

1 2 3 4 5 6 7 8 9 10 11 12

But COVID-19 looks particularly severe

Months after crisis COVID-19 ‘SARS-shaped’ SARS 2003

Note: Estimated scenario with existing data to month 2 (Feb), then follows broad pattern of SARS 300 200 100

Asia Pacific - Billions RPKs per month (Seasonally adjusted)

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Impossible to mitigate?

Revenue collapse

Search extra financing Aggressive cost cutting Layoffs Creditor negotiations ...

Flight disruptions

Cancel flights Adjust network Repatriate crew & paxs Refund & Rebook ...

Operational impact Business impact Impossible to avoid!

SLIDE 5

What would have happened to your revenue if...

#% of it was based

n a subscription

model?

SLIDE 6

The airline industry - transactional model Volaris v.pass - subscription model

Chinese weekly flight departures

10,5k

1-Jan 25-Feb 21-Jan

1,9k

World Airlines Index

1-Jan 10-Mar 1-Feb

115 82

1-Nov

Revenues

Revenues and bookings of v.pass subscription product

Bookings

Nov-19 Dec-19 Apr-20 Mar-20 Feb-20 Jan-19

SLIDE 7

Are you prepared for post Covid-19?

What will your airline do different to generate and capture demand?

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“Opportunity is always present in the midst of crisis”

Chinese word meaning ‘crisis’

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Now is the time to set up a subscription offer

2 - 6 Months 4 - 9 Months COVID-19 Demand Recovery

An attractive long-term offer in exchange of clear passenger commitment

Unlock fast, healthy and resilient recovery

Avoid price war and dangerous market dynamics

SLIDE 10

Join the Subscription Economy

Controlled acquisition cost Hyper-loyal customer base to properly retail Stable revenue stream and passenger flow

Transform passengers into subscribers… in weeks

SLIDE 11

Strengthen your business for the next “virus”