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29 March 2024

Branding a key component for development of airlines

Singapore Airlines has one of the most comprehensive training programmes for flight crew to ensure the SIA brand experience is fully and consistently delivered (SUPPLIED)

Published
By Reena Amos Dyes

 

Like any other product, branding is a key component in the airline industry also. This is because all flying experiences are similar – boring and stressful. The plane is becoming a commodity and flying has lost all its magic.

To top it all, the competition in the aviation industry is increasing with the launch of new budget airlines.

According to research, while 35 per cent of passengers choose an airline on the basis of punctuality, pricing comes second at around 30 per cent.

However, this also means that 35 per cent of the decision-making is influenced by other factors. This is where branding comes in.

Hermann Behrens, CEO, Brand Union, Middle East, told Emirates Business: "Branding is a key component for the development of airlines. Especially in today's competitive world where budget airlines are being continuously launched, branded and aggressively marketed.

"When combined with the pressures of increasing costs of running an airline [soaring fuel costs] and increasingly lower consumer price expectations, the market is ultra competitive. In the light of these developments, airlines are increasingly realising the need to build their brands to maintain and shape their market position, creating loyalty beyond price, where they can count on consumers returning, and offering services that will help the consumer, and run the business more profitably."

Olivier Auroy, managing director of Landor Associates, said: "Branding helps airlines to differentiate themselves from others. It also helps them showcase their strengths beyond the expected basic requirement of taking a person from point A to point B.

"Differentiation has become important since low-cost airlines entered the market. Low-cost airlines provide basic services for low prices. That's why traditional carriers had to respond and improve the experience, because if the passenger only made his decision based on price, low-cost airlines would always be chosen."

Though the basics of branding even for an airline remain the same, there are subtle differences. While from an operation point of view, the airlines business consists of moving millions of people in metallic flying objects all around the world, from a customer point of view, ideally speaking, the airline experience should be the perfect combination of a limousine, a hotel, a restaurant, a lounge, a movie theatre, a comfortable bathroom and a luxury shop.

Auroy said: "The specificity of airline branding is that you carefully look at the brand experience and the customer journey. The customer journey is easy to identify.

"The passenger becomes aware of the offer, explores the possible options, books his ticket, checks-in, clears the formalities, waits to board, flies, disembarks, leaves the airport, hears again about the airline through promotions and advertising and hopefully, becomes a loyalist.

"Airlines branding is to make sure that, at each stage, the passenger will have the best possible experience and that he will attribute that great experience to the airline he is flying with.

"The good thing about airline branding is that you can really connect and interact with the customer. When flying, he has no choice, he must stay on board: you can communicate and build relationship in all possible ways. But for the same reason [he has to stay on board, he cannot move], the passenger can be easily frustrated and his expectations will be high. You have many opportunities to build brand loyalty. It is becoming closer to the hospitality business than ever before."

Behrens said: "Unlike other products, most of the airline brand experience is delivered predominantly through service as all offer the basics of flying you to a destination, in very similar planes, and through the same airports and security measures.

"Airlines have an extensive array of service touchpoints where they can differentiate, from the moment a person picks up the phone to book a ticket until they reach their final destination; travel to the airport, priority check-in counter at the airport, lounges, baggage handling, cabin crew service and uniform style and recently, with Virgin America, the advent of cosmetic changes to seats, cabin and literature to change the flying experience."

Auroy said: "Airline branding helps passengers fly again and again. If the consumer buys the product once, it is great. If the consumer buys the product again and again, it is better.

"This is where the frequent flyer programme matters, because according to research, 35 per cent passengers choose an airline on punctuality and 30 per cent on pricing.

"Branding is also about reputation, and reputation is fragile. Whatever they do, Lufthansa will be perceived as a reliable company. Whatever they do, Air France will struggle because there were too many strikes in the past. It damaged its image and it will take years to recover."

In a consumer world that is ruled by brand names, it has never been more important for an airline to have the right public image. If the national flag and perhaps a catchy logo on planes, counters and ticket covers were sufficient earlier, today branding is a science of its own and airlines these days realise that.

That is one reason that more and more airlines are getting involved with sponsoring sports events, as that provides worldwide visibility and creates goodwill.

Emirates signed a $195 million (Dh716m) eight-year deal with Fifa and football clubs PSG, Hamburg and Arsenal. The airline also bought the naming rights of Arsenal's £357 million (Dh2.6 billion) stadium. The 60,000-seat stadium will be known as Emirates Stadium for 15 years. While Emirates has also got its fingers in the Formula 1 pie with its tie-up with the McLaren team, its closest rival Etihad has partnered up with racing team Skyper, with the Chelsea Football Club and with English rugby union team Harlequins.

However, not all airlines take that route. Some of them find their inherent strength and build on that. Auroy said: "Virgin Atlantic renewed the whole in-flight experience with duvet, pajama, pop corn, bar and 'steal me' sticker on the saltcellar. They chose the in-flight message to symbolise this new way of flying. In Landor, we call it a 'power application'."

"When we rebranded Siberian Airlines [it became S7], we looked for a powerful way to transform the travelling experience in Russia. We chose the airport lounge in Moscow. We turned the lounge into a cool jazz club and all the passengers were flooding towards the lounge.

"Singapore Airlines built its reputation around hostesses. This has become their united selling proposition."

Airlines can be divided into four different segments. There are the global national carriers, regional airlines, budget airlines and charter airlines. They all have different objectives from branding point of view and different opportunities to position themselves in their segment.

Behrens said: "Emirates, a global national flag carrier, projects itself as a progressive, cosmopolitan airline that represents a dynamic and progressive country such as the UAE. It has realised that the world is changing and now seeks more from life [and airlines]. The airline has linked itself to the idea of progress and new experiences through its tagline 'Keep discovering'. It has also built on the insight that long-haul service was not up to scratch and continually think ahead about how to help flyers make their journey as easy as possible.

"Budget and regional airlines have also done a good job with their images. For example, airlines such as Easy Jet, Ryan Air and Go all have distinctive personalities and brand identities, but are falling into a commodity trap, offering no-frills and low price, their brand is more about recognition and recall than meaning.

"Virgin America is a very good example of airline branding by 'standing up for the consumer', it has changed what it offers based on consumer needs. Offering great service, entertainment (3000 MP3s on board), Recaro designer seating, elegant cabin mood lighting and all wrapped up in low-cost (but high value) offerings."

However, regional airlines have an advantage over other airlines as they can improve their brand experience on the ground by working hand-in-hand with the airport authorities. Auroy said: "Unfortunately, airlines don't always control this part of the brand experience. Walking into endless corridors, painfully clearing the formalities, being packed in crowded lounges, etc…

"Dubai, Abu Dhabi and Doha are all creating new terminals and improving their airport facilities. This can largely contribute to improving the passenger experience.

"In the region, airlines have money. Branding is not only about changing the livery of the aircraft, it is also about creating ideas that will radically change the passenger experience. In Europe, we often come up with ideas and clients say: 'It's a great idea but this is expensive to implement'. However, there is no such problem in the Middle East. Think of what you can do with the A380. The possibilities are endless with so much space inside the aircraft."

Behrens said: "My advice to airlines in the region is to find a bright idea that is new, exciting to the consumer and moves the market. Build on your brand identity (naming, identity, colours, uniforms, etc) to make sure the brand is at the centre of everything you do, every service you provide. From the check-in to the lounge, the food, the loyalty programme, the airplane cabin, the service, make sure you deliver a holistic and consistent brand experience, everyday."

However, no amount of branding will be of any use if the airlines do not bring its staff into the experience. Airline expert at Landor, Al Saint Germain, said: "How can any organisation expect its people to continue to improve in service without taking the time to properly instruct and evaluate them?"

"Great airlines customer service is made of consistency, empathy, support (frontline staff, a lot of work behind the scene) and style." A good example of this is Singapore Airlines, which runs one of the most comprehensive and rigorous training programmes for cabin and flight crew in the industry to make sure the SIA brand experience is fully and consistently delivered.

Olivier said: "When it comes to experience, airlines already know where the improvements should or could be made. Traditionally, the stressing moments are the check-in, the boarding and the luggage collection. If you can do something about those sectors, you will improve the experience."