Cut Costs The Low Cost Airline Way

Digital entrepreneurs should study the masters

of digital cost cutting, the low cost airlines:

Low cost airlines cut travel agents out of the booking process, and sent their customers to the web.saving 12% of the cost of a flight.

They then made their customers print tickets

out themselves thus cutting out check-in staff.

By refusing to transfer bags from flight to flight, low cost airlines

then cut costs further.

But this also allowed them to claim fewer lost bags than full-fare airlines.

Then, by flying to secondary, less congested airports they cut costs further, but also became the most

punctual airlines in the world.

Secondary airports meant they could also promise to get leisure travelers to beautiful

countryside faster.

Then the low cost airlines sold click-thru ads on their websites to

hotels and car hire companies.Empty space on their websites

became a big profit center.

Then they flexed their muscles: they established that they could move their flights from airport

to airport on a whim.

As a result, the tables turned. Low cost airlines stopped

paying airports to land. And regional governments started paying them to fly tourists in.

$

By the early 2000s, low cost airlines had captured the entire marketing

budget of some tourist boards.

Why spend money on marketing when government will do it for you?

$ $$$ $$$ $$

Digital innovation involves cost cutting.

Extract from

Download: http://bit.ly/mobmania

which im reading from seat 23b

Presentation design

@jessedee