FLYDUBAI 1 Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    1
  • Words:
    663

FlyDubai

Introduction

FlyDubai is a new airline, which has been introduced by the Dubai Aviation Corporation. This travel carrier is offering low cost prices to its customers and it is termed as one of the airlines, which is growing at a very high rate (Kemp, 2012). The airline has continued to offer modern fleet and outstanding product at a low price. This has caused the airline to continue to expand in their routes and extension of their services. FlyDubai has its headquarters at Terminal 2 at Dubai International Airport (Kemp, 2012). Its growth has triggered other companies like Splendid to come up and work together in benefit of both companies (Kemp, 2012). This article answers questions that concerns FlyDubai’s pricing strategy, target market, offer on Ramadan and future challenges.

1. Describe FlyDubai’s pricing strategy? How do you evaluate it?

The FlyDubai’s pricing strategy is an attractive method of enticing customers to travel using the airline. The low cost price has made the airline to become famous to many customers who use it. It attracts the high number of low-cost passengers and it is not complex for first time travelers. Due to the low-cost fares, the airline has been able to achieve more than 150% increase in passengers during its two years of service (Kemp, 2012). The pricing strategy is also transparent; the consumers pay for what they get as compared to other airlines that have hidden charges in their fare prices.

2. Describe the target markets of FlyDubai? How price-sensitive are they?

Apart from the airline’s price, passengers also crowd the target markets. The airline is aiming to expand its services in North Africa, Other parts of Asia, Indian Sub-continent, Ukraine and Russia (Kemp, 2012). These places have a wide range of customers who travel to different places. In this case, the airline will not lack market but it will continue expanding since it is very competitive. By considering FlyDubai and other airlines in its target market, it can been seen that the customers pay high prices as travelling fares (Kemp, 2012). FlyDubai Airline will attract the customers who can be pleased to pay less for high quality services and travelling to the same destinations. This means FlyDubai will take over the customers in its target markets with a storm.

3. How do you evaluate FlyDubai’s offering in Ramadan? Do you think it is going to be successful given the fierce competition?

FlyDubai has offered to repay all its passengers who will be traveling in the month of Ramadan. The passengers will receive vouchers, which can be used on other trips using the FlyDubai Airline. This is another chance for the Airline to entice its customers. It serves as a promotion given to its faithful customers. This offer is going to be successful regardless of the competition; this is because customers desire to travel on cheap prices and it is made even much attracted by the reimbursement. This is seen as a way of drawing customers from all other airlines.

4. What challenges do you expect FlyDubai to face in the near future?

Despite its significant growth, FlyDubai is expected to face challenges in future.. The airline will face a challenge while trying to raise their fare prices (Kemp, 2012). In addition, FlyDubai serves some parts of Asia where there is low internet access, which forces it to use some travel agents and distributors such as post offices and currency exchangers (Kemp, 2012). This will creates a high competition with other old airlines in the region. Its customers in its markets have large and heavy luggage, however the airline reduced its free luggage allowance per customer and increased its excess luggage fees. This will cause the customers to change airlines due to harsh baggage fees. Even in presence of challenges, FlyDubai will continue to offer competition to its competitors.

References

Kemp, G. (2012). The East Moves West: India, China and Asia’s Growing Presence in the Middle East. Washington DC: Brookings Institution Press.