AirAsia
Phew…I’ve had a good break recovering from my bronchitis condition.
For the full mind-boggling story, click this link –> Down But Not Out
I’m only glad there’s a tablet for suppressing my coughs instead of the liquid type most of us have taken at one time or another, which tastes truly awful.
The tablet is a very tiny one but it’s about 5 times more potent than the liquid variety – and it totally suppressed my coughing reflex like no other, without the need for my tastebuds to go berserk each time.
So the coughs have finally stopped, and I’m feeling like normal again since I’ve broken the vicious cough – throat irritation – cough some more – more throat irritation – cough even more – even more throat irration cycle.
Which means it’s playtime once more! 
As I laid in bed recovering from my condition (I did next to nothing all this time), I saw ads in the newspapers by low-cost airlines that are all the rage all over the world for the past few years now.
I’ve flown EasyJet and RyanAir when I was travelling in Europe (I bought my tickets over the Internet) at prices that were unheard of before these low-cost airlines came along.
And now in Asia, even more ridiculously low ticket prices screamed for my attention.
$1.99 to Jakarta (one-way). The return ticket costs the same.
$0.99 to Macau (one-way). The return ticket costs the same.
$2.99 to Bangkok (one-way). The return ticket costs the same.
How could these airlines, using new Airbuses as their planes, even make a profit with those prices?
But profit they do. Malaysia’s AirAsia, the No.1 low-budget airline in Asia, makes millions of dollars every year selling tickets at those prices.
Simple math and common sense tell us that it isn’t possible, even if we don’t know what their actual costs are - but it’s happening for them.
So what’s going on?
Think about it for a minute. How is this possible?
Ridiculously low ticket prices are not just a one-off marketing tactic for AirAsia – it regularly promotes its business this way.
In fact, it’s more a strategy than a tactic since it goes to the very mission of the airline, with its tagline being “Now Everyone Can Fly”.
And that’s totally true – since it’s even cheaper to fly AirAsia than to take a bus or drive on your own to get to those destinations.
AirAsia is a low-cost airline and it needs to constantly remind its Prospects and Customers of this fact.
Regular ads advertising ticket prices that are unbelievably low is one great way to do it, as they’ll surely generate word-of-mouth publicity long after the ads are history.
So how can AirAsia sell tickets at those prices and still make millions in the process?
The answer is simple.
AirAsia simply made lemonade out of lemons, where lemons are found.
You see, not every seat on the plane that are flown on a particular journey are taken up. AirAsia knows from its experience of flying its routes what its planes’ load is.
It could be 80%, or 75%, or 90%.
The remaining 10 – 25% of the seats are empty.
Now it could simply let the seats remain empty, in which case it doesn’t make any more money from them.
Or it could advertise them for sale at those ridiculously low prices seen above.
After all, what’s the big deal of selling a seat at $0.99 (one-way) and not make money from it, if that seat is going to be empty anyway?
So why not scream this price from the rooftops and benefit from it, even if the seats continue to remain unsold?
Because when this happens, and whether the seats are sold or not, AirAsia is entrenching its position in the minds of their Prospects as a true low-cost airline.
I mean, how much cheaper can it get, from $0.99 per ticket, other than giving it away for free (which it has also done in its million-dollar giveaways it conducts regularly!)?
AirAsia has successfully knocked its many competitors in this region out from the minds of its Prospects and Customers with its strategy and supporting tactics. There are many factors involved in its success and I’ll discuss them in future posts.
As for the ridiculously cheap tickets offer, AirAsia does state that limited seats are sold at those prices and the flyer will have to book their flight weeks in advance.
However, even at regular prices, we’re looking at a hundred to a few hundred bucks for a ticket depending on the destination – when the usual airlines would charge a thousand or two for the same journey.
So from the same ad it’ll likely get some customers buying the cheap seats, while at the same time it’ll get even more customers who couldn’t get the cheap seats on the dates they want (because they’re sold out), who then buy the regular seats at 50% – 80% cheaper than a regular airline’s seats.
In a nutshell, by advertising ridiculously cheap seats for certain destinations, AirAsia:
1. Sells its seats that would otherwise remain empty;
2. Sells those seats weeks in advance and thereby filling up the plane more than it could before;
3. Attracts enquiries from Prospects who otherwise wouldn’t even think of flying;
4. Converts some of those Prospects into regular paying Customers if the cheap seats are sold out;
5. Provides a good experience for first-time flyers of low-cost airlines that their service level is comparable to the regular airlines which will make them fly AirAsia in the future;
6. Entrenches its position as a low-cost airline further;
7. Creates word-of-mouth marketing through the ads and from its Customers’ experience;
8. Easily achieve top-of-mind awareness, knocking its many competitors out from the minds of its Prospects and Customers.
That’s a lot of value generated from taking the lemons in its business and making lemonade out of them very loudly – don’t you think?
Found any lemons in your business – Internet or otherwise?
Make lemonades out of them and do this loudly!
Warm Regards,
Sen Ze
P.S. Click This Link To –> Join The Pajamas Revolution Today
P.P.S. You can link to this post using the following URL:
http://www.SenZe.com/business-blog/airlines/AirAsia.htm
DavidK said,
Sen Ze, glad to see that you’re getting well and back in action. Indeed, your illness was a mind-boggling story.
After winning the Mini-E, I read and analyzed it thoroughly. It’s fair to say that I’m the critical and analytical type. And I rarely find something worthy of mention or praise. I found the Mini-E to be “hands down” one of the best values that I have ever seen! No less unique, is the opportunity to market the Mini with an automated SOLOBIS e-commerce plan. I didn’t waste time in deciding to go for it and made my first sale today.
The content is priceless for people looking to find their way in an online business.
The Mini informs, educates and opens the imagination. People will discover ways to make money that they never knew existed.
Several months ago and long before I heard of the Mini and SOLOBIS, I published an article that I believe addresses the biggest obstacle to online success in the US. Coincidentally, “The Pajamas Revolution” or e-commerce solutions solves the problem.
Most people looking to escape the rat race are working and couples are both holding down a job. People today are stretched to the limit for time. With jobs, personal obligations, appointments, traffic, kids and the list goes on; how much free time does that leave for a home business? If they had some idea of what they wanted to do, they could spend months or even years learning how to set up their business. Without an e-commerce solution like SOLOBIS, the chances for success are slim and none. (Slim is out of town)
Great job Sen Ze, and thanks for the lemonade!
admin said,
You’re welcome, DavidK!
I’m truly glad you have found great value in the Mini-E, as many have.
Just for the record – the very kind words you’ve written were not done in response to any request from me for a “testimonial” (in other words, I didn’t ask you to write one for me), nor were they a condition for you to claim your “prize” from the contest I held last month which you won.
I’m saying this because your testimonial sounds just too good to be true in the minds of some people, even though some of the top names in the Internet Marketing field share your view.
Having clarified that – I would want to ask your permission to include parts of what you’ve written in my marketing materials for the Mini-E and SOLOBIS, with a mention back to your web site URL, of course.
Here’s wishing you every success you deserve and may you experience many more sales of the Mini-E and SOLOBIS!
Sen Ze
DavidK said,
Sen Ze, you can include any part or all of my testimonial in your marketing materials. And just for the record; I was not contacted or solicited for a testimonial.
Everything I said was totally unconditional.
I even left out a few points in the interest of keeping it short so maybe this will help people understand my testimonial a little better:
Since most people can’t create their own products, e-books with Private Label Rights and Master Resale Rights are hot and all over the internet. It’s a great way to get started but BEWARE…
Marketers and self-proclaimed gurus have created their own e-book production process through outsourcing. Who in the h~!! wants to read about what a “ghostwriter” has to say about succeeding online or anything else!? The quality of these e-books is what you might expect when they come from what I call “pen farms.”
If anyone thinks my testimonial sounds too good to be true, I suggest they do some searching and see what is out there with Master Resale Rights.
If they find something they “think” is comparable to the Mini-E, they have some questions to ask themselves: “How is the money going to appear in my bank account? When I sell the e-book with Master Resale Rights, how can these people get the money in their account?”
Which is more marketable; a ghostwritten e-book where people have to download all the files, then upload and set everything up themselves, or an e-book with the author’s name and reputation on it “that offers a turn-key e-commerce setup?”
Add in the SOLOBIS residual income to your Mini sales and you’ll have the smartest money ever made: “Sell once, get paid forever.”
My testimonial is just common sense and a recognition of the business.
AmarJit said,
Hi Sen Ze,
I just came aboard your ship!
I have ordered your new book for a $18 plus $5 for postage. Am awaiting my book. Then I ordered your Mini-E. I am reading it now.
The funny thing is that I bought your printed book ‘How To Use The Internet To Earn US Dollars In Your Pajamas’ about a year ago. Somehow I just dozed off. I woke a week ago and am really excited about your whole philosophy and concepts on using the net for linking with the whole world.
You have opened my eyes to the mind-boggling reality of the internet. I can feel your sincere and honest approach. Thank You.
Take Care.
With Warm Regards.
AmarJit
admin said,
Hi AmarJit!
Good to hear you’ve “woken up” and finally checking out the realities of doing business on the Internet. You’ll never be the same again, that’s for sure.
Thank you very much also for your orders. My “How To Use The Internet To Earn A Massive, Passive Income In Your Pajamas” will be with you by the end of next week. Let me know if you haven’t received it by then.
May you be inspired enough to take action to be one of the top players on the Internet!
Cheers!
Warm Regards,
Sen Ze