KLM Student Travel Community

KLM Student Travel Community

• Questions?

Circumstances

Problems?

Or opportunity...

• Low load factor/lots of empty seats

• Need to reduce capacity

• Major losses

• Airline industry facing hard times

• First the oil price, now the recession

• Airlines like KLM are not so doing well

• Low fare airlines gaining popularity

• We want to use all those empty seats in a productive way

• Without damaging KLM

• So don't harm the brand

• And don't cannibalize current sales

KLM

• KLM is an established, well known brand

• Network of primairy destinations

• Not low cost

• High turnover/profit from business class flights

15000ft

14000ft

13000ft

KLM Benefits

12000ft

11000ft

10000ft

9000ft

8000ft

• Filling up empty seats, so almost no extra costs

• Only for adventurous students, so no cannibalizing of the current sales

• It improves KLM's brand image

• Students are high prospect customers

• And are becoming loyal to KLM by actively participating in the community

• KLM acquires customer information

7000ft

6000ft

5000ft

4000ft

3000ft

2000ft

Marketing

1000ft

KLM Student Travel Community

Price

Place

Promotion

What it is:

• Direct marketing at places where students gather

• Viral marketing

• Low cost!

• Booking via internet

• All students have access

• € 49,95

• Price below average low fare ticket

• Makes it extra interesting for students

• Almost no extra costs for KLM, so 'pure profit'

• An adventurous, fun and interactive community

• On the internet

• Share travelling stories/photos with your friends

• The biggest advantage for students: they can book 'blind flights'!

Blind Flights

• A flight inside Europe to an unknown destination

• So when you book, KLM decides

• Very low priced: € 50,- return ticket including taxes

• You know where you'll go a week before take-off

• So an ideal way of travelling for adventurous students!

Conclusion

• Almost no costs

• Direct profit of selling empty seats

• Indirect profit by attracting high prospect customers

• And making them loyal early on

• Improve brand image of KLM