AirAsia’s marketing strategy has positioned the airline as the leading low-budget airline in the competitive aviation industry, where customer loyalty is fickle and operating costs are formidable. They achieved tremendous growth and market leadership by leveraging a robust marketing strategy built on affordability, innovation, customer-centricity, and strong branding.
Dynamic Pricing and Promotions
A key pillar in the success of AirAsia’s marketing strategy is its dynamic pricing model. The airline utilises sophisticated algorithms to offer customers tiered pricing based on demand, seasonality, and time to departure. Promotions and flash sales have become a core element of its strategy, drawing widespread media attention and consumer enthusiasm. AirAsia frequently offers promotional fares with discount rates as high as 20% to stimulate demand. These flash sales are marketed across digital platforms, creating a sense of urgency among potential travellers. Moreover, loyalty programs play a crucial role in customer retention by offering frequent flyers the opportunity to earn points that can be redeemed for future flights. As of 2023, their loyalty program had over 30 million members across Asia, making it one of the region’s most extensive airline loyalty programs.
Digital-First Strategy and E-commerce Expansion
AirAisa’s marketing success is not just limited to low fares and promotions; its digital-first approach has also been instrumental in its success. Recognising early on the importance of digitalisation in aviation, AirAsia invested millions in building its online presence, mobile app, and digital marketing.
To book flight tickets for AirAsia, customers must use their mobile app or visit their website. This strategy helped them eliminate distribution costs with third-party travel booking agencies and maintain direct customer relationships. Moreover, they could also personalise offers and upsell services such as seat selection, meals, and baggage. In 2020, AirAsia’s Super App registered over 50 million users, diversifying their revenue streams and developing an integrated customer experience.
Creative Branding
The airline employed various marketing strategies to stand out and build a loyal customer base. Among these was the introduction of innovative branding campaigns. For example, initiatives like #ThankYou, #RedHotPisoSale, and other user-generated content encouraged strong engagement and participation. Additionally, the airline capitalised on its broad social media reach to inform its audience about holiday packages, local cuisines, unique attractions, and more. They also harnessed the power of machine learning and automation to amplify the effectiveness of their advertising efforts. This resulted in a 16% increase in the booking site and a 21% increase in bookings.
Moreover, AirAsia’s frequent engagement with customers and collaboration with influencers made it the only airline outside the USA with over a million followers on its Facebook page. In total, they have 12 million+ followers across social media platforms.
In-House Digital Marketing Team
Soon, the airline realised the importance of having an in-house digital marketing team. They shifted from outsourcing digital marketing services to building a strong digital marketing team within their company. AirAsia expanded its team from 8 members to 50+, enabling it to leverage data more efficiently and drive real-time advertising campaigns closely related to its flight inventory. With the use of advanced tools and an in-house digital marketing team, they were able to drive Facebook fan base growth by 30%.
Corporate Social Responsibility and Environment Initiatives
In an era where sustainability is a growing concern, AirAsia has made strides in positioning itself as an environmentally conscious brand. The airline has implemented several CSR initiatives, including carbon offset programs, to appeal to eco-conscious travellers.
They installed innovative software modification, Descent Profile Optimiser, to reduce carbon dioxide (CO₂) emissions. The airline also promoted paperless transactions and digital boarding passes. Because of these measures, in 2021, AirAsia was able to prevent the emission of 11,175 tonnes of carbon dioxide, which is comparable to planting 186,250 urban trees. This further established the company as a forward-thinking brand.
As AirAsia continues to expand its digital footprint and diversify its business offerings, its marketing strategy will remain a key driver of its success. The airline’s ongoing commitment to affordable travel, technological innovation, and customer-centricity ensures it will continue to soar above its competitors.
