New Zealand travelers are becoming increasingly price-focused and less willing to pay a premium for a better quality experience. At the same time Jetstar has been focused on improving its service proposition including reliability, on-time performance and heavily promoting its service offering in ATL advertising.
Air New Zealand therefore knew they needed to be more competitive at every stage – searching, comparing and booking. Extensive customer research showed that what customers really want, is flexibility, affordability and options when travelling around the country.
So, after two years of development, a game-changing new pricing structure for domestic travel was developed and implemented, offering four completely different fare types to suit the needs of all their customer groups and what they believed would be hard for their competitor to offer.
The new domestic seats were launched to market with a multi-media direct response campaign – led by a TV ad that stands out because it's full of factual information, yet delivered in a fun and engaging way. New domestic seats consists of four fare types that mean customers only pay for the features they really want. The fare types are: Seat, Seat+Bag, Flexitime, FlexiPlus. The most exciting change is that now all four options are available to you every time you book.
The new domestic seats product and the campaign to launch it has been an outstanding success. Everyone understood it. Everyone liked it. More importantly, it drove sales.