Marketing in the News

 

My family and friends live in various states across the U.S. and speaking over the phone is only so fulfilling. I often find breaks in my schedule where I could fly out and visit my friends and family, but then comes the next issue: money. That’s why this article was particularly interesting to me, because it presented a new airline company that works with a tight budget. The first important point of the article is the launch of the airline itself, founded by former Allegiant Air and United Airlines executives, Avelo Airlines was in the works before the pandemic crippled the travel industry, and now as the world is in the second year of the pandemic where policies regarding safe and sanitary travel have been established, the idea of Avelo Airlines became a reality. Raising $125 million from investors in January 2020 gave Avelo Airlines the greenlight to launch as the demand for travel began to rise. Another important takeaway that addresses my problem, and most likely a relevant problem for others, is the cost. Fares start at $19 one-way, with additional fees for overhead carry-on bags($35), seat selection($5), or a pet in the cabin($95), and the flights aren’t on some dainty budget plane, all flights are on a 189-passenger Boeing 737 aircraft. This is important to consider because I believe with the demand for travel being so inelastic, a cheaper price will allow a wider range of consumers to utilize their service, theoretically balancing the offset of a cheaper price. The last important takeaway from this article is the relevancy to us, were on the route map! Avelo Airlines are a domestic carrier that travels to smaller, well-located airports that means smoother travelling, that leaves the fairs cheap. There are multiple of the small airports in Oregon that are supporting Avelo Airlines(with one close in Eugene), and airports across the states, which means I could visit more friends and family, sweet!

               The proposition of value of Avelo Airlines, (if it wasn’t apparent already) is their cheap-domestic travel on the west coast, which I think is more than effective because of the ability to attract a wide range of consumers. The relevance to marketing that this article holds is the launch of a new service that appeals to domestic west-coast traveler. They achieve this by only flying to smaller airports in states like Oregon, Washington, California, Montana Utah, Colorado, and Arizona. This allows the flights to be smoother due to less air traffic, and cheaper. The challenge that is facing Avelo Airlines is the crippled demand for travel due to the pandemic, becoming especially crippling in the beginning of the pandemic, when the service was first set to launch. Avelo Airlines is approaching this challenge not only with a high standard of sanitation and distancing guidelines, but also with the safety encompassed with traveling in between smaller airports, less condensed in an area, I cannot quite say yet how the competition will respond, as the service launches their first flight later this month but I hope for positive changes from all firms at the least. What makes the marketing approach unique about this service is the cheap cost of travel combined with the luxury-sized jet that combines comfort with accessibility. If I were the brand manager responsible for the launch of Avelo Airlines I would, although I agree with all current decisions with pricing and general locations, expand the route coverage to a larger variety of locations and cities, because that would increase the number of potential consumers for my service. Lastly from this article I mainly learned that regardless of what happens in the world, the demand for travel will remain relatively inelastic, because people need to get places.

Article Link: https://www.fastcompany.com/90623398/everything-to-know-about-avelo-airlines-the-new-post-pandemic-budget-carrier

Company Link: https://www.aveloair.com/