How can Low Cost Airlines capture higher yields?

Maintaining the lowest possible cost base has always been thought of as the mantra of LCCs like Ryanair, Air Asia and easyJet. However, LCC’s are changing their business models and adapting. Why? So that they can capture higher yields. And there’s no better way of doing that than going after the corporate traveller market.

So here are a few tips on how to capture the corporates I’ve picked up on in my research:

1) You can win more custom from business travellers with the right incentives – flexible fares, speedy boarding, speedy arrival, taxi, airport transfer, etc

2) You get even greater yields if you identify and attract targeted ancillary revenue from corporate travellers

3) In order to tap effectively into the corporate world, you need carefully thought out and planned distribution strategies – finding out exactly how to reach the person booking the flights.

4) LCCs need to manage the expectations of their potential corporate customers – or risk brand reputation damage

5) You need to take into serious consideration how targeting the corporate traveller affects your business model. Changes in all areas – from operations through to customer service and sales will be needed.

easyJet has made a big deal out of going after the corporate traveller in the past few years, and as far as I can tell they are following the tips above to the tee. Curious to see which other LCCs will follow suit.