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Classic airline rewards its customers based on the miles earned through domestic or international flights. Customers are expected to buy eligible flight tickets from the classic Airlines. Clearly, classic airlines focus on marketing their Airline flights. Members of the Classic Airline earn a point for each flight. Moreover, members also earn extra points through spending in one of the six hotels and renting cars from one of their car rental firms. The company also offers an opportunity for members to earn miles through the use of credit cards. The company is marketing itself through offering certain incentives to its customers. Classic Airlines has developed a reward program that shows the level status achieved by the customers. The silver and gold levels are achieved based on the customers’ yearly mileage.

Members that have attained the gold level status receive monthly newsletters, monthly statement, and special promotions. According to the recent program, a large percentage of members are business travelers. Approximately, 20% of the members are leisure travelers (Rajagopal, 2007).  Members redeem the miles earned in their leisure travel more often. Members redeem their miles by staying in one of the Airline’s hotels. They also redeem through renting cars from one of the car rental partner organizations. According to the marketing concepts, marketing focuses on discerning the needs of the customers, which provide significant satisfaction. Marketers are driven by the wants and needs of the customers in order to deliver services to the consumers. Classic Airlines focuses on creating comfort for its customers (Pride & Ferrell, 2006). They offer a way of earning frequent miles. Moreover, earning the miles is a way of earning financial support. People also enjoy the comfort of the classic hotels after redeeming their points. Members that achieve the top-level through frequent flights also enjoy the opportunity of boarding early flights. Based on these benefits, members are lured into using the classic Airlines in order to earn the miles.

Classic Airlines face certain challenges such as strikes, which blemish the Airline’s reputation. Moreover, the company experiences futile negotiations with unions, intense leverage. The company is also faced with great competition from other Airlines. The firm also caters for the high fuel and equipment costs. It has to offer a high salary to the top pilots and other employees. Classical Airline’s competitors cut down the salary of the employees. Currently, Classical Airlines is involved in an alliance known as Tri-star alliance. It has three initial members, which include Europe, Latin America, and USA. The company aspires to increase partners in the developed markets. It focuses on achieving the broadest network of partners in the industry. It has established recent agreements, which include 5 major hotel chains, shopping services, financial services, tax services, vacation getaways. Currently, the firm is focused on developing the marketing alliance.

Code: Sample20

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