We Are Travelers
The airline industry is highly competitive. Market forces and aggressive competitors are making it increasingly hard to achieve healthy top-line growth for SAS. Furthermore, the main competition – low cost carriers – has a business model that is based on low service, low operational costs and younger, inexperienced, employees. The SAS business model is different and they simply cannot win a price war.
However, the customer and revenue ratio/mix in the airline category is rather unusual. The frequent travelers represent 12 % of the market but represents almost 70 % of total revenues. And importantly they both have different expectations than the rest of the market and they are willing to pay a premium for a brand that fits their life, motivations and aspirations.
Winning the minds and hearts of Scandinavia’s frequent travelers – with the end-goal of increasing their willingness to pay – became the crucial gap to both understand and solve.