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Name: Mikaela Bones

Revision Exercise 5

Go Gansas is a budget airline, serving regional airports of Northern Europe. Many of

its customers are short-haul business travellers.

i). Describe two pricing policies commonly used by budget airlines, such as Go
Gansas. [4]

Budget airlines such as Go Gansas would use discounts on their tickets for anyone who
bookings their seating in advance this would attract more people to them especially if they
already know when they will be going on a business trip they could also use their
competitors as a marker if they should raise or lower their prices to make they seem like
the better option for the travellers

ii). Explain two external factors that might influence the prices charged by budget
airlines, such as Go Gansas. [4]

Things that might influence the prices that are charged by Go Gansas is the competitors
pricing as they will have to either raise or lower their prices to match or beat their rivals
another thing that might influence the prices id if the plane is filled or not if the plane is still
fairly empty then the prices would be decreased

iii). Go Gansas uses an Internet website to advertise the services it offers.

iv). Explain two advantages and two disadvantages to budget airlines, such as Go
Gansas, of using Internet website advertising.

Advantage 1: it's affordable therefore the company doesn’t need to pay huge amounts of
money to advertise their tickets or any specials [2]

Advantage 2: because they are advertising online and customers can place their bookings
online then the airline is able to handle all customers taking their bookings at once
whereas if they did it manually it would be time consuming [2]

Disadvantage 1: some people can ignore the ads and the airline then loses out on
potential customers [2]

Disadvantage 2: the internet offers too many ads and many business use the internet as a
platform to grow and expand their business therefore the customer may get distracted
with all the other ads and ignore the airlines ad [2]
 v). Analyse how a budget airline may use the marketing mix to increase its customer
numbers. [9]

the airline may use the marketing mix to increase the customers numbers by lowering the
price or offering discounts and offer lots of promotions for the company and advertise it to
increase the amount of people coming to your airline. They can also use the internet for
placing bookings because it is at a lower cost and they can offer food and drinks on their
plane to keep the customers happy throughout the flight.

Total: 25 Marks