Bachelor of Business Administration (Hons) Finance (BA242)

Principles and practice of Marketing (MKT420)

D1BA2421A

Price adjustment strategies implemented by Air Asia company

What is the price adjustment strategies implemented by Air Asia company?

 Air Asia is one of the biggest airlines company in Malaysia. Air Asia has implement a
few price-adjustment strategies in order to attract customer. The price-adjustment strategies
implemented by Air Asia is five strategies.

Firstly, discount and allowance pricing strategy. For this strategy, Air Asia reduces the
price of ticket flight for customer who books and pay early as reward to customer. Discount
and allowance pricing seems to be effective due to Air Asia offers affordable price to
customer.

Secondly, segmented pricing. Air Asia also offers hotel accommodation packages.
However, the price for hotel accommodation packages is difference even though from same
company. The hotel that manage by Asia Asia is Tune hotel. Tune hotel has been received
good response from customer due to its affordable packages.

Next, Air Asia also implement promotional pricing. Air Asia frequently made
promotional pricing especially for special event like anniversary of Air Asia and vacation
packages. However, the offered price is temporary.

Last but not least, Air Asia also implement psychological pricing. This pricing strategy
usually implement when there are limited flight ticket available and when customer did not
booking for the flight ticket.

Lastly, price-adjustment strategies implement by Air Asia is dynamic pricing. This is

when the prices are adjusted based on the characteristics and needs of the individual
customer and situations. For example, the price flight ticket for VIP is more expensive than
regular flight ticket.