Real Choices at United

Airlines

Muhammad Mustafa Bholacha

Khamidjonov Abu Bakr
Sami Ullah Zulfiqar Hussain
Chertok Roman
What challenges does the case
study highlight for United
Airlines?
 United needs to
ULCCs pose a threat
balance competitive Addressing conflicts
to United Airlines
pricing and and maintaining
due to lower prices
profitability while transparency in fare
and different service
catering to different classes is crucial.
standards.
customer segments.
Optimizing pricing to fill empty seats is essential.
The COVID-19 pandemic disrupted the industry, leading to lower
demand and financial strains.
United must consider customer preferences, seasonal variations, and
regulatory restrictions.
Monitoring competition and adapting pricing strategies are key to
success.
Identify two marketing concepts from chapter 10 and
discuss them in relation to the case study.
 Different customer
Leisure travelers are
United Airlines relies segments, such as
price-driven and
on accurate demand leisure travelers and
seek the best deals,
estimation to business travelers,
making their
optimize pricing have distinct
demand relatively
strategies and preferences and
elastic and
maintain behaviors that affect
responsive to price
profitability. their demand for air
changes.
travel.
Business travelers United Airlines Cost estimation is a
prioritize studies consumer crucial aspect of
convenience and behavior, conducts United Airlines'
schedule market research, pricing decisions,
dependability over and analyzes involving evaluating
cost, resulting in a historical data to various expenses
relatively inelastic estimate demand associated with
demand for air and set prices offering air travel
travel. accordingly. services.
 By accurately Continuous
Factors affecting
calculating costs, monitoring and
airline industry costs
United Airlines can analysis of cost
include fuel costs,
determine viable determinants,
maintenance and
fare classes and set including
repair costs, labor
prices to recoup operational
costs, overhead
costs and achieve effectiveness, cost-
costs, airport fees,
desired profitability cutting initiatives,
and marketing costs.
levels. and external factors.
What is United Airlines current global marketing
strategy?
 United Airlines combats low-
cost carriers by introducing a
"Basic Economy" ticket
instead of starting a new low-
cost company.
The "Basic Economy" fare
class is for customers who
prioritize cost over comfort,
providing basic amenities
without any extras.
 United seeks to United Airlines
United introduced
convert 60-70% of acknowledges the
Basic Economy fares
Basic Economy need for continuous
to retain existing
bookings to normal adaptability and
and attract new
fares, additionally evolution to stay
customers, aiming
earning from competitive in the
to secure their long-
baggage fees and ever-changing airline
term business.
upselling services. industry.
How will changes in consumer
preferences influence the evolution
of the airline industry?
 Customers prioritize
Evolutionary needs Understanding
environmental
shape human needs is crucial in
impact in air travel,
preferences and marketing,
demanding airlines
behavior, psychology, and
to invest in fuel-
encompassing social sciences for
efficient aircraft,
physical, predicting human
alternative fuels,
psychological motivations and
and carbon offset
demands. behaviors.
schemes.
Airlines must cater
In-flight Wi-Fi, real- COVID-19 raises
to individual
time flight safety concerns;
preferences for
information, and airlines must
personalized
mobile check-in are improve cleaning,
experiences,
just a few of the ventilation, and
increasing customer
technical contactless
satisfaction and
innovations. technologies.
loyalty.
Consumer preferences for
vacation destinations,
For companies to succeed in
adventure travel, sustainable
the competitive aviation
tourism, and experiential
sector, airlines must adapt to
travel influence airlines'
shifting consumer tastes
routes, flight schedules, and
services.
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