Pricing Strategies of Tiger Airways Research Paper

Pricing Strategies of Tiger Airways - Research Paper Example The Tiger Airways is divided into services and brands such as the marketing and customer services which comprise the in flight services, the marketing service and cabin crew (Albers, Auerbach, & Baum, 2005, p. 154). Furthermore, the operational services comprise flight operations, catering, aviation services, and operation planning and control services. The other section of the airline is the commercial service section. The airline has operations in countries like China, Hong Kong, Thailand, and Australia. Amongst all its destinations mentioned above, Thailand stands out as its major market. The company has a well-established website that enables passengers and other clients to book tickets cheaply online. This and other pricing strategies will be discussed in subsequent sections. This project, therefore, aims to explore the pricing strategies used to sell the Tiger airways tickets as well as other products. To successfully explore its pricing strategies, the discussion will also capture the factors influencing tiger airway’s pricing strategies and the positive and negative impacts of the pricing strategies used by Tiger airways. The pricing strategies used to sell the Tiger airways tickets and other product Tiger Airways employs a mix of pricing strategies coupled with unbeatable deals on airfares aimed at helping passengers to reach their destinations safely and cheaply. In addition to their competitive airfares, they also offer superb deals on hotels. Some of these strategies are discussed below. 2.1 Low-fare pricing Strategy Tiger Airways employ a low-fare pricing strategy. By definition, according to Graham (2008) the low-fare airlines also employ low cost strategies lowering their costs in relation to the pricing and cost strategies of their rivals. The business model of Tiger airways is primarily characterized by the simplicity of products and services, low costs of operation as well as a specific positioning, allowing them to offer their customers prices that are low, without offering many of extra services. The low prices provided by Tiger Airways have been appealing and attracting new clients in the market and even the airports such as Changi Airport in Singapore have adapted and transforming relative to the growth of the airline (Carrilho, 2010). Based on the fact that low cost air companies require reduced or lower airfares, airports are also assigned to this particularly segment by paying close attention to the income generated by activities that are non aeronautica l in nature as commercial services due to the income gen