My first association with Air Deccan was when I had just started earning… I was travelling from Bangalore to Ahmedabad. There was no direct flight so had to book tickets via Bombay… The Bang-Mum flight that day was late by over 5 hours, 😦 which resulted in my missing the Mum-Abad flight (which also btw was Air Deccan) 😦 The result – I had to rush to book an Indian Airlines flight early next morning… which meant, well, spending the entire night at the Bombay Airport… So, no points for guessing, my first experience was pretty much awful. Its been that day and it is now.. Air Deccan has never failed to perpetually torture this particular customer (Sniff!!!!). And It is most certainly, the story of the rest of the Junta as well…
And yet, I used to incessantly crib about the bad flights, bad aircrafts… over and above that, bad experience with Air Deccan and yet continue to fly with it (The rates were so damn cheap!! You really cant blame me, Can you?). It has been over 2 years now and I just heard the Air Hostess announce that If your Air Deccan flight is delayed by more than 3 hours or cancelled, you get a air ticket free – Wow!! Now thats something… 🙂
Air deccan not only offers the cheapest price, it also covers 56 destinations all over India (which btw is the highest covered by any air line in India so far).
Amidst all this, one boggles at how Air Deccan manages to do this, specially at an era, when most air lines find it difficult to even cover their operational costs. Air Deccan is not just meeting it, it is also buying many more AirBus 320s (wow! :D)
Now coming to the specifics, Air Deccan’s success to a large extent depends on its ability to understand and react to consumer behavior (Yield Management). Good yield management maximizes revenue production for the same number of units, by taking advantage of the forecast of high demand/low demand periods, effectively shifting demand from high demand periods to low ones and by charging premium for late bookings. Yield management models attempt to forecast total demand for all products/services they provide, by market segment and price point.
Their focus is clearly on the bigger picture – that every flight has to make money rather than every seat. They focus on revenue rather than yield. So, it is not about every seat that is sold, it is more about how much moolah can be raked in on every flight. If that were not enough, they use forecasting and other algorithms, to identify the size of the aircraft and new destinations to fly to. In fact, they are soon headed to CRM, which would mean recognising customers through their websites and servicing them accordingly. Hmmm… Now thats interesting! 🙂
Air Deccan has definitely been a boon to India with its concept of dynamic pricing, which means even the ones who couldnt afford to Fly earlier can do so now at unbelievably realistic rates – Now that means business!!
Way to go Captain! 😀