Segmentation variables are Used by Airlines

The aviation industry has a well-defined differentiated market segmentation framework. Most major carriers flying domestic of international routes have the basic segments of economy, business and first class passengers. Usually the majority of the cabin seating is allocated to cost conscious economy class passengers.

These seats are the least spacious, with food and beverages served on trolleys with a predetermined menu. Business class passengers are given an increased level of customer service, better seats and a more spacious arrangement. As the average price for a business class ticket is much greater than an economy class ticket, value added services such as late check-in, extra baggage allowance, and better in flight food and beverages. A first class passenger is willing to pay a premium on flying. First and business class passengers are usually insensitive to small price fluctuations, and are willing to pay a higher price for increased convenience and premium services (Lowe 2008). Other segmentation variables include demographic breakdowns, even lifestyle and values based differentiation. An important factor to also consider is what and airline can offer to its premium customers. Many airlines have rewards or high flier miles programs. The benefits of such programs based on accumulated travels are especially catered to business travelers and individuals who fly frequently. This contributes to improving brand loyalty among customers.

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